Flutter Entertainment’s Q2 results may quell recent investor optimism in the group’s prospects as its profit swung to a heavy nine-figure loss.
The results highlight a period of significant investment across the group, as revenue reached $4.326bn in the quarter, up 3% year-on-year, but adjusted EBITDA fell 45% to $508m.
Flutter reported a mammoth $296m net loss, compared with $37m in profit in Q2 2025.
The NYSE-listed firm reported strong underlying growth across much of its international business and iGaming operations, but this was offset by weaker US sportsbook performance, higher costs and a number of significant one-off charges.
The deterioration in reported profitability reflects a combination of factors, including $95m of legal contingencies relating to India’s Goods and Services Tax (GST) and US sales and use taxes.
Higher interest and depreciation costs associated with recent M&A also contributed, as did continued investment in the US business and its FanDuel Predicts operations.
Jackson to depart
The world’s third-largest gambling PLC also dropped a bombshell alongside its results, confirming that Peter Jackson is stepping down as Chief Executive Officer after almost nine years.
Dan Taylor, currently President of Flutter and CEO of FanDuel, is set to take over on 1 October.
“After nearly nine years as CEO, I believe this is the right point in Flutter’s journey for me to hand over the leadership of the business to Dan,” Jackson said.
“In my time as CEO Flutter has changed beyond recognition, transitioning from a UK-focused Paddy Power Betfair, into the world’s leading online sports betting and iGaming operator, with market leading positions in the US and around the world.
“Having worked closely together for years, I am confident Dan and the leadership team will continue to build on Flutter’s success.
“I will help the transition during Q3 as we prepare for the important NFL season and hand over fully at the end of the quarter.”
Flutter’s US prospects meets pressure
Much of the pressure on Flutter’s bottom line in Q2 came from the US.
Revenue declined 6% to $1.683bn (Q2 2025: $1.79bn), while adjusted EBITDA fell to $119m, which represented a staggering 70% drop from the year prior.
The latter is directly tied to a massive investment injection into its US-facing proprietary brand FanDuel that subsequently helped launch the FanDuel Predicts app – the operator’s response to the rapidly growing, billions-worth prediction market space currently ruled by Kalshi and Polymarket.
Meanwhile, revenue from international markets was actually up by 10% YoY at $2.6bn.
International Adjusted EBITDA, however, couldn’t escape global tax and regulatory headwinds, coming in at $476m, or down 19% YoY.
One of the biggest hits on the above metric was the 16% decline in international average monthly players to 10.45 million. Much of this will be related to Flutter’s withdrawal from India after the real money gaming market was prohibited by law, making the operator’s domestic brand Junglee obsolete.
In the wider Asia Pacific (APAC) region, total revenue was down 1% YoY to $398m, with sportsbook revenue growing by 11%.
Flutter revenue in Brazil – a market touted to become one of the biggest in global value by 2030 – went up 64% YoY for a total of $72m. A key growth driver was the acquisition of a majority stake in local player Betnacional back in 2025.
Organic revenue, however, saw a 14% drop accompanied by a 6% decline in average monthly players, the metrics of which were affected by recent policy shifts in the country of football, including the creation of a national self-exclusion register.
Southern Europe and Africa (SEA) stood as the third-largest reporting region for Flutter, coming in at $896m (up 36% YoY) and representing around 34% of the operator’s total international revenue.
Flutter is a dominant online player in Italy, operating the Snaitech and Sisal brands, the latter of which reported all-time record market share in June.
Central and Eastern Europe (CEE) brought back $170m in revenue, which was a significant 23% bump from the previous year. Sportsbook revenue from this region marked the biggest segment-related revenue increase out of all other regions, going up by 59% YoY.
Elsewhere, UK and Ireland (UKI) revenue went up 4% YoY to $971m. Sportsbook revenue there was down 2%, while iGaming revenue grew by 7%. However, given the UK’s increase in Remote Gaming Duty from 21% to 40%, the latter could see growth stifle by the end of this year.
Sportsbook hindered by common factor
Flutter’s sportsbook revenue took a 1% YoY hit from $2.26bn to $2.229bn in the quarter in spite of the early impact of the 2026 World Cup, though amounts staked rose 7% to just under $21bn.
Despite retaining its number one online sportsbook position with a 39% Gross Gaming Revenue (GGR) market share, the business said its US sportsbook was heavily impacted to the tune of $21m by adverse sports results.
This led to a 15% revenue decline to $1.039bn despite average monthly players rising by 8%.
Flutter did, however, cite “excellent FanDuel execution driving strong customer engagement during the FIFA World Cup” as it furthered its FanDuel Predicts offering and made progress on its sportsbook development plan.
International sportsbook operations went the other way, seeing strong momentum which was largely supported by recent M&A.
Sportsbook revenue grew by 14% to $1.19bn, up 9% on a constant currency basis and 4% organically.
The World Cup engaged approximately 10.5 million customers globally across Flutter’s brand portfolio, with its bet builder/same game parlay product and Super Sub offering helping to boost margins.
This came at a cost though, as the tournament drove a 61% increase in US sales and marketing expenses and a 19% rise in international marketing.
iGaming provides respite
For iGaming, revenue grew by 9% YoY from $1.775bn to $1.935bn, helping to offset the softer performance in sportsbooks.
Flutter’s FanDuel maintained its number one online iGaming position in the US at 27% GGR market share, which was driven by momentum in direct casino engagement.
US iGaming revenue grew by 14% YoY to $577m as average monthly players rose 14%.
Like many other operators, Flutter executed a successful launch in Alberta, Canada, in July as the regulated market opened.
International iGaming revenue went up 7% YoY (6% on a constant currency basis, and +3% organically) to $1.358bn, with core drivers being Southern Europe and Afirca, the UK and Ireland, and Central and Eastern Europe.
What does the rest of 2026 look like for Flutter?
Flutter has now updated its FY2026 outlook, downgrading its full-year revenue from a midpoint of $18.305bn to $17.91bn, though this would still represent YoY growth of 9%.
Adjusted EBITDA expectations have dropped by over $200m from a midpoint of $2.865bn to $2.655bn, which would represent a 7% drop YoY.
Its US full-year guidance has been lowered by a minimum of $395m in revenue to $7.4bn and a minimum of $210m in Adjusted EBITDA to $760m. International guidance remains unchanged.
The company has taken into account the impact that its H2 sportsbook investment and the one week delay to the NFL season kicking off will have on full-year results.
Investors seem sceptical of the results pre-market, with shares dipping from $104.96 at yesterday’s close to $96.40 at 1:05pm BST, representing a drop of over 8%.
It continues the trend of Flutter’s falling stock, with its share price having dipped by over 65% in the past year.
This is despite many investors, including the famous Michael Burry, banking on an uptick in fortunes for the company as prediction markets continue to feel the weight of increased regulatory burdens.
Flutter’s Q2 results don’t seem to have done much to prove these forecasts right though.
Jackson concluded: “I am encouraged by the progress we have made in the US, delivering continued sequential improvement in key sportsbook metrics alongside sustained iGaming growth.
“The new US leadership team is driving a renewed, customer-first approach, and we are making proactive investments to strengthen our leadership position and place the business in the best possible position for growth in 2027.
“Within International, we continue to execute at pace, with Flutter Edge-enabled product improvements driving momentum across the portfolio.
“I remain confident that the choices we are making today from investing behind our US leadership, to expanding into new spaces with FanDuel Predicts, strengthening our International businesses and advancing the next phase of our cost transformation are the right ones to create sustainable, long-term shareholder value.
“The last nearly nine years have been an incredible journey, and it has been the privilege of my career to lead this remarkable business. I leave Flutter immensely proud of what we have built together and with complete confidence in its future.
“The business is in excellent hands, and I look forward to watching the next chapter of the story unfold.”
Article contributions from Viktor Kayed