DraftKings maintains FY2026 outlook after second-quarter revenue decline

DraftKings has maintained its fiscal 2026 financial outlook despite reporting a decline in second-quarter revenue as customer-friendly sports results and higher promotional investment weighed on the company's financial performance. The results show continued growth in customer activity while also highlighting the short-term pressure created by promotional spending and betting outcomes.

For the three months ended 30 June 2026, DraftKings reported revenue of $1.44 billion, representing a 5% decline from $1.51 billion in the corresponding period of 2025. The result came as the company continued investing in customer acquisition across its Sportsbook and Predictions offerings while sports outcomes were described as favourable to customers.

The second-quarter figures therefore present a mixed picture. Although revenue and profitability declined, key indicators of customer engagement continued to move higher. DraftKings also retained its full-year guidance, signalling that management continues to expect the factors affecting the quarter to be temporary rather than a fundamental change to its broader financial expectations.

Sports volume and customer activity remain strong

One of the more positive elements of the quarter was the increase in sports consumer volume. DraftKings reported that sports consumer volume rose 15% year-on-year to $13.1 billion from $11.5 billion in the second quarter of 2025.

The increase indicates that customers continued to engage actively with the company's sports products despite the pressure on reported revenue. However, stronger volume did not translate directly into higher revenue because the quarter included sports results that benefited customers and increased promotional activity.

Monthly Unique Payers also increased by 9% to 3.6 million. The growth reflects continued customer acquisition and retention across the company's Sportsbook and Predictions products.

At the same time, average revenue per monthly unique payer fell by 13% to $132. DraftKings attributed the decline to customer-friendly outcomes and promotional activity. The combination of more users but lower average revenue per payer was therefore an important feature of the quarterly performance.

The figures suggest that DraftKings is prioritising customer expansion and engagement even when that strategy can temporarily affect monetisation. This approach is particularly relevant as the company seeks to establish Predictions as a significant additional growth opportunity alongside its established Sportsbook business.

Net loss replaces prior-year profit

DraftKings reported a net loss attributable to common stockholders of $67.6 million for the second quarter. This compares with net income of $157.9 million in the same quarter a year earlier.

The reversal represents a significant year-on-year change in the company's bottom-line performance. Adjusted EBITDA also declined substantially, falling to $114.6 million from $300.6 million in the second quarter of 2025.

The decline in Adjusted EBITDA reflects the combined impact of lower revenue and increased spending associated with customer acquisition and promotional activity. It also illustrates how sports betting results can produce meaningful quarterly fluctuations even when underlying customer participation remains strong.

The company has nevertheless continued to focus on improving its long-term operating position. Management's comments indicate that the current investment cycle is intended to support growth in Predictions while maintaining momentum across the core business.

DraftKings keeps fiscal 2026 guidance unchanged

Despite the weaker second-quarter results, DraftKings maintained its fiscal 2026 guidance. The company continues to expect full-year revenue of between $6.5 billion and $6.9 billion.

It also continues to forecast Adjusted EBITDA of between $700 million and $900 million. The unchanged guidance is an important part of the company's response to the quarterly decline because it indicates that management has not materially revised its expectations for the remainder of the year.

The company's first-quarter results had already established the same fiscal 2026 guidance range. DraftKings reported first-quarter revenue of $1.646 billion and maintained its revenue and Adjusted EBITDA targets at that time.

Management's decision to retain the guidance following the second-quarter performance suggests confidence in stronger operating conditions during the second half of the year.

Predictions becomes a major strategic priority

A central theme of the company's outlook is the development of DraftKings Predictions. The product has become an increasingly important part of DraftKings' strategy as the company seeks to broaden its reach beyond conventional sportsbook activity.

Jason Robins, DraftKings' Chief Executive Officer and Co-founder, highlighted the company's expectations for Predictions and its wider platform strategy.

“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,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder. “Our Super App is now live nationwide and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”

DraftKings has been expanding its Predictions business through a unified platform strategy. In June, the company announced the launch of its proprietary prediction markets exchange, DKeX, which it said was designed to strengthen the Predictions experience and provide greater control over content, operating economics and the customer journey.

The development is significant because DraftKings is positioning Predictions as more than an additional product. The company increasingly presents it as a growth platform that can extend its customer proposition and expand its addressable market.

Financial flexibility supports further investment

Chief Financial Officer Alan Ellingson also emphasised the company's confidence in its broader financial position.

“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,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “Therefore, we are maintaining our fiscal year 2026 guidance for revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.”

The statement places the second-quarter decline within a broader investment strategy. Rather than responding to the weaker quarter by reducing its full-year targets, DraftKings is continuing to allocate resources toward customer acquisition and the development of Predictions.

This strategy carries an obvious near-term cost because promotional spending can reduce revenue per payer and profitability. However, the company is relying on customer growth and increased engagement to create greater value over time.

DraftKings continues expanding its market reach

DraftKings' regulated market footprint also remains an important component of its growth strategy. The company's first-quarter update reported mobile sports betting in 27 states, Washington, D.C. and Puerto Rico.

By July, DraftKings' public market-availability information had expanded the reported sportsbook footprint to 30 states, Washington, D.C. and Puerto Rico. The company also described its broader combination of Sportsbook, Predictions and free-to-play products as available nationwide, while noting that individual product availability varies by jurisdiction.

The distinction is important from a legal and regulatory perspective. Availability of a particular DraftKings product does not necessarily mean that every form of wagering or gaming is authorised in every jurisdiction.

The company also operates iGaming in regulated U.S. markets and has expanded its presence in Canada. DraftKings' July corporate information describes Sportsbook and iGaming operations in Ontario and Alberta alongside its U.S. footprint.

NFL season could provide an important test

The second half of 2026 is particularly significant because DraftKings expects Predictions to benefit from increased sports engagement during the NFL season.

The company has indicated that the similarity between Predictions and Sportsbook customer metrics gives it confidence in its ability to scale the newer product. That strategy could allow DraftKings to use its existing customer relationships, technology infrastructure and sports audience to accelerate adoption.

The key question will be whether customer growth can translate into sustainable monetisation after promotional costs and customer-friendly sports results normalise.

For DraftKings, the distinction between temporary quarterly pressure and underlying business performance will therefore remain closely watched throughout the remainder of the year.

Outlook remains focused on growth and profitability

The second-quarter results demonstrate that DraftKings is balancing two objectives that can sometimes pull in different directions. The company wants to expand its customer base and establish Predictions as a major business opportunity while also improving profitability across its broader operations.

The 5% revenue decline and substantial reduction in Adjusted EBITDA show that this balance was difficult during the second quarter. At the same time, the 15% increase in sports consumer volume and 9% rise in Monthly Unique Payers provide evidence of continued customer activity.

The unchanged fiscal 2026 guidance is consequently a significant part of the earnings picture. DraftKings is not presenting the second-quarter decline as a reason to lower its annual expectations. Instead, management continues to anticipate revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.

Conclusion

DraftKings enters the second half of 2026 with a financial picture that is more nuanced than the headline revenue decline suggests. The company's second-quarter results were affected by customer-friendly sports outcomes and greater promotional investment, leading to lower revenue, a return to a quarterly net loss and a substantial decline in Adjusted EBITDA.

Yet customer engagement continued to expand. Sports consumer volume increased materially while Monthly Unique Payers reached 3.6 million. Those indicators provide the basis for management's continued confidence in the underlying business.

The company's decision to maintain its fiscal 2026 guidance also places greater importance on execution during the remainder of the year. DraftKings will need to demonstrate that customer growth can increasingly translate into sustainable revenue and earnings while it continues investing in Predictions.

With the NFL season approaching and Predictions becoming a larger strategic priority, the coming quarters will provide a clearer indication of whether the current investment is capable of delivering the long-term growth and profitability anticipated by management.

FAQs

What revenue did DraftKings report for Q2 2026?
DraftKings reported second-quarter revenue of $1.44 billion for the three months ended 30 June 2026, representing a 5% decline from the same quarter of 2025.

Why did DraftKings revenue decline in Q2 2026?
The company attributed the decline primarily to customer-friendly sports outcomes and increased promotional spending associated with customer acquisition across Sportsbook and Predictions.

How many Monthly Unique Payers did DraftKings have?
DraftKings reported 3.6 million Monthly Unique Payers in the second quarter, an increase of 9% year-on-year.

What happened to DraftKings Adjusted EBITDA?
Adjusted EBITDA declined to $114.6 million in the second quarter from $300.6 million in the corresponding period of 2025.

Did DraftKings change its 2026 revenue guidance?
No. DraftKings maintained its fiscal 2026 revenue guidance of $6.5 billion to $6.9 billion.

What is DraftKings forecasting for Adjusted EBITDA in 2026?
DraftKings continues to expect fiscal 2026 Adjusted EBITDA of between $700 million and $900 million.

What is DraftKings Predictions?
DraftKings Predictions is a separate product offering event contracts that forms part of DraftKings' broader strategy to expand beyond traditional sportsbook activity. DraftKings describes the product as operating under federal regulatory oversight.

What did Jason Robins say about Predictions?
Jason Robins said Predictions was growing faster than anticipated and expressed confidence in the company's ability to compete in the category during the NFL season and beyond.

Has DraftKings expanded its U.S. availability?
Yes. DraftKings' latest public availability information shows its Sportsbook operating in 30 states plus Washington, D.C. and Puerto Rico while individual product availability varies by jurisdiction.

What will investors watch in the second half of 2026?
Investors are likely to focus on customer growth, revenue per payer, promotional efficiency, Predictions adoption, Adjusted EBITDA performance and whether DraftKings can deliver its unchanged full-year guidance.