DraftKings lowered its 2026 revenue forecast on Nov. 6 to about $6.35 billion to $6.55 billion, after reaffirming a higher range three months earlier. Shares fell more than 25% by the market open, and law firm Levi & Korsinsky said it is investigating potential securities law violations on behalf of investors who lost money.
The new range compares with guidance of $6.5 billion to $6.9 billion that DraftKings maintained on Aug. 7. The November forecast midpoint, $6.45 billion, is $250 million below the previous midpoint of $6.7 billion; its upper end is $350 million below the prior range’s top.
On the company’s second-quarter call in August, CFO Alan Ellingson said DraftKings was maintaining its fiscal 2026 guidance because of the strength of its core business and expectations for investment in Predictions. CEO Robins said the company was then planning an additional $200 million to $300 million in investment that year. The Nov. 6 earnings release attributed the revenue guidance reduction primarily to a planned $650 million to $700 million investment in Predictions.
Levi & Korsinsky said its investigation concerns whether DraftKings made materially false or misleading statements about its 2026 revenue guidance and the scale of its planned Predictions investment before the November disclosure. The firm said investors who bought DKNG securities and suffered losses may be eligible for an evaluation, based on purchase dates and documented losses. It said investors may provide brokerage statements or trade confirmations; submitting information for review has no upfront cost and does not require an immediate step to remain eligible. The firm’s notice says any attorneys’ fees and expenses in a resulting action would be subject to court approval.
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