Equity Profile

DKNG

DraftKings Inc.

Consumer DiscretionaryCasinos & Gaming$12.4B

Aug5Wed

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

DraftKings Inc. is a leading digital sports entertainment and gaming company, primarily focused on online sports betting and fantasy sports....

Key Metrics to Watch

Revenue Growth

Revenue growth is crucial for assessing how well DraftKings is expanding its market presence and attracting new customers.

N/A

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will help investors gauge the company's financial health.

$0.20

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

DKNG Q2-2026 Earnings Preview

Context

Company Snapshot

DraftKings Inc. is a leading digital sports entertainment and gaming company, primarily focused on online sports betting and fantasy sports. As part of the consumer discretionary sector, it benefits from trends in consumer spending and the growing acceptance of legalized sports gambling across the U.S.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+332.93%

Avg Stock Reaction

+0.55%

Last Quarter Recap

In Q1-2026, DraftKings reported an EPS of $0.20, significantly beating expectations of $0.07, which resulted in a positive stock reaction of 5.43% the following day. The company continues to show strong performance in a competitive market.

Management Promises & Guidance

Focus on expanding market share in new states as sports betting becomes legalized.
Commitment to enhancing user experience through technology improvements.
Plans to introduce new betting options and promotions to attract more users.

Expectations

Wall Street Expectations

Overall expectations for DraftKings are cautiously optimistic, given its strong earnings history and recent performance. Investors are looking for continued growth in user engagement and profitability.

Bull Case

The bullish view hinges on DraftKings outperforming revenue expectations and demonstrating effective cost management, leading to higher profitability. A strong customer acquisition strategy could further boost confidence.

Bear Case

On the bearish side, concerns about rising competition and potential regulatory hurdles could impact growth. If customer acquisition costs rise significantly, it may hurt profitability.

Key Metrics to Watch

Revenue Growth

N/A

Revenue growth is crucial for assessing how well DraftKings is expanding its market presence and attracting new customers.

Earnings Per Share (EPS)

$0.20

EPS is a key indicator of profitability and will help investors gauge the company's financial health.

Customer Acquisition Costs

N/A

Understanding how much DraftKings spends to acquire new customers is vital for evaluating its marketing efficiency and long-term profitability.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

Given the company's strong track record of beating EPS estimates, this will be a key indicator of ongoing profitability and investor confidence.

How are customer acquisition costs trending, and what impact might this have on future profitability?

Understanding the efficiency of customer acquisition will help investors gauge the sustainability of growth and profitability moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate DraftKings' ability to control customer acquisition costs, which could lead to higher-than-expected profitability this quarter.

Supporting Evidence

DraftKings has consistently surprised on EPS, indicating strong operational efficiency.

The options market is pricing in a larger move than historical averages, suggesting potential for a significant upside.

Recent trends in customer engagement suggest a more effective marketing strategy than anticipated.

Key Risk

If customer acquisition costs come in lower than expected, it could significantly alter the profitability outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether DraftKings can maintain its growth trajectory while managing costs effectively.

Bull Confirmed If

An EPS of $0.25 or higher would confirm the bull case, indicating strong profitability.

Bear Confirmed If

An EPS below $0.15 would confirm the bear case, raising concerns about rising costs and competition.

Pre-Earnings Positioning

Options Market

Implied Move

±9.67%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move of nearly 10%, indicating that investors expect volatility around the earnings announcement.

Options are pricing ±9.7% while DKNG has averaged ±2.6% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

40.6%

Calls (925K)P/C Ratio: 0.57Puts (461K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DraftKings beats expectations, history suggests the stock could rise by around 0.55%, confirming the company's growth strategy.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors await further guidance.

Miss

A miss could lead to a decline, with historical patterns suggesting a potential drop of around 2.62%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer acquisition costs and strategies.
2Any new state expansions or regulatory updates.
3Insights into user engagement metrics and trends.
4Details on upcoming product offerings or promotions.
5Management's outlook on competition and market dynamics.

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Company Snapshot

DraftKings Inc. is a leading digital sports entertainment and gaming company, primarily focused on online sports betting and fantasy sports....

Key Metrics to Watch

Revenue Growth

Revenue growth is crucial for assessing how well DraftKings is expanding its market presence and attracting new customers.

N/A

Earnings Per Share (EPS)

EPS is a key indicator of profitability and will help investors gauge the company's financial health.

$0.20

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

DKNG Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

100%

Avg EPS Surprise

+332.93%

Avg Stock Reaction

+0.55%

Last Quarter Recap

Management Promises & Guidance

Focus on expanding market share in new states as sports betting becomes legalized.
Commitment to enhancing user experience through technology improvements.
Plans to introduce new betting options and promotions to attract more users.

Expectations

Wall Street Expectations

Bull Case

Bear Case

On the bearish side, concerns about rising competition and potential regulatory hurdles could impact growth. If customer acquisition costs rise significantly, it may hurt profitability.

Key Metrics to Watch

Revenue Growth

N/A

Revenue growth is crucial for assessing how well DraftKings is expanding its market presence and attracting new customers.

Earnings Per Share (EPS)

$0.20

EPS is a key indicator of profitability and will help investors gauge the company's financial health.

Customer Acquisition Costs

N/A

Understanding how much DraftKings spends to acquire new customers is vital for evaluating its marketing efficiency and long-term profitability.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will the EPS be for Q2-2026, and how does it compare to previous quarters?

Given the company's strong track record of beating EPS estimates, this will be a key indicator of ongoing profitability and investor confidence.

How are customer acquisition costs trending, and what impact might this have on future profitability?

Understanding the efficiency of customer acquisition will help investors gauge the sustainability of growth and profitability moving forward.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate DraftKings' ability to control customer acquisition costs, which could lead to higher-than-expected profitability this quarter.

Supporting Evidence

DraftKings has consistently surprised on EPS, indicating strong operational efficiency.

The options market is pricing in a larger move than historical averages, suggesting potential for a significant upside.

Recent trends in customer engagement suggest a more effective marketing strategy than anticipated.

Key Risk

If customer acquisition costs come in lower than expected, it could significantly alter the profitability outlook.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether DraftKings can maintain its growth trajectory while managing costs effectively.

Bull Confirmed If

An EPS of $0.25 or higher would confirm the bull case, indicating strong profitability.

Bear Confirmed If

An EPS below $0.15 would confirm the bear case, raising concerns about rising costs and competition.

Pre-Earnings Positioning

Options Market

Implied Move

±9.67%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move of nearly 10%, indicating that investors expect volatility around the earnings announcement.

Options are pricing ±9.7% while DKNG has averaged ±2.6% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.6%

30d HV

40.6%

Calls (925K)P/C Ratio: 0.57Puts (461K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DraftKings beats expectations, history suggests the stock could rise by around 0.55%, confirming the company's growth strategy.

In-Line / Cautious

If results are in line with expectations, the stock may see muted movement as investors await further guidance.

Miss

A miss could lead to a decline, with historical patterns suggesting a potential drop of around 2.62%.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on customer acquisition costs and strategies.
2Any new state expansions or regulatory updates.
3Insights into user engagement metrics and trends.
4Details on upcoming product offerings or promotions.
5Management's outlook on competition and market dynamics.