DraftKings Q2 2026 earnings: revenue and profit dip despite record betting volume
DraftKings posted a net loss for the quarter as favorable bettor outcomes and heavier marketing spending cut into revenue, even as wagering volume and users grew.
| Q2 2026 | Reported |
|---|---|
| EPS | -$0.14 |
| Revenue | $1.44B |
Figures as reported by the company to the SEC for the quarter ended June 30, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Revenue fell 5% from a year ago, to $1.44 billion, even though the total amount customers wagered (handle) rose 15% - a sign the company is taking in a smaller cut of a bigger betting pool.
- DraftKings swung to a net loss of about $67.6 million, or $0.14 per share, compared with a per-share profit of $0.30 in the same quarter last year.
- Adjusted EBITDA - a profitability measure that strips out taxes, interest, depreciation and certain other costs - dropped to $114.6 million from $300.6 million a year earlier, a sharper decline than revenue.
- Management pointed to two main causes: sports results that favored bettors over the house, an estimated $80 million hit, plus heavier promotional spending to sign up new customers for its sportsbook and its newer prediction-market product.
- Underlying customer activity kept growing: monthly paying users rose 9% to 4.4 million, and DraftKings said its event-trading “Predictions” business has drawn more than 600,000 customers this year, with trading volume climbing from $2.3 billion to $11 billion (annualized) between April and July.
- The company left its full-year 2026 targets unchanged: revenue of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million.
- Over the trailing 12 months, overall profit margins remain thin - operating margin near 0.6% and net margin under 1% - showing how much of each revenue dollar is still absorbed by promotions and other costs, even as trailing revenue growth has run at a strong 25.8%.
- CEO Jason Robins said the quarter showed “momentum” in handle, users and engagement, and highlighted that the company’s combined sportsbook-iGaming-predictions “Super App” is now available nationwide.
Q2 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $1.4B | $1.5B | -4.6% |
| Net income | -$68M | $158M | -142.8% |
| Free cash flow | $107M | $170M | -37.0% |
| Diluted EPS | -$0.14 | $0.30 | -146.7% |
| Gross margin | 38.2% | 43.5% | -5.3 pts |
| Operating margin | -4.7% | 10.0% | -14.7 pts |
| Net margin | -4.7% | 10.4% | -15.1 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Draftkings Inc closed at $22.17 on Aug 6, 2026, the last session before the report, and at $24.27 on Aug 10, 2026, the first session after it — +9.5% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 8, 2026 | $25.22 | $24.51 | -2.8% |
| Nov 7, 2025 | $27.98 | $30.54 | +9.2% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 41.8% | Trailing 12 months |
| Operating margin | 0.6% | Trailing 12 months |
| Net profit margin | 0.9% | Trailing 12 months |
| Pretax margin | 1.1% | Trailing 12 months |
| EPS | $0.10 | Trailing 12 months |
| Revenue growth (YoY) | 25.8% | Trailing 12 months |
| Return on equity | 7.9% | Trailing 12 months |
Sources: company report · Benzinga · BigGo Finance · verified fundamentals · earnings release