second quarter 2026
Filed Aug 7, 2026DraftKings Reports Second Quarter Results
Sports Consumer Volume increased 14.5% and iGaming Revenue increased 7.5%, but total revenue decreased 4.6%, GAAP operating results moved to a loss, and Adjusted EBITDA declined versus the prior-year quarter. The Company maintained fiscal year 2026 revenue and Adjusted EBITDA guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $ 1,443,235 | – | (4.6) % |
| Cost of revenueGAAP | 891,782 | – | – |
| Sales and marketingGAAP | 322,536 | – | – |
| Product and technologyGAAP | 127,649 | – | – |
| General and administrativeGAAP | 169,442 | – | – |
| Income (loss) from operationsGAAP | (68,174) | – | – |
| Interest income (expense), netGAAP | (7,434) | – | – |
| Other gain (loss), netGAAP | 3,750 | – | – |
| Income (loss) before income tax and equity method investmentsGAAP | (71,858) | – | – |
| Income tax provision (benefit)GAAP | (1,797) | – | – |
| (Gain) loss from equity method investmentsGAAP | (2,451) | – | – |
| Net income (loss) attributable to common stockholdersGAAP | $ (67,610) | – | – |
| Basic earnings (loss) per share attributable to common stockholdersGAAP | $ (0.14) | – | – |
| Diluted earnings (loss) per share attributable to common stockholdersGAAP | $ (0.14) | – | – |
| Adjusted EBITDAnon-GAAP | $ 114,597 | – | – |
| Adjusted Diluted Earnings (Loss) Per Sharenon-GAAP | $ 0.09 | – | – |
| Sports Consumer Volumeother | $ 13,140,417 | – | 14.5 % |
| Sports Net Revenue Marginother | 6.8% | – | – |
| Monthly Unique Payersother | 3.6 million | – | approximately 9% |
| Average Revenue per MUPother | $132 | – | decreased approximately 13%, or $19 |
| RevenueGAAP | $ 3,089,311 | – | 5.8 % |
| Income (loss) from operationsGAAP | (62,327) | – | – |
| Net income (loss) attributable to common stockholdersGAAP | $ (46,540) | – | – |
| Basic earnings (loss) per share attributable to common stockholdersGAAP | $ (0.09) | – | – |
| Diluted earnings (loss) per share attributable to common stockholdersGAAP | $ (0.09) | – | – |
| Adjusted EBITDAnon-GAAP | $ 282,450 | – | – |
| Adjusted Diluted Earnings (Loss) Per Sharenon-GAAP | $ 0.29 | – | – |
| Sports Consumer Volumeother | $ 27,342,115 | – | 7.8 % |
| Sports Net Revenue Marginother | 7.3% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Sports RevenueCustomer-friendly sport outcomes and new customer promotions impacting revenue across the Sportsbook offering and Predictions offering. | $ 891,883 | – | (10.6) % |
| iGaming RevenueDraftKings is live with iGaming in 5 states and, following launches in Alberta, Canada, is live with Sportsbook and iGaming offerings in provinces representing approximately 51% of the Canadian population. | 461,930 | – | 7.5 % |
| Other RevenueNo specific driver was reported. | 89,422 | – | 5.2 % |
fiscal year 2026 outlook
- Revenue$6.5 billion to $6.9 billion
- NoteAdjusted EBITDA of $700 million to $900 million
Capital returns
- Purchase of treasury stock under Stock Repurchase Program: $ (154,218) for the six months ended June 30, 2026, compared to $ (242,741) for the six months ended June 30, 2025.
- Purchase of treasury stock for RSU withholding: $ (43,480) for the six months ended June 30, 2026, compared to $ (101,852) for the six months ended June 30, 2025.
- Treasury stock, at cost: (1,590,131) as of June 30, 2026, compared to (1,392,433) as of December 31, 2025.
What drove it
- Sports Consumer Volume increased $ 1,665,576, or 14.5 %, reflecting strong customer acquisition and engagement.
- Monthly Unique Payers increased approximately 9% to 3.6 million, reflecting strong unique payer retention and new customer acquisition across the Sportsbook offering and Predictions offering.
- Predictions launched in December 2025.
- The Super App is now live nationwide.
- DraftKings is live with mobile sports betting in 27 states, Washington, D.C., and Puerto Rico, representing approximately 53% of the U.S. population.
- DraftKings is live with iGaming in 5 states, representing approximately 11% of the U.S. population.
Concerns
- Revenue decreased $ (69,272), or (4.6) %, primarily due to customer-friendly sport outcomes and increased promotional reinvestment associated with new customer acquisition on Sportsbook and Predictions offerings.
- Sports Revenue decreased $ (105,989), or (10.6) %, and Sports Net Revenue Margin was 6.8% compared to 8.7%.
- Average Revenue per MUP decreased approximately 13%, or $19, to $132, primarily due to customer-friendly sport outcomes and new customer promotions.
- Income (loss) from operations was (68,174), compared to 150,644.
- Net income (loss) attributable to common stockholders was $ (67,610), compared to $ 157,936.
- Adjusted EBITDA was $ 114,597, compared to $ 300,644.
What to watch
- Sports Net Revenue Margin following the second-quarter result of 6.8%.
- The effect of promotional reinvestment and customer-friendly sport outcomes on revenue and Average Revenue per MUP.
- Predictions growth and the Company's planned investment behind the offering.
- Delivery against maintained fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million.
- Sportsbook and iGaming expansion in jurisdictions where DraftKings is live.
Balance sheet and cash flow
- Cash and cash equivalents: $ 983,882 as of June 30, 2026, compared to $ 1,127,545 as of December 31, 2025.
- Restricted cash: 8,596 as of June 30, 2026, compared to 7,601 as of December 31, 2025.
- Cash reserved for users: 395,030 as of June 30, 2026, compared to 469,449 as of December 31, 2025.
- Total assets: $ 4,277,379 as of June 30, 2026, compared to $ 4,530,784 as of December 31, 2025.
- Convertible notes, net of issuance costs: 1,260,421 as of June 30, 2026, compared to 1,259,096 as of December 31, 2025.
- Term B Loan, net of issuance costs: 574,574 as of June 30, 2026, compared to 576,544 as of December 31, 2025.
- Total liabilities: $ 3,707,951 as of June 30, 2026, compared to $ 3,899,323 as of December 31, 2025.
- Total stockholders’ equity: $ 569,428 as of June 30, 2026, compared to $ 631,461 as of December 31, 2025.
- Net cash flows provided by (used in) operating activities: $ 63,001 for the six months ended June 30, 2026, compared to $ 54,905 for the six months ended June 30, 2025.
- Purchases of property and equipment: $ (11,671) for the six months ended June 30, 2026, compared to $ (6,963) for the six months ended June 30, 2025.
- Cash paid for internally developed software costs: (75,064) for the six months ended June 30, 2026, compared to (60,414) for the six months ended June 30, 2025.
- Net cash flows provided by (used in) investing activities: $ (93,444) for the six months ended June 30, 2026, compared to $ (74,278) for the six months ended June 30, 2025.
Analysis
DraftKings reported a quarter with strong customer activity but weaker monetization. Sports Consumer Volume increased 14.5% to $ 13,140,417 and Monthly Unique Payers increased approximately 9% to 3.6 million. Management attributed the volume increase to strong customer acquisition and engagement, with retention and acquisition spanning Sportsbook and the Predictions offering.
Revenue declined 4.6% to $ 1,443,235 despite the higher customer activity. Sports Revenue fell 10.6% to $ 891,883, while Sports Net Revenue Margin declined to 6.8% from 8.7%. The Company cited customer-friendly sport outcomes and increased promotional reinvestment tied to new customer acquisition. Average Revenue per MUP declined approximately 13%, or $19, to $132 for the same reasons. iGaming Revenue grew 7.5% to 461,930 and Other Revenue increased 5.2% to 89,422.
The lower revenue outcome coincided with substantially higher spending in sales and marketing, which was 322,536 compared with 233,187. Cost of revenue was 891,782 compared with 854,559. Consequently, income from operations was (68,174), compared with 150,644, and net income attributable to common stockholders was $ (67,610), compared with $ 157,936. Adjusted EBITDA was $ 114,597, compared with $ 300,644, while Adjusted Diluted Earnings Per Share was $ 0.09, compared with $ 0.38.
For the six months ended June 30, 2026, revenue increased 5.8% to $ 3,089,311 and Sports Consumer Volume increased 7.8% to $ 27,342,115. However, the Company reported income from operations of (62,327), net loss attributable to common stockholders of $ (46,540), and Adjusted EBITDA of $ 282,450, each compared with positive prior-year results. Net cash flows provided by operating activities were $ 63,001 for the six-month period, compared with $ 54,905, while net cash flows used in investing activities were $ (93,444).
Capital allocation included $ (154,218) of purchases under the Stock Repurchase Program and $ (43,480) of purchases for RSU withholding during the six-month period. Cash and cash equivalents were $ 983,882 at June 30, 2026, and convertible notes and the Term B Loan, net of issuance costs, were 1,260,421 and 574,574, respectively. Management maintained fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million while stating that it intends to invest behind the Predictions opportunity.
Management, verbatim
We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement.
Jason Robins, Chief Executive Officer and Co-founder
Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated.
Jason Robins, Chief Executive Officer and Co-founder
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.
Alan Ellingson, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook section was not provided, so no comparison of reported results with prior guidance is available.
- GAAP gross profit and gross margin were not reported.
- Non-GAAP gross margin was not reported.
- Quarterly operating cash flow was not reported.
- Free cash flow was not reported.
- A quarterly cash flow statement was not reported.
- Dividend amount or dividend policy was not reported.
- Fiscal year 2026 guidance for gross margin, operating expenses, and tax rate was not reported.
- The filing text was truncated in the financing cash flow section, so the complete reported net cash flows provided by (used in) financing activities figure is unavailable.
- A separate revenue figure or growth comparison for the Predictions offering was not reported.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.