DraftKings reported weaker second-quarter income at the same time as extra prospects positioned bets and used its platform. Favorable sports activities outcomes for bettors and heavier promotional spending to draw new customers lowered the net playing firm’s income and profitability through the quarter.
The Boston-based operator posted income of $1.44 billion for the three months ended June 30, down 5% from $1.51 billion a 12 months earlier. The corporate stated bettor-friendly outcomes and elevated promotional reinvestment tied to buyer acquisition throughout its Sportsbook and Predictions merchandise had been the primary causes for the decline.
Buyer exercise, nonetheless, continued transferring increased. Sports activities Shopper Quantity, which measures settled wagers and trades throughout Sportsbook and Prediction Markets, climbed 15% 12 months over 12 months to $13.1 billion from $11.5 billion. Month-to-month Distinctive Payers rose about 9% to three.6 million, though common income per month-to-month payer dropped 13% to $132 as a result of promotions and favorable betting outcomes lowered income generated from every buyer.
DraftKings doubles down on Predictions as second-quarter outcomes present decline
DraftKings additionally swung to a web loss attributable to frequent stockholders of $67.6 million after reporting web earnings of $157.9 million within the second quarter of 2025. Adjusted EBITDA declined to $114.6 million from $300.6 million a 12 months earlier.
Throughout its enterprise strains, sports activities income fell 10.6% to $891.9 million, whereas iGaming income elevated 7.5% to $461.9 million. Different income rose 5.2% to $89.4 million, and the sports activities web income margin narrowed to six.8% from 8.7%.
“We delivered a robust second quarter and enter the again half of the 12 months with actual momentum, as our core enterprise grew throughout deal with, customers, and engagement,” stated Jason Robins, DraftKings’ Chief Govt Officer and Co-founder. “Our Tremendous App is now stay nationwide, and Predictions is already rising sooner than we anticipated. The similarity of Predictions buyer metrics to Sportsbook buyer metrics, our advantaged LTV place, and our playbook to innovate on a number one Predictions providing all underpin our confidence that we are able to win the class this NFL season and past.”
The emphasis on Predictions has grown steadily this 12 months. In first-quarter outcomes, DraftKings reported its first quarterly revenue of 2026 and stated stronger sportsbook margins had been giving it room to spend money on prediction markets whereas increasing its broader Tremendous App technique.
Chief Monetary Officer Alan Ellingson stated the corporate continues to anticipate its core enterprise to generate about $1 billion in adjusted EBITDA this 12 months, giving it flexibility to spend money on its Predictions enterprise.
“Our core enterprise stays on monitor to generate roughly $1 billion of Adjusted EBITDA this 12 months, offering us with monetary flexibility to speculate behind the numerous alternative that we’re seeing in Predictions,” Ellingson stated. “Due to this fact, we’re sustaining our fiscal 12 months 2026 steerage for income of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.”
The corporate left its full-year steerage unchanged. It has additionally continued increasing its federally regulated prediction markets enterprise via Railbird Alternate, which lately filed sports activities occasion contract certifications with the Commodity Futures Buying and selling Fee.
On the similar time, the technique faces authorized scrutiny, with two proposed class-action lawsuits alleging the Predictions platform capabilities as an unlicensed sportsbook. DraftKings at the moment operates cell sports activities betting in 27 states, Washington, D.C., and Puerto Rico, whereas iGaming is out there in 5 states and its Canadian enterprise reaches provinces representing about 51% of the nation’s inhabitants.
Featured picture: DraftKings
