After reducing its 2025 financial outlook, shares of DraftKings (NASDAQ: DKNG) fell during Thursday's after-hours session, continuing a now-long decline.

The online sportsbook behemoth announced that it now anticipates 2025 adjusted profits before interest, taxes, depreciation, and amortization (EBITDA) of $450 million to $550 million on sales of $5.9 billion to $6.1 billion along with the announcement of its third-quarter results. This contrasts with earlier forecasts of $800 million to $900 million in EBITDA on $6.2 billion to $6.4 billion in revenue.

"The company’s guidance includes anticipated financial impacts from DraftKings launching mobile sports betting in Missouri later this year,” according to a statement. “The company’s guidance for fiscal year 2025 now includes the expected launch of DraftKings Predictions in the coming months, pending licensure.”

The gaming company didn't go into detail about why it reduced its 2025 financial outlook, and it probably doesn't need to because it's well known that more client-friendly NFL results in the third quarter hurt online sports betting (OSB) operators; this situation is said to have carried over into the current quarter.

DraftKings' Buyback Plan Doubles Shares

DraftKings' shares have dropped 20.57% in the last month, which has drawn a lot of social media criticism from the company's sizable retail investment base. However, the operator has taken action to soothe those worries.

Among them is the news made last month about the purchase of Railbird Technologies, which sets the stage for the introduction of DraftKings Predictions. Additionally, the business declared that the share repurchase program it introduced in August 2024 will be doubled in size.

“We continue to focus on maximizing shareholder returns and are pleased to announce that our board authorized an increase in our share repurchase program from $1.0 billion to $2.0 billion,” said CFO Alan Ellingson in the press release.

Given the low stock price and the appearance that shares are being issued to finance part of the Railbird purchase, investors are probably hoping DraftKings quickly utilizes some of that buyback firepower right away.

Focus on the ESPN Deal

The company's recent agreement with ESPN, which essentially replaces Penn Entertainment (NASDAQ: PENN) as the network's partner on ESPN Bet, was not mentioned in DraftKings' earnings news statement. Earlier today, such information became public.

“DraftKings will also play a major role across ESPN’s digital platforms. DraftKings will power the betting tab within the ESPN app and their customers will receive special promotions for ESPN Unlimited, ESPN’s newly launched direct-to-consumer product,” according to the companie.

Investors and analysts will probably pay close attention to DraftKings' capital commitments to the ESPN partnership and whether any equity will be issued, as this could result in additional dilution for existing shareholders.