DraftKings (NASDAQ:DKNG) Issues Earnings Results, Beats Expectations By $0.07 EPS

Posted by Brian Himes on Aug 7th, 2026

DraftKings (NASDAQ:DKNG – Get Free Report) released its quarterly earnings results on Friday. The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.02 by $0.07, Briefing.com reports. DraftKings had a negative net margin of 2.68% and a negative return on equity of 10.88%. The business had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.51 billion. During the same period last year, the business earned $0.30 EPS. The company’s revenue was down 4.6% compared to the same quarter last year.

Here are the key takeaways from DraftKings’ conference call:

Core business momentum strengthened, with sportsbook handle up 11% year over year, sports consumer volume up 15%, and monthly unique payers growing 9%. Management said the core business is on track to generate approximately $1 billion in Adjusted EBITDA in 2026.
DraftKings reported $115 million of second-quarter Adjusted EBITDA and maintained its 2026 revenue guidance of $6.5 billion-$6.9 billion and Adjusted EBITDA guidance of $700 million-$900 million, despite continued investment in predictions.
The predictions offering exceeded expectations, attracting more than 600,000 customers year to date and growing annualized traded volume nearly fivefold from April to July. DraftKings expects its vertically integrated brokerage, exchange, and market-making model to improve long-term customer economics.
Customer acquisition increased nearly 75% year over year, prompting DraftKings to spend about 10% more than planned, although underlying acquisition costs were approximately 25% better than expected. Management may increase or reallocate spending if customer-acquisition returns remain attractive.
iGaming showed early signs of recovery, supported by the Lightning Link launch and Flex Spins feature, with customer acquisition stronger than expected and market share stabilizing after several quarters of declines.

DraftKings Price Performance

Shares of DKNG stock traded up $1.86 during mid-day trading on Friday, hitting $24.03. 37,754,843 shares of the stock were exchanged, compared to its average volume of 12,578,895. The firm has a fifty day moving average of $25.37 and a 200 day moving average of $24.97. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03. DraftKings has a 52-week low of $20.46 and a 52-week high of $48.78. The company has a market cap of $11.92 billion, a PE ratio of -63.24 and a beta of 1.66.

Wall Street Analysts Forecast Growth

DKNG has been the topic of several recent analyst reports. UBS Group upped their target price on DraftKings from $43.00 to $49.00 and gave the company a “buy” rating in a research report on Friday, June 5th. TD Cowen boosted their target price on shares of DraftKings from $30.00 to $35.00 and gave the company a “buy” rating in a research report on Friday, July 10th. New Street Research set a $29.00 price target on DraftKings in a research report on Monday, June 1st. Roth Capital upgraded DraftKings from a “sell” rating to a “buy” rating in a research note on Friday, April 24th. Finally, Wells Fargo & Company decreased their price objective on DraftKings from $32.00 to $29.00 and set an “overweight” rating for the company in a report on Monday, July 20th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $34.14.

Get Our Latest Analysis on DKNG

Insider Activity

In other DraftKings news, insider R Stanton Dodge sold 62,500 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the transaction, the insider owned 556,258 shares in the company, valued at approximately $16,509,737.44. This represents a 10.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. The trade was a 53.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 97,596 shares of company stock valued at $2,756,991. 47.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in DKNG. Virtu Financial LLC acquired a new position in DraftKings during the fourth quarter worth $528,000. Compound Planning Inc. purchased a new position in DraftKings during the fourth quarter valued at $2,079,000. Strive Financial Group LLC acquired a new stake in shares of DraftKings in the fourth quarter valued at about $147,000. Mercer Global Advisors Inc. ADV grew its position in shares of DraftKings by 21.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 167,110 shares of the company’s stock valued at $5,759,000 after purchasing an additional 29,340 shares during the period. Finally, FAS Wealth Partners Inc. grew its position in shares of DraftKings by 27.1% in the fourth quarter. FAS Wealth Partners Inc. now owns 12,167 shares of the company’s stock valued at $419,000 after purchasing an additional 2,592 shares during the period. Hedge funds and other institutional investors own 37.70% of the company’s stock.

Key DraftKings News

Here are the key news stories impacting DraftKings this week:

Positive Sentiment: DraftKings’ Predictions platform is expanding rapidly ahead of football season. CEO Jason Robins said annualized volume increased to approximately $11 billion in July from $2.3 billion in April, reinforcing the company’s strategy to become a broader nationwide sports-commerce platform. Prediction markets take center stage in latest round of quarterly earnings reports
Positive Sentiment: Management said the core business remains positioned to generate roughly $1 billion in adjusted profit this year, providing flexibility to invest in Predictions. DraftKings also reaffirmed its full-year revenue outlook of $6.5 billion to $6.9 billion. DKNG Stock Slips After-Hours As Q2 Earnings Disappoint
Positive Sentiment: Benchmark raised its DraftKings price target to $30 from $29 and maintained a Buy rating, citing potential upside from the Predictions rollout and the upcoming NFL season. DraftKings price target raised by Benchmark
Neutral Sentiment: Second-quarter results were mixed: DraftKings reported $1.44 billion in revenue versus approximately $1.51 billion expected, while earnings per share of $0.09 exceeded the consensus estimate cited by some data providers. Full-year guidance was unchanged. DraftKings Reports Second Quarter Results
Negative Sentiment: Revenue declined 4.6% year over year, and the company swung to a $67.6 million net loss from $157.9 million of profit a year earlier. Heavy promotional activity, along with unfavorable sports outcomes including the Knicks’ title run and World Cup results, pressured quarterly results. DraftKings Second-Quarter Revenue Falls, Hurt by Promotions

DraftKings Company Profile

(Get Free Report)

DraftKings Inc is a leading digital sports entertainment and gaming company specializing in daily fantasy sports, sports betting and iGaming products. The company provides an integrated platform where users can participate in daily fantasy contests, place wagers on professional sports events, and enjoy a range of online casino-style games. DraftKings’ proprietary technology supports real-time odds, live scoring and advanced analytics to enhance the user experience across mobile and desktop applications.

Founded in 2012 by co-founders Jason Robins, Matthew Kalish and Paul Liberman, DraftKings began as a daily fantasy sports provider and rapidly expanded into regulated sports betting following legislative changes in the United States.