Equity Profile

DKNG

DraftKings Inc.

Consumer DiscretionaryCasinos & Gaming$13.1B

Aug5Wed

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

DraftKings Inc. is a leading sports betting and gaming company in the consumer discretionary sector....

Key Metrics to Watch

User Growth

Tracking the increase in active users is crucial as it reflects the company's ability to attract and retain customers in a competitive market.

N/A

Revenue Growth

Revenue growth is a key indicator of the company's performance and market demand, especially in the context of expanding legalization of sports betting.

N/A

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 sports betting and gaming company in the consumer discretionary sector. With the growing popularity of online gambling and sports betting, DraftKings plays a pivotal role in this expanding market, catering to a diverse audience of sports enthusiasts.

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 earnings per share (EPS) of $0.20, significantly exceeding expectations. The stock reacted positively, increasing by 5.43% the following day.

Management Promises & Guidance

Focus on expanding market share in new states as sports betting regulations evolve.
Commitment to enhancing user experience through technology and customer service.
Plans to introduce new betting products and features to engage users.

Expectations

Wall Street Expectations

Investors are optimistic about DraftKings' upcoming earnings, especially after a strong performance last quarter. The key focus will be on user growth and revenue metrics.

Bull Case

If DraftKings continues to show strong user growth and revenue increases, it could solidify its position as a market leader, driving stock prices higher.

Bear Case

Conversely, if user growth stagnates or revenue fails to meet expectations, it could raise concerns about the company's future prospects, leading to a decline in stock value.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the current active user count and how does it compare to previous quarters?

User growth is critical for DraftKings, and any slowdown could signal challenges in maintaining market share.

What revenue growth figures can management provide for the upcoming quarters?

Revenue growth will be a key indicator of the company's health and its ability to capitalize on the expanding sports betting market.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate the potential for user growth due to expanding legalization across various states, which could drive higher engagement than anticipated.

Supporting Evidence

DraftKings has consistently exceeded EPS expectations, indicating strong operational performance.

The options market is pricing a larger move than historical averages, suggesting that traders expect significant news.

Recent trends in user engagement and betting activity have shown positive momentum.

Key Risk

If user growth comes in below 5%, it could challenge the optimistic outlook and lead to a reassessment of the company's growth trajectory.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on user growth and revenue metrics, which are critical for sustaining investor confidence.

Bull Confirmed If

User growth exceeding 10% quarter-over-quarter would confirm the bull case.

Bear Confirmed If

User growth below 5% could confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±9.67%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move, suggesting that traders 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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

This setup has occurred 30 times across Consumer Discretionary in the last 2 years. 13 of 21 (62%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 4.9%, with a raw directional average of +2.2% (modestly positive historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DraftKings beats expectations, history suggests a potential stock increase of around 0.55%, confirming strong market demand.

In-Line / Cautious

An in-line report with cautious commentary may lead to muted stock movement as investors reassess growth prospects.

Miss

If the company misses expectations, the stock could drop, reflecting the average 1-day move of the past when they miss.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on user acquisition strategies and their effectiveness.
2Any commentary on revenue growth projections for the next quarter.
3Insights into market competition and how DraftKings plans to differentiate itself.
4Details on new product launches or features that could enhance user engagement.
5Management's outlook on regulatory changes affecting the sports betting landscape.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

DraftKings Inc. is a leading sports betting and gaming company in the consumer discretionary sector....

Key Metrics to Watch

User Growth

Tracking the increase in active users is crucial as it reflects the company's ability to attract and retain customers in a competitive market.

N/A

Revenue Growth

Revenue growth is a key indicator of the company's performance and market demand, especially in the context of expanding legalization of sports betting.

N/A

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

In Q1 2026, DraftKings reported an earnings per share (EPS) of $0.20, significantly exceeding expectations. The stock reacted positively, increasing by 5.43% the following day.

Management Promises & Guidance

Focus on expanding market share in new states as sports betting regulations evolve.
Commitment to enhancing user experience through technology and customer service.
Plans to introduce new betting products and features to engage users.

Expectations

Wall Street Expectations

Investors are optimistic about DraftKings' upcoming earnings, especially after a strong performance last quarter. The key focus will be on user growth and revenue metrics.

Bull Case

If DraftKings continues to show strong user growth and revenue increases, it could solidify its position as a market leader, driving stock prices higher.

Bear Case

Conversely, if user growth stagnates or revenue fails to meet expectations, it could raise concerns about the company's future prospects, leading to a decline in stock value.

Expectations

Two Questions That Matter

The print will turn on these two things.

What is the current active user count and how does it compare to previous quarters?

User growth is critical for DraftKings, and any slowdown could signal challenges in maintaining market share.

What revenue growth figures can management provide for the upcoming quarters?

Revenue growth will be a key indicator of the company's health and its ability to capitalize on the expanding sports betting market.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may underestimate the potential for user growth due to expanding legalization across various states, which could drive higher engagement than anticipated.

Supporting Evidence

DraftKings has consistently exceeded EPS expectations, indicating strong operational performance.

The options market is pricing a larger move than historical averages, suggesting that traders expect significant news.

Recent trends in user engagement and betting activity have shown positive momentum.

Key Risk

If user growth comes in below 5%, it could challenge the optimistic outlook and lead to a reassessment of the company's growth trajectory.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance hinges on user growth and revenue metrics, which are critical for sustaining investor confidence.

Bull Confirmed If

User growth exceeding 10% quarter-over-quarter would confirm the bull case.

Bear Confirmed If

User growth below 5% could confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±9.67%

Historical Avg

±2.6%

Pricing rich

The options market is pricing in a significant move, suggesting that traders 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)

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter beat + options rich in Consumer Discretionary

n=30

Fade rate: 8 of 21 (38%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If DraftKings beats expectations, history suggests a potential stock increase of around 0.55%, confirming strong market demand.

In-Line / Cautious

An in-line report with cautious commentary may lead to muted stock movement as investors reassess growth prospects.

Miss

If the company misses expectations, the stock could drop, reflecting the average 1-day move of the past when they miss.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Updates on user acquisition strategies and their effectiveness.
2Any commentary on revenue growth projections for the next quarter.
3Insights into market competition and how DraftKings plans to differentiate itself.
4Details on new product launches or features that could enhance user engagement.
5Management's outlook on regulatory changes affecting the sports betting landscape.