Could DraftKings (DKNG) Stock Turn Margin Pressure Into a Bigger Growth Opportunity?

DraftKings Inc. (DKNG) recently announced a $600 million Senior Secured Term Loan B credit facility to fund corporate purposes and repay existing Convertible Notes. The company also secured a $750 million senior secured revolving credit facility, replacing its previous $500 million revolver maturing in 2029. Management anticipates the new facility to remain substantially undrawn at closing, improving liquidity and extending the maturity profile.

Following a mixed Q2 2026 financial report, DraftKings maintained its full-year 2026 revenue guidance of $6.5B–$6.9B with Adjusted EBITDA between $700M–$900M. The company expects normalized revenue growth of 10% year-over-year, with core operations projected to deliver approximately $1 billion in Adjusted EBITDA. Wall Street opinions are divided on whether the margin pressure is a temporary issue or a sign of structural unprofitability.

Some analysts, such as Guggenheim and Citi, have raised their price targets and maintained Buy ratings, citing customer acquisition opportunities and strong free cash flow. However, concerns remain about elevated financial leverage and potential regulatory challenges for DraftKings' expansion into new markets.