Published on: November 6, 2025, 04:26h.
Updated on: November 6, 2025, 04:26h.
- Shares drop sharply late Thursday following a revision of 2025 EBITDA and revenue projections.
- Revised forecast adds upcoming Missouri sports betting and DraftKings Predictions initiatives.
Continuing its ongoing decline, DraftKings (NASDAQ: DKNG) experienced a significant drop in stock value during Thursday’s after-hours trading after adjusting its 2025 financial forecasts downward.
With the release of its third-quarter results, the online sportsbook titan reported expected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025 in the range of $450 million to $550 million, with revenue estimated between $5.9 billion and $6.1 billion. This marks a significant adjustment from earlier predictions of EBITDA between $800 million and $900 million on revenues of $6.2 billion to $6.4 billion.
“The company’s forecast encompasses expected financial effects following the launch of mobile sports betting in Missouri later this year,” a statement noted. “Additionally, the 2025 guidance now reflects the anticipated introduction of DraftKings Predictions in the coming months, pending licensing.”
While the company did not elaborate further on the reduction of its 2025 financial outlook, it is widely acknowledged that online sports betting (OSB) operators faced challenges from more favorable NFL outcomes in the third quarter—a trend that appears to have persisted into the current quarter.
DraftKings Expands Share Buyback Initiative
DraftKings stock has seen a 20.57% decrease over the past month, inviting considerable criticism from its significant base of retail investors. In response to these concerns, the company is taking proactive measures.
These initiatives include last month’s announcement of acquiring Railbird Technologies, setting the stage for DraftKings Predictions. Additionally, the company announced it is expanding its share repurchase plan established in August 2024.
“We are dedicated to enhancing shareholder value and are pleased to declare that our board has approved an increase in our share buyback program from $1.0 billion to $2.0 billion,” stated CFO Alan Ellingson in a press release.
Investors are likely eager for DraftKings to implement some of this buyback capacity swiftly due to the current reduced stock price, especially as some shares may be released to finance part of the Railbird acquisition.
Focus on ESPN Partnership
DraftKings’ earnings announcement did not provide details regarding its newly established deal with ESPN, where the gaming company is effectively taking over from Penn Entertainment (NASDAQ: PENN) as the network’s official partner for ESPN Bet. This development was disclosed earlier today.
“DraftKings will significantly feature across ESPN’s digital platforms, powering the betting component within the ESPN app, complete with exclusive promotions for ESPN Unlimited, ESPN’s newly introduced direct-to-consumer offering,” a company statement explained.
Analysts and investors will likely scrutinize the financial commitments DraftKings is making in relation to the ESPN partnership, particularly whether equity issuance will be necessary, as this could lead to further dilution for existing shareholders.