DraftKings Beats on EPS but Revenue Slips as World Cup Payouts Bite

DraftKings reported mixed second-quarter results on Thursday. Revenue of $1.44 billion fell 5% year over year and missed the roughly $1.52 billion consensus, while earnings of $0.09 per share comfortably beat the $0.02 analysts expected. Adjusted EBITDA fell about 62% to $114.6 million.

The shortfall was driven by customer-friendly outcomes, including the New York Knicks' NBA championship run and a string of bettor wins during the World Cup, along with higher promotional spending. Underlying engagement remained solid: total volume across sportsbook and prediction markets rose 15% to $13.1 billion, and monthly unique payers grew 9% to 3.6 million.

Management said prediction markets are growing faster than anticipated and reiterated full-year guidance of $6.5 billion to $6.9 billion in revenue and $700 million to $900 million in adjusted EBITDA.