Flutter Entertainment shares slumped 7.5% in after-hours trading on Thursday, 26 February, after full-year 2025 earnings showed softer 2026 adjusted EBITDA guidance for the New York-listed firm.
The FanDuel parent company did report gains across key metrics for Q4 2025, including revenue jumping 25% year on year (YoY) to $4.7bn (£3.5bn).
Adjusted EBITDA for the final three months of the year rose 27% to $832m, with a corresponding margin of 17.6%.
However, a slump in net income from $156m to $10m, driven by income tax increases and jumps in depreciation and amortisation costs linked to M&A, was recorded.
Average monthly players (AMPs) were up 3% to 15.1 million, as bosses hailed “unparalleled global scale and ongoing product innovation” as part of the growth story.
On a full-year 2025 basis, revenue rose 17% to $16.4bn and adjusted EBITDA leapt 21% to $2.8bn.
However, the stock was down 7.5% as shareholders saw softer 2026 projections, including just a 4% uptick in group adjusted EBITDA, as well as missing the 2025 guidance updated in Q3.
The share price is now down almost 12% in pre-market trading.
Flutter’s midpoints will see group revenue expected to hit $18.4bn, a 12% rise, with adjusted EBITDA going to $2.97bn.
The slowdown in adjusted EBITDA growth comes as bosses said they expect to spend close to $300m as part of the investment in FanDuel Predicts, which launched in December.
In his shareholder letter, CEO Peter Jackson said the prediction markets sector is a “significant incremental growth opportunity”.
The platform is live in 18 US states with sports event contracts. Jackson also pointed towards Flutter becoming a market-maker due to its “world-class, proprietary pricing capabilities”.
FanDuel fever
Looking at Flutter’s US Q4 performance, driven by FanDuel, revenue was up 33% YoY to $2.1bn with adjusted EBITDA rising 90% to $310m.
AMPs in the US ticked up 5% to 4.8 million.
Sports betting revenue increased 35% to $1.5bn but the arm suffered a $140m hit in revenue due to customer-friendly sports betting results during the quarter.
Structural revenue margin was up 90 basis points to 15.5%, while net revenue margin came in at 8.9%.
In igaming, revenue jumped 33% to $586m, driven by an 18% rise in average monthly players.
Flutter pointed to exclusive content, jackpot expansion and the ‘double your bet’ feature for driving the growth.
International impact
Outside of the US, revenue was up 19% YoY to $2.6bn, albeit with the boost of the acquired Snaitech and NSX assets in Italy and Brazil, respectively.
Adjusted EBITDA increased 6% to $588m, while AMPs were also up 2%.
However, without M&A, international revenue was down 1% and adjusted EBITDA was down 7%.
The UK and Ireland, where Flutter runs Sky Betting & Gaming, Paddy Power, Betfair and tombola, revenue was down 9% to $876m.
This included a 30% decline in sports betting which bosses said was due to an “adverse swing in sporting results”. Online casino revenue was up 11% in the market.
Southern Europe and Africa reported a 105% revenue bump to $898m thanks to the Snaitech addition. Without the asset, revenue was still up 23%, with bosses singling out Sisal in Italy as well as Turkish operations.
Brazil, where NSX-owned Betnacional was snapped up, saw revenue skyrocket 383%. A further $70m investment is planned in the market in 2026.
Bosses noted that without M&A, Brazil revenue was down 22% due to re-registration issues which cropped up in the market following regulation on 1 January 2025.
APAC revenue was down 10% due to the exit from India’s real-money gaming market to $350m, while in Central and Eastern Europe revenue grew 17%.
Looking ahead
Delving into the full-year 2026 guidance further, management expect the US midpoints to be $7.8bn for revenue and $1.05bn for adjusted EBITDA.
Rationale behind this forecast included “slightly favourable” sports betting results thus far, the impact of FanDuel Predicts spend and a recovery on handle.
In the international division, revenue is anticipated to be $10.6bn and adjusted EBITDA will be $2.23bn, giving growth rates of 13% and 1%, respectively.
Impact from the upcoming UK tax hikes and the blow from exiting India were cited as reasons for the guidance.
Peter Jackson, Flutter CEO, said: “Powered by the ‘Flutter Edge’, we continue to build on the structural competitive advantages that differentiate Flutter, combining global capabilities with deep local expertise.
“Our geographic and product diversification and scale allows us to capitalise on opportunities while providing resilience, allowing us to grow consistently through market cycles.
“Looking ahead, we have a clear plan in place to navigate recent US trends and we continue to see a significant runway for growth in a dynamic market as we increasingly convert our scale, technology and customer proposition into sustained profitability.
“With a pivotal calendar of global sporting and igaming moments ahead, including the World Cup, we are focused on capturing the full breadth of these opportunities in 2026 and beyond.”
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The post Flutter shares slide as full-year 2025 earnings miss readjusted guidance first appeared on EGR Intel.
New York-listed giant sees stock hit in after-hours trading, with latest earnings report showing a 17% rise in full-year revenue to $16.4bn
The post Flutter shares slide as full-year 2025 earnings miss readjusted guidance first appeared on EGR Intel.