TLDR DraftKings posted Q1 revenue of $1.65 billion, up 17% year-over-year, and beat adjusted EBITDA forecasts with a record $168 million The company launched a market-making arm earlier this year that has already turned a profit, described as one of the fastest divisions to reach profitability Consumer volume on DraftKings Predictions topped $1 billion in April, with annualized volume exceeding $2.3 billion Kalshi raised $1 billion in Series F funding at a $22 billion valuation, surpassing the market caps of both Flutter and DraftKings DraftKings reaffirmed full-year 2026 revenue guidance of $6.5 billion to $6.9 billion and plans to invest $200 million to $300 million on predictions this year
DraftKings delivered a first-quarter earnings beat on Friday, reporting revenue growth and record adjusted EBITDA as the company pushes deeper into the prediction markets space.
The company reported $1.65 billion in revenue for the quarter, a 17% increase from the same period last year. The results were in line with Wall Street expectations.
Adjusted EBITDA came in at $168 million, topping analyst forecasts and setting a new company record for a first quarter. CEO Jason Robins struck an upbeat tone on the earnings call, a contrast from the cautious guidance DraftKings gave back in February.
A key focus of the call was the company’s growing prediction markets business. DraftKings launched a market-making division earlier this year, and Robins said it has already produced a positive return.
He called it one of the “fastest to profitability” segments in the company’s history.
Market makers provide liquidity on prediction platforms by ensuring trades are matched with counterparties. Only a handful of major players currently operate in the space, including Susquehanna International Group and Jump Trading.
DraftKings Eyes Leadership in Sports Predictions
DraftKings also plans to roll out a proprietary prediction market