DraftKings Inc. announced its second-quarter earnings on August 6, 2026, reporting revenue of $1.51 billion, which fell short of analyst estimates. This comes after the company previously missed Wall Street's revenue and profit projections for its 2026 forecast in February, predicting revenue of $6.5 billion to $6.9 billion against analyst expectations of $7.32 billion. The February forecast also estimated adjusted earnings between $700 million and $900 million, lower than the $998 million analysts had projected.
The company's stock experienced a significant drop following these announcements, including its largest intraday decline in nearly three-and-a-half years in February 2026. This downward trend continued, with the stock closing at $21.76 per share on Friday, August 7, 2026, marking its lowest point since April 2023 and a more than 50% decrease over the past 12 months. This decline is attributed partly to increasing competition from prediction markets and potential state tax increases.
In response to the growing prediction market trend, DraftKings stated it would invest more in this new area, with CEO Jason Robins emphasizing the company's ambition to lead this nascent category. DraftKings aims for hundreds of millions in annual revenue from its predictions segment in the coming years. For the quarter ending December 2025, DraftKings reported revenue of approximately $2 billion, in line with estimates, and earnings per share of $0.25, surpassing the $0.16 consensus. Average monthly users were 4.8 million, with average revenue per user at $139, up from $97 in Q4 2024. However, marketing costs also increased, reaching $442.6 million for the quarter, a 20% rise from Q4 2024.
