SueWallSt is reviewing potential shareholder claims about DraftKings Inc.’s financial disclosures after the betting company cut its 2026 outlook, bringing the cost of its Predictions expansion under scrutiny.
SueWallSt, a platform powered by Levi & Korsinsky LLP, said in a Nov. 9 notice that its review concerns statements about financial results and Predictions costs. It invited investors who suffered losses to provide information. The notice identifies no filed lawsuit, regulatory action or specific statement shown to be false. SueWallSt says a review does not establish a securities violation.
DraftKings announced its quarterly results Nov. 5 and lowered its full-year revenue forecast to $6.35 billion-$6.55 billion from the $6.5 billion-$6.9 billion range it maintained in August. It cut its adjusted EBITDA forecast to $175 million-$275 million from $700 million-$900 million. The company filed an earnings-related Form 8-K with the SEC on Nov. 6.
DraftKings said the forecast revision primarily reflects a planned $650 million-$700 million adjusted EBITDA investment in Predictions this year. It expects promotions for new customers to offset most of that business’s gross revenue in 2026.
For the three months ended Sept. 30, 2026, revenue rose 16% to $1.329 billion. DraftKings reported a $468.720 million net loss and a $316.899 million adjusted EBITDA loss. The $151.821 million difference reflects distinct accounting measures: Adjusted EBITDA is a company-defined measure that excludes items including depreciation, interest, taxes and stock-based compensation.
ChartExchange historical data show DraftKings shares opened at $17.34 on Nov. 6, down 26.28% from the previous close. They ended the session at $18.51, a decline of 21.30%.
DraftKings Chief Financial Officer Alan Ellingson said, “Our core business continues to generate significant free cash flow.” The company forecasts $650 million-$750 million in Predictions revenue in 2027. Its next stated measure of the expansion is a forecast $175 million-$225 million adjusted EBITDA investment in the fourth quarter of 2026.
