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DraftKings posted Q1 2026 revenue of $1.65 billion, up 17% year-on-year, beating analyst estimates as the company swung to a $21.1 million net profit from a $33.9 million loss in the same period last year.
Sportsbook and iGaming
Sportsbook revenue rose 24.1% to $1.09 billion. Betting handle increased 1.5% to $14.08 billion, with sportsbook margin improving to 7.8% from 6.4% a year earlier.
iGaming revenue climbed 8.9% to $461.3 million, accounting for nearly 28% of total group revenue.
Adjusted EBITDA reached $167.9 million, up from $102.6 million in Q1 2025. Adjusted earnings per share came in at $0.20, above analyst estimates of $0.17.
Monthly unique paying customers fell 4% year-on-year to 4.2 million, partly due to DraftKings’ exit from the Texas lottery market. Excluding that impact, paying customers rose 2%.
Shares closed up 5.4% on the day of the results and rose a further 1.8% in postmarket trading.
Super App and Prediction Markets
DraftKings used the results to detail early traction for its Super App strategy, which consolidates sportsbook, iGaming, and prediction market products into a single platform.
The company said prediction market customer acquisition costs in April fell more than 80% through the app.
“Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions,” said CEO Jason Robins. “With our Super App, market-making capabilities, proprietary exchange, and combos coming together, we intend to establish a leadership position in Sports Predictions before year-end.”
Annualized prediction market consumer volume exceeded $1 billion in April, with annualized total traded volume surpassing $2.3 billion, up 38% and 43% month-on-month respectively.
DraftKings noted that 69% of prediction market trading volume currently originates from states where sports betting remains prohibited, a point the company cited as evidence of a large untapped addressable market. The operator <a href=”https://epicwins.io/2025/12/20/draftkings-prediction-markets-launch-in-38-us-states/”>launched prediction markets across 38 US states in December 2025.
Full-Year Guidance Maintained
DraftKings held its full-year 2026 revenue forecast at $6.5 billion to $6.9 billion, with adjusted EBITDA guidance of $700 million to $900 million. The company also reiterated long-term targets of $55 billion to $80 billion in gross revenue by 2030 and a minimum 30% adjusted EBITDA margin.
“The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities,” said CFO Alan Ellingson.
Q1 marks a notable improvement on the market reaction to <a href=”https://epicwins.io/2026/02/13/draftkings-best-quarter-ever-so-why-did-the-stock-crash/”>DraftKings‘ record Q4 2025 performance, when strong results triggered a stock selloff on concerns over the pace of margin expansion. The Q1 print, combined with maintained guidance, produced a more straightforward response from investors.
The prediction market segment remains the open question for the rest of the year. <a href=”https://epicwins.io/2026/02/11/kalshi-reports-1b-super-bowl-trading-volume-up-2700/”>Kalshi reported $1 billion in Super Bowl trading volume in February, illustrating the competitive pressure DraftKings faces in that vertical. Robins’ stated aim to secure a leadership position before year-end puts Q2 and Q3 prediction volumes firmly in focus.
Source: DraftKings
