Flutter forecasts slowdown in growth in 2026 after earnings miss
Flutter Entertainment PLC on Thursday reported 2025 earnings and sales below expectations, with handle growth of 3% missing forecast.
The New York-based bookmaker which owns FanDuel, Betfair and Paddy Power said its net income declined to $10 million in the three months to December from $156 million a year prior.
Adjusted earnings before interest, tax, depreciation and amortisation improved 27% to $832 million from $655 million. Adjusted earnings per share dropped 41% to $1.74 from $2.94.
Revenue increased 25% to $4.74 billion from $3.79 billion with average monthly players up 3.2% to 15,072 from 14,605.
Flutter said fourth quarter growth was driven by M&A and more favourable US sports results year-over-year.
Sportsbook revenue growth reflected a net revenue margin of 8.9%, up 220 basis points year-over-year, driven by continued structural gross revenue margin expansion of 90bps, and a positive sports results impact year-over-year of 310bps.
Handle growth of 3% was behind expectations and reflected a moderation in market growth which has continued into 2026, primarily due to the unfavourable recycling impact from sustained, bookmaker-friendly sports results.
‘It is difficult to be definitive as to when market handle growth rates will recover,’ Flutter said.
For 2026, Flutter gave revenue of $18.4 billion and adjusted Ebitda of $2.97 billion guidance midpoints, representing year-over-year growth of 12% and 4%.
Revenue and adjusted Ebitda were below $16.69 billion and $2.92 billion guidance.
In 2025, Flutter reported revenue of $15.91 billion and adjusted Ebitda of $2.85 billion, up 17% and 21% on-year respectively.
Flutter expects US revenue of $7.8 billion in 2026 and International revenue of $10.6 billion.
Flutter said it sees no ‘meaningful impact’ on its business from prediction markets.
‘We are confident that the prediction markets have not been a significant driver of the moderating customer and handle trends we have observed,’ the company said.
Shares in Flutter slumped 8.2% in after hours trading after closing up 2.8% in New York on Thursday.
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