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DraftKings has reported second-quarter revenue of $1.44 billion, down 5% year-on-year. The figure fell short of Wall Street’s $1.55 billion estimate, whilst adjusted earnings came in at nine cents per share, compared with expectations of 19 cents.
Adjusted EBITDA declined to $114.64 million from $300.6 million a year earlier. The gaming company posted a net loss of $67.6 million in the second quarter, compared with net income of $157.9 million in the same period last year.
DraftKings said the New York Knicks’ NBA championship win and a series of customer-friendly outcomes during the World Cup weighed on its second-quarter results.
Despite the weaker performance, the company maintained its 2026 guidance, which calls for revenue of $6.5 billion to $6.9 billion and adjusted EBITDA of $700 million to $900 million.
The results come after Flutter Entertainment, parent company of rival FanDuel, cut its 2026 outlook earlier this week. Flutter also blamed “customer-friendly sports outcomes” for a 6% year-over-year decline in FanDuel revenue despite strong customer engagement during the NBA Finals and FIFA World Cup.
DraftKings’ prediction market business emerged as a key bright spot, with the company reporting rapid growth in DraftKings Predictions.
The Boston-based operator said DraftKings Predictions had attracted more than 600,000 customers year-to-date, while total traded volume on the platform increased fivefold from April to July.
“Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated,” said CEO and co-founder Jason Robins in a statement. “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.”
In late June, DraftKings launched DKeX, its proprietary prediction markets exchange, giving the company greater control over technology, content depth, operating economics, and the customer experience. Because the launch came near the end of the quarter, its full impact was not reflected in Q2 results.
The company has also faced investor and analyst concerns over spending on its prediction market business. However, the latest customer and trading-volume figures point to continued momentum as DraftKings expands the offering, management said.
In addition to progress in the prediction market space, DraftKings announced that overall customer acquisition increased 73% year-on-year, while related costs declined 8%. The company said this represented its best quarter for customer acquisition costs since the first quarter of 2025.
Lower customer acquisition costs could be important as prediction market and sportsbook operators potentially increase promotional spending ahead of the 2026 NFL season.
DraftKings also reported a 15% increase in sports consumer volume, indicating continued growth in its core business. Concurrently, the company said the growth of its prediction markets could provide a longer-term benefit to its sportsbook and broader gaming operations.