Bank of America lowered its second-quarter earnings estimates for DraftKings ahead of its August 6 report.
The bank reduced its Q2 EBITDA forecast to $120 million. This projection sits significantly below the Wall Street consensus of $173 million.
Analysts also cut the full-year 2026 EBITDA estimate from $700 million to $625 million.
The downward revision follows expectations of an unfavorable hold during the second quarter. Higher-than-guided investments into prediction markets also impacted the forecast.
Bank of America maintained its Neutral rating on the stock despite the lower estimates.