DraftKings reported its second quarter 2026 results, showing a loss of $67.6 million, or $0.14 per share, on revenue of $1.443 billion. This revenue figure represents a 5% decrease compared to $1.513 billion in the same period of 2025. The company attributed the revenue decline primarily to customer-friendly sport outcomes and increased promotional reinvestment aimed at new customer acquisition for both its Sportsbook and Predictions offerings. Despite the revenue dip, DraftKings maintained its fiscal year 2026 guidance, projecting revenue between $6.5 billion and $6.9 billion, and Adjusted EBITDA between $700 million and $900 million.
CEO Jason Robins stated that the company delivered a strong second quarter, with momentum in its core business across handle, users, and engagement. He highlighted the nationwide launch of their "Super App" and the faster-than-anticipated growth of their Predictions offering, which launched in December 2025. Robins expressed confidence in DraftKings' strategy to "win the category this NFL season and beyond," citing the similarity of Predictions customer metrics to Sportsbook metrics and the company's advantageous lifetime value (LTV) position.
Monthly Unique Payers (MUPs) saw a 9% increase, reaching 3.6 million in Q2 2026 compared to the prior year, driven by strong unique payer retention and new customer acquisition across both Sportsbook and Predictions offerings. However, Average Revenue per MUP (ARPMUP) decreased by approximately 13%, or $19, to $132, largely due to the aforementioned customer-friendly sport outcomes and new customer promotions. CFO Alan Ellingson affirmed that the core business is on track to generate approximately $1 billion in Adjusted EBITDA this year, providing financial flexibility for investment in the Predictions segment.
Ahead of the earnings report, options traders were placing bullish wagers on DraftKings, including a significant bet by an investor who bought 43,000 call spreads expiring in November for approximately $3 million. This trade would require about a 40% rally in DraftKings shares to break even, according to Susquehanna's analysis. DraftKings CEO Jason Robins also commented on prediction markets, noting that some operators are "irresponsibly saying" their products are distinct from others, while in reality, a significant portion of the money comes from professional market makers.
