DraftKings Crashes As "Aggressive Prediction Investments" Drive EBITDA Outlook Cut DraftKings shares crashed 24.5% in Friday's premarket trading after the sports betting operator slashed the midpoint of its 2026 adjusted EBITDA forecast to $225 million from $800 million.
The mad dash into prediction markets overshadowed a 16% year-over-year increase in third-quarter revenue to $1.33 billion. " In just a few months, we have become the clear number three Predictions exchange by Total Volume ," CEO Jason Robins wrote in a letter to shareholders.
BofA Securities gaming analyst Julie Hoover attributed $475 million of the $575 million guidance cut to additional investment in prediction markets . The remaining $100 million reflected a lower adjusted EBITDA forecast for the core business. Hoover wrote in her first take: Q3 Miss and 2027 estimate reset DraftKings (ticker: DKNG) reported Q3 revenue/EBITDA of $1.33/-316M vs.
BofA $1.345B/-$100M and the Street's $1.393B/-66M.