TLDR
- DraftKings posted mixed Q2 2026 results, missing profit estimates but growing its player base
- CEO Jason Robins pushed back against Kalshi and Polymarket over claims about prediction market fairness
- DraftKings stock rose 8% Friday even after an earnings per share miss
- Flutter’s FanDuel trails DraftKings by up to a year in launching its own prediction exchange
- Wall Street analysts stayed mostly positive on DraftKings with price targets above the current stock price
DraftKings reported second quarter earnings this week that showed a mixed picture for the sports betting company. The results came as the business pushes deeper into prediction markets, a fast growing corner of the industry.
CEO Jason Robins appeared on CNBC’s Squawk Box the same morning the earnings call took place. He was asked about rising competition from Kalshi and Polymarket, two companies now valued above 20 billion dollars each.
Robins said DraftKings welcomes the competition. But he also pushed back on what he called a false narrative from rival companies.
He said some prediction market operators claim they have no stake in whether customers win or lose. Robins argued this isn’t true, since everyday users often trade against large institutional firms using advanced tools.
“Some of the companies out there are spinning narratives that just aren’t true,” Robins told CNBC. Kalshi’s CEO had not responded publicly as of this report.
DraftKings Expands Its Prediction Business
DraftKings launched its own prediction market exchange, called DKeX, several weeks before the earnings call. The company has folded its predictions business into its main sports betting unit.
Sports revenue reached 1.99 billion dollars for the quarter. That marks a rise of nearly 6% compared to the same period last year.
DraftKings said about 600,000 customers have used its prediction platform so far this year. Robins said he expects the upcoming football season to bring in more new users.
The company ended the quarter with 3.6 million average monthly players. That is a 9.1% increase from a year earlier, though much of the jump came from a one time boost tied to the 2026 World Cup.
Earnings Miss Profit Targets But Stock Still Rises
Overall revenue fell by 69.3 million dollars to 1.44 billion dollars for the quarter. DraftKings said the drop came from sports outcomes that favored customers and higher spending on promotions.
Adjusted earnings per share came in at 9 cents. That fell short of analyst expectations of 22 cents.
Despite the miss, investors focused on the growth potential in predictions. DraftKings shares closed Friday at $24.03, up 8% on the day.
Flutter, the parent company of FanDuel, saw its stock fall about 9% earlier in the week after CEO Peter Jackson announced he is stepping down. Flutter earned just 6 million dollars from predictions during the quarter.
According to analyst Joe Stauff at Susquehanna, FanDuel is roughly nine months to a year behind DraftKings in building its own prediction exchange. Flutter has not said whether it will launch one.
Analyst Jordan Bender at Citizens rated DraftKings as market outperform with a price target of $36. Barry Jonas at Truist Securities kept a buy rating with a target of $29.
Both DraftKings and Flutter remain down more than 20% for the year as competition across sports betting products grows. Robins closed the call with a simple message about where the company stands heading into football season.
“We are on offense, the core business is firing,” Robins said.
