Stocks / DKNG
DraftKings Inc.'s 10-K, read.
Bob rates DraftKings Inc. (DKNG) 34/100, lean bearish, on the 10-K filed February 13, 2026, updated through the 10-Q filed November 6, 2026.
DraftKings is still growing revenue (nine-month 2026 revenue up about 9% to $4.42B), but the latest 10-Q shows a sharp deterioration in profitability. Sales and marketing spend has surged, operating losses have widened to $555M for the nine months, and the balance sheet has shifted toward term debt and a much thinner equity base. Its prediction markets push, which carries new regulatory and litigation exposure, is adding to the cost base.
- Operating losses widened sharply: nine-month 2026 operating loss was $(555)M versus $(168)M a year earlier, and Q3 2026 alone was $(493)M versus $(272)M, driven by sales and marketing rising to $606M in the quarter from $360M.
- Net losses are growing: nine-month net loss attributable to common stockholders was $(515)M versus $(133)M, and EPS was $(1.04) versus $(0.27).
- Cash generation has weakened: nine-month operating cash flow fell to $63M from $342M, and after capex and capitalized software spend the business was roughly free-cash-flow negative.
- Stockholders' equity dropped to about $180M from $631M at year-end 2025, as buybacks, RSU withholding purchases and losses reduced the equity base.
- Debt mix shifted: the company took on $700M of new Term B-2 loans (secured, SOFR plus 2.00%) and a new $750M revolver, while repurchasing $320M of convertible notes; about $945M of converts remain, with $958M of principal due in 2028.
Not investment advice — general research, the same for every reader. You make your own calls.
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Read DKNG in Bob →Last read November 7, 2026. Bob's Research is a financial publisher, not an investment adviser. Everything here is general research and education — not personalized advice, and not a recommendation to buy or sell any security. Ratings are the same for every reader. You make your own calls.