DraftKings Revenue Falls After a Year of Growth

The Tip Desk · August 7, 2026 · 3 min read

Second-quarter revenue was $1,443 million, down 5% from a year earlier, as Sports Consumer Volume rose 15% to $13.1 billion.

DraftKings Inc. (DKNG) posted a 5% drop in second-quarter revenue after a year of growth, as customer-friendly sports outcomes and promotional reinvestment on Sportsbook and Predictions compressed the sports margin even as wagering volume expanded.

For the three months ended June 30, 2026, revenue was $1,443 million, down $69 million from $1,513 million a year earlier. That followed a 17% year-over-year increase in the first quarter. The decline was driven primarily by customer-friendly sports outcomes and increased promotional reinvestment associated with new customer acquisition on Sportsbook and Predictions.

Sports Consumer Volume, settled wagers and trades on Sportsbook and Prediction Markets, rose 15% to $13.1 billion from $11.5 billion. Sports revenue fell 10.6% to $891.9 million, and Sports Net Revenue Margin compressed to 6.8% from 8.7%. iGaming revenue increased 7.5% to $461.9 million. Other revenue rose 5.2% to $89.4 million.

Monthly Unique Payers increased approximately 9% to 3.6 million, reversing a 4% year-over-year decline to 4.2 million in the prior quarter. The increase reflected Sportsbook and Predictions, which launched in December 2025. Average Revenue per MUP decreased approximately 13%, or $19, to $132, after a 21% year-over-year increase to $131 in the first quarter. The decline reflected customer-friendly sports outcomes and new-customer promotions.

GAAP results swung to a $67.6 million net loss attributable to common stockholders, or $0.14 a share, from $157.9 million of net income, or $0.32 a share, a year earlier. Income from operations was a $68.2 million loss versus $150.6 million of income. Adjusted EBITDA fell to $114.6 million from $300.6 million. Adjusted Diluted EPS was $0.09 versus $0.38. Sales and marketing expense rose to $322.5 million from $233.2 million. Product and technology expense increased to $127.6 million.

Chief Executive Officer Jason Robins said the company delivered a strong second quarter and enters the back half of the year with momentum, as the core business grew across handle, users, and engagement. He said the Super App is now live nationwide and that Predictions is already growing faster than anticipated. Chief Financial Officer Alan Ellingson said the core business remains on track to generate approximately $1 billion of Adjusted EBITDA this year, providing flexibility to invest in Predictions.

DraftKings is maintaining fiscal year 2026 revenue guidance of $6.5 billion to $6.9 billion and Adjusted EBITDA guidance of $700 million to $900 million, unchanged from the ranges first introduced in February 2026 and reiterated in May.

Mobile sports betting is live in 27 states, Washington, D.C., and Puerto Rico, representing about 53% of the U.S. population. iGaming is live in 5 states, about 11% of the U.S. population. Following Alberta, Canada, Sportsbook and iGaming are live in provinces representing about 51% of the Canadian population, versus Ontario-only coverage of about 40% of Canada in the prior two quarters.

Mobile sports betting is live in 27 states, Washington, D.C., and Puerto Rico, and iGaming is live in five states. After Alberta, Sportsbook and iGaming cover about 51% of the Canadian population. Fiscal 2026 revenue guidance remains $6.5 billion to $6.9 billion and Adjusted EBITDA $700 million to $900 million.