DraftKings Cuts 2026 Profit Outlook on Predictions Spending

DraftKings cut its 2026 adjusted profit forecast after raising planned investment in its Predictions business to as much as $700 million, while reporting third-quarter revenue growth and a wider adjusted loss. The company expects adjusted EBITDA of $175 million to $275 million this year, down from its previous range of $700 million to $900 million. The revised forecast includes $650 million to $700 million in adjusted EBITDA investment in Predictions, DraftKings’ event-contract business. The company said its established business is expected to generate adjusted EBITDA of $875 million to $925 million in 2026. Predictions investment alone is expected to account for $175 million to $225 million in the fourth quarter. For the three months ended September 30, revenue rose 16% from a year earlier to $1.33 billion. The adjusted EBITDA loss widened to $316.9 million from $126.5 million in the year-earlier quarter. DraftKings also reported a net loss of $468.7 million, or 94 cents per share, compared with a net loss of $256.8 million, or 52 cents per share, a year earlier. The company said Predictions revenue in 2026 would be immaterial because promotions for new customers are expected...