DraftKings (DKNG) fell ~2.6–3% after hours to near $21.60 after Q2 revenue of $1.44B missed estimates and adjusted EPS hit $0.09 amid weak hold and higher promotions. Full-year guidance held; details on volume, users, and sector pressure.
DraftKings Inc. (NASDAQ: DKNG) shares dropped in after-hours trading on Thursday, August 6, 2026, after the online sports betting and iGaming company reported second-quarter results that missed Wall Street expectations on both revenue and adjusted earnings. Revenue fell 5% year-over-year to $1.44 billion amid customer-friendly sports outcomes and higher promotional spending, while adjusted EPS came in at $0.09. The stock traded near $21.60 in extended hours, down roughly 2.6–3% from the regular-session close of $22.17.
DraftKings Q2 Revenue Falls 5% to $1.44B, Misses Estimates; Adj. EPS $0.09
DraftKings reported Q2 2026 revenue of $1.443 billion, a 4.6–5% decline from $1.513 billion in the year-ago period and short of consensus estimates that ranged from about $1.52 billion to $1.55 billion. Adjusted diluted EPS was $0.09, missing some analyst forecasts (consensus figures cited around $0.11–$0.19 depending on the source), while GAAP results showed a net loss of $67.6 million, or $0.14 per share, swinging from net income of $157.9 million, or $0.30 per diluted share, a year earlier.
Sports consumer volume (handle) rose 15% year-over-year to $13.1 billion from $11.5 billion, reflecting strong customer acquisition and engagement during a quarter that included the FIFA World Cup. Monthly unique paying customers (MUPs) increased 9% to 3.6 million. However, average revenue per MUP fell 13% to $132 from about $144, pressured by lower hold percentages and promotional reinvestment. Adjusted EBITDA dropped sharply to $114.6 million from $300.6 million in Q2 2025, missing consensus near $160 million.
Management attributed the revenue shortfall primarily to customer-favorable sport outcomes, including unbalanced positions tied to the New York Knicks’ NBA title run and major World Cup results, along with elevated promotional spending to acquire new customers on Sportsbook and Predictions offerings. iGaming revenue rose 7.5% to $461.9 million. DraftKings maintained its full-year 2026 guidance of revenue between $6.5 billion and $6.9 billion and Adjusted EBITDA of $700 million to $900 million. CEO Jason Robins highlighted growth in handle, users, and engagement, noting that the Super App is live nationwide and that Predictions is growing faster than anticipated, with customer metrics similar to Sportsbook.
Insider activity added to the cautious tone: in the preceding three months, insiders sold approximately $2.8 million worth of shares (including sales by Director Woodrow Levin of about $880,000 and Chief Legal Officer R. Stanton Dodge of roughly $1.86 million), with no reported insider buying in that window.
DKNG Slips 2.7–3.9% After-Hours to ~$21.60 After Revenue Miss; S&P 500 −0.2%, Nasdaq −0.1%
Investors focused on the revenue miss and the sharp drop in profitability metrics despite volume growth, raising questions about near-term hold rates, promotional intensity, and margin trajectory. The stock had already declined earlier in the week after rival FanDuel parent Flutter Entertainment reported weaker results and cut full-year guidance, creating sector-wide pressure. DraftKings closed regular trading at $22.17, up 1.88% on the day but slipped in after-hours to levels around $21.53–$21.69 (down roughly 2.7–3.9% from the close in various reports), with trades noted near $21.60. Broader markets provided little support: the S&P 500 fell 0.2% to 7,709.96 and the Nasdaq Composite slipped 0.1% to 26,348.35.
DraftKings Live in 27 States Covering 53% of U.S.; Bernstein Cuts Target to $27
DraftKings operates mobile sports betting in 27 U.S. states plus Washington, D.C., and Puerto Rico (covering about 53% of the U.S. population), iGaming in five states, and Predictions in 38 states. It has also expanded into Canadian provinces including Alberta. The Q2 period featured high-profile events such as the World Cup and NBA Finals, which boosted volume but produced outcomes unfavorable to the operator’s hold percentage. Prior to the report, the stock had faced multiple negative EPS revisions and limited positive ones in recent months. Bernstein had recently lowered its price target to $27 from $31. The company continues to emphasize product innovation, including its Predictions offering and Super App, as drivers of long-term growth.
DraftKings Earnings Call Today at 8:30 a.m. ET; Focus on Hold Rates and NFL Outlook
DraftKings will host its earnings conference call on Friday, August 7, 2026, at 8:30 a.m. ET. Investors will watch for commentary on hold rates recovery, promotional spending discipline heading into the NFL season, Predictions momentum, and any updates to the maintained full-year outlook. Analysts and traders will also monitor sector peer performance and any further insider activity or guidance revisions in coming quarters.