Flutter Cuts Full-Year Guidance as Profit Margins Compress
Flutter Entertainment's first-quarter revenue rose 17% to $4,304 million, but net income fell 38% and the company lowered its 2026 outlook.
Flutter Entertainment (FLUT) reported first-quarter net income of $209 million, down 38% from $335 million a year earlier, even as revenue climbed 17% to $4,304 million. The online betting and gaming operator's results showed a widening gap between top-line growth and profitability, a divergence that shaped both the quarter and the company's revised outlook.
Revenue growth came from the Snai and Betnacional acquisitions, a favorable swing in sports results, and 28% growth in iGaming, but Adjusted EBITDA rose only 2% to $631 million as margin compressed 210 basis points to 14.7%. Net income margin fell 420 basis points to 4.9%. A $71 million increase in net interest expense and $122 million of added depreciation and amortization tied to the Snai and NSX deals drove much of the decline, partly offset by an $88 million larger non-cash gain on the Fox Option, which rose to $293 million from $205 million. Earnings per share fell 22% to $1.23, with adjusted EPS down 23% to $1.22.
The US segment posted 6% revenue growth to $1,763 million, split between a 1% rise in sportsbook and 19% growth in iGaming, but segment Adjusted EBITDA dropped 26% to $119 million as margin fell 300 basis points to 6.7%, reflecting spending on FanDuel Predicts and the Arkansas launch. Promotional spend in the US rose 50 basis points to 4.9% of revenue on new-state investment, even as sales and marketing costs fell 90 basis points as a share of revenue to 21.5%. US handle declined 9% year over year while International handle grew 31%, leaving Group handle growth at just 4% against 17% revenue growth, a sign that pricing and mix, not volume, drove the topline.
The International segment grew revenue 27% (18% at constant currency) to $2,541 million, with Adjusted EBITDA up 13% to $587 million. On an organic basis, however, revenue was flat and Adjusted EBITDA fell 5%, as the business mix shifted toward higher-cost-of-sale products and regions. Average monthly players fell 3% to 14,378,000, largely because of the closure of the India real-money-gaming market; US sportsbook AMPs fell 6% while iGaming AMPs rose 10%, and International AMPs declined 4%. US sportsbook net revenue margin improved 80 basis points to 8.6% on a favorable 170-basis-point swing in sports results, even as structural revenue margin slipped 40 basis points to 13.7% on a lower NFL/NBA volume mix.
Flutter lowered its full-year 2026 guidance, cutting Group revenue projections to $18.305 billion from $18.4 billion and Adjusted EBITDA guidance to $2.865 billion from $2.97 billion. The company cited unfavorable first-quarter sports results, $35 million of new Arkansas launch costs, and a reporting change tied to PokerStars North America. Net cash from operating activities rose 76% to $330 million, but free cash flow, including financing capex and excluding player funds, fell 46% to $123 million from $226 million, on higher capex and tax payments.
Flutter also disclosed a leadership change: Dan Taylor was named President of Flutter Entertainment, adding oversight of FanDuel, while Amy Howe departed and Christian Genetski was named to lead FanDuel. The company said it would close the FanDuel TV racing network and discontinue the FanDuel Picks product in 2026 as a cost-efficiency measure. Flutter also flagged the UK's gaming tax increase to 40% from 19%, effective April 1, 2026, which it said could pressure less-profitable competitors.
Separately, Flutter said it intends to delist its ordinary shares from the London Stock Exchange effective August 3, 2026, moving to a sole NYSE listing following a listing-structure review flagged at the first-quarter results. Shares outstanding declined modestly across the period, from 174,400,428 as of April 2, 2026 to 173,481,132 as of June 30, 2026, consistent with buyback activity under the board's renewed repurchase authority.