DraftKings closed the second quarter of 2026 with a familiar mismatch between growth and profitability. The Boston-based operator reported that customers wagered $13.1 billion through its sportsbook and Predictions products between April and June, a 15% jump from the $11.5 billion handled during the same stretch of 2025. Yet that surge in activity did not translate into stronger earnings.
Revenue for the quarter came in at $1.44 billion, down 5% from $1.51 billion a year earlier and short of the roughly $1.52 billion analysts had projected. The company pointed to customer-friendly sport outcomes, including a Knicks NBA title run and bettor-favored results during the summer’s World Cup, as the primary drag on results, alongside heavier promotional spending tied to new customer acquisition.
Prediction markets also drew a larger share of bettor attention during the tournament, with platforms in that space capturing a notable portion of overall U.S. sports betting volume.
The gap between volume and revenue traces back to the company’s win rate, often referred to as hold. DraftKings’ sports net revenue margin slipped to roughly 6.8%, down from 8.7% in the second quarter of 2025. Sports revenue specifically fell 10.6% to $891.9 million even as sports handle climbed. When favorites and popular teams win, sportsbooks typically pay out more, which erodes the share of wagers they retain as revenue regardless of how much money moved through the platform.
iGaming offered a partial offset, with revenue rising 7.5% to $461.9 million. Monthly Unique Payers grew about 9% to 3.6 million, reflecting continued customer acquisition and retention across both the sportsbook and Predictions offerings. Average revenue per payer, however, dropped 13%, or $19, to $132, underscoring how the customer-friendly results diluted earnings even as the user base expanded.
On a GAAP basis, DraftKings reported a net loss of $67.6 million, or $0.14 per diluted share, compared with net income of $157.9 million in the same period last year. Adjusted EBITDA fell to $114.6 million from $300.6 million.
Adjusted earnings per share of $0.09 still topped the $0.02 consensus estimate, and sales and marketing expense rose to $322.5 million from $233.2 million as the company continued investing in its newer Predictions product, which launched in December 2025.
Despite the revenue miss, DraftKings maintained its full-year 2026 guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in Adjusted EBITDA, the same ranges it set in May. First-half revenue reached $3.09 billion, up 5.8% from $2.92 billion in the first half of 2025. The unchanged outlook suggests the company views the second-quarter shortfall as tied to short-term sports outcomes rather than a change in underlying demand.
Chief Executive Officer Jason Robins framed the quarter as one of underlying strength despite the earnings shortfall, noting that handle, users, and engagement all grew during the period. He pointed to the nationwide rollout of the company’s Super App and said Predictions is expanding faster than expected.
Chief Financial Officer Alan Ellingson said the core business remains on track to generate roughly $1 billion in Adjusted EBITDA this year, which he said gives the company room to keep investing in Predictions as competition in that space, including from rivals like Kalshi and Polymarket, continues to build heading into the fall sports calendar.
