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DraftKings reported second-quarter 2026 revenue of $1.44bn, down 4.6% year-on-year, and swung to a net loss of $67.6m as customer-friendly sports results removed an estimated $80m from the top line.
Revenue for the three months to 30 June came in at $1,443.2m, against $1,512.5m in the same quarter of 2025, according to the company’s 8-K filed with the Securities and Exchange Commission on 7 August. Loss from operations was $68.2m. Net loss attributable to common stockholders reached $67.6m, reversing net income of $157.9m a year earlier. Adjusted EBITDA fell to $114.6m from $300.6m.
Adjusted diluted earnings per share of $0.09 compared with $0.38 in Q2 2025. Analyst consensus had pointed to revenue of roughly $1.52bn, according to Casino.org, making the quarter a top-line miss. iGaming Business reported the EPS figure also fell short of a $0.22 consensus estimate.
Handle rose 15% while hold went the other way
Sports Consumer Volume, the operator’s measure of total betting and prediction market activity, reached $13.1bn in the quarter, up from $11.5bn a year earlier. Monthly Unique Payers rose 9% to approximately 3.6 million. Average revenue per MUP fell 13% to $132.
DraftKings attributed the revenue decline to customer-friendly sport outcomes and increased promotional reinvestment. Management put the outcome-driven revenue headwind at approximately $80m, pointing to the New York Knicks’ NBA championship run and World Cup group-stage results. Both effects were felt across the US market, and rival Flutter Entertainment cited the same dynamic in its own quarter.
Customer acquisition ran ahead of plan. The company said it added close to 75% more customers than in the prior-year period and roughly 30% more than budgeted, spending 10% above plan on acquisition while acquisition costs came in around 25% better than expected.
Predictions volume climbs as DKeX comes online
Annualised total volume traded on the predictions business reached $11bn in July, up from $2.3bn in April. More than 600,000 customers have used the product year to date. The company launched DKeX, its own exchange, several weeks before the results, and plans to move most major sports content onto it.
Chief Executive and co-founder Jason Robins framed the segment as a share contest rather than an experiment.
We are not building to participate. We are building to lead and win.
DraftKings confirmed plans to invest an incremental $200m to $300m in predictions across the remainder of fiscal 2026, and said it could exceed that figure if acquisition costs stay favourable. Robins said the company is assessing the spend through return-on-investment models and can reallocate marketing budget between products.
The competitive backdrop has changed quickly since the company’s prediction markets launch across 38 US states in December. Kalshi has recorded $39.7bn in annualised trading volume so far in 2026, according to iGaming Business, having already posted $1bn in Super Bowl LX trading volume in February.
Full-year guidance unchanged
DraftKings maintained fiscal 2026 guidance of $6.5bn to $6.9bn in revenue and $700m to $900m in adjusted EBITDA, the same range set on 7 May. Management said the core business, excluding predictions investment, remains on track for approximately $1bn in adjusted EBITDA this year.
Our core business remains on track to generate approximately $1 billion of Adjusted EBITDA this year, providing us with financial flexibility to invest behind the significant opportunity that we are seeing in Predictions.
Chief Financial Officer Alan Ellingson said adjusted general and administrative expense fell 6% year-on-year in the quarter. Total revenue across the first six months of 2026 is up 5.8% on the same period of 2025, with volume up 7.8%.
Total assets stood at $4.28bn at 30 June against total liabilities of $3.71bn, leaving stockholders’ equity of $569.4m. Cash, restricted cash and cash reserved for users totalled $1.39bn.
Footprint and iGaming position
DraftKings ended the quarter live with mobile sports betting in 27 states, Washington D.C. and Puerto Rico, covering around 53% of the US population. Its iGaming product operates in five states, reaching roughly 11%. The company covers 51% of the Canadian population across both verticals.
Robins said iGaming is showing improved momentum after several quarters of share losses, citing the Lightning Link and Flex Spins titles. The segment has been a persistent soft spot since the operator’s Q4 2025 results in February, when record revenue failed to hold the share price.
Sector pressure widens
The results landed two days after Flutter Entertainment cut its full-year 2026 guidance. Flutter posted Q2 revenue of $4.33bn, up 3%, but adjusted EBITDA fell 45% to $508m and the group swung to a net loss of $296m. US revenue declined 6% to $1.68bn, with FanDuel sportsbook revenue down 15% to $1.04bn. Flutter reduced midpoint group revenue guidance by $395m to $17.91bn and adjusted EBITDA guidance by $210m to $2.655bn. Chief Executive Peter Jackson will hand over to Dan Taylor on 1 October.
DraftKings shares fell as low as $21.40 overnight after the release, then recovered around 5% during Friday trading following the earnings call, according to Legal Sports Report.
A major app update is scheduled for August, adding features across sportsbook, iGaming and predictions ahead of the NFL season. Management reiterated its long-term view of a $55bn to $80bn industry opportunity by 2030 and an adjusted EBITDA margin of at least 30%, targets that now depend on whether sports hold normalises in the second half and whether the predictions spend converts into durable share.
Source: DraftKings
