DraftKings has announced a revenue of $1.44 billion for the second quarter, representing a year-over-year decline of 5%. This number fell below the anticipated $1.55 billion projected by analysts, and adjusted earnings were reported at nine cents per share, falling short of the expected 19 cents.
Adjusted EBITDA decreased significantly to $114.64 million from $300.6 million the previous year. The company experienced a net loss of $67.6 million in Q2, contrasting with a net income of $157.9 million during the same quarter last year.
DraftKings indicated that the New York Knicks’ triumph in the NBA championship and several favorable results for customers during the World Cup negatively impacted its second-quarter performance.
In spite of this disappointing performance, the company reaffirmed its guidance for 2026, projecting revenues between $6.5 billion and $6.9 billion, along with adjusted EBITDA estimates ranging from $700 million to $900 million.
These results arrive on the heels of Flutter Entertainment, the parent company of competitor FanDuel, revising its 2026 projections downward earlier this week. Flutter attributed this downward trend to “customer-friendly outcomes” affecting FanDuel revenue, which saw a 6% year-on-year reduction despite heightened customer interaction during the NBA Finals and FIFA World Cup.
However, DraftKings’ prediction market segment has emerged as a notable success, reporting rapid growth in its DraftKings Predictions platform.
The Boston-based enterprise reported that DraftKings Predictions had drawn over 600,000 customers in the current year, while the total volume traded on the platform surged five times from April to July.
“Our Super App has gone live nationwide, and we are pleasantly surprised by the growth of Predictions,” stated CEO and co-founder Jason Robins. “The parallels in customer metrics between Predictions and Sportsbook, our favorable lifetime value position, and our strategy to innovate within the leading Predictions offering all reinforce our belief in our ability to dominate this category during the NFL season and thereafter.”
Late June saw the introduction of DKeX, DraftKings’ proprietary prediction markets exchange, allowing for enhanced control over technology, content variety, operational economics, and consumer experience. Due to its late-quarter launch, its full influence was not encompassed in the Q2 figures.
Investor and analyst apprehensions surrounding expenditures in its prediction market division have surfaced; however, management expressed optimism based on the recent metrics on customer acquisition and trading volume.
Amidst noteworthy advancements in the prediction market arena, DraftKings shared a 73% year-on-year uplift in customer acquisition, alongside an 8% decrease in associated costs. This quarter thus marked the lowest customer acquisition costs since the first quarter of 2025.
Reduced acquisition costs will be pivotal as operators in prediction markets and sportsbooks are likely to ramp up promotional expenditures in anticipation of the 2026 NFL season.
DraftKings also recorded a 15% rise in sports consumer volume, pointing to sustained expansion within its core operations. Concurrently, the enhancement of its prediction markets may yield long-term benefits for its sportsbook and general gaming operations.