DraftKings (DKNG) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue was $1.44 billion, down 4.6%–5% year-over-year, mainly due to customer-friendly sports outcomes and increased promotional spending for new customer acquisition.

• Adjusted EBITDA for Q2 2026 was $114.6 million–$115 million, down from $300.6 million–$301 million in Q2 2025.

• Monthly Unique Payers (MUPs) increased 9%–9.1% year-over-year to 3.6 million, while Average Revenue per MUP (ARPMUP) fell 12.6%–13% to $132.

• Sports Consumer Volume rose 14.5%–15% year-over-year to $13.1 billion, reflecting strong customer acquisition and engagement.

• The Super App rollout and rapid Predictions offering adoption contributed to significant new customer growth, with over 600,000 engaged customers year-to-date.

Financial highlights

• Adjusted EBITDA margin for Q2 2026 was 7.9%, down from 19.9% in Q2 2025.

• Adjusted Diluted EPS for Q2 2026 was $0.17, up from $0.08 in Q2 2025; Adjusted Diluted Earnings Per Share was $0.09, down from $0.38 in Q2 2025.

• iGaming revenue for Q2 2026 was $461.9 million–$462 million, up 7.5% from Q2 2025.

• Sports Net Revenue Margin was 6.8% in Q2 2026, down from 8.0%–8.7% in Q2 2025.

• Cash and cash equivalents at June 30, 2026, were $983.9 million, down from $1.13 billion at year-end 2025.

Outlook and guidance

• Fiscal year 2026 revenue guidance maintained at $6.5 billion to $6.9 billion.

• Adjusted EBITDA guidance for fiscal year 2026 remains at $700 million to $900 million, including $200 million–$300 million investment in predictions.

• Management expects continued investment in new offerings, technology, and market expansion, with a focus on long-term profitability as jurisdictions mature.

• The company believes its cash position is sufficient for at least the next twelve months and is well positioned for long-term funding needs.

• Long-term industry gross revenue opportunity estimated at $55 billion–$80 billion by 2030, targeting at least 30% adjusted EBITDA margin.