DraftKings Reports 5% Revenue Decline in Q2 2026

DraftKings reported a 5% decline in revenue during Q2 2026, reaching $1.44 billion compared to $1.53 billion the previous year and Wall Street expectations of $1.55 billion. The adjusted EBITDA was $114.6 million, a significant drop from $300.6 million in 2025. Additionally, the company reported a net loss of $67.6 million, contrasting with a net income of $157.9 million in 2025.

Increase in Sports Betting Volume

Despite the revenue drop, sports betting volume increased by 15%, reaching $13.1 billion, driven by strong customer acquisition and engagement. DraftKings CEO Jason Robins highlighted, "We delivered a strong second quarter and entered the second half of the year with real momentum."

Factors Impacting Revenue

Customer-favorable betting results impacted revenue, causing a 10.6% drop in sports betting revenue to $891.9 million. In contrast, iGaming revenue grew by 7.5%, reaching $461.9 million.

Sports Betting and iGaming

• Sports betting revenue: $891.9 million
• iGaming growth: 7.5%
• iGaming revenue: $461.9 million

Alan Ellingson, CFO, added, "Our core business is still on track to generate approximately $1 billion in adjusted EBITDA this year."

User Growth but Lower Average Revenue

DraftKings reached 3.6 million monthly unique users in Q2, a 9% increase. However, the average revenue per player decreased by 13%, settling at $132. Despite these mixed results, the company maintained its annual revenue projection of between $6.5 billion and $6.9 billion.

Future Outlook and Projections

DraftKings continues to see significant opportunity in the Predictions market, which supports its confidence in achieving the $1 billion adjusted EBITDA target and its full-year revenue forecasts. This strategy provides financial flexibility for future investments.