Flutter Entertainment appointed Dan Taylor as CEO five weeks prior to releasing third-quarter earnings that fell short of analyst estimates. The company reported revenue of $3.87 billion, representing 2% growth, while adjusted EBITDA declined approximately 25% year over year to $360 million. Flutter’s stock has declined more than 60% through the current period.
Taylor attributed the company’s challenges to increased promotional spending and competition within the industry, but expressed confidence in the direction of the business. He highlighted product improvements and the launch of a nationwide rewards program in September, which he stated has received strong customer response. Engagement metrics showed promise, with average monthly players on FanDuel’s U.S. sportsbook rising 9% during the quarter and bet counts increasing 15%. Total U.S. average monthly players grew 12%, with iGaming expanding 24%. Sportsbook handle rose 13%, though sportsbook revenue grew just 4% due to elevated promotional expenses.
Flutter launched FanDuel Predicts to compete with platforms like Kalshi and Polymarket, with the app adding 140,000 new customers in October. Trading volume on the platform increased 271% since July. Cost of sales is projected to reach 58% of revenue for the remainder of 2026 and into 2027 as the company continues investing in customer experience and marketing.
Third-quarter results were significantly impacted by a non-cash impairment of $873 million related primarily to Brazil, where authorities banned sports betting and online gaming in September. This charge contributed to a net loss of $1.15 billion for the quarter. In response, Flutter reduced its full-year revenue midpoint by $300 million to $17.61 billion and lowered adjusted EBITDA guidance by $160 million to approximately $2.5 billion.
Taylor stated that capital returns, including share buybacks, remain suspended as the company works to reduce leverage to its target range of 2 to 2.5 times over the next 24 months. He emphasized that current priorities are organic growth and debt reduction. The CEO noted that significant market expansion opportunities remain in the U.S., with approximately half the country lacking regulated sports betting access and roughly 90% without regulated online gaming options.
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