DraftKings recently announced senior management changes, with co-founder Matt Kalish planning to leave in March 2026. The company also launched the prediction market product DraftKings Predict and reached new partnerships with media such as ESPN. The third-quarter financial report showed revenue growth but was below expectations, leading to an adjusted outlook for the full year.
Executive Changes and Company Transformation
Matt Kalish's departure marks a period of transformation for DraftKings, as he will continue to serve on the board after stepping down. This change occurred after the company resolved a lawsuit regarding its Reignmakers NFT product. DraftKings entered the prediction market by acquiring Railbird Technologies for $48.6 million, with an additional $200 million possible in consideration.
Prediction Market Product Launch and Regulation
DraftKings Predict is about to launch, and the company has communicated with regulatory bodies, planning to offer sports event contracts only in states where sports betting is not legalized. The acquisition of Railbird, which holds a CFTC license, enables the company to expand into new business areas. CEO Jason Robins emphasized growth opportunities, despite facing competition and litigation challenges in the industry.
Financial Performance and Future Outlook
The third-quarter revenue was $1.14 billion, a 4.4% increase year-over-year, but it did not meet analyst expectations. The adjusted EBITDA was -$126.5 million, and the company has lowered its 2025 revenue forecast to $6 billion. Additionally, DraftKings' partnership with ESPN will integrate products and increase the stock repurchase plan to $2 billion to promote long-term growth.
