Flutter Entertainment has announced a substantial net loss of $296 million in the second quarter of 2026. This financial downturn has been attributed to increased gaming duties in the UK, slow growth in the US sportsbook sector, and rising investment costs. Nevertheless, the group's revenue grew by 3% year-on-year, reaching $4.33 billion. However, adjusted EBITDA experienced a significant decline of 45%, totaling $508 million, resulting in a profitability drop from 21.9% to 11.7%. Average monthly players fell by 11% to 14.3 million due to the company’s exit from the Indian real money gaming market, which was prompted by regulatory challenges.
The US segment of Flutter faced the most considerable struggles, with a revenue drop of 6% to $1.68 billion. Revenue from sportsbooks plummeted by 15%, while iGaming revenue dipped by 14%. The adjusted EBITDA for this division was reported at $119 million, reflecting a steep 70% decrease. Despite these challenges, FanDuel maintained a 39% share in the sportsbook market and a 27% share in the iGaming sector.
In contrast, Flutter’s international operations reported stronger performance, with revenue increasing by 10% to $2.64 billion, although adjusted EBITDA decreased by 19% to $476 million.
This financial update comes during a significant leadership change at Flutter. Peter Jackson, the current chief executive, will step down on 30 September 2026. Dan Taylor, who currently leads Flutter International and serves as president of the group, is set to take over on 1 October and will join the board. In 2025, Taylor's division reportedly achieved revenues of $9 billion and an adjusted EBITDA exceeding $2.2 billion. Following the release of these results, Flutter’s shares dropped by 11.5%, closing at $92.91; however, analysts maintain a "moderate buy" rating, with an average price target of $175.26 over the next year.
