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DraftKings shares rise after EPS beat amid revenue miss in Q2
DraftKings reported Q2 revenue of $1.44 billion, below expectations, while it said investment tied to its expanding Predictions market is driving margin compression.
DraftKings shares moved higher after the company delivered a mixed set of results in Q2 2026. Revenue totaled $1.44 billion, missing expectations of $1.51 billion, but adjusted earnings per share came in at nine cents versus analysts’ forecast of two cents, according to MarketBeat Ratings.
The company also reported a GAAP diluted EPS loss of 14 cents, reflecting a swing to a net loss. DraftKings’ reconciliation indicated the adjusted and GAAP gap was largely non-cash, with stock-based compensation and amortization of acquired intangibles adding back, partially offset by a tax impact.
Underlying profitability was described as holding up better than the headline figures suggest, even as year over year comparisons weakened. DraftKings said adjusted EBITDA fell 62% year over year to $114.60 million from $300.60 million, while sports revenue declined to $892 million from $998 million as volume increased, pulling net revenue margin down from 8.7% to 6.8%.
MarketBeat Ratings said management framed the quarter around investment to expand its Predictions market, noting the spending is compressing margins. The core Sportsbook and iGaming business is on track to generate roughly $1 billion in adjusted EBITDA for fiscal 2026, with the company’s guidance range set at $700 million to $900 million, implying the Predictions investment accounts for the difference.