DraftKings Inc. - Ordinary Shares - Class A

Strong Q2 performance & guidance kept intact (core profitability powering outlook) - DraftKings reported $115M of adjusted EBITDA in Q2. - CFO noted Q2 profitability was weighed down by customer-friendly sport outcomes and higher-than-expected customer acquisition, but core still performing well. - FY2026 guidance maintained: Revenue $6.5B–$6.9B and Adjusted EBITDA $700M–$900M (already assumes $200M–$300M incremental Predictions investment).

Core Sportsbook momentum is real (handle + engagement trends after events) - Sportsbook handle +11% YoY in Q2, with parlay handle mix rising. - Customer acquisition +~75% YoY; management said this was their best enterprise-wide CAC since Q1 2025, and they spent ~10% more on acquisition than planned because demand was strong—yet underlying CAC was ~25% better than anticipated. - Sports consumer volume +15% YoY (Sportsbook handle + Predictions volume). - Key “normalization” point (negative/surprising factor): Q2 revenue benefited but was also impacted by customer-friendly outcomes; World Cup helped later (held ~12% during the event) while some June outcomes hurt (e.g., Knicks/World Cup group performance). - Outlook for the back half: Management expects Q4 to be the biggest quarter, with confidence driven by post–World Cup July momentum (handle up ~20% YoY in July after the tournament) and a strong NFL season setup.

Predictions is scaling faster than expected and is positioned as incremental (not cannibalizing) - Predictions adoption accelerated: 600,000+ customers engaged YTD. - From April to July, annualized total volume traded grew ~5x ($2.3B → $11B). - Adoption/retention metrics are described as similar to Sportsbook early cohorts; combo adoption >50% of Predictions customers and combos approaching ~20% of Predictions volume. - Management asserts minimal cannibalization: ~1% customer overlap with the largest prediction-market operator in Sportsbook states; internal view that 80–90% of competitors’ Predictions volume comes from professional syndicates/institutional traders, implying incremental demand. - This is a major opportunity thesis: management believes it can achieve similar lifetime value economics over time due to vertical integration.