What Flutter Entertainment (FLUT) Said on Its Q3 Earnings Call

Key Points

• Flutter cut its 2026 outlook to midpoint estimates of $17.61 billion in revenue and $2.495 billion in adjusted EBITDA, citing unfavorable sports results and the closure of its Brazil operations. Q3 revenue rose 2%, but adjusted EBITDA fell 25%, and an $873 million Brazil impairment contributed to a reported net loss.
• Debt reduction now takes priority over buybacks: Flutter paused share repurchases as leverage reached 4.6 times, above its 2-to-2.5-times medium-term target. The company also plans to deliver an additional $500 million in gross operating cost and capital expenditure savings by 2029.
• Flutter is maintaining investment in FanDuel and prediction markets, with promotions expected to stay elevated into 2027; FanDuel Predicts’ trading volumes nearly tripled from July to October. Meanwhile, management expects 2027 international adjusted EBITDA growth toward the high end of its 5%–10% range.

Flutter Entertainment NYSE: FLUT lowered its 2026 financial outlook and paused share repurchases after unfavorable sports results, investment spending and a write-down tied to Brazil weighed on third-quarter performance.

The company now expects full-year revenue of $17.61 billion and adjusted EBITDA of $2.495 billion at the midpoints of its guidance ranges, CFO Rob Coldrake said on the earnings call. The revised outlook reflects unfavorable sports results in the third and fourth quarters and the closure of the company’s Brazil operations, partly offset by cost measures.

Third-quarter group revenue rose 2%, while adjusted EBITDA fell 25%. Coldrake attributed the earnings decline to investment in Alberta and prediction markets, as well as higher U.K. gaming taxes. Flutter also recorded an $873 million non-cash impairment related to Brazil, which, along with an increase in legal loss contingencies, contributed to a reported net loss.

“While reported EBITDA was down, this reflects deliberate investment and specific external factors rather than a deterioration in the underlying trajectory of the business,” Coldrake said.

Debt Reduction Takes Priority

Flutter ended the quarter with leverage of 4.6 times, above its medium-term target of 2 to 2.5 times. Coldrake said the company expects to reduce leverage significantly through 2027 and has paused its existing share repurchase program for the foreseeable future.

The company’s capital allocation priorities are investing in high-return growth opportunities and reducing debt before considering additional shareholder returns, he said. Free cash flow, including financing capital expenditures and excluding player funds, increased 22% year over year.

CEO Dan Taylor, speaking on his first earnings call since taking the role about five weeks earlier, said Flutter plans to simplify its operations and deliver an additional $500 million in gross operating cost and capital expenditure savings by 2029. That target is on top of existing international cost transformation and U.K. gaming tax mitigation programs.

Coldrake said Flutter expects to meet or come in slightly below its $815 million capital expenditure guidance for 2026 and is focused on reducing spending further in 2027.

FanDuel Investment and Prediction Markets

Taylor said FanDuel gained U.S. market share in August and September after increasing promotions and accelerating product development. The company expects promotional spending to remain at similar levels through the fourth quarter and 2027, with U.S. net revenue margin broadly flat year over year in 2027, Coldrake said.

Coldrake said further parlay penetration should support structural gross win margins, but the company will also annualize the promotional spending increase introduced from the second quarter of 2026. Flutter expects U.S. marketing intensity to remain elevated next year.

Taylor distinguished customer promotions from marketing media spending, saying prediction market operators have driven higher advertising costs. He said category media spending rose more than 60% year over year in September and more than 50% in October, putting pressure on advertising costs and FanDuel’s share of voice.

Flutter is also investing in its FanDuel Predicts product. Taylor said trading volumes nearly tripled in October compared with July and that the platform had approximately 140,000 active users in October. He said retention and frequency metrics were at 80% to 85% of online sports betting levels, although the economics of customer acquisition remain uncertain.

On the market-making side, Coldrake reaffirmed Flutter’s 2026 forecast of approximately $50 million in revenue and $40 million in adjusted EBITDA. He said the business is working with more exchanges and expects it to grow in 2027, but did not provide a specific forecast.

International Growth and Brazil

Taylor said Flutter gained share in core international markets, including the U.K. and Ireland and Italy. He said the Snai brand in Italy had recovered from a temporary market share decline following its migration to Flutter’s platform and was above its pre-migration level.

In Brazil, the company took a cautious view after a government provisional measure banning online sports betting and gaming. Taylor said Flutter has restructured to focus on Betnacional as its sole brand in the country and is prepared to resume operations if the market returns.

Coldrake said he expects 2027 international adjusted EBITDA growth to be toward the high end of the company’s 5% to 10% range, supported by cost initiatives. He expects revenue growth to be slightly lower, reflecting factors including U.K. tax headwinds and Brazil’s closure.

Flutter will provide full 2027 guidance alongside its fourth-quarter results in February, Coldrake said.

About Flutter Entertainment (NYSE:FLUT)

Flutter Entertainment plc is a global sports betting and online gaming company headquartered in Dublin, Ireland. The company operates a portfolio of betting, gaming, poker and daily fantasy sports brands, serving customers through online platforms, mobile applications and, in some markets, retail locations.

Its principal brands include FanDuel in the United States, Paddy Power and Betfair in the United Kingdom and Ireland, Sky Bet in the United Kingdom, PokerStars internationally, and Sisal and SNAI in Italy.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.