Conversations around the future of Flutter Entertainment have been rife in the weeks since it released its Q1 2026 results, which also saw the sudden departure of FanDuel CEO Amy Howe.
The business reported corporate revenues of $4.3bn (£3.5bn), up 17% on Q1 2025 comparatives of $3.66bn, but FanDuel sportsbook revenues were stagnant at $1.14bn. Also, the company’s second-largest market, the UK and Ireland, is set to be susceptible to heavy tax burdens from now on – specifically the former nation.
Another concern was profitability, as net income dropped 38% to $209m (Q1 2025: $335m) due to higher operating costs, amortisation charges linked to acquisitions and restructuring costs within the US business.
There have also been questions raised about the recent prevalence of prediction markets. Kalshi and Polymarket have begun to take a foothold on the US market – Flutter’s biggest – and are under the regulations of the Commodity Futures Trading Commission (CFTC), while Flutter is regulated by the relative gaming control boards in the states which it is active in.
A push towards prediction markets has been made by the business, having launched FanDuel Predicts, but there has been talk of this being too little too late.
Howe’s departure was one of three leadership changes for the company. Christian Genetski has replaced Howe in the FanDuel hotseat, and Dan Taylor, CEO of Flutter International, has taken on the newly created role of President of Flutter Entertainment.
Another key talking point regarding Flutter has been its position as a PLC. Its Q1 results also came alongside the revelation that it is reviewing its listing on the London Stock Exchange.
The business only moved its primary listing to the New York Stock Exchange in May 2024, but two years on and it looks like it may be waving farewell to London altogether.
Shares in the group have dropped by nearly 50% in the past five years, and by over 61% in the last 12 months alone – now trading at around $96.
But, speaking to SBC News, Macquarie analysts believe stabilisation is beginning to take hold, even as the global betting giant faces increasing pressure from the abovementioned slowing US sportsbook growth, regulatory uncertainty and the emergence of prediction markets.
In a newly published research note from earlier this month, Macquarie maintained its “Outperform” rating on Flutter, but lowered its price target from $200 to $190.
“Flutter has accumulated a diversified portfolio of leading brands and tech through its replicable and proven M&A strategy, making it a top way to capture global secular trends in online gambling and legalisation, in our view,” the note read.
The investment bank cited softer sector sentiment and growing uncertainty around prediction markets and software-related risks as key reasons for the revised valuation.
Despite the reduced target, analysts Chad Benyon, Aaron Lee and Sam Ghafir argued that Flutter’s current valuation appears increasingly attractive, with shares trading at roughly 7x projected 2027 EBITDA and around 8x forward earnings.
Macquarie described Flutter’s Q1 2026 results as “a step in the right direction,” with revenue and EBITDA ($631m) both slightly ahead of consensus expectations.
The analysts noted that strong iGaming performance, which grew 19% year-over-year, helped offset slower momentum in US online sports betting.
International operations were led by strong contributions from Italy, alongside encouraging early trends in Brazil.
Flutter also reaffirmed its full-year 2026 guidance, targeting approximately $18.3bn in revenue and $2.9bn in EBITDA.
Flutter counting on major tournaments
However, Macquarie warned that the recovery story is expected to be heavily weighted toward the second half of the year, with second-quarter EBITDA guidance coming in roughly 15% below market expectations.
According to the report, Flutter is relying on several initiatives to reignite growth, including expanded loyalty programmes, product upgrades, improved sportsbook mechanics and efficiencies across the business.
Major sporting events such as the 2026 FIFA World Cup and NFL season are also expected to provide those meaningful tailwinds for success later in the year.
Macquarie still argued that Flutter’s scale and diversified portfolio continue to provide a significant competitive advantage over other gambling and prediction market platforms
The company owns a wide range of leading betting and gaming brands, such as FanDuel, PokerStars, Paddy Power, Betfair and Sky Betting and Gaming, while maintaining leadership positions across several regulated markets.
Through FanDuel, the group also controls around 39% of the US gambling market, which has exploded in recent years.
Management at the business also seems to share the same sentiment as analysts. Alongside an ongoing $250m share buyback programme, which is part of a broader $5bn buyback, directors have recently been reported to be buying shares.
Last week saw Carolan Lennon and Sean Wickham, described as “Independent Non-Executive Officer and Person Closely Associated” respectively, purchase over £35,000 worth of Flutter shares.
Just days before that, on 12 May, CEO Peter Jackson increased his holdings in the company, while Chair John Bryant and Non-Executive Officer Stefan Bomhard also bought more shares.
The Macquarie report also pointed to Flutter’s strong long-term cash flow potential. Although the company is still projected to carry more than $10bn in net debt during 2026, Macquarie expects free cash flow generation to improve significantly over the next several years, forecasting approximately $1.26bn in 2026, rising to nearly $2.75bn by 2028 and building on the $407m it stood at in FY 2025.
Among the key risks identified by the analysts were tighter gambling regulations, tax increases, slower legalisation trends in North America and growing competition from prediction markets.
However, Macquarie, along with insiders, are clearly still bullish on the world’s largest online gambling PLC despite these headwinds and its recent decline on the stock exchange.