Flutter Entertainment reported third-quarter results that fell short of analyst expectations, with the company facing headwinds from increased promotional spending and unfavorable market conditions. Revenue rose 2% to $3.87 billion, below consensus forecasts of approximately $4 billion, while adjusted EBITDA declined roughly 25% year over year to $360 million. The company’s stock has declined more than 60% year to date.
New CEO Dan Taylor, who has led the company for five weeks, emphasized that Flutter is pursuing customer acquisition and retention through enhanced product offerings and a nationwide rewards program launched in September. Customer engagement metrics showed improvement, with average monthly players on FanDuel’s U.S. sportsbook increasing 9% in the third quarter and bet counts rising 15%. Total U.S. average monthly players across Flutter grew 12%, including 24% growth in iGaming, while sportsbook handle increased 13%, though sportsbook revenue grew just 4% due to higher promotional costs.
Taylor defended the company’s investment strategy, noting that promotional spending remains elevated as a percentage of revenue at 58% for 2026 and into 2027. He indicated Flutter is building its FanDuel Predicts platform, which saw trading volume increase 271% since July and added 140,000 new customers in October. Taylor argued that despite competitive pressures in the industry, significant growth opportunities remain in the U.S. market, where approximately half the country lacks regulated sports betting access and 90% lacks regulated online gaming.
Flutter faced a significant setback when Brazil banned sports betting and online gaming in September, prompting the company to record an $873 million non-cash impairment primarily related to that market. This contributed to a net loss of $1.15 billion for the quarter. In response to complications in Brazil and unfavorable sports results, Flutter reduced its full-year revenue guidance by $300 million to $17.61 billion and lowered its 2026 adjusted EBITDA outlook by $160 million to nearly $2.5 billion.
Looking ahead, Taylor indicated that capital returns, including share buybacks, are suspended as the company focuses on deleveraging over the next 24 months to bring leverage into its target range of 2 to 2.5 times. Priority will be given to organic growth and debt reduction.
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