Flutter Entertainment reported third-quarter financial results that fell short of Wall Street expectations, with revenue rising 2% to $3.87 billion and adjusted earnings before interest, taxes, depreciation and amortization declining roughly 25% year over year to $360 million. The company’s stock performance has been significantly challenged, declining more than 60% year to date.
New CEO Dan Taylor, who assumed leadership five weeks before the earnings release, emphasized that the company is pursuing a strategy centered on product improvements and enhanced customer engagement. He highlighted a nationwide rewards program launched in September as a key initiative, noting positive early customer response. Metrics showed improvement in engagement metrics: average monthly players on FanDuel’s U.S. sportsbook increased 9% during the quarter, while bet counts rose 15%. Total U.S. average monthly players expanded 12%, with iGaming growing 24%, though sportsbook revenue grew only 4% as the company increased promotional spending.
Taylor indicated Flutter is simultaneously building its predictions platform, FanDuel Predicts, to compete with platforms like Kalshi and Polymarket. The company reported trading volume on FanDuel Predicts surged 271% since July, with 140,000 new customers added in October. Cost of sales as a percentage of revenue is projected at 58% for 2026 and into 2027 as the company invests in customer acquisition and experience.
Flutter took a substantial $1.15 billion net loss in the quarter, which included an $873 million non-cash impairment tied primarily to Brazil following that country’s ban on sports betting and online gaming in September. In response to this development and unfavorable sports results, Flutter reduced its full-year revenue guidance midpoint by $300 million to $17.61 billion and lowered its 2026 adjusted EBITDA outlook by $160 million to approximately $2.5 billion.
Regarding capital allocation, Taylor stated that share buybacks remain suspended as the company prioritizes bringing leverage back within its target range of 2 to 2.5 times over the next 24 months. He noted that approximately half the United States still lacks access to regulated sports betting, with 90% lacking regulated online gaming, presenting a long-term expansion opportunity for the industry.
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