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Flutter Entertainment lowered its full-year 2026 adjusted EBITDA guidance by $210 million after a difficult U.S. sportsbook quarter weighed on margins, even as second-quarter revenue and adjusted EBITDA came in above consensus. The update matters for U.S. betting watchers because FanDuel remains one of the market’s biggest brands, and Flutter said sportsbook results in the U.S. were pressured by customer-friendly outcomes and deliberate reinvestment.
Flutter reported Q2 group revenue of $4.326 billion, up 3% year over year from $4.187 billion. Adjusted EBITDA reached $508 million, topping the $484.5 million consensus estimate, but still fell 45% from a year earlier. The company also posted a $296 million net loss and said margin declined by 1,020 basis points.
FanDuel sportsbook revenue fell as U.S. results lagged
The biggest weakness came in the U.S. segment. Flutter said U.S. revenue fell 6% to $1.683 billion, while FanDuel sportsbook revenue dropped 15% to $1.039 billion.
According to the company’s reported figures, customer-friendly sports results had a $21 million net revenue impact, including the Knicks’ June win. International results were stronger, with revenue rising 10% to $2.643 billion.
Flutter shares closed at $92.91, down 11.5% after the Aug. 5 results release.
Guidance cut tied to reinvestment and timing effects
Flutter now expects full-year adjusted EBITDA at a midpoint of $2.655 billion, down by $210 million from prior guidance. The company attributed much of that reduction to a deliberate $270 million EBITDA reinvestment in the sportsbook and a further $50 million impact from the delayed start of the NFL season. International guidance was unchanged.
For the U.S. business, Flutter now projects full-year adjusted EBITDA of $760 million, which would be down 18% year over year.
A separate development in the quarter was Flutter’s decision to move FanDuel Predicts sports contracts to Crypto.com. The company said the shift offers a modest economic benefit and has caused low-single-digit cannibalization of the sportsbook.
CEO change arrives in October
Flutter also announced a leadership transition. Peter Jackson will step down as CEO at the end of September and remain an adviser through year-end. Dan Taylor, currently president of Flutter and CEO of Flutter International, will take over as CEO on Oct. 1.
Investors will likely be watching whether the revised U.S. strategy supports results later in the year, especially around the NFL season. Citizens maintained a Market Outperform rating on Flutter while cutting its price target to $145.
As always, financial updates from major operators can shape the products and promotions players see, but they are not a reason to chase losses or bet more than you can afford.
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Source: As reported by sccgmanagement.com.
