Flutter Entertainment has revised its forecast for the fiscal year 2026 following adverse sports results and a recent ban on betting in Brazil. In the third quarter results released on Wednesday, the company reported a net loss of $1.15 billion for the period that ended on September 30.
Although revenue saw a slight increase of 2% to reach $3.87 billion, Flutter incurred $873 million in non-cash impairment charges linked to its Brazilian operations, contributing to a loss that extended beyond the $789 million reported in the same quarter of 2025.
Following President Lula's shutdown of Brazil's regulated betting market in late September, Flutter recorded a post-tax impairment charge of $537 million due to its 56% ownership in Flutter Brazil. This branch was established last year when the Paddy Power owner purchased its stake for $356 million from NSX Group, the owner of Betnacional.
In reaction to the ban, Flutter has shut down its Betfair operations in Brazil, leaving Betnacional as its only brand active in that market.
Adjustments in the company’s financial outlook reflect these struggles, with adjusted EBITDA falling 25% to $360 million in Q3. In light of both the Brazilian market closure and disappointing sports results from its US and International segments, Flutter has decreased its full-year revenue guidance midpoint by $300 million to $17.61 billion, while the annual adjusted EBITDA forecast has also dropped by $160 million to $2.495 billion.
CEO Dan Taylor, who stepped into the role on October 1, expressed disappointment over the provisional measures that halted betting in Brazil. "We have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend," Taylor stated. He also emphasized that Brazil still holds potential as a lucrative market contingent on appropriate regulation, reaffirming the company’s commitment to being prudent with capital investments as regulatory conditions evolve. Taylor noted that Flutter stands ready to resume operations should the market situation improve.
In the US, Flutter's FanDuel brand saw revenue rise by 6% to $1.46 billion, bolstered by a 4% growth in sportsbook activity and an 8% increase in iGaming. Despite this, FanDuel's adjusted EBITDA fell drastically by 94% to just $3 million, a decline attributed to investments made in its prediction market offering and the Canadian launch in Alberta last July.
Flutter had previously promised to enhance its value proposition in the US. Taylor remarked that initiatives such as the FanDuel Rewards program have shown positive outcomes by enabling the company to capture market share in the sportsbook domain. He expressed confidence in Flutter's ability to seize opportunities within the competitive North American market, emphasizing the need for agile operations, continual product innovation, and strategic investment.
The prediction markets emerged as a particular point of interest, with the company reporting an average of 66,000 monthly players for FanDuel Predicts in Q3—reflecting a 39% increase over the previous quarter. Taylor indicated plans for continued investment in this area, suggesting Flutter is well-positioned to capitalize on the growing opportunities in prediction markets.
Taylor also reflected on the competitive landscape, noting that media spending across the betting industry had surged over 60% year-on-year in September and more than 50% in October—largely driven by prediction market operators, thus placing pressure on Flutter's market share.
In terms of restructuring, Flutter announced plans that could potentially lead to a loss of 1,400 jobs across its UK and Ireland operations. This move was prompted by a near doubling of the UK’s remote gaming duty from 21% to 40% effective April 1 this year, which contributed to a 14% drop in adjusted EBITDA for the International segment. Despite this, Flutter's UK and Ireland revenue experienced a 4% bump to $889 million in Q3, benefiting from a 12% rise in iGaming revenue, which mitigated a 6% decline in sportsbook revenue.
Flutter managed to increase market share in the UK during this period, and Taylor stated that the restructuring is aimed at strengthening the company's position in light of the new tax landscape.
Looking at geographical performance, Flutter experienced the most substantial growth in Southern Europe and Africa, where revenue surged 13% to $836 million, underpinned by 17% growth in iGaming. Conversely, revenue from the Asia Pacific segment dipped by 4% to $349 million, a downturn the company linked to the closure of the real-money gaming market in India.
On the future agenda, Taylor expressed a commitment to streamlining Flutter’s operations for better scalability, targeting an additional $500 million in gross operating cost and capital expenditure savings by 2029. The strategy includes adopting AI, restructuring the organization, and simplifying technology. Taylor concluded that delivering on Flutter's potential will require decisive action, accelerated decision-making, and effective execution.
