Flutter Entertainment PLC (FLUT) Earnings & Analysis

Latest quarter

Flutter’s Q3 FY2026 revenue was below the consensus estimate of $3.97 billion. Its non-GAAP earnings per share of −$0.18 also fell below the consensus estimate of $0.19.

The company reported revenue of $3.9 billion, up from $3.8 billion a year earlier. Its filing attributed U.S. segment growth to higher sportsbook and iGaming revenue. International revenue was largely flat: adverse sports results in the UK and Ireland and Southern Europe contributed to lower sportsbook revenue, partly offset by iGaming growth.

Flutter’s gross margin fell to 39.2% from 42.9%. The filing attributed higher U.S. cost of sales as a percentage of revenue primarily to payment processing costs, and the international increase primarily to higher UK remote gaming duty. Adjusted EBITDA fell to $360 million from $478 million.

CFO Robert Coldrake said a $873 million noncash Brazil impairment and increased legal loss contingencies contributed to the reported quarterly loss. Flutter reported diluted EPS of −$4.90, compared with −$3.91 a year earlier. Free cash flow was $191.0 million, up from $25.0 million.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Daniel Taylor said U.S. sportsbook performance was ahead of expectations and that Flutter gained market share in August and September after increasing customer promotions and accelerating product development. He said competition and market maturation affected U.S. iGaming revenue growth, although the company had reached more than 20% market share in Alberta during Q3.

Taylor said prediction markets were an opportunity for FanDuel but that increased spending by operators was affecting media costs. On an analyst’s question about FanDuel Predicts, he said the platform had about 140 thousand active users in October. He added that customer acquisition costs were materially lower than for the sportsbook, but that customer economics remained uncertain and Flutter needed to be disciplined about returns.

Asked about marketing, Taylor distinguished customer promotions from media spending. He said the promotional increase had supported customer activity and share of wallet, while category media spending had raised costs and pressured Flutter’s share of voice. As he put it, We need to “keep reevaluating all of the assets that we have.”

CFO Robert Coldrake said unfavorable sports results in both the U.S. and international businesses had continued into Q4, although underlying trading was in line with plan. On U.S. margins, he said higher promotional spending would offset expected improvement in structural gross win margins, leaving net revenue margin broadly flat in 2027. He expects marketing intensity to remain at 2026 levels.

Taylor said Flutter would streamline its operating model and pursue further cost savings. Coldrake said the company had paused its share repurchase program, prioritizing investment and debt reduction; it ended Q3 with leverage of 4.6x. Asked about market making, he said Flutter was working with more exchanges and expected the business to grow next year, but was “not putting specific numbers on it at the moment.”

Guidance

Coldrake said Flutter lowered its FY2026 revenue guidance midpoint by $300 million to $17.61 billion and its adjusted EBITDA guidance by $160 million to $2.495 billion, reflecting unfavorable sports results and the closure of Brazil, partly offset by cost actions. He said transaction, restructuring and integration costs would be approximately $620 million, an increase of approximately $120 million from previous expectations.

For FY2026 market making, Coldrake said Flutter expected approximately $40 million in EBITDA. Its earlier outlook had called for a $50 million adjusted EBITDA benefit.