DraftKings: 3 Key Takeaways for Long-Term Investors

DraftKings increased its 2026 adjusted EBITDA investment in prediction markets to $650-700 million to capitalize on rapid customer growth. The company's predictions business is achieving faster-than-expected customer payback periods (20 months vs. 2-year target), while core sportsbook and iGaming operations generate strong cash flow to fund expansion. Management projects fiscal 2027 adjusted EBITDA of $800 million to $1 billion, driven by cross-selling opportunities and accelerating iGaming customer acquisition growth of 76% year-over-year.