World Cup bettors cost DraftKings its Q2 profit

• DraftKings posted $13.1 billion in Q2 Sports Consumer Volume, a 15% year-over-year increase.
• Revenue fell 5% to $1.44 billion, missing Wall Street estimates of roughly $1.5 billion to $1.55 billion.
• CEO Jason Robins says handle, users and engagement all grew, with Predictions expanding faster than expected.

DraftKings reported second-quarter revenue of $1.44 billion on August 6, down 5% year-over-year, even as combined Sports Consumer Volume, covering sportsbook handle and prediction market trading, hit a record $13.1 billion.

The Boston-based operator said customer-friendly sport outcomes and higher promotional spending drove the decline. It reaffirmed its full-year guidance.

Volume outpaces profit

DraftKings’ Sports Consumer Volume, which combines sportsbook handle and prediction market trading, climbed 15% year-over-year to $13.1 billion for the three months ended June 30, according to its second-quarter results, up from $11.5 billion a year earlier.

The growth was driven by World Cup-related betting and the continued expansion of DraftKings’ Predictions product.

Revenue told a different story. The $1.44 billion total missed analyst estimates of roughly $1.5 billion to $1.55 billion and fell 5% short of the $1.51 billion reported in the same period of 2025.

DraftKings’ Sports Net Revenue Margin slipped from 8.7% in Q2 2025 to 6.8% this year, as bettors cashed in on outcomes including two heavily backed World Cup wins for the US men’s national team.

The dip hit the bottom line hard. DraftKings posted a net loss of $67.6 million, compared with $157.9 million in net income during the second quarter of 2025. Adjusted EBITDA fell 61.9% to $114.6 million from $300.6 million a year earlier.

Sports betting generated $891.9 million in revenue for the quarter. iGaming brought in $461.9 million, up 7.5% year-over-year, providing a rare bright spot.

Predictions gain ground

Monthly Unique Payers rose 9% to 3.6 million, a sign that both the sportsbook and Predictions platforms are attracting and retaining customers. Average revenue per Monthly Unique Payer fell 13% year-over-year to $132, reflecting the lower margin.

DraftKings Predictions launched in December 2025 and is now live in 38 states, building on the volume growth iGaming Republic tracked when the operator’s proprietary DKeX exchange, a CFTC-regulated trading venue, went live in June.

Jason Robins, Chief Executive Officer of DraftKings, said:

“We delivered a strong second quarter and enter the back half of the year with real momentum, as our core business grew across handle, users, and engagement. Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated.”

Robins added that Predictions customer metrics closely mirror those of the core sportsbook business, a similarity DraftKings says supports its confidence heading into the NFL season.

New markets, steady guidance

DraftKings’ sportsbook now covers roughly 53% of the US population across 27 states, Washington, D.C. and Puerto Rico. iGaming operates in five states, reaching about 11% of the population.

The operator confirmed an Alberta launch earlier this year before going live with its sportsbook and casino in the province on July 13.

Alan Ellingson, Chief Financial Officer at DraftKings, said:

“Our core business remains on track to generate approximately $1 billion of Adjusted EBITDA this year, providing us with financial flexibility to invest behind the significant opportunity that we are seeing in Predictions. Therefore, we are maintaining our fiscal year 2026 guidance for revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.”

Total revenue for the first half of 2026 is up 5.8% versus the same period in 2025, with Sports Consumer Volume increasing 7.8%. Shares slid in after-hours trading following the report, extending a run of trimmed price targets from Wall Street analysts.

The World Cup masked underlying customer growth this quarter, and DraftKings is leaning on Predictions to offset any further margin pressure. That bet gets its real test once NFL volume returns and handle typically dwarfs summer totals.