Flutter Q3 Results Disappoint, Lowers Full-Year Guidance

Flutter Entertainment (NYSE: FLUT) delivered slack third-quarter results, prompting the sportsbook operator to trim its full-year outlook.

For the September quarter, Flutter said revenue rose just 2.1% to $3.87 billion while EBITDA tumbled 25% to $360 million as the gaming company lost 18 cents per share. Wall Street expected EBITDA of $417.2 million on sales of $4 billion. Due in part to the tepid July through September results, the FanDuel owner said it now expects 2026 EBITDA of $2.49 billion, or $160 million below its prior forecast. The company reduced the midpoint of its 2026 top-line guidance by $300 million to $17.61 billion. Still, CEO Dan Taylor sounded an optimistic tone.

Shares of Flutter are off 60.4% year-to-date.

Flutter Focusing on the U.S.

Unlike many of its marquee US-based peers, Flutter has substantial international operations, but those segments were problematic in the third quarter as ex-US revenue was flat at $2.42 billion, missing the consensus estimate of $2.59 billion, while EBITDA slid 14% to $435 million.

Brazil’s recent online betting ban was part of the problem, leading to non-cash impairment charges of $873 million. Taylor said Flutter is looking to bolster its positioning in the U.S. where FanDuel is the largest sportsbook operator.

“I strongly believe we have the best assets to capture the significant opportunity in the increasingly competitive North American market,” he wrote in a letter to investors. “However, we must reaffirm our US leadership position by operating at a faster pace, delivering relentless product innovation, and investing where we see the opportunity to deliver long-term value.”

Flutter previously disclosed plans to spend as much as $385 million in the second half of this year on FanDuel customer enticement and retention.

Maybe Some Post-Election Catalysts for Flutter

While Flutter didn’t issue 2027 financial guidance, some analysts believe the blue wave that emerged on Election Day could be favorable to the gaming company down the road.

“No guidance for FY27E. At 8.5x EV/EBITDA for FY27E, market leadership and successful US execution is not priced in. Political change (e.g. Texas) and increased prediction market legal challenge (e.g. Utah) point to an improved online sports betting outlook,” notes Jefferies analyst James Wheatcroft.

In some industry circles, there’s belief that with Democrats gaining control of major statewide offices in Georgia and Texas, those states could pursue litigation against prediction market operators and that Texas could warm to approving online sports betting. Either scenario could prove beneficial to Flutter.