The revenue miss and EPS miss will likely pressure the stock near-term. However, maintained FY guidance, strong handle growth (+15%), and 9% MUP growth suggest the Q2 weakness is driven by sports outcome variance, not structural decline. Monitor NFL season for margin recovery and Predictions uptake.
Price Chart
Executive Summary
DraftKings Q2 2026 revenue fell 5% YoY to $1.443B, missing consensus of $1.52B, driven by customer-friendly sports outcomes and promotional reinvestment. GAAP EPS was -$0.14 (vs $0.30 in Q2 2025), while adjusted diluted EPS of $0.09 missed the $0.19 consensus. FY2026 guidance for revenue ($6.5B-$6.9B) and Adj. EBITDA ($700M-$900M) was maintained. The decline in top-line and the EPS miss are negative signals, but maintained guidance and strong customer growth (MUPs +9%) offer some offset.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $1.443B, down 5% YoY from $1.513B, missing consensus of $1.52B
- GAAP diluted EPS of -$0.14 vs $0.30 in Q2 2025; adjusted diluted EPS of $0.09 vs consensus $0.19 (miss of 53%)
- Sports Net Revenue Margin fell to 6.8% from 8.7% due to customer-friendly outcomes
- Monthly Unique Payers increased 9% YoY to 3.6M; ARPMUP fell 13% to $132
- Sports Consumer Volume grew 15% to $13.1B
- iGaming revenue grew 7.5% YoY to $461.9M
- FY2026 guidance maintained: revenue $6.5B-$6.9B, Adj. EBITDA $700M-$900M
Financial Impact
Revenue declined $69M YoY; adjusted EPS missed consensus by $0.10/share (~53% miss); Adj. EBITDA halved YoY to $115M from $301M.
Risk Factors
- Customer-friendly sports outcomes could persist if hold rate does not normalize
- Promotional reinvestment for Predictions may continue pressuring near-term margins
- Guidance implies H2 acceleration; execution risk if consumer softness emerges
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001883685-26-000027 |
| Document: dkng-20260807.htm | 0001883685-26-000027 |
| Document: 0001883685-26-000027-index-headers.html | 0001883685-26-000027 |
| Document: 0001883685-26-000027-index.html | 0001883685-26-000027 |
| Document: 0001883685-26-000027.txt | 0001883685-26-000027 |
| 8-K Data (Synthetic) | 0001883685-26-000027 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 1, 2026 4w ago | Court Ruling | $23.44 $19.00 | ▼ −18.94% | ▼ −19.26% | $18.59 (−20.69%) |
Aug 20, 2026 6w ago | Court Ruling | $25.03 $21.75 | ▼ −13.10% | ▼ −13.10% | $18.59 (−25.73%) |
Aug 19, 2026 6w ago | 144 | $25.31 $22.47 | ▼ −11.22% | ▼ −9.27% | $18.59 (−26.55%) |
Aug 7, 2026 8w ago | 8-K | $24.03 $24.01 | ▲ +0.08% | ▼ −0.31% | $18.59 (+22.64%) |
Aug 6, 2026 8w ago | Court Ruling | $22.17 $24.19 | ▲ +9.11% | ▲ +8.51% | $18.59 (−16.15%) |
Jul 29, 2026 9w ago | Court Ruling | $24.55 $24.78 | ▲ +0.94% | ▼ −4.08% | $18.59 (−24.28%) |
Jul 22, 2026 10w ago | Institutional Cluster | $22.83 $25.31 | ▲ +10.86% | ▲ +7.97% | $18.59 (−18.57%) |
Jun 26, 2026 14w ago | 8-K | $25.80 $23.01 | ▼ −10.81% | ▼ −10.53% | $18.59 (−27.95%) |
Jun 11, 2026 16w ago | 144 | $29.00 $26.48 | ▼ −8.71% | ▼ −10.49% | $18.59 (−35.90%) |
Jun 11, 2026 16w ago | Institutional Cluster | $30.02 $26.29 | ▼ −12.43% | ▼ −14.32% | $18.59 (−38.07%) |
US Market Status
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