DKNG Stock Slips After-Hours As Q2 Earnings Disappoint — CEO Says Predictions Growing Faster Than Expected, Ready To Win NFL Season

• DraftKings reported second-quarter revenue of $1.44 billion, down 5% from a year earlier, as higher promotional spending and favorable results for bettors offset strong growth in customer activity.
• DraftKings kept its full-year 2026 outlook unchanged: revenue of $6.5 billion to $6.9 billion and adjusted core profit of $700 million to $900 million.
• Rival firm Flutter Entertainment cut full-year guidance earlier this week. 

Shares of DraftKings (DKNG) fell about 4% in after-hours trading on Thursday after the company reported a 5% drop in second-quarter revenue, while reaffirming full-year guidance and noting that its Predictions product is already growing faster than expected.

DraftKings reported second-quarter revenue of $1.44 billion, down 5% from a year earlier, as higher promotional spending and favorable results for bettors offset strong growth in customer activity. Wall Street on average had expected the company to report revenue of $1.51 billion.

Sports betting volume rose 15% to $13.1 billion. Monthly unique payers increased 9% to 3.6 million, reflecting solid new customer gains and retention across sportsbook and the newer Predictions product. Average revenue per monthly unique payer fell 13% and adjusted core profit came in at $114.6 million, down sharply from $300.6 million a year ago, and underwhelming analysts who expected $161.86 million on average.

CEO Highlights Momentum And Predictions Opportunity

CEO Jason Robins said the core business showed real strength heading into the second half of the year. “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,” he said.

Robins pointed to the company’s Super App, now available nationwide, and the rapid growth of Predictions. “Predictions is already growing faster than we anticipated,” he said. Customer metrics for Predictions look similar to those of the sportsbook, giving DraftKings an edge in lifetime value and a clear playbook to innovate. He expressed confidence the company can “win the category this NFL season and beyond.”

Guidance Held Steady

CFO Alan Ellingson said the core business remains on track to generate about $1 billion in adjusted core profit this year, giving the company flexibility to invest in Predictions.

DraftKings kept its full-year 2026 outlook unchanged: revenue of $6.5 billion to $6.9 billion and adjusted core profit of $700 million to $900 million.

DraftKings operates mobile sports betting in 27 states, Washington, D.C., and Puerto Rico, covering about 53% of the U.S. population.

Rival Performance

DraftKings rival Flutter Entertainment, owner of FanDuel, reported mixed results earlier this week. Flutter’s U.S. revenue fell 6% amid similar pressures from promotions and sports outcomes, while the company cut full-year guidance. Both operators are investing in prediction markets ahead of the NFL season.

How Did DKNG Retail Traders React?

On Stocktwits, retail sentiment around DKNG stock rose from ‘bullish’ to ‘extremely bullish’ over the past 24 hours, while message volume increased from ‘high’ to ‘extremely high’ levels.

A Stocktwits user said that DraftKings “is entering a key phase as strong user growth meets short term revenue pressure.”

Another expects the stock to rally into the NFL season.

DKNG stock has fallen 36% year-to-date. 

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