Flutter Entertainment has revised its FY2026 guidance due to unfavorable sports results and the recent betting ban in Brazil. In its Q3 results released on Wednesday, the company reported a net loss of $1.15 billion for the quarter ending September 30.
Despite a slight revenue increase of 2% to $3.87 billion, Flutter faced significant losses, largely due to $873 million in non-cash impairment charges related to its Brazilian operations. This figure far exceeds the $789 million loss recorded in Q3 2025. The impairment charge includes $537 million tied to Flutter's 56% stake in Flutter Brazil, a venture established last year when the Paddy Power owner acquired a stake for $356 million from Betnacional’s parent company, NSX Group.
Following the ban on betting enacted by President Lula at the end of September, Flutter shuttered its Betfair operations in Brazil, retaining only the Betnacional brand in the market. The impact of these changes has prompted Flutter to reduce its full-year revenue guidance midpoint by $300 million, narrowing it to $17.61 billion. Additionally, the full-year adjusted EBITDA forecast has been adjusted down by $160 million to $2.495 billion.
In a letter to shareholders, CEO Dan Taylor, who succeeded Peter Jackson on October 1, expressed disappointment regarding the provisional measure to ban betting in Brazil. "In response, we have acted decisively; our operations are currently closed and we have paused all discretionary and uncommitted spend," Taylor stated. He noted that with appropriate regulation, Brazil could still present an attractive market, though the company will be cautious in its capital deployment as the regulatory landscape develops.
Turning to Flutter’s performance in the US, revenue from its FanDuel brand increased by 6% to $1.46 billion, benefiting from a 4% rise in sportsbook revenue and an 8% increase in iGaming. However, FanDuel’s adjusted EBITDA plummeted 94% to $3 million, a situation Flutter attributed to investments in its prediction market product and the launch of operations in Alberta, Canada, in July.
Despite this, Taylor highlighted some successes, explaining that initiatives like the FanDuel Rewards program have yielded promising results in capturing market shares within the competitive sportsbook arena. He emphasized the importance of maintaining Flutter's leadership position in the US market through rapid innovation and strategic investments.
Prediction markets are positioned as a growth area, with FanDuel Predicts having 66,000 average monthly users in Q3, marking a 39% increase from the previous quarter. Taylor committed to ongoing investments in this segment next year.
In the UK and Ireland, Flutter has announced a restructuring effort that could result in a job loss of 1,400 across its operations. Adjusted EBITDA from the International segment fell by 14%, primarily due to the UK’s remote gaming duty increasing from 21% to 40% as of April 1.
Despite these pressures, revenue in the UK and Ireland grew by 4% to $889 million, bolstered by a 12% increase in iGaming revenue, which helped offset a 6% decline in sportsbook revenue. Taylor remarked that the restructuring will strengthen Flutter’s position in the market post-tax hike.
Globally, Flutter experienced the strongest revenue growth in Southern Europe and Africa, up 13% to $836 million, driven by a 17% rise in iGaming. The Central and Eastern Europe segment also saw a 10% increase to $166 million, while revenue from Asia Pacific fell by 4% to $349 million, a decline attributed to the closure of the real-money gaming sector in India.
Looking ahead, Taylor described Flutter's next phase as one focused on streamlining operations to enhance its scale. The company anticipates achieving an additional $500 million in gross operating cost and capital expenditure savings by 2029 through the adoption of AI, organizational restructuring, and simplifying technology.
"Flutter has an exceptional set of assets and opportunities," Taylor stated, emphasizing the need for decisive action to realize their full potential.
