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DraftKings’ Hidden Growth Engine: Can Predictions Reshape The Super App Strategy?

DraftKings reported first quarter 2026 results that exceeded internal expectations with revenue increasing 17% year-over-year to over $1.6 billion, and adjusted EBITDA rising 64% year-over-year to $168 million. The company achieved positive net income for the second consecutive quarter and repurchased nearly $100 million of its shares during the period. Sportsbook, the core business, was the primary growth driver with revenue increasing 24% year-over-year to $1.1 billion and an improvement in net revenue margin by 140 basis points to 7.8%. Parlay handle mix also increased by nearly 300 basis points, pointing to enhanced monetization efforts. DraftKings continues to emphasize the strategic priority of expanding its Predictions segment, which is integrated in its flagship Super App. Despite significant investments—estimated between $200 million and $300 million in 2026—for customer acquisition, product enhancements, and technology, Predictions volume per customer has surpassed Sportsbook handle per customer, signaling promising early traction.