DraftKings Q2 2026 Revenue Falls 5% as Bettors Win Big

⏱ 3 min read

DraftKings reported Q2 2026 revenue of $1.44 billion on August 6, 2026 — a 5% year-over-year decline from $1.51 billion — even as betting volume surged to a record $13.1 billion, up 15% on the prior year. The divergence between handle growth and revenue contraction is the sharpest the company has reported since going public, exposing how customer-friendly sports results and aggressive acquisition spending can widen the gap between activity and profit.

The quarter's main culprits were the New York Knicks' historic NBA Championship victory and heavy public support for favorites during FIFA World Cup group-stage play, which together created an estimated $80 million revenue headwind. Despite a net loss of $67.6 million — compared with net income of $157.9 million in Q2 2025 — the company maintained its full-year guidance and pivoted investor attention to a rapidly expanding predictions business.

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The Revenue Miss Explained

Wall Street had forecast revenue above $1.55 billion for the quarter; DraftKings came in roughly $110 million short. The company's sportsbook win rate fell from 8.7% in Q2 2025 to 6.7% in Q2 2026, a drop driven primarily by outcomes on marquee events. The Knicks' first title since 1973 was heavily backed by the public, and World Cup group-stage results tilted toward favorites, both of which reduced hold on high-volume wagers.

Adjusted EBITDA deteriorated sharply — coming in at $114.6 million against $300.6 million in the same quarter a year earlier — as the company simultaneously absorbed $200–$300 million in incremental investment earmarked for the predictions segment. Non-GAAP earnings per share of $0.09 missed the consensus estimate of $0.19.

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Volume Growth and Customer Metrics

Underneath the headline miss, DraftKings posted genuine operational momentum. Monthly Unique Payers (MUPs) reached 3.6 million, up 9% year-over-year, and the trailing twelve-month unique customer count climbed to 10.5 million. Customer acquisition jumped 73% year-over-year while acquisition cost per customer fell roughly 8% — a combination management cited as evidence of improving brand efficiency.

Average revenue per MUP declined to $132, down 13% year-over-year, largely reflecting promotional activity tied to new-customer deals. iGaming revenue reached $462 million in the quarter, continuing its steady growth trajectory across the five states where DraftKings holds a licence. The company's mobile sports betting footprint now covers 27 states, Washington D.C., and Puerto Rico, reaching 53% of the US population.

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The Predictions Business Pivot

The clearest signal from the August 7 earnings call was CEO Jason Robins' emphasis on prediction markets as the company's next major growth vector. More than 600,000 customers have used the predictions product year to date, and annualized trading volume on the platform rose from $2.3 billion to $11 billion between April and July 2026 — roughly a 5x increase in three months. The company's Super App is now live nationwide, integrating sportsbook, iGaming, and predictions into a single interface.

DraftKings has committed $200–$300 million in incremental 2026 investment to the predictions segment, signalling it intends to establish category leadership before the regulatory and competitive landscape solidifies. Management projected that the core business alone could generate approximately $1 billion in adjusted EBITDA, independent of any predictions upside.

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Q2 2026 Key Metrics at a Glance

Metric	Q2 2026	Q2 2025	Change
Total Revenue	$1.44 billion	$1.51 billion	−5%
Sports Consumer Volume (Handle)	$13.1 billion	$11.5 billion	+15%
Adjusted EBITDA	$114.6 million	$300.6 million	−62%
Net Income / (Loss)	($67.6 million)	$157.9 million	Swing to loss
Monthly Unique Payers	3.6 million	~3.3 million	+9%
Sportsbook Win Rate	6.7%	8.7%	−2.0 pts
Average Revenue per MUP	$132	~$152	−13%

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NFL Season Outlook

DraftKings maintained full-year 2026 revenue guidance of $6.5–$6.9 billion and adjusted EBITDA of $700–$900 million, signalling confidence that the second half — anchored by the NFL season — will recover the Q2 shortfall. The Knicks championship and World Cup outcomes are, by definition, non-recurring events, and historical hold rates should normalise as football markets dominate Q3 and Q4.

• The NFL has historically been DraftKings' highest-volume quarter, and the expanded Super App gives the company a broader monetisation surface across casual and serious bettors.
• A $200–$300 million predictions investment means near-term EBITDA pressure continues, but management has framed the outlay as a category-defining bet ahead of potential federal regulation of prediction markets.
• CFO Alan Ellingson confirmed the business remains on track to deliver stated revenue and EBITDA targets, providing room for further prediction-market investment without revising the full-year outlook.
• DraftKings recently launched in Alberta, Canada, adding an incremental market ahead of the NFL calendar.

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Sources

All figures verified against the primary earnings filing and contemporaneous coverage from multiple outlets.

Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated — our confidence that we can win the category this NFL season.

— Jason Robins, CEO, DraftKings · Q2 2026 Earnings Call, August 7, 2026