The revenue beat and maintained guidance provide a floor, but the significant adjusted EPS miss relative to consensus ($0.20 vs $0.36) will pressure the stock near-term. Watch the earnings call for color on Predictions investment spend and Q2 trajectory — the maintained guidance implies a ramp in H2. The 64% YoY Adjusted EBITDA growth supports the profitability inflection narrative, but the EPS miss is the dominant near-term factor.
Price Chart
Executive Summary
DraftKings reported Q1 2026 revenue of $1.646B (+17% YoY), beating consensus of $1.57B, but GAAP diluted EPS of $0.03 and adjusted diluted EPS of $0.20 both missed the Street consensus of $0.36. The company maintained its FY2026 guidance for revenue ($6.5B-$6.9B) and Adjusted EBITDA ($700M-$900M), with management citing strong core business and profitability inflection.
Key Financial Metrics
Key Facts
- Q1 2026 revenue of $1.646B, up 17% YoY from $1.409B, beating consensus of $1.57B
- GAAP diluted EPS of $0.03 vs $0.20 consensus; adjusted diluted EPS of $0.20 vs $0.36 consensus
- Adjusted EBITDA of $167.9M, up 64% YoY from $102.6M
- FY2026 guidance maintained: revenue $6.5B-$6.9B, Adjusted EBITDA $700M-$900M
- Sportsbook net revenue margin improved to 7.8% from 6.4% YoY
- MUPs decreased 4% to 4.2M; ex-Lottery MUPs up 2%
- ARPMUP increased 21% to $131
- Net income of $21.1M vs net loss of $33.9M in prior year period
- Operating cash flow of -$48.4M vs -$119.0M in prior year period
- Repurchased $98.6M in stock during Q1 under buyback program
Financial Impact
Revenue beat of ~$76M (4.8% above consensus) but adjusted EPS miss of $0.16 (44% below consensus)
Risk Factors
- Adjusted EPS miss of 44% vs consensus may trigger negative analyst revisions
- MUPs declining 4% YoY signals potential customer acquisition headwinds
- FY2026 guidance maintained but unchanged — no upside catalyst from outlook
- Investment in Predictions business could pressure near-term margins
- Operating cash flow negative at -$48.4M despite GAAP profitability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001883685-26-000019 |
| Document: dkng-20260508.htm | 0001883685-26-000019 |
| Document: 0001883685-26-000019-index-headers.html | 0001883685-26-000019 |
| Document: 0001883685-26-000019-index.html | 0001883685-26-000019 |
| Document: 0001883685-26-000019.txt | 0001883685-26-000019 |
| 8-K Data (Synthetic) | 0001883685-26-000019 |
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
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access