DraftKings Inc. reported first-quarter 2026 revenue of $1,646 million, a 17% increase year-over-year, as improved sportsbook margins drove the company to its second consecutive quarterly net profit and management signalled a substantial strategic commitment to the emerging predictions market category.
The Boston-based operator, listed on Nasdaq as DKNG, posted net income of $21.1 million for the three months ended 31 March 2026, reversing a net loss of $33.9 million in the same period a year earlier. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) reached $167.9 million, up from $102.6 million in Q1 2025. Full-year 2026 guidance was maintained at revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.
Jason Robins, Chief Executive Officer and Co-founder, DraftKings stated:
“We are off to a fantastic start to the year as our first quarter results exceeded our expectations. Our core business is strong, and profitability is inflecting. That gives us the firepower to press our advantage in Predictions.”
Sportsbook revenue was the primary driver of top-line growth, rising 24.1% year-over-year to $1,094.9 million. The sportsbook net revenue margin expanded 140 basis points to 7.8%, up from 6.4% in Q1 2025, reflecting a shift toward higher-margin bet types. iGaming revenue increased 8.9% to $461.3 million.
Monthly Unique Payers (MUPs) declined 4% year-over-year to 4.2 million, primarily as a consequence of DraftKings’ exit from the Texas lottery market in 2025. Excluding the lottery segment, MUPs grew 2%. Average Revenue per MUP rose 21% to $131, supported by the sportsbook margin improvement.
The results were reported against a guidance reaffirmation that some analysts viewed as conservative given the earnings beat. Adjusted Diluted Earnings Per Share came in at $0.20, up from $0.12 in Q1 2025, though marginally below a consensus forecast of $0.22.
The more consequential signal from the quarter was management’s articulation of its predictions market strategy. DraftKings has integrated its Predictions product directly into the flagship app and reported that customer acquisition costs for the vertical fell more than 80% in April following that integration. Predictions volume per customer now exceeds sportsbook handle per customer. The company has committed $200 million to $300 million in investment in the Predictions vertical during 2026.
“With our Super App, market-making capabilities, proprietary exchange, and combos coming together, we intend to establish a leadership position in Sports Predictions before year-end.”
Chief Financial Officer Alan Ellingson reaffirmed the company’s full-year outlook, stating:
“The business continues to scale efficiently as we grow revenue, expand profitability, and invest in high-return opportunities. We continue to expect fiscal year 2026 revenue of $6.5 billion to $6.9 billion and Adjusted EBITDA of $700 million to $900 million.”
DraftKings’ Predictions product operates as federally regulated event contracts under oversight of the Commodity Futures Trading Commission (CFTC), a regulatory structure that distinguishes it from state-regulated sports betting. The company’s wholly-owned subsidiary, GUS III Inc., trading as DraftKings Predictions, holds the relevant operating licence.
DraftKings is currently live with mobile sports betting in 27 states, Washington D.C., and Puerto Rico, representing approximately 53% of the US population, and operates iGaming in five states. The full first-quarter 2026 earnings press release is available on the DraftKings investor relations website.