DraftKings Raised Quarterly Revenue. Why Did Its Loss Still Grow?

DraftKings took in $185 million more revenue in the September quarter than it did a year earlier. Its net loss attributable to common stockholders also widened, by about $212 million. The two figures describe the same three months. They make a better starting point for reading the November 5 release than treating a strong sportsbook margin as a verdict on the entire company.

What the $109 measures

Divide the business into customers and what the company earns per customer, and the quarter gets easier to read. DraftKings reported 4.1 million monthly unique payers, up about 13%, and $109 in average revenue per monthly unique payer, up about 3%. The company credited the revenue-per-payer improvement mostly to a better sportsbook net revenue margin. It also credited retention and acquisition across sportsbook, iGaming and Predictions for the rise in payers.

You would need different data to tell how much customers wagered. A payer count tells you something about participation, while average revenue per payer brings in the revenue the company records. DraftKings’ total quarterly revenue reached $1.329 billion. Its reported loss attributable to common stockholders reached $468.7 million, compared with $256.8 million a year earlier. Our Caesars segment analysis uses the same distinction between the top line and what remains after costs.

Why next year’s profit measure looks so different

The release gives two adjusted EBITDA forecasts for each year: one for the core business and one for the group. Take the midpoints for 2026 and the core contributes $900 million, with $675 million earmarked for Predictions investment on that measure. The group midpoint is $225 million. For 2027, a $1.2 billion core midpoint and $300 million of investment leave a $900 million group midpoint.

The comparison puts a number on each moving part. The projected core improvement contributes $300 million to the change, and the smaller investment contributes another $375 million. The combined $675 million swing is a comparison between forecasts. The release supplies a reconciliation for historical adjusted EBITDA, which is a different measure from the reported loss.

Look at the promotion line before drawing conclusions

DraftKings says promotions will absorb much of Predictions’ gross revenue in 2026 and expects the offering to produce immaterial revenue for the year. For 2027 it forecasts $650 million to $750 million in Predictions revenue. The gap between those two descriptions is worth watching when the next results come out. It will matter whether revenue grows as expected and whether that growth comes with the lower investment the company has projected.