DraftKings reported lower revenue and a sharp drop in quarterly profit for the second quarter of 2026, as bettor-friendly sports results and heavier promotional spending outweighed continued growth in wagering activity and customer numbers.
Revenue for the three months ended June 30 reached $1.44 billion, down 4.6% from $1.51 billion a year earlier. The decline came despite Sports Consumer Volume rising 14.5% year-on-year to $13.14 billion, highlighting the impact of weaker sportsbook margins during the period.
DraftKings said customer-friendly sporting outcomes were one of the main reasons revenue failed to follow wagering volumes higher. Increased promotional reinvestment aimed at attracting customers to both its sportsbook and prediction markets products also weighed on the quarterly result.
Sports revenue fell 10.6% to $891.9 million even as wagering and trading volume expanded. DraftKings’ sports net revenue margin consequently dropped to 6.8%, compared with 8.7% in the second quarter of 2025.
The weaker sportsbook performance was partly offset by growth elsewhere. iGaming revenue increased 7.5% to $461.9 million, while other revenue climbed 5.2% to $89.4 million.
Customer numbers continue to rise
DraftKings continued to expand its paying customer base during the quarter. Monthly Unique Payers increased approximately 9% year-on-year to 3.6 million, supported by customer retention as well as acquisition across its sportsbook and Predictions products.
However, average revenue per monthly unique payer declined 13% to $132. DraftKings attributed the decrease primarily to favorable outcomes for customers and promotions linked to attracting new users.
Prediction markets have become an increasingly important part of the company’s strategy following the launch of its Predictions offering in December 2025. DraftKings now includes prediction-market activity alongside sportsbook wagering when reporting Sports Consumer Volume and sports revenue.
Chief executive and co-founder Jason Robins said the core operation continued to show momentum through higher customer activity and engagement despite the unfavorable quarterly sports results. He also highlighted the early performance of Predictions and the nationwide availability of DraftKings’ Super App as important areas for future growth.
Profitability takes a major hit
The revenue pressure was accompanied by a significant deterioration in profitability.
DraftKings recorded adjusted EBITDA of $114.6 million in Q2, compared with $300.6 million during the same period last year. The company also reported a net loss attributable to common stockholders of $67.6 million, reversing a $157.9 million profit in Q2 2025.
Diluted loss per share was $0.14, compared with earnings of $0.30 per diluted share a year earlier. Sales and marketing expenses increased substantially to $322.5 million from $233.2 million, consistent with the higher investment being made in customer acquisition.
Performance across the first half of 2026 was more resilient than the second-quarter figures alone suggest. Six-month revenue reached $3.09 billion, up 5.8% from $2.92 billion a year earlier. Sports revenue increased 5.7% across the six-month period, while iGaming revenue rose 8.2%.
DraftKings keeps 2026 outlook unchanged
Despite the weaker Q2 results, DraftKings maintained its full-year financial guidance.
The company continues to expect 2026 revenue of between $6.5 billion and $6.9 billion, together with adjusted EBITDA of $700 million to $900 million. CFO Alan Ellingson said DraftKings’ core business remains on course to generate approximately $1 billion in adjusted EBITDA before investments associated with its prediction-market expansion.
DraftKings currently operates mobile sports betting in 27 US states, Washington DC and Puerto Rico, covering approximately 53% of the US population. Its iGaming business is available in five states, representing around 11% of the population.
The company has also expanded further in Canada following its entry into Alberta. With that launch, DraftKings said its sportsbook and iGaming products are now available in Canadian provinces representing approximately 51% of the country’s population.
For DraftKings, the second quarter demonstrated the volatility that sporting outcomes can create even when underlying betting activity remains strong. Higher customer numbers and wagering volumes provided evidence of continued demand, but lower hold and increased promotional investment significantly reduced the amount of that activity converted into revenue and profit.