DraftKings posted adjusted EBITDA of $114.6m in Q2 2026, down 62% year-on-year. The company swung to a net loss of $67.6m from a profit of $157.9m a year earlier, while revenue fell 4.6% to $1.44bn. Unfavorable sports results cost around $80m in revenue, and aggressive customer-acquisition spending added to the pressure.
Prediction markets delivered growth that CEO Jason Robins called 'far exceeding expectations'. Annual trading volume climbed nearly fivefold from $2.3bn in April to $11bn in July. The DraftKings Prediction product has drawn over 600,000 customers since launch. More than half now use parlay-style combo bets, which account for around 20% of volume.
DraftKings is committing $200m to $300m to the vertical in 2026. It launched its own exchange, DKeX, secured a Futures Commission Merchant license, and now runs profitable market-making operations on three venues: DKeX, Crypto.com and CME Group. Robins said cannibalization with sports betting remains minimal, with audience overlap at around 1%. In states where online betting is legal, professional players and institutional traders generate 80% to 90% of prediction market volume.
Customer acquisition rose 75% year-on-year in Q2, though actual cost came in 25% below plan. Robins expects further acceleration during the NFL season, which he described as 'by far the biggest'. The company held its full-year guidance: revenue of $6.5bn to $6.9bn and EBITDA of $700m to $900m.
