LAS VEGAS and BOSTON, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Integrity Compliance 360, Inc. (IC360), the global technology and advisory leader for integrity and regulatory solutions in sports, sports betting, iGaming, and prediction markets, today announced an agreement with DraftKings Inc. (Nasdaq: DKNG), the digital sports and gaming company. Under the agreement, DraftKings will deploy IC360’s full, industry-leading suite of integrity and compliance technology across both its sportsbook and predictions platform.
The agreement marks the first ever single-operator integration in IC360's ProhiBet and ProhiTrade secure network, uniting four of the company's flagship technologies under one roof: Integrity Monitoring, ProhiBet, ProhiTrade, and ProhiBet Bad Actors. Together, these solutions give DraftKings a single, unified integrity architecture spanning traditional sports wagering and event-based prediction market trading, an approach IC360 believes will set the new industry standard as sportsbooks and prediction market exchanges increasingly operate side by side.
“DraftKings is built for entertainment, and we want sports fans to have fun and enjoy the games they love in a responsible way,” said Lori Kalani, Chief Responsible Gaming Officer at DraftKings. “There is no place for harassment of athletes or attempts to manipulate sports markets in our industry. Our work with IC360 gives us additional tools to identify and address this type of conduct and uphold the integrity of sports.”
“DraftKings has always been an industry leader, and this agreement reflects the seriousness with which they treat integrity across all of their platforms,” said Ali Schempp, Chief Commercial Officer of IC360. “As consumer market offerings continue to expand, operators and exchanges need systems that work fluently across all verticals. IC360 was built for exactly this moment, and we are proud that DraftKings has chosen our full technology stack — Integrity Monitoring, ProhiBet, ProhiTrade, and ProhiBet BA — to uphold its platforms and the athletes and fans who make this industry what it is. This is precisely the kind of forward-looking, comprehensive collaboration our industry needs. DraftKings isn’t just checking a compliance box — they are setting the bar for what integrity should look like at scale, and we look forward to working with them every step of the way.”
Contact:
Emily Raish | Digital Marketing & Design Lead
Email: [email protected]
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about DraftKings (DKNG - Free Report) .
DraftKings currently has an average brokerage recommendation (ABR) of 1.61, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 37 brokerage firms. An ABR of 1.61 approximates between Strong Buy and Buy.
Of the 37 recommendations that derive the current ABR, 25 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 67.6% and 8.1% of all recommendations.
Brokerage Recommendation Trends for DKNG
Check price target & stock forecast for DraftKings here>>>
The ABR suggests buying DraftKings, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in DKNG?Looking at the earnings estimate revisions for DraftKings, the Zacks Consensus Estimate for the current year has declined 4.5% over the past month to $0.99.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for DraftKings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for DraftKings with a grain of salt.
Gaming Realms PLC (LSE:GMR, OTCQX:PSDMF, FRA:RNE1), the AIM-listed developer and licensor of mobile gaming content, said it was well positioned to build on its momentum and deliver further growth across new and existing markets.
The company's UK business proved resilient, with revenues up 3% despite the near doubling of Remote Gaming Duty to 40% from 1 April.
Gross gaming revenue in the UK is now above levels seen prior to the 2025 staking limit changes, which the company attributed to the strength of its Slingo brand and recent product innovations.
Core content licensing revenue rose 12% to £13.0 million during the six months to 30 June, and grew a further 23% in the two months since the period ended, compared with the same period in 2025.
Total group revenue fell 3% to £15.5 million, reflecting a drop in non-core brand licensing revenue after a significant multi-year brand renewal was recognised in full in the prior period.
Excluding brand licensing, revenue grew 9% and adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) rose 16% to £5.9 million, representing a 40% margin.
Investors were told trading in the first half was in line with expectations and it remained confident of delivering full-year results in line with market forecasts.
Gaming Realms launched content in four new regulated markets during the period, Nigeria, Ghana, Kenya and Peru, taking its total to 32 by the end of June.
Since the period ended, it has gone on to launch in Alberta, Canada, and Buenos Aires Province, Argentina, becoming one of the first content providers live in Alberta's newly regulated iGaming market.
The group released 11 new games during the half, including three titles from its newly established Lucky Lunar slot studio, broadening its portfolio beyond its core Slingo mechanic.
Net cash stood at £13.5 million at the end of June, down from £17.8 million in December, after £6 million was returned to shareholders through its ongoing share buyback programme.
Mark Segal, chief executive of Gaming Realms, said the first-half results reflected continued execution of the company's strategy and the early benefits of increased investment in content and platform capability made in the second half of 2025.
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Should you invest in a cloud and retail powerhouse or a fast-growing digital gaming leader? Choosing between Amazon.com (AMZN +1.16%) and DraftKings (DKNG +1.12%) depends on your preference for stability versus growth.
Amazon dominates global e-commerce and cloud infrastructure while DraftKings captures a growing share of the legal U.S. sports betting market. These companies operate in different industries but compete for the same discretionary consumer dollars. This comparison examines their financial health and valuation to see which is a better fit for your portfolio.
The case for Amazon.comAmazon focuses on e-commerce and cloud computing through its AWS division. The company serves a vast range of customers, from individual shoppers to government entities using its technology infrastructure. It relies on a network of third-party suppliers and shipping partners, particularly for components sourced from China, to maintain its dominance among retail stocks as it scales its logistics network.
In its latest annual report, filed for FY 2025, revenue reached nearly $716.9 billion, representing a growth rate of approximately 12.4% over the prior year. The company reported a net income of close to $77.7 billion for the same period. This indicates a net margin of roughly 10.8%, which improved from the 9.3% net margin seen in 2024.
As of its December 2025 balance sheet, the current ratio is roughly 1.1x, measuring the ability to pay short-term obligations with short-term assets. The debt-to-equity ratio, which compares total debt to shareholder equity, is approximately 0.4x. Amazon generated roughly $7.7 billion in free cash flow, representing cash remaining after capital expenditures are deducted from operating cash flow.
The case for DraftKingsDraftKings focuses on the digital entertainment and sports wagering market. It provides daily fantasy sports, online sportsbooks, and iGaming services to over 10 million users. To gain market access in various jurisdictions, the company maintains strategic relationships with local tribes and casinos.
In FY 2025, revenue grew by nearly 27% to reach close to $6.1 billion. The company reported its first full year of profitability with a net income of approximately $3.7 million. This result represents a significant shift from the net loss of $507.3 million recorded in fiscal year 2024.
As of its December 2025 balance sheet, the current ratio is roughly 1.0x. The debt-to-equity ratio is approximately 3.1x, suggesting the company uses a higher level of debt relative to its equity. Note that stock-based compensation represented roughly 51.2% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonAmazon faces intense competition across retail, advertising, and cloud computing. It also deals with significant regulatory scrutiny, including antitrust litigation from state officials and class action lawsuits regarding its marketplace practices. Operational risks include the complexity of its fulfillment network and its heavy reliance on third-party sellers and international suppliers.
DraftKings operates in a highly competitive gaming industry against well-financed rivals. The company relies on third-party platforms like Apple (AAPL +1.54%) and cloud infrastructure from Amazon to reach its customers. It also manages risks from evolving state regulations, wagering excise tax audits, and its data feeds from providers such as Genius Sports (GENI +2.96%).
Valuation comparisonAmazon appears more conservatively valued on a future earnings basis, while DraftKings trades at a significant premium despite its lower price-to-sales multiple. The forward P/E ratio compares the stock price to future earnings estimates, providing a look at how much you pay for expected profits. The P/S ratio measures the stock price against total revenue, indicating how the market values every dollar of sales.
MetricAmazon.comDraftKingsForward P/E20.7x189.3xP/S ratio3.9x2.1xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
DraftKings is an undeniably interesting company, given the continued expansion of legal online sports betting and digital gaming in the United States. Its growth has been rapid, but investors should look closely at the quality of that growth. In 2025, DraftKings generated $662.9 million in operating cash flow; however, that figure included a $339.3 million add-back for stock-based compensation.
Because stock-based compensation can dilute existing shareholders, the company's reported cash generation does not tell the whole story. DraftKings also ended the year with approximately $1.84 billion in long-term debt, although its substantial cash balance helps offset that obligation.
Amazon is the less speculative choice. In 2025, it generated $716.9 billion in revenue and reported $77.7 billion in net income. Its scale, diversified revenue streams, and strong operating cash flow give it far more financial flexibility than DraftKings. The company is making a major investment in AI and cloud infrastructure, which has sharply reduced near-term free cash flow. That spending is not without risk, but it also supports the long-term competitiveness of AWS and Amazon's broader technology ecosystem.
Given the choice between the two, I would buy Amazon. DraftKings offers greater upside if its expansion and profitability continue, but Amazon provides a more compelling combination of scale, financial resilience, diversified growth opportunities, and cash-generating strength. Of course, the better investment also depends on its valuation at the time of purchase. However, on business quality alone, Amazon is the clearer choice.
DraftKings has shed nearly half its value over the past year while quietly building a Predictions product that went from $2.3 billion to $11 billion in annualized volume in just three months. Whether that pivot justifies a major rebound or…
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DraftKings (NASDAQ:DKNG | DKNG Price Prediction) has been one of 2026’s most disappointing large caps, sliding 31.98% year to date and 51.15% over the past year. With shares at $24.42, bulls are asking whether a 50% rebound is realistic.
Our 24/7 Wall St. price target for DraftKings is $22.56 over the next 12 months, implying -7.69% downside and a hold rating at 90% confidence.
Metric Value Current Price $24.42 24/7 Wall St. Price Target $22.56 Upside/Downside -7.69% Recommendation HOLD Confidence 90% Why We Could Be Wrong Our 24/7 Wall St. price target sits just below the current price, and DraftKings has real optionality. A strong NFL season could reset sportsbook margins, and the Predictions product is growing faster than anticipated with annualized volume traded jumping from $2.3 billion to $11 billion between April and July. Treat our target as one datapoint. A full bull case sits below.
A Rough Year Meets a Predictions Pivot Shares fell 9.11% in the past week and now trade well off the $48.78 52-week high, closer to the $20.46 low. Q2 2026 revenue of $1.44 billion came in missing expectations by 4.48%, and adjusted EPS of $0.09 came in missing expectations against a $0.1917 consensus.
Adjusted EBITDA compressed to $114.60 million from $300.64 million a year earlier as sports outcomes and Predictions launch spend weighed on margins. Management kept FY26 guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA intact.
Bull Case for $47+ Bulls have a clean story. Robins told investors DraftKings has “an excellent product experience,” and July sportsbook handle was up 20% year over year post World Cup. Customer acquisition costs came in 25% better than anticipated, and more than 600,000 customers have engaged with Predictions year to date.
Wall Street’s average target sits at $34.98, with 24 Buy and 5 Strong Buy ratings. Our own model’s bull case reaches $47.61 in 12 months, roughly 94.85% upside, if Predictions scales into a real second engine and sportsbook margins normalize.
What Could Go Wrong Sportsbook revenue fell 10.6% in Q2, and sports net revenue margin compressed to 6.8% from 8.7%. Sales and marketing surged to $322.54 million.
Bulls would counter that the margin hit reflects customer-friendly outcomes plus a deliberate $200 million to $300 million Predictions investment. Still, the bear scenario in our model prices DKNG at $21.32, roughly -12.76%, if regulatory friction on event contracts intensifies.
How DraftKings Compares to Flutter The cleanest comp is Flutter Entertainment (NYSE:FLUT), which owns FanDuel and competes head-to-head in US sportsbook. Flutter trades at 17x forward earnings against DraftKings at 24x, and its EV/EBITDA of 16 is a fraction of DraftKings’ 119. Flutter’s TTM revenue of $17.16 billion dwarfs DraftKings’ $6.22 billion.
That gap makes our 24/7 Wall St. price target for DKNG look reasonable rather than aggressive: DraftKings already commands a growth premium over the category leader, and further multiple expansion requires proof.
Company Forward P/E EV/EBITDA DraftKings 24 119 Flutter 17 16 DraftKings Price Prediction 2026-2030 My verdict on DraftKings is hold. The 24/7 Wall St. price target of $22.56 at 90% confidence reflects a real disconnect between the current forward EPS profile and today’s price.
I would be a buyer here if Q3 shows sportsbook margin recovery above 7% and Predictions crosses one million active customers. I would stay on the sidelines if promo spend continues climbing without matching handle growth. A 50% rebound is achievable, but only under the bull path.
Year 24/7 Wall St. Price Target 2026 $22.56 2027 $21.84 2028 $21.49 2029 $21.45 2030 $22.17 These projections assume DraftKings continues executing on Predictions and defends sportsbook share. Meaningful upside could arrive from California or Texas legalization, while regulatory action on event contracts could push actual outcomes toward the model’s bear path.
Contact [email protected] for any questions or corrections.
DraftKings Inc. (Nasdaq: DKNG) today announced plans for DraftKings Gameday, a one-day nationwide celebration taking place September 2, 2026. Featuring exclusive promotions for customers, a customized in-app experience, in-person activations, a charitable donation and a new creative campaign, DraftKings Gameday will kick off the first football season with DraftKings Sports & Casino available nationwide.1 Fans will be able to enjoy Sportsbook, Predictions and Casino on a unified platform across the country, complemented by a range of new features and enhancements designed to deliver the most seamless and engaging DraftKings experience to date this football season.
“The start of football season is one of the most exciting times of year at DraftKings, and 2026 marks a major milestone for our company,” said Stephanie Sherman, Chief Marketing Officer at DraftKings. “This is our first football season with DraftKings Sports available to fans nationwide, and Gameday is our way of kicking off the season and celebrating our customers by bringing together exclusive offerings, giveaways and unforgettable experiences across the country.”
Gameday Fuel Activation2
DraftKings will fuel the return of football with Gameday Fuel, offering free gas, while supplies last, to passenger vehicles at select gas stations in Los Angeles, Miami, Dallas, Atlanta and Detroit. Fans can fill up for kickoff while enjoying giveaways, contests, interactive experiences and appearances from special guests. Specific locations and event times will be announced separately.
Exclusive DraftKings Gameday Promotions on DraftKings Sports & Casino
Customers nationwide will also have access to a variety of exclusive DraftKings Gameday offers on September 2 spanning Sportsbook, Predictions and Casino through the DraftKings Sports & Casino App. Bringing Sportsbook, Predictions, Casino and Lottery Courier services together in one seamless experience — with access tailored to each customer’s jurisdiction — the Super App gives fans a single destination for football season.
Take Your Game Anywhere Campaign
DraftKings’ “Take Your Game Anywhere” campaign follows Kevin Hart and Nick Jonas on a cross-country road trip, showing how fans across the country can enjoy DraftKings Sports & Casino — from placing a bet at a New Jersey diner to making a trade during a stop in California. The campaign is now live on TV, digital and social platforms.
DraftKings SERVES Supports Disabled American Veterans
As part of its ongoing commitment to supporting the communities where it operates, DraftKings, through its DraftKings SERVES program, will donate $50,000 to DAV (Disabled American Veterans) a nonprofit organization that provides lifetime support to veterans their families, caregivers and survivors. The contribution will help fuel the organization’s Transportation Network, which provides injured and disabled veterans with free rides to VA medical facilities and appointments.
DraftKings strongly encourages customers to play responsibly with the goal of informing customers about, and encouraging the use of, tools such as deposit limits, cool-off periods and self-exclusion. These resources are designed to help people understand their activity on DraftKings and highlight ways to make the best choices for their entertainment.
For more information about DraftKings Sports & Casino, please visit here. Customers can review DraftKings’ Responsible Engagement tools here.
1 Nationwide based on Sportsbook, Predictions, and/or Free-to-Play Sports Contest availability. Varies by State.
2 Eligibility and other restrictions apply, while supplies last. Offerings may vary by location.
About DraftKings
DraftKings Inc. is a digital sports and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with platforms that range across daily fantasy, regulated gaming, prediction markets and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games, betting experiences and event contracts trading. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Puerto Rico, and Alberta and Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Alberta and Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Alberta and Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III LLC (d/b/a DraftKings Predictions) also operates DraftKings Predictions, offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NHL, PGA TOUR and WNBA, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to delivering responsible engagement tools and resources, while focusing on integrity and customer education.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260831850014/en/
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (the “Company” or “DraftKings”) today announced that it has successfully closed on its previously announced (i) $700 million senior secured term loan B credit facility (the “Term Loan B”) and (ii) $750 million senior secured revolving credit facility (the “New Revolving Facility”), which replaced its existing $500 million senior secured revolving credit facility that was scheduled to mature in November 2029. The aggregate principal amount.
Key Takeaways DKNG's sportsbook handle rose 11% YoY, while trailing 12-month net revenue per customer increased 14%.DraftKings kept 2026 revenue guidance at $6.5-$6.9B and adjusted EBITDA outlook at $700-$900M.FLUT cut its 2026 revenue and EBITDA outlooks amid taxes, restructuring and regional weakness. The online gaming industry is navigating an increasingly competitive environment as operators balance customer acquisition, promotional spending, product innovation and profitability. Within this environment, DraftKings Inc. (DKNG - Free Report) and Flutter Entertainment plc (FLUT - Free Report) hold leading competitive positions but differ materially in geographic exposure, operating mix and capital-allocation priorities.
DraftKings is leveraging improving customer economics, its nationwide Super App and the expansion of Predictions, while Flutter is relying on FanDuel’s U.S. scale, international diversification and cost-transformation initiatives. With both companies pursuing growth amid regulatory uncertainty and shifting market dynamics, a closer look at their recent performance, strategies and outlook can help determine which stock has stronger prospects ahead.
The Case for DKNGDraftKings continues to demonstrate solid underlying momentum across its sportsbook operations. Second-quarter sportsbook handle increased 11% year over year, while sports consumer volume rose 15%. Monthly unique payers increased 9%, or more than 6% excluding World Cup-only customers. Sportsbook handle share also improved year over year for the third consecutive quarter, pointing to sustained competitive gains.
Customer-acquisition trends were similarly encouraging. Customer acquisition increased nearly 75% year over year, with DraftKings adding roughly 30% more customers than planned. Although acquisition spending exceeded expectations by approximately 10%, customer acquisition costs were about 25% below projections and reached their most efficient level since the first quarter of 2025. Reported revenues declined 4.6% year over year to $1.44 billion. However, revenues increased 10% on a normalized basis after adjusting for sports outcomes and customer-acquisition effects.
Improving monetization further supports the company’s growth profile. Trailing 12-month net revenue per unique customer increased 14% during the first half of 2026, indicating sustained growth in revenues generated from each customer. A continued increase in parlay handle mix also supports the underlying economics of the sportsbook business.
Predictions represents an additional growth opportunity. More than 600,000 customers engaged with the offering year to date, while annualized total volume traded increased nearly fivefold from $2.3 billion in April to $11 billion in July. The launch of DKeX, approval as a Futures Commission Merchant and the development of in-house market-making capabilities should enable DraftKings to capture a larger share of the platform’s economics as activity migrates to its proprietary infrastructure.
Nonetheless, Predictions remains at an early stage, and its long-term return profile has yet to be established. Customer-friendly sports outcomes created an approximately $80 million second-quarter revenue headwind, while the additional spending required to acquire more customers than planned reduced near-term adjusted EBITDA. DraftKings also expects to invest $200-$300 million in Predictions during 2026, with regulatory uncertainty adding another layer of risk.
The Case for FLUTFlutter’s international footprint provides meaningful geographic diversification, although performance across markets remains uneven. International revenues increased 10% in the second quarter, including contributions from the Snai and Betnacional acquisitions. Italy recovered strongly following temporary pressure associated with the Snai migration, while Southern Europe and Africa iGaming revenues rose 34%. These gains were partly offset by lower organic revenues in Brazil, continued weakness in APAC racing and profitability pressure from higher U.K. iGaming taxes.
In the United States, FanDuel is taking steps to strengthen engagement following shortcomings in the execution of its generosity strategy during the previous NFL season. Rewards Club reached 70% of customers, while BetProtect+ and SuperSub enhanced the sportsbook proposition. However, U.S. revenues declined 6% year over year, including a six-percentage-point headwind from customer-friendly sports outcomes. Flutter also estimated that the U.S. sportsbook market grew approximately 5% during the first half and incorporated a broadly similar rate into its second-half assumptions.
FanDuel Predicts offers another potential growth avenue, although first-half progress was slower than planned and the regulatory framework remains unsettled. The One App rollout and Crypto.com integration are expected to strengthen the offering, while market-making activities are projected to contribute approximately $50 million to both revenues and adjusted EBITDA in 2026. However, the absence of separately disclosed customer and volume metrics makes the platform’s early traction difficult to evaluate.
At the consolidated level, Flutter’s revenues increased 3%, and second-quarter performance exceeded internal expectations. Profitability and cash generation, however, remained under pressure. Adjusted EBITDA declined 45%, free cash flow fell 56%, and the company recorded a net loss of $296 million compared with net income of $37 million a year earlier. Leverage ended the quarter at 4.3X, above the medium-term target range of 2-2.5X.
Flutter expects approximately $500 million of transaction, restructuring and integration costs in 2026, including initial efficiency program implementation costs and $95 million of historical tax provisions.
How Do DKNG and FLUT Stack Up on Outlook?DraftKings enters the second half with healthy sportsbook demand, improving customer economics and unchanged full-year guidance. Its core business remains on track to generate approximately $1 billion in adjusted EBITDA in 2026. Including the planned Predictions investment, DraftKings maintained its revenue outlook of $6.5-$6.9 billion and adjusted EBITDA guidance of $700-$900 million.
Flutter plans to increase customer generosity in the United States to strengthen engagement and position FanDuel for potential market-share gains in 2027. Although the investment could benefit the business over time, it will constrain near-term earnings. U.S. adjusted EBITDA is now expected to be approximately breakeven in the third quarter and roughly $500 million in the fourth quarter, down from the previous fourth-quarter expectation of about $700 million.
The midpoint of Flutter’s 2026 revenue outlook was reduced by $395 million to $17.91 billion, while its adjusted EBITDA midpoint was lowered by $210 million to $2.655 billion. The reductions leave Flutter with a less favorable near-term earnings trajectory despite its broader international platform.
The guidance divergence is notable. DraftKings is investing in prediction markets without reducing its consolidated outlook. Flutter, meanwhile, is increasing customer generosity to strengthen U.S. momentum after lowering its full-year expectations. DraftKings, therefore, currently offers greater near-term earnings visibility.
How Does the Zacks Consensus Estimate Compare for DKNG & FLUT?The Zacks Consensus Estimates for DraftKings’ 2026 sales and earnings per share (EPS) suggest year-over-year increases of 11.4% and 56.1%, respectively. In the past 60 days, the consensus EPS estimate for 2026 has declined 7.2%.
DKNG Earnings Estimate Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Flutter’s 2026 sales suggests year-over-year growth of 9.4%, while the EPS estimate indicates a decline of 40.4%. In the past 60 days, the consensus EPS estimate for 2026 has declined 15.8%.
FLUT Earnings Estimate Trend
Image Source: Zacks Investment Research
Price Performance & Valuation of DKNG & FLUTDraftKings’ stock has gained 1.7% in the past six months, outperforming the industry’s fall of 10.9%. Meanwhile, Flutter shares have declined 10.4% over the same period.
DraftKings trades at a forward 12-month P/E multiple of 24.48X, above the industry average of 21.96X. FLUT trades at a lower forward 12-month P/E multiple of 17.21X.
Image Source: Zacks Investment Research
End NotesOverall, DraftKings and Flutter are pursuing growth through sportsbook innovation, customer engagement and prediction-market expansion. DraftKings benefits from healthy betting demand, improving customer economics and rapid Predictions adoption, while Flutter offers FanDuel’s scale, international diversification and a lower valuation.
However, DKNG’s stronger consensus earnings-growth outlook, unchanged guidance and superior recent share-price performance currently give it an edge. DKNG currently carries a Zacks Rank #3 (Hold), while FLUT has a Zacks Rank #5 (Strong Sell), reinforcing DraftKings’ relative advantage in this comparison.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When Joey called in 31 days sober from gambling with $23,000 spread across four credit cards, Dave Ramsey had a verdict. But the real numbers behind the app that wrecked him tell a story Ramsey never got to on air.
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On the August 27, 2026 episode of The Ramsey Show, a caller named Joey said he was 31 days clean from gambling, had run up $28,000 in app-based gambling debt, and had already knocked it down to $23,000 spread across four credit cards. Dave Ramsey’s response was blunt: “DraftKings is not a blessing to your life.” He then called sports betting “the fastest thing that’s destroying men, young men in their 20s.”
The stakes for anyone in Joey’s shoes are concrete. Every dollar wagered on a sportsbook app is a dollar competing with a minimum payment on a revolving credit card. Miss the math and you can pay for a single losing weekend for a decade.
Ramsey Is Right, and the House Edge Proves It The verdict is simple: Ramsey is correct, and the operator’s own filings prove it. DraftKings (NASDAQ:DKNG | DKNG Price Prediction) reported a Sports Net Revenue Margin of 6.8% in Q2 2026. That is the house’s cut. For every $100 a customer wagered on sports, DraftKings kept about $6.80 on average. That is the aggregate loss the customer base absorbs on average, not a fee income stream.
Multiply it out. DraftKings booked $13.1 billion of Sports Consumer Volume in the quarter, up 15% year over year, across roughly 3.6 million monthly unique payers. Money went in, and a predictable slice never came back out. That slice funded $322.54 million of sales and marketing in a single quarter, the ad budget that keeps pulling new Joeys in.
Here is the twist Ramsey did not get to on air: the shareholders are losing too. Despite record wagering, DraftKings posted a GAAP net loss of $67.6 million on revenue of $1.44 billion, down 4.6% year over year. Adjusted EPS of $0.09 missed the $0.19 consensus by 53%. CEO Jason Robins still called it “a strong second quarter.” The stock, meanwhile, closed at $25 on August 26, 2026, down 48% over the trailing year and 28% year to date.
Running the Math on Joey’s $23,000 Now run the numbers on Joey’s actual balance. Assume the $23,000 sits across four cards at an average 24% APR, a realistic figure for revolving consumer debt in 2026. At a $500 monthly payment, the debt takes years to clear and produces thousands of dollars in interest. Ramsey told Joey to list the cards smallest to largest, pay minimums on everything but the smallest, and “attack the little one with a vengeance.” That is the debt snowball.
Below is a realistic scenario for the full balance at aggressive payoff:
The takeaway: raising the monthly payment is what breaks the interest compounding. Every extra $100 pulled away from a sportsbook app and pointed at a card balance shortens the payoff timeline and compounds in the customer’s favor instead of the house’s.
Interest Rate Is What Flips the Outcome The single variable that most determines whether an aggressive payoff strategy or a bankruptcy conversation makes sense is the interest rate on the debt. At 6% federal student loan rates, a $23,000 balance is uncomfortable but manageable. At 24% credit card rates, the interest alone can exceed what a household saves in a year. Joey’s debt is card debt, so the meter runs fast. That is why Ramsey’s urgency, not just his moralizing, is warranted.
Compare the operator picture. MGM Resorts (NYSE:MGM), which owns the slot app Joey specifically named, closed at $43 on August 26, 2026, up 19% year to date. MGM’s digital segment grew net revenue 20% year over year but still reported segment-adjusted EBITDA losses of $31 million. The casino floor, not the app, is carrying the enterprise. That is the pattern: apps extract from users, and the extraction still is not reliably profitable for shareholders.
What to Do This Week List every debt smallest to largest by balance, note the APR next to each, and calculate total interest at your current monthly payment versus an additional $100 or $250 per month. Delete the apps. DraftKings acquired roughly 30% more customers than planned last quarter because the funnel works. Uninstalling breaks the funnel. Call the National Council on Problem Gambling helpline at 1-800-GAMBLER if wagering has crossed into compulsion. Debt math will not fix a behavioral problem alone. Redirect the wager budget. Every $50 that would have gone into a parlay goes onto the smallest card balance the same night. The house edge is a mathematical certainty. Paying down high-rate debt is the only bet on the app with a guaranteed positive return.
Contact [email protected] for any questions or corrections.
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) today announced plans for DraftKings Gameday, a one-day nationwide celebration taking place September 2, 2026. Featuring exclusive promotions for customers, a customized in-app experience, in-person activations, a charitable donation and a new creative campaign, DraftKings Gameday will kick off the first football season with DraftKings Sports & Casino available nationwide.1 Fans will be able to enjoy Sportsbook, Predictions and Casino.
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DraftKings (NASDAQ:DKNG | DKNG Price Prediction) has had a rough stretch in 2026. Shares are down 26.61% year to date as of Friday’s close and 43.22% over the past year, trading at $26.17 against a 52-week high of $48.78. Now, Argus has formalized what the price action has been signaling, cutting the stock to Hold from Buy and removing its price target.
Argus cited high customer acquisition costs, rising state gaming taxes and aggressive competition from prediction markets as the primary drivers of the downgrade. The firm also flagged that DraftKings has been losing market share in U.S. Internet gaming, and cut its estimates accordingly.
However, the broader analyst community remains more constructive, with 30 Buy ratings, eight Hold ratings and two Sell ratings and a consensus price target of $34.11, implying meaningful upside from current levels.
The Case Against DKNG Right Now The Argus downgrade lands despite a genuinely strong Q4. DraftKings posted Q4 revenue of nearly $2 billion, up 43% year-over-year, and adjusted EPS of 36 cents, doubling the 18-cent consensus estimate. Full-year 2025 marked the company’s first-ever GAAP net profit.
But the concern is forward-looking: The company is making a large bet on DraftKings Predictions, its federally regulated event contracts platform, and that investment carries real near-term cost.
Management acknowledged the spend will run into “tens of millions” in incremental costs, covering new headcount, technology buildout and customer acquisition. CEO Jason Robins was direct about the competitive stakes: “Speed and execution, combined with a strong brand, smooth interface and real sports modeling, trading and technology expertise will determine long-term leadership.” That confidence may be warranted, but it does not eliminate the execution risk.
Key Risks to Monitor The tax environment is the most unpredictable variable. DraftKings’ 2026 guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA explicitly assumes state tax rates hold steady. Any increases in states like New Jersey, Illinois or Louisiana could compress margins meaningfully. Robins acknowledged the pressure but expressed optimism: “States would be absolutely crazy right now to raise OSB taxes with everything going on with Predictions.”
Short interest has also climbed, with DKNG short interest at 8.03% of float, up 7.79% since the last report and above the peer average of 6.98%. The average analyst price target has declined from $44.58 to $38.80 over recent months, reflecting a broader reassessment of the growth timeline.
The core business fundamentals remain intact. But with Argus stepping to the sidelines, rising costs ahead, and tax uncertainty unresolved — factors the broader analyst community will likely continue to weigh.
Contact [email protected] for any questions or corrections.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
shares fell 3.2% to a current price of $25.30, fluctuating within a 52-week range of $20.46 to $48.78. This recent decline adds to a year-to-date drop of 26.6% and a staggering annual decline of 43.7%.
GF Value™ verdict: Current price is $25.30, while GF Value™ estimates fair value at $51.89, indicating a 51.2% upside.GF Score™: 70/100, which reflects an above-average assessment of the stock's overall appeal.Most notable signal: Insider activity shows a significant net selling of $29.6M over the past 12 months.Is DKNG Overvalued or Undervalued?DraftKings Inc
DKNG -3.21% 70
currently trades at $25.30, significantly below the GF Value™ estimate of $51.89. This suggests that the stock may be undervalued, presenting an attractive opportunity for investors. However, it's important to note that the GF Valuation label indicates a "Possible Value Trap," which serves as a warning to exercise caution. The GF Value™ is derived from a proprietary analysis of historical trading multiples, business growth patterns, and projections of future performance, providing a directional insight rather than a precise target for loss-making companies like DKNG.
The current valuation should be approached with a margin of safety in mind, as the company's unprofitable status and cash-flow negativity raise concerns about its future performance. While the substantial gap between the current price and the GF Value™ might suggest a buying opportunity, the inherent risks associated with a cash-flow-negative operation cannot be overlooked.
How Does DKNG's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)N/A415.5xForward P/E328.6xN/AAs DKNG does not currently have a meaningful P/E ratio due to its unprofitable status, it is more relevant to consider the forward P/E of 328.6x in the context of its historical median of 415.5x. This analysis suggests that the stock is trading below its historical valuation levels. However, because the P/E metrics are not applicable for a loss-making company, this aligns with the GF Value™ verdict that indicates a potential undervaluation but emphasizes the need for caution.
What Does DKNG's GF Score™ Tell Us?The GF Score™ measures the overall quality and potential of a stock based on various factors, including financial strength, profitability, growth potential, valuation metrics, and momentum. For DKNG, the score stands at 70/100, indicating an above-average rating.
MetricRatingGF Score™70Financial Strength4/10Profitability4/10Growth9/10Valuation2/10Momentum7/10DKNG's strongest sub-rank is its growth potential, scoring 9/10, which indicates robust future growth expectations. However, the weakest area is its valuation rank at 2/10, reflecting concerns regarding its current valuation metrics given its unprofitability. The financial strength and profitability ranks of 4/10 further suggest that while growth is promising, the company has significant work to do in achieving a more secure financial footing.
What Are Gurus and Insiders Doing with DKNG?Currently, 9 gurus hold DraftKings Inc
DKNG -3.21% 70
stock, with 3 adding to their positions and 7 trimming their stakes in recent quarters. This mixed sentiment among institutional investors highlights a cautious approach toward DKNG, as gurus reassess their investment strategies in light of the company's performance.
Additionally, insider activity reveals a notable trend, with insiders purchasing $3.2M worth of shares while selling $32.8M, resulting in a net selling of $29.6M over the past year. This heavy net selling by insiders could signal a lack of confidence in the company's immediate prospects, further complicating the investment narrative.
What This Means for InvestorsIn summary, DraftKings Inc
DKNG -3.21% 70
appears to be undervalued based on the GF Value™ analysis, which suggests a significant upside potential. However, the potential risks associated with its unprofitability and the recent insider selling activity should not be ignored. Investors must weigh the possible opportunity against the challenges the company faces.
For more detailed insights, visit the DraftKings Inc
DKNG -3.21% 70
stock page for the latest information and analysis.
Frequently Asked QuestionsWhat is DKNG's GF Score™?
DKNG's GF Score™ is 70/100, indicating an above-average evaluation of the company's overall quality and potential.
Is DKNG overvalued or undervalued?
According to GF Value™, DKNG is currently undervalued, with a significant potential upside based on the fair value estimate.
What is DKNG's P/E ratio?
DKNG does not have a meaningful P/E ratio due to its unprofitability, but its forward P/E is 328.6x, which is below its historical median of 415.5x.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about DraftKings (DKNG - Free Report) .
DraftKings currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 36 brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy.
Of the 36 recommendations that derive the current ABR, 24 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 66.7% and 8.3% of all recommendations.
Brokerage Recommendation Trends for DKNG
Check price target & stock forecast for DraftKings here>>>
The ABR suggests buying DraftKings, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is DKNG a Good Investment?Looking at the earnings estimate revisions for DraftKings, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.09.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for DraftKings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for DraftKings.
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (the “Company” or “DraftKings”) today announced the launch of syndication for a proposed senior secured term loan B credit facility (the “Term Loan B”) in an aggregate principal amount of $600 million. DraftKings intends to utilize the net proceeds of the Term Loan B for repurchases of a portion of its existing Convertible Notes due 2028 (subject to availability and market conditions) and other general corporate purposes. In connection wit.
Assenagon Asset Management S.A. trimmed its position in DraftKings Inc. (NASDAQ:DKNG – Free Report) by 42.6% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 134,504 shares of the company’s stock after selling 99,812 shares during the quarter. Assenagon Asset Management S.A.’s holdings in DraftKings were worth $3,398,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently bought and sold shares of DKNG. Viking Global Investors LP acquired a new position in shares of DraftKings in the 3rd quarter valued at $561,125,000. Capital World Investors lifted its holdings in shares of DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after acquiring an additional 12,008,357 shares during the period. Janus Henderson Group PLC boosted its position in shares of DraftKings by 50.8% during the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after acquiring an additional 8,524,923 shares in the last quarter. Norges Bank acquired a new stake in shares of DraftKings during the 4th quarter valued at about $284,466,000. Finally, Spruce House Investment Management LLC boosted its position in shares of DraftKings by 129.6% during the 1st quarter. Spruce House Investment Management LLC now owns 9,650,000 shares of the company’s stock valued at $208,633,000 after acquiring an additional 5,446,166 shares in the last quarter. 37.70% of the stock is owned by institutional investors.
DraftKings Trading Up 0.7% Shares of DKNG stock opened at $25.51 on Thursday. DraftKings Inc. has a 12-month low of $20.46 and a 12-month high of $48.78. The company has a market capitalization of $12.66 billion, a P/E ratio of -67.13 and a beta of 1.66. The firm has a 50-day moving average price of $25.34 and a 200 day moving average price of $24.77. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.03.
Insider Activity In other news, 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 transaction of $880,156.14. Following the completion of the sale, the director owned 29,820 shares of the company’s stock, valued at approximately $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider R Stanton Dodge sold 62,500 shares of DraftKings stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the transaction, the insider owned 556,258 shares of the company’s stock, valued at $16,509,737.44. This trade represents a 10.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 97,596 shares of company stock worth $2,756,991 over the last ninety days. Insiders own 47.18% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms recently issued reports on DKNG. BTIG Research increased their price target on shares of DraftKings from $28.00 to $30.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. HSBC raised DraftKings from a “hold” rating to a “hold” rating in a report on Friday, April 24th. Zacks Research upgraded DraftKings from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 20th. JPMorgan Chase & Co. dropped their target price on DraftKings from $34.00 to $33.00 and set an “overweight” rating for the company in a report on Monday. Finally, Benchmark increased their target price on DraftKings from $29.00 to $30.00 and gave the stock a “buy” rating in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, DraftKings currently has an average rating of “Moderate Buy” and an average target price of $34.11.
Check Out Our Latest Stock Report on DraftKings
DraftKings Profile (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.
Featured Stories Five stocks we like better than DraftKings GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs Want to see what other hedge funds are holding DKNG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for DraftKings Inc. (NASDAQ:DKNG – Free Report).
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The proliferation of prediction markets is increasing competition.
*Stock prices used were the afternoon prices of Aug. 10, 2026. The video was published on Aug.12, 2026.
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DraftKings has rolled out a new rewards currency called Crown Cash that powers the company’s loyalty program, DraftKings Rewards, and makes it easier to view and use rewards across eligible DraftKings experiences, the digital sports and gaming company said in a Wednesday (Aug. 12) press release.
Crown Cash is now available to eligible customers across DraftKings Casino, Sportsbook, Daily Fantasy Sports, Jackpocket and Golden Nugget Online Gaming. The currency will expand to DraftKings Predictions and other offerings, according to the release.
With Crown Cash, customers can see the value they have earned in dollars and use it to place eligible wagers on DraftKings Sportsbook, play games on DraftKings Casino and Golden Nugget Online Gaming, and participate in other experiences, the release said.
The rollout of Crown Cash supports DraftKings’ super app strategy to create a unified platform, per the release.
DraftKings also announced Wednesday that it revamped the DraftKings Rewards loyalty program, adding Casino Weekly Bonus Back, Birthday Bonus and Crown Cash Boosts.
“By pairing flexibility with personalized benefits and unforgettable experiences, we’re delivering a loyalty program that recognizes customers in meaningful ways,” DraftKings Chief Customer Officer Shawn Henley said in the release. “DraftKings Rewards and Crown Cash make it easier for customers to see and use the rewards they’ve earned across our platforms, bringing greater consistency and connection across DraftKings.”
PYMNTS reported Friday (Aug. 7) that DraftKings is positioning itself not simply as a sportsbook operator, but as a nationwide sports commerce platform capable of acquiring, engaging and monetizing customers across multiple products.
When reporting the company’s second-quarter earnings in a press release, DraftKings Co-Founder and CEO Jason Robins said the company’s 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 said during the call.
DraftKings entered prediction markets in December with the launch of DraftKings Predictions, a standalone app and web products.
The PYMNTS Intelligence report “Embedded Offers: The Billion-Dollar Opportunity Inside Recent Consumer Spending“ found that when offers, rewards and discounts are embedded into the customer journey, they can shape what consumers buy, where they choose to shop and the methods they use to pay.
DraftKings faces existential pressure as prediction markets outpace traditional sportsbook offerings. DKNG remains a "Sell" despite a brief Q2 rebound; shares are down ~30% YTD and trade at a premium. Revenue and EBITDA are declining, with 1H EBITDA at $282 million, well below the FY26 guidance midpoint of $750 million.
Dimensional Fund Advisors LP lessened its holdings in DraftKings Inc. (NASDAQ:DKNG – Free Report) by 44.7% during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 622,796 shares of the company’s stock after selling 503,290 shares during the period. Dimensional Fund Advisors LP owned about 0.13% of DraftKings worth $13,465,000 at the end of the most recent reporting period.
A number of other institutional investors and hedge funds also recently made changes to their positions in the business. Vanguard Group Inc. boosted its stake in shares of DraftKings by 3.1% during the 4th quarter. Vanguard Group Inc. now owns 44,758,204 shares of the company’s stock worth $1,542,368,000 after acquiring an additional 1,354,457 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of DraftKings by 11.0% in the 4th quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,370,903 shares of the company’s stock worth $150,621,000 after purchasing an additional 433,963 shares in the last quarter. Janus Henderson Group PLC increased its stake in shares of DraftKings by 50.8% in the 4th quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock worth $858,893,000 after purchasing an additional 8,524,923 shares in the last quarter. Aurora Investment Counsel bought a new position in DraftKings in the 4th quarter worth $2,157,000. Finally, Englebert Financial Advisers LLC bought a new position in DraftKings in the 4th quarter worth $2,203,000. Hedge funds and other institutional investors own 37.70% of the company’s stock.
Insider Activity at DraftKings In related news, insider R Stanton Dodge sold 62,500 shares of DraftKings 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 sale, the insider owned 556,258 shares of the company’s stock, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Woodrow Levin sold 34,234 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the completion of the transaction, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 97,596 shares of company stock worth $2,756,991 in the last three months. 47.18% of the stock is owned by corporate insiders.
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 Trading Up 8.4% Shares of DKNG stock opened at $24.03 on Friday. DraftKings Inc. has a 52-week low of $20.46 and a 52-week high of $48.78. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The firm has a market capitalization of $11.92 billion, a PE ratio of -63.24 and a beta of 1.66. The stock has a fifty day simple moving average of $25.37 and a two-hundred day simple moving average of $24.97.
DraftKings (NASDAQ:DKNG – Get Free Report) last announced its quarterly earnings data on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). The business had revenue of $1.65 billion during the quarter, compared to analysts’ expectations of $1.63 billion. DraftKings had a negative net margin of 2.68% and a negative return on equity of 10.88%. DraftKings’s revenue was up 16.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.07) earnings per share. On average, analysts predict that DraftKings Inc. will post 0.54 EPS for the current fiscal year.
Analyst Ratings Changes Several analysts have issued reports on DKNG shares. Mizuho boosted their price target on DraftKings from $44.00 to $45.00 and gave the company an “outperform” rating in a report on Tuesday, May 12th. Weiss Ratings downgraded DraftKings from a “sell (d+)” rating to a “sell (d)” rating in a research note on Monday, May 11th. HSBC raised DraftKings from a “hold” rating to a “hold” rating in a research report on Friday, April 24th. Zacks Research upgraded DraftKings from a “strong sell” rating to a “hold” rating in a research note on Wednesday, May 20th. Finally, Freedom Capital raised shares of DraftKings to a “strong-buy” rating in a report on Wednesday, May 20th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, DraftKings has an average rating of “Moderate Buy” and a consensus target price of $34.14.
View Our Latest Stock Report on DraftKings
DraftKings Profile (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.
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DraftKings (DKNG +8.39%), a digital sports betting, fantasy sports, and iGaming platform, closed at $24.03, up 8.39%. Investors focused on prediction-market and customer-activity growth after Q2 results missed expectations. Trading volume reached 36.1M shares, coming in about 173% above its three-month average of 13.2M shares. DraftKings IPO'd in 2019 and has grown 145% since going public.
How the markets moved todayThe S&P 500 (^GSPC +0.62%) rose 0.59% to 7,756, while the Nasdaq Composite (^IXIC +1.30%) gained 1.28% to 26,686. Among online gaming, sports betting, and digital entertainment peers, Flutter Entertainment (FLUT +1.86%) closed at $94.74, up 1.86%, while Rush Street Interactive (RSI -0.80%) finished at $24.86, down 0.88%, highlighting mixed trading across sector rivals.
What this means for investorsWhile the headline of DraftKings’ sales dropping 5% may look bad at first blush, it was actually a pretty solid quarter. In a quarter where many favorites won, or “customer-friendly sport outcomes” occurred (as DraftKings called it), most of the company’s non-sales figures were fine:
sports consumer volume rose 15%monthly unique payers (MUPs) jumped 9%annualized total volumes on its predictions services quintupled from April to Julymaintained 2026 guidanceannounced core betting business to generate $1 billion in adjusted EBITDA this yearThat said, I’m surprised the market is this optimistic about the results, especially given that the company whiffed on both the top and bottom lines relative to analysts’ estimates. Sure, prediction markets may be the future for DKNG stock -- and it seems to be off to a good start in that arena -- there are still a lot of regulatory hurdles to clear. And that is before we figure out if there ends up being any cannibalization between sports betting and predictions.
I understand the excitement surrounding the stock, but I’m not rushing to buy today.
Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool recommends Flutter Entertainment Plc. The Motley Fool has a disclosure policy.
The latest quarterly earnings reports from FanDuel parent Flutter Entertainment, DraftKings and others shone a spotlight on the burgeoning prediction markets industry.
A growing number of companies are introducing their own prediction market platforms or launching partnerships within the space, said Joel Shulman, the CEO of investment firm Entrepreneur Shares.
As competition continues to grow, the latest earnings reports offer a glimpse at how much companies are willing to bet on its prediction platforms.
DraftKings' platform grows 'faster than expected' DraftKings' CEO Jason Robins said the company's prediction market platform is growing at a booming pace, having launched in December 2025.
"We had over 600,000 customers so far engaged with our predictions offering, and that's just going to explode this NFL season. I'm expecting millions, so we're excited about it," Robins told CNBC's "Squawk Box" on Friday.
Annualized total volume for DraftKings' predictions platform grew to $11 billion from $2.3 billion between April and July, Robins said on the company's earnings call Friday morning.
He added that other prediction markets have not disturbed DratftKings' business because it caters to a different audience.
"We continue to see only about 1% customer overlap between our sportsbook and the largest prediction market operator in sportsbook states, which tells us these platforms are driving a fundamentally different and largely professional audience," he said.
DraftKing's internal data estimates 80% to 90% of prediction market consumer volume comes from betting syndicates and institutional traders, Robins said during the call.
Owning three key layers of prediction markets — brokerage, exchange and market maker — gives the company an edge against its competitors, Robins added.
DraftKings' second quarter adjusted EBITDA of $114.6 million and revenue of $1.44 billion fell short of the FactSet consensus call for $156.1 million in EBITDA and $1.51 billion in revenue.
FanDuel Predicts moves on from CMEShares of Flutter closed down more than 11% on Wednesday after the online sports betting and iGaming operator announced that Dan Taylor, CEO of Flutter's international division, would replace Peter Jackson at the helm of the company. Second quarter earnings reported that day also fell short of Wall Street's estimates.
In addition, Flutter said on Wednesday it would move its FanDuel Predicts sports and novelty contracts from CME to Crypto.com. CME will continue to provide financial market contracts, the company said.
"This new exchange arrangement will ensure we can deliver new products at pace ahead of the NFL season start," Jackson said on the company's earnings call. The operator first launched FanDuel Predicts with CME in December 2025, just a few months after volume for platforms like Kalshi and Polymarket soared.
Regulation is also top of mind for Flutter as Kalshi and Polymarket have been subject to scrutiny from state regulators arguing the companies are operating illegal gambling platforms.
More than 40 state attorneys general have also pushed back on the Commodity Futures Trading Commission's assertion that it's the exclusive regulator of sports-related event contracts.
Jackson said that FanDuel Predicts has a smoother pathway operating in states.
"Our own prediction market offering FanDuel Predicts allows us to acquire customers ahead of sports betting regulation in new states," he said on the call.
Flutter posted second quarter adjusted earnings of 49 cents per share on revenue of $4.33 billion, versus the FactSet consensus call for 54 cents per share and $4.23 billion. It expects to generate about $50 million in market-making revenue this year.
Coinbase signals prediction market growthCrypto exchange platform operator Coinbase said in late July that its prediction markets revenue grew 106% on a quarter over quarter basis, and that annualized revenue from this business in the second quarter surpassed $100 million.
Some analysts were not impressed by those numbers.
"Prediction markets run rate of $100M+ in 2Q was below our estimate," KeyBanc analysts wrote in a report after Coinbase posted quarterly results.
Coinbase reported disappointing results for the second quarter, posting a wider-than-anticipated loss of $1.36 per share, versus the 17-cent loss per share analysts polled by LSEG had sought. Revenue also fell short of expectations, coming in at $1.2 billion versus the $1.3 billion forecast.
Robinhood's Rothera rolloutRobinhood launched Rothera in June, an exchange that's licensed with the CFTC and managed through the brokerage's joint venture with Susquehanna International Group. In its second quarter report, Robinhood said that over 3.5 billion contracts had been traded to date.
Event contracts revenue came in at $156 million in the second quarter, according to Robinhood.
"In less than two months since launch, we took approximately 7-8% of total market share among CFTC-regulated venues and roughly 30% average market share in the specific contracts we listed," Rothera's founders Tom Chippas and Matt Trudeau wrote in a LinkedIn post on Aug. 4.
The founders also highlighted the volume numbers as "evidence" that its "technology and operations can perform under sustained pressure at significant scale."
Disclosure: CNBC and Kalshi have a commercial relationship that includes customer acquisition and a minority investment.
More than 600,000 DraftKings customers have used its predictions product, while annualized trading volume rose from $2.3 billion to $11 billion between April and July.
DraftKings sees only about 1% customer overlap with the largest prediction market operator in sportsbook states and estimated 80% to 90% of prediction volume there comes from professional or institutional-style traders.
The company now controls brokerage, exchange and market-making capabilities, giving it a path to capture more fees, improve customer lifetime value and replicate the vertical-integration strategy that strengthened its sportsbook business.
DraftKings is positioning itself not simply as a sportsbook operator, but as a nationwide sports commerce platform capable of acquiring, engaging and monetizing customers across multiple products.
As company executives stressed to investors during a second-quarter 2026 earnings call Friday (Aug. 7), prediction markets are becoming central to that ambition.
“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,” DraftKings Co-Founder and CEO Jason Robins said in a Friday press release. “Our super app is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category.”
DraftKings generated $115 million in adjusted EBITDA for the second quarter, while customer-friendly sports outcomes created an approximately $80 million revenue headwind. Management nevertheless maintained its full-year revenue guidance of $6.5 billion to $6.9 billion and adjusted EBITDA guidance of $700 million to $900 million. Its core business remains on track to generate roughly $1 billion in adjusted EBITDA this year.
See also: How Uncertainty Became the Engagement Engine of the Digital Economy
DraftKings Is Turning the Sportsbook Into a Super App DraftKings said customer acquisition increased nearly 75% year over year during the second quarter, helped by the NBA Finals and World Cup. The company acquired roughly 30% more customers than expected while spending only about 10% more than planned, with acquisition costs coming in approximately 25% better than anticipated.
Some of those customers are coming from markets DraftKings historically could not reach through regulated sports betting. Its prediction product is now available nationally through the broader DraftKings Sports app. More than 600,000 customers have used predictions this year, and management said adoption has exceeded expectations. Annualized trading volume increased from $2.3 billion to $11 billion between April and July.
That changes the geographic logic of DraftKings’ business. Instead of waiting for large states such as California and Texas to legalize online sports betting, DraftKings can establish customer relationships there through prediction markets today. Robins said consumers in states without legal sportsbooks are showing profiles similar to sportsbook customers elsewhere.
Management said it sees only about 1% customer overlap between its sportsbook users and customers of the largest prediction market operator in states where online sports betting is already legal. DraftKings also estimates that 80% to 90% of prediction market volume in those jurisdictions comes from professional syndicates and institutional-style traders who were largely not sportsbook customers in the first place.
Early customer economics are reinforcing the thesis. DraftKings said prediction customers are being acquired for materially less than sportsbook customers while showing comparable early retention and volume characteristics. More than half have used “combos,” the prediction market equivalent of packaging multiple outcomes together, and the feature is approaching 20% of prediction volume.
Owning More of the Gaming Economics Comes Down to Infrastructure, Not Acquisition DraftKings now operates across three layers of the prediction market stack, including brokerage, exchange and market making. Management said owning those functions allows it to capture economics that would otherwise flow to third parties while giving the company greater control over products, pricing and customer experience.
The company plans to move much of its major sports prediction volume onto its own exchange, DKeX, beginning around the college football and NFL seasons. As more activity moves internally, management said it expects unit economics to improve, potentially creating a multiyear margin tailwind.
The sportsbook remains the engine. DraftKings is now trying to build an ecosystem around it.
The PYMNTS Intelligence report “Banking Both Sides: Instant Payouts Turn Receivers Into Customers” found that gig, creator and marketplace platforms are the most aggressive adopters of instant payouts in absolute terms, with nearly one-third of senders offering instant payouts always or most of the time.
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DraftKings Inc (NASDAQ:DKNG) shares rose in early trading on Friday, after the company reported its second-quarter results.
While the company reported its quarterly results broadly in line with expectations, its stock came under pressure just after the release as some investors had hoped management would "more fully" de-risk full-year guidance, according to BofA Securities.
• DraftKings shares are climbing with conviction. Why is DKNG stock up today?
The DraftKings Analyst: Analyst Shaun Kelley reiterated a Neutral rating and price target of $27.
The DraftKings Thesis: The company reported its second-quarter revenue at $1.44 billion, ahead of expectations of $1.38 billion, while EBITDA of $115 million missed BofA’s estimate of $120 million, Kelly said in the note.
Check out other analyst stock ratings.
He added that DraftKings’ revenues were driven by:
Sports revenue of $891 million, versus expectations of $843 million iGaming revenue of $462 million, slightly ahead of the estimate of $455 million Management reiterated their revenue guidance of $6.5-$6.9 billion and EBITDA outlook of $700-$900 million, the analyst stated.
He noted the stock came under pressure in after-hours trading on Thursday as some investors had expected management to fully reflect the following in their 2026 guidance:
Continued investment in prediction markets (PMs) Intensifying competitive backdrop from FanDuel’s step up in promotions "Management remains confident that cannibalization from PMs to OSB (online sports betting) remains very limited with only 1% customer overlap," Kelly wrote. The analyst said he estimates the company’s PM share in July at around 1.9%, largely in-line with June, and expects the share to double to around 4% in September.
"Our sense is DKNG is executing well and gaining share in core sports betting, but we still think elevated customer acquisition could weigh on 2H EBITDA," he further wrote.
DKNG Price Action: Shares of DraftKings had risen by 7.13% to $23.75 at the time of publication on Friday.
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DraftKings shares rallied as investors looked beyond a disappointing quarter to stronger momentum heading into the second half of the year. CEO Jason Robins joins Bloomberg to discuss how the World Cup brought in new and returning customers, why engagement remained strong after the tournament ended, and how DraftKings is approaching the increasingly competitive prediction-markets business.
Why "Big Short" Investor Michael Burry Sees Upside in Beaten-Down Sportbook StocksDraftKings NASDAQ: DKNG said its core business continued to grow in the second quarter of 2026, generating $115 million in adjusted EBITDA as customer acquisition, retention and engagement exceeded management’s expectations. The company maintained its full-year revenue outlook of $6.5 billion to $6.9 billion and adjusted EBITDA outlook of $700 million to $900 million, including planned investment in its predictions business.
Chief Executive Officer and co-founder Jason Robins said the company’s core operations are on track to produce approximately $1 billion in adjusted EBITDA during 2026. He attributed the quarter’s momentum to strong demand around the NBA Finals and World Cup, as well as the rollout of the company’s unified “Super App” strategy.
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DraftKings Hits the Jackpot With Super App Pivot“Our core business continues to grow and is generating significant free cash flow, and our newly launched predictions offering is growing faster than we anticipated,” Robins said.
Customer acquisition outpaced plans Customer acquisition rose nearly 75% year over year during the second quarter, according to Robins. DraftKings acquired roughly 30% more customers than it had planned, while spending about 10% more on acquisition than originally expected. Underlying customer acquisition costs were approximately 25% below the company’s expectations, he said.
Regulatory Jackpot: Gaming Stocks Surge on a Surprise BillMonthly unique payers increased 9% year over year, or more than 6% excluding customers who participated only during the World Cup. Sports consumer volume, which includes sportsbook handle and predictions consumer volume, increased 15% from a year earlier. Sportsbook handle rose 11%, while parlay handle mix continued to increase.
Robins said DraftKings’ handle share improved year over year across sportsbook states for the third consecutive quarter. On a normalized basis excluding sports outcomes and customer-acquisition activity, revenue increased 10% year over year in the quarter. Net revenue per unique customer rose 14% year over year on a trailing 12-month basis through the first half of 2026.
The company said customer-friendly sports outcomes, particularly in June, weighed on reported profitability. Chief Financial Officer Alan Ellingson said the impact from sports outcomes represented about an $80 million revenue headwind. He cited the Knicks’ championship win in DraftKings’ largest sportsbook state and World Cup group-stage results as key factors.
DraftKings held nearly 12% for the World Cup overall, Ellingson said, with favorable outcomes in July mostly offsetting the customer-friendly June outcomes. Sportsbook handle was approximately six times higher during the World Cup than in the 2022 tournament, and about 4.5 times higher on a same-day basis, according to the company.
Predictions business gains users and volume DraftKings said more than 600,000 customers had engaged with its predictions offering year to date. From April through July, annualized total volume traded increased nearly fivefold, rising from $2.3 billion to $11 billion.
The company has expanded its sports-predictions content, with more than 30 markets now available for MLB, NBA and WNBA games, including player and period-specific markets. DraftKings also introduced “Combos,” which allow customers to engage with multiple markets. More than half of predictions customers have used Combos, and the product is approaching 20% of predictions consumer volume, Robins said.
In June, the company launched its in-house exchange, DKeX, and in July it received approval from the National Futures Association to operate as a futures commission merchant. Robins said those developments position DraftKings to expand content, improve the customer experience and retain more of the economics associated with predictions activity.
DraftKings is live on three exchanges and is making markets on singles and Combos at a profit, management said. The company reported double-digit share in markets where it participates.
Robins said the company sees limited overlap between sportsbook customers and users of the largest prediction-market operator in states with regulated sportsbooks. DraftKings estimates that 80% to 90% of prediction-market consumer volume in those states comes from professional betting syndicates and institutional traders, based on its internal analysis.
He said DraftKings expects its predictions customers in states without online sportsbook access, including California and Texas, to more closely resemble traditional sportsbook customers. The company believes its broader product portfolio, national marketing footprint and ability to cross-sell from daily fantasy sports, lottery and horse-racing offerings will support growth in those markets.
Investment discipline remains central to outlook DraftKings expects to invest an incremental $200 million to $300 million in predictions during 2026. Robins said the company could adjust spending if customer-acquisition returns remain especially attractive, though he emphasized that management is evaluating investments through return-on-investment models and can also reallocate marketing spending between products.
Ellingson said adjusted general and administrative expense declined 6% year over year in the second quarter. Adjusted operating expenses, excluding external marketing and predictions, also improved from a year earlier.
Management said it does not view increased promotional investment by a competitor as a significant change in the online sportsbook environment. Robins said DraftKings intends to maintain its strategy of pursuing promotional efficiency while seeking handle and gross gaming revenue share gains.
iGaming and football season initiatives Robins said DraftKings’ iGaming business is showing signs of improved momentum after several quarters in which the company did not perform as it had hoped. He pointed to the launch of Lightning Link and a product called Flex Spins, which enables users to apply bonus spins across games of their choice. He said iGaming market share has stabilized and that customer acquisition in the segment was stronger than expected in the second quarter.
Looking ahead, DraftKings plans another Super App upgrade in August before the NFL season. Robins said the company expects to migrate a substantial portion of major-sports predictions volume to DKeX over time, while prioritizing customer experience during the transition.
“We are moving with urgency and discipline,” Robins said. “We are not building to participate. We are building to lead and win.”
About DraftKings (NASDAQ:DKNG)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.
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DraftKings Inc. (NASDAQ:DKNG) shares are edging higher Friday morning as traders digest mixed Q2 results and upbeat commentary around its Predictions product.
DraftKings stock is moving in positive territory. What’s pushing DKNG stock higher? What’s Driving DraftKings’ Q2 Earnings Results?DraftKings reported second-quarter revenue of $1.44 billion (down 5% year-over-year) that missed the $1.52 billion Street view, while EPS came in at 9 cents versus expectations of 2 cents. Management kept full-year revenue guidance at $6.5 billion to $6.9 billion and Adjusted EBITDA guidance at $700 million to $900 million.
“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,” said Jason Robins, DraftKings’ Chief Executive Officer and Co-founder.
“Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”
DraftKings Stock Price Movement on FridayDKNG Stock Price Activity: DraftKings shares were up 4.83% at $23.25 at the time of publication on Friday, according to Benzinga Pro data.
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For the quarter ended June 2026, DraftKings (DKNG - Free Report) reported revenue of $1.44 billion, down 4.6% over the same period last year. EPS came in at $0.09, compared to $0.38 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.5 billion, representing a surprise of -3.84%. The company delivered an EPS surprise of -59.09%, with the consensus EPS estimate being $0.22.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how DraftKings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Revenue per MUP (ARPMUP): $132.00 versus the two-analyst average estimate of $149.78.Monthly Unique Payers (MUPs): 3.6 million compared to the 3.26 million average estimate based on two analysts.Revenue- Sportsbook: $891.88 million versus the three-analyst average estimate of $903.29 million. The reported number represents a year-over-year change of -10.6%.Revenue- Other: $89.42 million versus $90.59 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.Revenue- iGaming: $461.93 million versus $446.67 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +7.5% change.View all Key Company Metrics for DraftKings here>>>
Shares of DraftKings have returned -19.9% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
DraftKings (DKNG - Free Report) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -59.09%. A quarter ago, it was expected that this company would post earnings of $0.22 per share when it actually produced earnings of $0.2, delivering a surprise of -9.09%.
Over the last four quarters, the company has not been able to surpass consensus EPS estimates.
DraftKings, which belongs to the Zacks Gaming industry, posted revenues of $1.44 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.84%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
DraftKings shares have lost about 36.9% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for DraftKings?While DraftKings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for DraftKings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.11 on $1.42 billion in revenues for the coming quarter and $1.09 on $6.76 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Gaming is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Motorsport Games Inc. (MSGM - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of -97.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Motorsport Games Inc.'s revenues are expected to be $2.9 million, up 12% from the year-ago quarter.
BOSTON--(BUSINESS WIRE)--DraftKings Inc. (Nasdaq: DKNG) (“DraftKings” or the “Company”) today announced its second quarter 2026 financial results. The Company also posted a second quarter 2026 business update and a slide presentation on the Financials section of its website at ir.aboutdraftkings.com.
Second Quarter 2026 Highlights
For the three months ended June 30, 2026, DraftKings reported Sports Consumer Volume of $13.1 billion, an increase of $1.7 billion, or 15%, compared to $11.5 billion during the same period in 2025. The increase reflects strong customer acquisition and engagement. DraftKings reported revenue of $1,443 million, a decrease of $69 million, or 5%, compared to $1,513 million during the same period in 2025. The decrease in the Company's second quarter 2026 revenue was driven primarily by customer-friendly sport outcomes and increased promotional reinvestment associated with new customer acquisition on our Sportsbook and Predictions offerings.
“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,” said Jason Robins, DraftKings' Chief Executive Officer and Co-founder. “Our Super App is now live nationwide, and Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond.”
“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,” said Alan Ellingson, DraftKings’ Chief Financial Officer. “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.”
Continued Strong Customer Acquisition, Retention, and Engagement
Monthly Unique Payers (“MUPs”) increased approximately 9% to 3.6 million in the three months ended June 30, 2026, compared to the three months ended June 30, 2025. This increase reflects strong unique payer retention and new customer acquisition across our Sportsbook offering and Predictions offering, which launched in December 2025. Average Revenue per MUP (“ARPMUP”) decreased approximately 13%, or $19, to $132 for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to customer-friendly sport outcomes and new customer promotions impacting revenue across our Sportsbook offering and Predictions offering. Detailed financial data and other information for the second quarter of 2026 is available in the financial statements set forth below under the caption “Financial and Operational Results.” Fiscal Year 2026 Guidance
DraftKings is maintaining its fiscal year 2026 revenue guidance range of $6.5 billion to $6.9 billion and fiscal year 2026 Adjusted EBITDA guidance range of $700 million to $900 million, which the Company previously announced on May 7, 2026. Mobile Sports Betting and iGaming Footprint
DraftKings is live with mobile sports betting in 27 states, Washington, D.C., and Puerto Rico representing approximately 53% of the U.S. population. DraftKings is also live with iGaming in 5 states, representing approximately 11% of the U.S. population. Following the launch of our Sportsbook and iGaming offerings in Alberta, Canada, DraftKings is now live with its Sportsbook and iGaming offerings in provinces representing approximately 51% of the Canadian population. Webcast and Conference Call Details
As previously announced, DraftKings will host a conference call and audio webcast tomorrow, Friday, August 7, 2026, from 8:30 a.m. to 9:15 a.m. ET, during which management will discuss the Company’s results and provide commentary on business performance. A question-and-answer session will follow the prepared remarks.
To listen to the audio webcast and live question and answer session, please visit DraftKings’ Financials section of its website at ir.aboutdraftkings.com. A live audio webcast of the earnings conference call will be available on the Company’s website at ir.aboutdraftkings.com, along with a copy of this earnings press release, the Company’s Quarterly Report on Form 10-Q, a second quarter 2026 business update and a slide presentation. The audio webcast will be available on the Company’s investor relations website until 11:59 p.m. ET on September 30, 2026.
Financial and Operational Results
DraftKings’ second quarter 2026 financial results, as well as the financial results for each comparative period, and certain operational results are presented below:
DRAFTKINGS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except par value)
June 30, 2026
(Unaudited)
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$
983,882
$
1,127,545
Restricted cash
8,596
7,601
Cash reserved for users
395,030
469,449
Accounts receivable
82,079
105,577
Prepaid expenses and other current assets
107,436
104,837
Total current assets
1,577,023
1,815,009
Property and equipment, net
52,726
51,081
Intangible assets, net
837,441
889,201
Goodwill
1,597,647
1,597,647
Operating lease right-of-use assets
76,760
49,810
Equity method investments
30,312
18,938
Deposits and other non-current assets
105,470
109,098
Total assets
$
4,277,379
$
4,530,784
Liabilities and Stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses
$
689,247
$
785,441
Liabilities to users
840,261
935,001
Operating lease liabilities, current portion
9,735
9,795
Other current liabilities
11,445
25,234
Total current liabilities
1,550,688
1,755,471
Convertible notes, net of issuance costs
1,260,421
1,259,096
Term B Loan, net of issuance costs
574,574
576,544
Operating lease liabilities
71,279
44,391
Long-term income tax liabilities
100,959
91,618
Other long-term liabilities
150,030
172,203
Total liabilities
$
3,707,951
$
3,899,323
Stockholders’ equity:
Class A common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2026 and December 31, 2025; 541,503 and 533,296 shares issued and 495,978 and 495,053 outstanding as of June 30, 2026 and December 31, 2025, respectively
$
53
$
52
Class B common stock, $0.0001 par value; 900,000 shares authorized as of June 30, 2026 and December 31, 2025; 393,014 shares issued and outstanding as of June 30, 2026 and December 31, 2025
39
39
Treasury stock, at cost; 45,525 and 38,243 shares as of June 30, 2026 and December 31, 2025, respectively
(1,590,131
)
(1,392,433
)
Additional paid-in capital
8,607,037
8,424,833
Accumulated deficit
(6,484,058
)
(6,437,518
)
Accumulated other comprehensive income
36,488
36,488
Total stockholders’ equity
$
569,428
$
631,461
Total liabilities and stockholders’ equity
$
4,277,379
$
4,530,784
DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$
1,443,235
$
1,512,507
$
3,089,311
$
2,921,313
Cost of revenue
891,782
854,559
1,841,167
1,698,362
Sales and marketing
322,536
233,187
724,270
576,867
Product and technology
127,649
108,417
250,825
211,677
General and administrative
169,442
165,700
335,376
330,094
Income (loss) from operations
(68,174
)
150,644
(62,327
)
104,313
Other income (expense):
Interest income (expense), net
(7,434
)
665
(13,173
)
5,060
Gain (loss) on remeasurement of warrant liabilities
—
(5,851
)
—
(3,356
)
Other gain (loss), net
3,750
24,459
26,564
24,481
Income (loss) before income tax and equity method investments
(71,858
)
169,917
(48,936
)
130,498
Income tax provision (benefit)
(1,797
)
11,790
4,572
6,190
(Gain) loss from equity method investments
(2,451
)
191
(6,968
)
236
Net income (loss) attributable to common stockholders
$
(67,610
)
$
157,936
$
(46,540
)
$
124,072
Earnings (loss) per share attributable to common stockholders:
Basic
$
(0.14
)
$
0.32
$
(0.09
)
$
0.25
Diluted
$
(0.14
)
$
0.30
$
(0.09
)
$
0.23
DRAFTKINGS INC.
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(Amounts in thousands, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Adjusted EBITDA
$
114,597
$
300,644
$
282,450
$
403,273
Adjusted Diluted Earnings (Loss) Per Share
$
0.09
$
0.38
$
0.29
$
0.50
DRAFTKINGS INC.
REVENUE DISAGGREGATION
(Unaudited)
(Amounts in thousands, except percentages)
Three Months Ended June 30,
(amounts in thousands)
2026
2025
$ Change
% Change
Sports Consumer Volume
$
13,140,417
$
11,474,841
$
1,665,576
14.5
%
Sports Revenue
891,883
997,872
(105,989
)
(10.6
)%
Sports Net Revenue Margin
6.8
%
8.7
%
N/A
N/A
Sports Revenue
$
891,883
$
997,872
$
(105,989
)
(10.6
)%
iGaming Revenue
461,930
429,660
32,270
7.5
%
Other Revenue
89,422
84,975
4,447
5.2
%
Total Revenue
$
1,443,235
$
1,512,507
$
(69,272
)
(4.6
)%
Six Months Ended June 30,
(amounts in thousands)
2026
2025
$ Change
% Change
Sports Consumer Volume
$
27,342,115
$
25,355,232
$
1,986,883
7.8
%
Sports Revenue
1,986,436
1,879,829
106,607
5.7
%
Sports Net Revenue Margin
7.3
%
7.4
%
N/A
N/A
Sports Revenue
$
1,986,436
$
1,879,829
$
106,607
5.7
%
iGaming Revenue
923,230
853,131
70,099
8.2
%
Other Revenue
179,645
188,353
(8,708
)
(4.6
)%
Total Revenue
$
3,089,311
$
2,921,313
$
167,998
5.8
%
Sports Revenue. We define Sports Revenue as the total amount of online sportsbook, retail sportsbook, and Prediction Markets revenue.
Sports Consumer Volume. We define Sports Consumer Volume as the total amount of settled customer wagers or trades on our Sportsbook and Prediction Markets offerings.
Sports Net Revenue Margin. We define Sports Net Revenue Margin as Sports revenue as a percentage of Sports Consumer Volume.
DRAFTKINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)
Six Months Ended June 30,
2026
2025
Cash Flows from Operating Activities:
Net income (loss) attributable to common stockholders
$
(46,540
)
$
124,072
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities:
Depreciation and amortization
152,003
135,415
Non-cash interest (income) expense, net
2,451
939
Stock-based compensation
147,769
163,547
(Gain) loss on remeasurement of warrant liabilities
—
3,356
(Gain) loss from equity method investments
(6,968
)
236
Deferred income taxes
(215
)
96
Other non-cash (gain) loss, net
(26,303
)
(16,422
)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable
23,498
(11,111
)
Prepaid expenses and other current assets
(4,009
)
(7,625
)
Deposits and other non-current assets
2,220
2,759
Accounts payable and accrued expenses
(95,746
)
(98,441
)
Liabilities to users
(94,740
)
(254,484
)
Long-term income tax liability
9,341
7,953
Other long-term liabilities
240
4,615
Net cash flows provided by (used in) operating activities
$
63,001
$
54,905
Cash Flows from Investing Activities:
Purchases of property and equipment
$
(11,671
)
$
(6,963
)
Cash paid for internally developed software costs
(75,064
)
(60,414
)
Cash paid for gaming market access and licenses
(1,992
)
(2,234
)
Other investing activities
(4,717
)
(4,667
)
Net cash flows provided by (used in) investing activities
$
(93,444
)
$
(74,278
)
Cash Flows from Financing Activities:
Proceeds from Term B Loan, net
$
—
$
588,116
Repayment of Term B Loan principal
(3,000
)
(1,500
)
Purchase of treasury stock for RSU withholding
(43,480
)
(101,852
)
Purchase of treasury stock under Stock Repurchase Program
(154,218
)
(242,741
)
Proceeds from exercise of stock options
4,067
6,304
Proceeds from shares issued under Employee Stock Purchase Plan
9,987
6,900
Other financing activities
—
(2,093
)
Net cash flows provided by (used in) financing activities
$
(186,644
)
$
253,134
Net increase (decrease) in cash and cash equivalents, restricted cash, and cash reserved for users
(217,087
)
233,761
Cash and cash equivalents, restricted cash, and cash reserved for users at the beginning of period
1,604,595
1,330,193
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period
$
1,387,508
$
1,563,954
Disclosure of cash and cash equivalents, restricted cash, and cash reserved for users
Cash and cash equivalents
$
983,882
$
1,261,969
Restricted cash
8,596
4,616
Cash reserved for users
395,030
297,369
Cash and cash equivalents, restricted cash, and cash reserved for users at the end of period
$
1,387,508
$
1,563,954
Supplemental Disclosure of Noncash Investing and Financing Activities:
Decrease in warrant liabilities from cashless exercise of warrants
$
—
$
11,185
Shares issued for contingent consideration
9,420
4,962
Stock-based compensation capitalized to internally developed software costs
13,553
11,955
Supplemental Disclosure of Cash Activities:
(Decrease) increase in cash reserved for users
$
(74,419
)
$
(228,038
)
Cash paid for interest
17,624
9,421
Cash paid for income taxes, net of refunds
2,440
8,186
Non-GAAP Financial Measures
This press release includes Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share, which are non-GAAP financial measures that DraftKings uses to supplement its results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company believes Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share are useful in evaluating its operating performance, similar to measures reported by its publicly-listed U.S. competitors, and regularly used by security analysts, institutional investors and other interested parties in analyzing operating performance and prospects. Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share are not intended to be substitutes for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
DraftKings defines and calculates Adjusted EBITDA as net income (loss) before the impact of interest income or expense (net), income tax provision or benefit, and depreciation and amortization, and further adjusted for the following items: stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; and other non-recurring and non-operating costs or income, as described in the reconciliation below.
DraftKings defines and calculates Adjusted Diluted Earnings (Loss) Per Share as diluted earnings (loss) per share attributable to common stockholders adjusted for the impact of amortization of acquired intangible assets; discrete tax benefits attributed to acquisitions; stock-based compensation; transaction-related costs; litigation, settlement and related costs; advocacy and other related legal expenses; gain or loss on remeasurement of warrant liabilities; other non-recurring and non-operating costs or income; and the tax impact of adjusting items, as described in the reconciliation below. The weighted-average shares outstanding used in the calculation of diluted earnings (loss) per share are the GAAP weighted-average diluted shares reported in the consolidated financial statements and are not adjusted.
DraftKings includes these non-GAAP financial measures because they are used by management to evaluate the Company’s core operating performance and trends and to make decisions regarding the allocation of capital and new investments. Adjusted EBITDA and Adjusted Diluted Earnings (Loss) Per Share exclude certain expenses that are required in accordance with GAAP because they are non-recurring items (for example, in the case of transaction-related costs and advocacy and other related legal expenses), non-cash expenditures (for example, in the case of depreciation and amortization, remeasurement of warrant liabilities and stock-based compensation), or non-operating items which are not related to the Company’s underlying business performance (for example, in the case of interest income and expense and litigation, settlement and related costs).
The unaudited table below presents the Company’s Adjusted EBITDA reconciled to its net income (loss), which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
(amounts in thousands)
2026
2025
2026
2025
Net income (loss)
$
(67,610
)
$
157,936
$
(46,540
)
$
124,072
Adjusted for:
Depreciation and amortization (1)
80,342
65,299
152,003
135,415
Interest (income) expense, net
7,434
(665
)
13,173
(5,060
)
Income tax (benefit) provision
(1,797
)
11,790
4,572
6,190
Stock-based compensation (2)
82,554
84,701
147,769
163,547
Transaction-related costs (3)
—
—
—
—
Litigation, settlement, and related costs (4)
—
—
—
—
Advocacy and other related legal expenses (5)
19,875
—
46,238
—
Loss (gain) on remeasurement of warrant liabilities
—
5,851
—
3,356
Other non-recurring costs and non-operating costs (income) (6)
(6,201
)
(24,268
)
(34,765
)
(24,247
)
Adjusted EBITDA
$
114,597
$
300,644
$
282,450
$
403,273
(1)
The amounts include the amortization of acquired intangible assets of $37.6 million and $36.4 million for the three months ended June 30, 2026 and 2025, respectively, and $75.1 million and $79.1 million for the six months ended June 30, 2026 and 2025, respectively. (2)
Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. (3)
Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions. (4)
Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations. (5)
Reflects non-recurring and non-ordinary course costs relating to advocacy efforts primarily in pursuit of legalization of DraftKings offerings. For the three and six months ended June 30, 2026, this spend primarily relates to legislative efforts for legalizing iGaming, supporting a ballot measure for legalizing Sportsbook, and other advocacy activities related to certain states. Advocacy and legal expenses incurred in the ordinary course of business have not been adjusted in this measure. (6)
Primarily includes the change in fair value of certain assets and liabilities, including contingent consideration, as well as our equity method share of investee’s gains and losses and other costs relating to non-recurring and non-operating items. The unaudited table below presents the Company’s Adjusted Diluted Earnings (Loss) Per Share reconciled to its diluted earnings (loss) per share attributable to common stockholders, which is the most directly comparable financial measure calculated in accordance with GAAP, for the periods indicated:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Diluted earnings (loss) per share attributable to common stockholders
$
(0.14
)
$
0.30
$
(0.09
)
$
0.23
Adjusted for:
Amortization of acquired intangible assets (1)
0.08
0.07
0.15
0.15
Stock-based compensation (2)
0.17
0.16
0.30
0.31
Transaction-related costs (3)
—
—
—
—
Litigation, settlement, and related costs (4)
—
—
—
—
Advocacy and other related legal expenses (5)
0.04
—
0.09
—
Loss (gain) on remeasurement of warrant liabilities
—
0.00
—
0.00
Other non-recurring and non-operating costs (income)
(0.01
)
(0.04
)
(0.05
)
(0.04
)
Tax impact of adjusting items (6)
(0.05
)
(0.11
)
(0.10
)
(0.16
)
Adjusted Diluted Earnings (Loss) Per Share*
$
0.09
$
0.38
$
0.29
$
0.50
*
Weighted average diluted number of shares used to calculate Adjusted Diluted Earnings (Loss) Per Share for the three months ended June 30, 2026 and 2025 was 496.1 million and 529.5 million, respectively, and for the six months ended June 30, 2026 and 2025 was 495.2 million and 529.6 million, respectively; totals may not add due to rounding. (1)
The amounts include the amortization of acquired intangible assets of $37.6 million and $36.4 million for the three months ended June 30, 2026 and 2025, respectively, and $75.1 million and $79.1 million for the six months ended June 30, 2026 and 2025, respectively. (2)
Reflects stock-based compensation expenses resulting from the issuance of awards under incentive plans. (3)
Includes capital markets advisory, consulting, accounting and legal expenses related to the evaluation, negotiation, and consummation of transactions and offerings that are under consideration, pending, or completed, as well as integration costs related to acquisitions. (4)
Primarily includes external legal costs related to litigation and litigation settlement costs deemed unrelated to our ordinary-course business operations. (5)
Reflects non-recurring and non-ordinary course costs relating to advocacy efforts primarily in pursuit of legalization of DraftKings offerings. For the three and six months ended June 30, 2026, this spend primarily relates to legislative efforts for legalizing iGaming, supporting a ballot measure for legalizing Sportsbook, and other advocacy activities related to certain states. Advocacy and legal expenses incurred in the ordinary course of business have not been adjusted in this measure. (6)
Beginning in the first quarter of 2025, the Company began applying an estimated non-GAAP effective tax rate, which was 23% in 2025 and is 28% as of the second quarter of 2026. The non-GAAP effective tax rate reflects the non-GAAP tax provision commensurate with the Company's level of non-GAAP profitability, which was determined after adjusting for the non-GAAP adjustments presented above and excluding the impact of changes in the valuation allowance. Information reconciling forward-looking fiscal year 2026 Adjusted EBITDA guidance to its most directly comparable GAAP financial measure, net income (loss), is unavailable to DraftKings without unreasonable effort due to, among other things, certain items required for such reconciliation being outside of DraftKings’ control and/or not being able to be reasonably predicted. Preparation of such reconciliation would require a forward-looking balance sheet, statement of income, and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the Company without unreasonable effort. DraftKings provides a range for its Adjusted EBITDA forecast that it believes will be achieved; however, the Company cannot provide any assurance that it can predict all of the components of the Adjusted EBITDA calculation. DraftKings provides a forecast for Adjusted EBITDA because it believes that Adjusted EBITDA, when viewed with DraftKings’ results calculated in accordance with GAAP, provides useful information for the reasons noted above. However, Adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income (loss) or cash flow from operating activities or as an indicator of operating performance or liquidity.
About DraftKings
DraftKings Inc. is a digital sports and gaming company created to be the Ultimate Host and fuel the competitive spirit of sports fans with platforms that range across daily fantasy, regulated gaming, prediction markets and digital media. Headquartered in Boston and launched in 2012 by Jason Robins, Matt Kalish and Paul Liberman, DraftKings is the only U.S.-based vertically integrated sports betting operator. DraftKings’ mission is to make life more exciting by responsibly creating the world’s favorite real-money games, betting experiences and event contracts trading. DraftKings Sportsbook is live with mobile and/or retail sports betting operations pursuant to regulations in 30 states, Washington, D.C., Puerto Rico, and Alberta and Ontario, Canada. The Company operates iGaming pursuant to regulations in five states and in Alberta and Ontario, Canada under its DraftKings brand and pursuant to regulations in four states and in Ontario, Canada, under its Golden Nugget Online Gaming brand. DraftKings also owns Jackpocket, the leading digital lottery courier app in the United States. DraftKings’ daily fantasy sports platform is available in 44 states, Washington, D.C., and certain Canadian provinces. DraftKings' wholly-owned subsidiary GUS III LLC (d/b/a DraftKings Predictions) also operates DraftKings Predictions, offering federally regulated event contracts under CFTC oversight. DraftKings is both an official sports betting and daily fantasy partner of the NHL, PGA TOUR and WNBA, as well as an official daily fantasy partner of NASCAR, an official sports betting partner of the NBA and an authorized gaming operator of MLB. In addition, DraftKings owns and operates DraftKings Network, a multi-platform content ecosystem. DraftKings is committed to delivering responsible engagement tools and resources, while focusing on integrity and customer education.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including statements about the Company and its industry that involve substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release, including statements regarding guidance, DraftKings’ future results of operations or financial condition, strategic plans and focus, customer growth and engagement, offering initiatives, and the objectives and expectations of management for future operations (including launches in new jurisdictions and the expected timing thereof), are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “confident,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “going to,” “intend,” “may,” “plan,” “poised,” “potential,” “predict,” “project,” “propose,” “should,” “target,” “will,” or “would” or the negative of these words or other similar terms or expressions, or by statements of vision, strategy or outlook. DraftKings cautions you that the foregoing may not include all of the forward-looking statements made in this press release.
You should not rely on forward-looking statements as predictions of future events. DraftKings has based the forward-looking statements contained in this press release primarily on its current expectations and projections about future events and trends, including the current macroeconomic environment, that it believes may affect its business, financial condition, results of operations, and prospects. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside DraftKings’ control and that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, but are not limited to, DraftKings’ ability to manage growth; DraftKings’ ability to execute its business plan and meet its projections, including growth and execution in the emerging prediction markets category; potential litigation involving DraftKings; changes in applicable laws or regulations, particularly with respect to gaming and the regulatory status of prediction markets and event contracts; general economic and market conditions impacting demand for DraftKings’ offerings and services; economic and market conditions in the media, gaming, and software industries in the markets in which DraftKings operates; market and global conditions and economic factors, as well as the potential impact of general economic conditions, and the potential impact of new and existing laws, regulations, or policies, including those relating to tariffs, import/export, or trade restrictions, inflation, rising interest rates and instability in the banking system, on DraftKings’ liquidity, operations and personnel, as well as the risks, uncertainties, and other factors described in “Risk Factors” in DraftKings’ filings with the Securities and Exchange Commission (the “SEC”), which are available on the SEC’s website at www.sec.gov. Additional information will be made available in other filings that DraftKings makes from time to time with the SEC. The forward-looking statements contained herein are based on management’s current expectations and beliefs and speak only as of the date hereof, and DraftKings makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law.
Sports betting and online gaming company DraftKings Inc (NASDAQ:DKNG) reported second-quarter financial results Thursday after market close.
Here are the key highlights.
• DraftKings stock is facing resistance. Why is DKNG stock trading lower?
DraftKings reported second-quarter revenue of $1.44 billion, down 5% year-over-year. The revenue total missed a Street consensus estimate of $1.52 billion, according to data from Benzinga Pro.
The company reported earnings of nine cents per share in the quarter, beating a Street estimate of two cents per share.
Sports consumer volume was $13.1 billion in the quarter, up 15% year-over-year. Growth was attributed to strong customer acquisition and engagement.
Revenue decline was attributed to customer-friendly outcomes and increased promotional reinvestment.
Monthly unique payers (MUPs) were 3.6 million in the quarter, up 9% year-over-year. The average revenue per MUP was $132 in the quarter, down 13% year-over-year.
DraftKings ended the quarter with mobile sports betting in 27 states, Washington D.C. and Puerto Rico, representing around 53% of the U.S. population. For iGaming, DraftKings is live in five states, covering around 11% of the U.S. population.
The company also covers 51% of the Canadian population for sportsbook and iGaming.
What’s Next for DraftKingsDraftKings is maintaining its full-year revenue guidance, which is a range of $6.5 billion to $6.9 billion. The company also maintains a full-year range of Adjusted EBITDA guidance of $700 million to $900 million.
"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," DraftKings CEO Jason Robins said.
The company’s Super App is available nationwide, which includes Predictions.
"Predictions is already growing faster than we anticipated. The similarity of Predictions customer metrics to Sportsbook customer metrics, our advantaged LTV position, and our playbook to innovate on a leading Predictions offering all underpin our confidence that we can win the category this NFL season and beyond."
DraftKings Stock Price ActionDraftKings stock is down 1.2% to $21.90 in after-hours trading Thursday versus a 52-week trading range of $20.46 to $48.78.
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CFRA's Zach Warring joins Morning Trade Live to look at the state of sports wagering companies like DraftKings (DKNG) and Flutter Entertainment (FLUT). The biggest headwind in his mind: Prediction markets like Kalshi and Polymarket eating into their business.
Customers flying Delta Air Lines now have a new form of onboard entertainment available from an unexpected partner: DraftKings.
Starting this week, passengers ages 21 and older will be able to access SkyPicks, a new free-to-play in-flight sports prediction game. Those who chose to play will answer questions that mimic traditional contests on DraftKings and predict things such as which player will score first, the winning team, and final score for sports like basketball, football, baseball.
The one big difference: You won’t be able to win real cash.
A 1962 law that prohibits gambling on commercial flights, so despite its resemblance to the real deal, SkyPicks is not technically betting. However, winners won’t walk away empty handed. Players will compete for a spot on the top of a leaderboard and a chance to win Delta gift cards. New contests will be offered several times a week, and players can update their picks and check in on the leaderboard even after they’ve reached their final destination.
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The move towards joining in-flight entertainment ties in to the growing popularity of sports betting in the US.For reference, last year Americans spent more on sports betting than they did on other forms of entertainment like museums, movies, or music.
“We’re also exploring new ways to bring fans closer to the action beyond the traditional settings,” Jeremy Elbaum, Chief Commercial Officer at DraftKings, said in a press statement.
“Collaborating with Delta gives us the opportunity to reimagine what sports engagement can look like while traveling, bringing innovative ways for fans to stay connected to the games they love—even when they’re in the air.”
Explore TopicsDeltaDelta Air LinesDraft Kingsgambling
Analysts on Wall Street project that DraftKings (DKNG - Free Report) will announce quarterly earnings of $0.22 per share in its forthcoming report, representing a decline of 42.1% year over year. Revenues are projected to reach $1.5 billion, declining 0.8% from the same quarter last year.
The consensus EPS estimate for the quarter has been revised 1% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some DraftKings metrics that Wall Street analysts commonly model and monitor.
The consensus among analysts is that 'Revenue- Sportsbook' will reach $903.29 million. The estimate indicates a year-over-year change of -9.5%.
Based on the collective assessment of analysts, 'Revenue- Other' should arrive at $90.59 million. The estimate indicates a year-over-year change of +6.6%.
The collective assessment of analysts points to an estimated 'Revenue- iGaming' of $446.67 million. The estimate indicates a year-over-year change of +4%.
Analysts' assessment points toward 'Average Revenue per MUP (ARPMUP)' reaching $149.78 . Compared to the current estimate, the company reported $151.00 in the same quarter of the previous year.
Analysts expect 'Monthly Unique Payers (MUPs)' to come in at 3.26 million. Compared to the current estimate, the company reported 3.30 million in the same quarter of the previous year.
View all Key Company Metrics for DraftKings here>>>
Shares of DraftKings have demonstrated returns of -9.3% over the past month compared to the Zacks S&P 500 composite's +0.2% change. With a Zacks Rank #3 (Hold), DKNG is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Michael Burry (Trades, Portfolio) expanded several positions and increased his bearish exposure to artificial intelligence and semiconductor stocks in his lates
Look To REITs For Reliable Yield Even In Recessionary EnvironmentGaming and Leisure Properties NASDAQ: GLPI reported second-quarter 2026 growth in adjusted funds from operations, or AFFO, as acquisitions, lease escalators and development funding increased cash income. Chairman and Chief Executive Officer Peter Carlino said AFFO rose 10% from a year earlier and described the company’s near- and medium-term growth pipeline as highly visible.
Carlino said the regional gaming market remained strong despite concerns expressed elsewhere about the sector’s outlook. He said GLPI’s tenants were seeing same-store growth and attractive returns on investments in new properties and expansions. The company also raised its quarterly dividend 5% to $0.82 per share, bringing its three-year compounded dividend growth rate to 4.4%, according to Carlino.
Get GLPI alerts:
3 High-Yield Dividend Stocks That Are Probably Not On Your Radar“We can finance everything that we’ve got announced with what we have available today,” Carlino said, adding that the company did not need to access capital markets if it chose not to do so.
Income growth and guidance Chief Financial Officer and Treasurer Desiree Burke said total income from real estate exceeded the prior-year second quarter by more than $35 million. Cash income increased by about $43 million, driven by acquisitions and contractual escalations.
The 10 Top-Rated Stocks by Wall Street Analysts in August 2021Among the principal contributors were GLPI’s acquisition of Bally’s Lincoln real estate, which added $14 million of cash income; the Bally’s Chicago lease, which contributed $9 million; and the Belle development project, which added $2.4 million. Funding for Penn Entertainment projects in Joliet, Aurora and at M Resort collectively added $5.8 million, while the Sunland Park acquisition contributed $3.8 million.
Loans associated with Dry Creek, Ione and Cordish Virginia added $4 million of cash income, Burke said. Lease escalators and percentage-rent adjustments provided an additional approximately $4 million. Non-cash items, including revenue gross-ups, investment and lease adjustments, and straight-line rent adjustments, reduced income by $7.2 million.
Operating expenses declined by $54 million, mainly because of non-cash adjustments and the provision for credit losses, Burke said.
GLPI guided to 2026 AFFO of $1.219 billion to $1.225 billion, or $4.10 to $4.12 per diluted share and operating partnership unit. The guidance excludes potential future transactions but includes an estimated $400 million to $450 million of additional development funding expected to be deployed relatively evenly over the next two quarters. That would bring total projected development spending to $750 million to $800 million, unchanged from the prior quarter’s forecast.
The company’s leverage ratio stood at 4.8 times, below its stated target range of five to 5.5 times. GLPI also settled a forward contract, issuing 7.6 million shares and generating net proceeds of $351 million.
Development pipeline and financing Burke said the development-funding guidance includes Bally’s Chicago, Ione, Dry Creek and Live! Virginia projects. The range reflects uncertainty over the timing of when project sponsors will request funding, rather than changes to the company’s overall commitments.
Management said higher borrowing costs can raise GLPI’s own cost of debt and influence the pricing of future transactions. However, Chief Development Officer Steve Ladany said rising financing costs for casino operators may also encourage them to consider alternative capital sources.
Regarding the Las Vegas stadium site, President and Chief Operating Officer Brandon Moore said the timing of GLPI’s remaining $125 million commitment remains uncertain. He said the Athletics’ stadium construction was progressing and that Bally’s was developing plans for infrastructure supporting the venue, including accessways, a podium and utility conduits. GLPI may evaluate further investment in that infrastructure but has not committed to fund more than $125 million.
Moore said GLPI remains interested in Bally’s New York opportunity but does not believe it makes sense for the REIT to participate in the project’s early financing stages at its current cost of capital. GLPI has a right of first refusal on certain aspects of the project and intends to remain involved as the development and its financing plans advance.
M&A activity and regional gaming outlook Management discussed recent announcements involving potential take-private transactions among gaming operators. Carlo Santarelli, senior vice president of corporate strategy and investor relations, said the developments supported GLPI’s view that gaming operators have been undervalued in public markets. Caesars represents about 7% of GLPI’s cash rent, while GLPI has no relationship with MGM, he said.
Ladany said GLPI was not assuming that meaningful divestitures or derivative acquisition opportunities would result from those transactions, but the company would be receptive to discussions. He also said GLPI was aware of Churchill Downs’ process to explore sales of most of its gaming assets and expects to evaluate any broader sale process.
Management said its underwriting process for transactions continues to emphasize long-term operating stability, tenant credit quality, competitive conditions, diversification and lease structure. Carlino said the company would not pursue transactions simply to win competitive auctions.
GLPI also said it remains engaged in discussions with tribal gaming operators regarding development financing, refinancings and other potential uses of capital. Moore cautioned that tribal transactions can move slowly and that the timing of any potential deals is uncertain, but said the company expects future activity in the sector if it can resolve remaining hurdles.
Online gaming and capital investment On online gaming legalization, Moore said GLPI sees legislative activity in Virginia, Maryland and Indiana but believes most states remain cautious about expanding internet gaming. He said the presence of online gaming has slowed growth in brick-and-mortar casino operations in Pennsylvania but has not impaired tenants’ ability or willingness to pay rent.
Management said capital improvements have produced strong returns in several regional markets. Executives cited Boyd Gaming’s Treasure Chest project, Penn’s recent investments, Live! Virginia’s temporary facility and the Belle redevelopment in Baton Rouge. Carlino said the Belle project transformed two existing properties and expanded demand in what had been considered a stable, established market.
Moore said GLPI continues to view its rent-coverage approach as validated by the resilience of regional gaming through changing economic conditions. The company said tenants have increased capital spending in some cases, particularly Penn’s renewed focus on brick-and-mortar investments, and that GLPI receives notice and project information when tenants pursue larger capital improvements.
About Gaming and Leisure Properties (NASDAQ:GLPI)Gaming and Leisure Properties, Inc NASDAQ: GLPI is a real estate investment trust (REIT) specializing in the ownership and management of gaming and entertainment properties. Established in 2013 as a spin-off from Penn National Gaming, the company was designed to acquire and hold real estate assets associated with casinos, racetracks and other gaming facilities, while leasing those assets back to operating partners under long-term, triple-net lease agreements.
The company's core activities involve identifying attractive gaming real estate, structuring lease agreements that align tenant incentives with property performance, and actively managing its portfolio to enhance asset value.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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In-flight gambling has been illegal on U.S. commercial aircraft for more than six decades. Delta Air Lines and DraftKings are collaborating nevertheless.
Delta Air Lines and DraftKings teamed to offer passengers a sports-related in-flight entertainment option.
SkyPicks, announced last year and available beginning Wednesday (July 29), is offered through the Delta Sync WiFi system and lets fans use their sports expertise to win Delta gift cards, with no wagering, deposits, money or miles involved, according to a Wednesday press release.
“With Delta Sync, our goal is to create an onboard experience that offers something for every customer—one that’s connected to what customers love on the ground,” Ranjan Goswami, chief marketing and product officer at Delta, said in the release. “For many of our customers, that includes sports. SkyPicks brings that passion onboard in a fun, free-to-play way, giving SkyMiles members another way to engage with the games and conversations they love while they fly.”
The program is launching with MLB matches, and NFL games are coming once the professional football season gets underway, according to the release. Delta SkyMiles members 21 and older can use their laptops or mobile devices to make predictions tied to actual sporting events, with top scorers eligible to win a Delta gift card toward their next trip.
Delta said earlier this month that its digital tools are improving customer satisfaction while helping passengers reach their destinations. During the company’s latest earnings call, Chief Operating Officer Dan Janki spotlighted enhanced digital tools that include a simplified rebooking process, expanded self-service and the airline’s artificial intelligence-powered digital assistant, Delta Concierge.
“Our customers are noticing,” Janki said of these offerings. “This has driven more than a 25-point improvement in NPS [Net Promoter Score] during periods of irregular operation.”
Meanwhile, DraftKings last month introduced a proprietary, vertically integrated foundation for its prediction markets experience, DraftKings Predictions, and embedded it into the DraftKings: Sports & Casino app. The proprietary exchange, DKeX, and its integration into the app will let DraftKings innovate more rapidly.
“DKeX provides a vertically integrated foundation for DraftKings Predictions, strengthening our prediction markets content and capabilities, giving us greater control over the technology that powers those offerings, and enabling us to move faster as we continue enhancing our unified app,” DraftKings Co-Founder and CEO Jason Robins said in a June 26 press release.
Bank of New York Mellon Corp reduced its stake in DraftKings Inc. (NASDAQ:DKNG – Free Report) by 3.3% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 1,070,383 shares of the company’s stock after selling 36,471 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.22% of DraftKings worth $23,142,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds also recently bought and sold shares of the stock. Viking Global Investors LP purchased a new position in shares of DraftKings during the 3rd quarter valued at about $561,125,000. Capital World Investors raised its stake in DraftKings by 181.4% during the 4th quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock worth $641,867,000 after acquiring an additional 12,008,357 shares during the period. Janus Henderson Group PLC lifted its holdings in DraftKings by 50.8% during the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after purchasing an additional 8,524,923 shares in the last quarter. Norges Bank purchased a new position in DraftKings during the fourth quarter valued at approximately $284,466,000. Finally, AQR Capital Management LLC boosted its position in shares of DraftKings by 41.0% in the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after purchasing an additional 4,788,337 shares during the period. 37.70% of the stock is currently owned by hedge funds and other institutional investors.
Insider Buying and Selling In other DraftKings news, Director Woodrow Levin sold 34,234 shares of the stock in a transaction on Monday, May 18th. The stock was sold at an average price of $25.71, for a total value of $880,156.14. Following the sale, the director owned 29,820 shares in the company, valued at $766,672.20. This trade represents a 53.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider R Stanton Dodge sold 62,500 shares of DraftKings stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $29.68, for a total value of $1,855,000.00. Following the sale, the insider owned 556,258 shares of the company’s stock, valued at approximately $16,509,737.44. This trade represents a 10.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 97,596 shares of company stock valued at $2,756,991. 47.18% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades A number of brokerages have recently issued reports on DKNG. JPMorgan Chase & Co. increased their price objective on shares of DraftKings from $31.00 to $34.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 15th. UBS Group upped their target price on shares of DraftKings from $43.00 to $49.00 and gave the stock a “buy” rating in a report on Friday, June 5th. Truist Financial cut their price target on DraftKings from $30.00 to $29.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Guggenheim reissued a “buy” rating and set a $35.00 price target on shares of DraftKings in a report on Wednesday, June 24th. Finally, Wedbush assumed coverage on DraftKings in a report on Friday, April 24th. They set an “outperform” rating on the stock. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $34.37.
Read Our Latest Report on DraftKings
DraftKings Stock Performance Shares of NASDAQ DKNG opened at $24.62 on Wednesday. The company has a market cap of $12.21 billion, a P/E ratio of 410.33 and a beta of 1.65. DraftKings Inc. has a 52-week low of $20.46 and a 52-week high of $48.78. The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.02 and a current ratio of 1.02. The firm’s fifty day moving average is $25.61 and its two-hundred day moving average is $25.53.
DraftKings (NASDAQ:DKNG – Get Free Report) last released its quarterly earnings data on Friday, May 8th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.22 by ($0.02). DraftKings had a net margin of 0.93% and a return on equity of 13.51%. The company had revenue of $1.65 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period last year, the company earned ($0.07) EPS. The firm’s revenue for the quarter was up 16.8% on a year-over-year basis. As a group, analysts anticipate that DraftKings Inc. will post 0.54 EPS for the current fiscal year.
About DraftKings (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.
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In the latest trading session, DraftKings (DKNG - Free Report) closed at $24.62, marking a +2.12% move from the previous day. This change outpaced the S&P 500's 0.21% gain on the day. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, lost 0.22%.
The stock of company has fallen by 6.55% in the past month, lagging the Consumer Discretionary sector's loss of 0.15% and the S&P 500's gain of 1.7%.
The investment community will be paying close attention to the earnings performance of DraftKings in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $0.22, reflecting a 42.11% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.5 billion, showing a 0.77% drop compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.09 per share and a revenue of $6.79 billion, signifying shifts of +65.15% and +12.08%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for DraftKings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 10.42% lower. DraftKings is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, DraftKings is currently being traded at a Forward P/E ratio of 22.22. This denotes a premium relative to the industry average Forward P/E of 18.7.
The Gaming industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 183, positioning it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
NEW YORK--(BUSINESS WIRE)---- $DKNG #ARCEntertainmentGroup--Platform will support payments between entertainers and customers while allowing management to retain applicable fees.
On July 27, 2026, DraftKings Inc (DKNG) shares rose 4.8% to $24.11. Despite today's gain, the stock has experienced significant volatility over the past year, t
Entropy Technologies LP acquired a new stake in shares of DraftKings Inc. (NASDAQ:DKNG – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor acquired 123,466 shares of the company’s stock, valued at approximately $2,669,000.
Other hedge funds also recently bought and sold shares of the company. Viking Global Investors LP purchased a new position in shares of DraftKings during the 3rd quarter worth $561,125,000. Capital World Investors grew its holdings in shares of DraftKings by 181.4% in the fourth quarter. Capital World Investors now owns 18,626,429 shares of the company’s stock valued at $641,867,000 after purchasing an additional 12,008,357 shares during the period. Janus Henderson Group PLC grew its holdings in shares of DraftKings by 50.8% in the fourth quarter. Janus Henderson Group PLC now owns 25,313,909 shares of the company’s stock valued at $858,893,000 after purchasing an additional 8,524,923 shares during the period. Norges Bank purchased a new stake in shares of DraftKings in the fourth quarter valued at about $284,466,000. Finally, AQR Capital Management LLC increased its position in DraftKings by 41.0% during the fourth quarter. AQR Capital Management LLC now owns 16,474,009 shares of the company’s stock worth $567,694,000 after purchasing an additional 4,788,337 shares during the last quarter. Institutional investors and hedge funds own 37.70% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts have commented on DKNG shares. Stephens started coverage on shares of DraftKings in a research note on Friday, April 24th. They set an “overweight” rating on the stock. Needham & Company LLC reissued a “buy” rating and issued a $35.00 price target on shares of DraftKings in a research note on Monday, May 11th. UBS Group raised their price target on shares of DraftKings from $43.00 to $49.00 and gave the stock a “buy” rating in a report on Friday, June 5th. Guggenheim reaffirmed a “buy” rating and set a $35.00 price target on shares of DraftKings in a research report on Wednesday, June 24th. Finally, Stifel Nicolaus reduced their price target on shares of DraftKings from $40.00 to $38.00 and set a “buy” rating on the stock in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $34.37.
View Our Latest Stock Report on DKNG
DraftKings Price Performance Shares of DKNG opened at $23.01 on Monday. The firm has a 50-day simple moving average of $25.66 and a two-hundred day simple moving average of $25.68. The stock has a market cap of $11.42 billion, a PE ratio of 383.50 and a beta of 1.65. DraftKings Inc. has a 1-year low of $20.46 and a 1-year high of $48.78. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.02 and a quick ratio of 1.02.
DraftKings (NASDAQ:DKNG – Get Free Report) last posted its quarterly earnings data on Friday, May 8th. The company reported $0.20 earnings per share for the quarter, missing analysts’ consensus estimates of $0.22 by ($0.02). The company had revenue of $1.65 billion for the quarter, compared to analysts’ expectations of $1.63 billion. DraftKings had a return on equity of 13.51% and a net margin of 0.93%.The business’s revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the previous year, the business posted ($0.07) EPS. As a group, analysts forecast that DraftKings Inc. will post 0.54 EPS for the current year.
Insider Transactions at DraftKings In related news, Director Woodrow Levin sold 34,234 shares of the company’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 transaction of $880,156.14. Following the sale, the director directly owned 29,820 shares in the company, valued at approximately $766,672.20. This represents a 53.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider R Stanton Dodge sold 62,500 shares of the firm’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $29.68, for a total transaction of $1,855,000.00. Following the completion of the sale, the insider owned 556,258 shares in the company, valued at $16,509,737.44. The trade was a 10.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 97,596 shares of company stock worth $2,756,991 in the last ninety days. 47.18% of the stock is owned by corporate insiders.
DraftKings Company Profile (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.
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