Investors were not likely betting that DraftKings (NASDAQ: DKNG) would be up over 10% two days after the company delivered a mixed Q2 2026 earnings report. Revenue of $1.44 billion missed expectations of $1.51 billion, but adjusted earnings per share (EPS) of nine cents beat the two cents per share that analysts had forecasted.
GAAP diluted EPS came in at –14 cents, meaning the company swung to a net loss. But the gap between the two is almost entirely non-cash: DraftKings' own reconciliation shows 17 cents per share added back for stock-based compensation and eight cents for amortization of acquired intangibles, partially offset by a five-cent tax impact. Strip those out, and the adjusted profitability picture is a beat, not a miss.
