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DKNG Gears Up for Q3 Earnings: Sportsbook Growth & Costs in Focus
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Key Takeaways
DraftKings is expected to report Q3 2026 revenues of $1.39 billion, up 21.6% year over year.
Sportsbook handle growth, strong engagement, iGaming gains and Predictions expansion to drive revenues.
Higher marketing costs and $200M-$300M in planned Predictions investments may pressure profits.
DraftKings Inc. (DKNG - Free Report) is scheduled to report third-quarter 2026 results after the closing bell on Nov. 5. In the last reported quarter, the company registered an earnings miss of 59.1%.
DKNG’s Estimates Trend
The Zacks Consensus Estimate for third-quarter adjusted loss per share has widened to 18 cents from 14 cents in the past 30 days. In the prior-year quarter, the company reported an adjusted loss per share of 26 cents. The consensus mark for revenues is pegged at $1.39 billion, indicating a 21.6% year-over-year increase.
What Might Have Shaped DKNG’s Q3 Results?
DraftKings is likely to have benefited from sustained momentum in sports betting, strong customer engagement and seasonal demand in the third quarter of 2026. The conclusion of the World Cup and the commencement of the NFL season likely provided fresh impetus to betting activity. The company entered the quarter with solid momentum, as Sportsbook handle increased 11% year over year in the second quarter. Notably, July handle rose 20% year over year following the World Cup, signaling sustained customer activity. Improving customer retention, market share gains and a rising parlay handle mix are likely to have further supported revenue growth.
DraftKings' nationwide marketing presence and Super App strategy also position it to attract new users and expand engagement across the product portfolio. Beyond Sportsbook, DraftKings is likely to have gained from improving iGaming performance and the rapid expansion of its Predictions offering. The Lightning Link launch and Flex Spins feature have strengthened its iGaming portfolio, while better-than-expected customer acquisition and stabilizing market share point to improving business trends. Predictions is emerging as an additional growth driver, supported by expanding sports content, the growing popularity of combos and attractive customer acquisition costs.
More than 600,000 customers had engaged with the offering year to date as of the second-quarter earnings call. Continued product enhancements, broader customer reach and stronger engagement across platforms are likely to have contributed to the company's third-quarter revenue. DraftKings' bottom line is likely to have remained under pressure from elevated marketing expenses and investments aimed at accelerating growth. Management indicated plans to invest an incremental $200-$300 million in Predictions during 2026, reflecting the company's focus on expanding this emerging business.
Higher customer acquisition spending, particularly ahead of the NFL season, is likely to have weighed on near-term profitability. Promotional activity in the competitive online sports betting market, along with spending on product innovation, technology and platform development, might have added to the cost burden. Nevertheless, the company's disciplined expense management, improving customer acquisition efficiency and cost-control initiatives are likely to have helped offset some of these pressures. Consequently, DraftKings' third-quarter 2026 loss is likely to have narrowed.
Our proven model does not predict an earnings beat for DraftKings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
DKNG’s Earnings ESP: DraftKings currently has an Earnings ESP of -13.21%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of DKNG: The company carries a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
For the to-be-reported quarter, FOX is expected to register a 28.1% increase in earnings. FOX reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 35.9%.
American Public Education, Inc. (APEI - Free Report) currently has an Earnings ESP of +1.56% and a Zacks Rank of 2.
APEI’s earnings for the to-be-reported quarter are expected to decrease 13.3%. American Public Education reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 150.9%.
Planet Fitness, Inc. (PLNT - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3.
PLNT’s earnings for the to-be-reported quarter are expected to remain flat. Planet Fitness reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 9.3%.
View the Zacks #1 Rank List
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DKNG Gears Up for Q3 Earnings: Sportsbook Growth & Costs in Focus
Key Takeaways
DraftKings Inc. (DKNG - Free Report) is scheduled to report third-quarter 2026 results after the closing bell on Nov. 5. In the last reported quarter, the company registered an earnings miss of 59.1%.
DKNG’s Estimates Trend
The Zacks Consensus Estimate for third-quarter adjusted loss per share has widened to 18 cents from 14 cents in the past 30 days. In the prior-year quarter, the company reported an adjusted loss per share of 26 cents. The consensus mark for revenues is pegged at $1.39 billion, indicating a 21.6% year-over-year increase.
What Might Have Shaped DKNG’s Q3 Results?
DraftKings is likely to have benefited from sustained momentum in sports betting, strong customer engagement and seasonal demand in the third quarter of 2026. The conclusion of the World Cup and the commencement of the NFL season likely provided fresh impetus to betting activity. The company entered the quarter with solid momentum, as Sportsbook handle increased 11% year over year in the second quarter. Notably, July handle rose 20% year over year following the World Cup, signaling sustained customer activity. Improving customer retention, market share gains and a rising parlay handle mix are likely to have further supported revenue growth.
DraftKings' nationwide marketing presence and Super App strategy also position it to attract new users and expand engagement across the product portfolio. Beyond Sportsbook, DraftKings is likely to have gained from improving iGaming performance and the rapid expansion of its Predictions offering. The Lightning Link launch and Flex Spins feature have strengthened its iGaming portfolio, while better-than-expected customer acquisition and stabilizing market share point to improving business trends. Predictions is emerging as an additional growth driver, supported by expanding sports content, the growing popularity of combos and attractive customer acquisition costs.
More than 600,000 customers had engaged with the offering year to date as of the second-quarter earnings call. Continued product enhancements, broader customer reach and stronger engagement across platforms are likely to have contributed to the company's third-quarter revenue. DraftKings' bottom line is likely to have remained under pressure from elevated marketing expenses and investments aimed at accelerating growth. Management indicated plans to invest an incremental $200-$300 million in Predictions during 2026, reflecting the company's focus on expanding this emerging business.
Higher customer acquisition spending, particularly ahead of the NFL season, is likely to have weighed on near-term profitability. Promotional activity in the competitive online sports betting market, along with spending on product innovation, technology and platform development, might have added to the cost burden. Nevertheless, the company's disciplined expense management, improving customer acquisition efficiency and cost-control initiatives are likely to have helped offset some of these pressures. Consequently, DraftKings' third-quarter 2026 loss is likely to have narrowed.
DraftKings Inc. Price and EPS Surprise
DraftKings Inc. price-eps-surprise | DraftKings Inc. Quote
What Does the Zacks Model Unveil for DKNG?
Our proven model does not predict an earnings beat for DraftKings this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
DKNG’s Earnings ESP: DraftKings currently has an Earnings ESP of -13.21%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank of DKNG: The company carries a Zacks Rank #3 at present.
Stocks to Consider
Here are some stocks from the Zacks Consumer Discretionary space that investors may consider, as our model shows that these have the right combination of elements to deliver an earnings beat this time around.
Fox Corporation (FOX - Free Report) currently has an Earnings ESP of +9.09% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
For the to-be-reported quarter, FOX is expected to register a 28.1% increase in earnings. FOX reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 35.9%.
American Public Education, Inc. (APEI - Free Report) currently has an Earnings ESP of +1.56% and a Zacks Rank of 2.
APEI’s earnings for the to-be-reported quarter are expected to decrease 13.3%. American Public Education reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 150.9%.
Planet Fitness, Inc. (PLNT - Free Report) currently has an Earnings ESP of +0.53% and a Zacks Rank of 3.
PLNT’s earnings for the to-be-reported quarter are expected to remain flat. Planet Fitness reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 9.3%.