DraftKings Reports Predictions and Sportsbook Positivity, Q2 Loss

• DraftKings announced its Q2 results, reporting $13.1 billion in sports consumer volume, a 15% increase in the quarter
• Revenues dropped by $69 million in the quarter compared with Q2 2025
• Predictions market annualized total volume has increased nearly five-fold from April

DraftKings CEO and Co-Founder Jason Robins described his company’s Q2 results as “fantastic,” as one of the leading gaming companies reported a 15% increase in total sportsbook and prediction market volume, despite posting a $67 million net income loss on the quarter.

According to its Q2 results, DraftKings generated $115 million of Adjusted EBITDA in the quarter, which Robins noted would have been even higher if not for customer-friendly sports outcomes and higher-than-expected customer acquisition. The company is on track to generate approximately $1 billion of Adjusted EBITDA in 2026 as a result of the positive outcomes from its core business.

“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,” Robins said in a Q2 press release. “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.”

Little Overlap Between Predictions, Sportsbook

DraftKings Predictions, Robins noted during the results conference call, has “far surpassed” the company’s expectations. DraftKings Predictions is live on three exchanges and are “consistently making markets on both singles and combos at a profit.”

The company touts more than 600,000 customers with predictions year-to-date, with more than half of its customers engaging with DraftKings Predictions combos. Combos already account for 20% of predictions consumer volume, Robins said.

“Combos have been an absolute smash, we’ve seen incredible traction there,” he said during the Q2 call.

Since April, DraftKings Predictions total annualized volume has increased five-fold, from $2.3 billion in April to more than $11 billion in July.

Additionally, Robins noted in a letter to stockholders that DraftKings data has confirmed there is little impact from prediction markets on its sportsbook revenue. There is only about a 1% customer overlap between DraftKings Sportsbook and DraftKings Predictions markets in states.

“Based on internal analysis, we estimate that 80% to 90% of prediction market consumer volume in sportsbook states comes from professional betting syndicates and institutional traders, which is volume that mostly would not have been on sportsbooks to begin with. This continues to strengthen our confidence that Predictions is a large and incremental opportunity,” Robins noted in the letter.

Despite Optimism, DraftKings Sees Q2 Loss

In its results, DraftKings reported revenues of $1.443 billion, a decrease of $69 million, or 5%, compared with $1.513 billion in Q2 2025. According to the company, the decrease is attributable to increased promotional reinvestment associated with new customer acquisition for sportsbook and predictions offerings.

Overall, DraftKings reported a net income loss of $67.61 million on the quarter.

Despite the loss, DraftKings is maintaining its fiscal year 2026 revenue guidance range of $6.5 billion to $6.9 billion and fiscal year Adjusted EBITDA guidance range of $700 million to $900 million, which the company announced on May 7, 2026.

Sportsbook handle increased 11% year-over-year in Q2 while parlay handle mix continues to increase, Robins noted. For the third consecutive quarter, handle share across sportsbook states also improved year-over-year.