Flutter Entertainment Cuts 2026 Forecast After $1.15 Billion Q3 Loss

Flutter Entertainment reported a $1.15 billion net loss for Q3 2026 and lowered its annual financial guidance as gambling restrictions in Brazil, higher taxes and unfavorable sports betting results affected earnings.

Good to know

• Flutter reduced its 2026 revenue forecast to $17.61 billion and adjusted EBITDA guidance to $2.49 billion.
• FanDuel Predicts attracted 140,000 new customers in October, while US adjusted EBITDA fell 94% to $3 million.
• New CEO Dan Taylor plans another $500 million in cost savings by 2029, separate from existing restructuring and job cuts.

FanDuel Growth Comes at a Cost

FanDuel continued attracting US sports betting and online casino customers during Q3, although higher marketing expenses and investments in prediction markets reduced profitability.

US revenue increased 6% to $1.46 billion, supported by 8% growth in iGaming and a 4% increase in sportsbook revenue. Sports betting handle climbed 13%, while sportsbook bet counts grew 15%.

However, US adjusted EBITDA dropped 94% to just $3 million, partly due to investment in FanDuel Predicts and the July launch of FanDuel in Alberta, Canada.

The prediction markets business recorded 66,000 average monthly players, up 39% from Q2, before attracting another 140,000 customers in October.

Competition for customers also became more expensive. Taylor reported that industry-wide media spending increased more than 60% in September and over 50% in October, largely because of prediction market operators.

“It also puts pressure on some of our share of voice, and we need to be disciplined about how we spend our marketing dollars,” he said.

Meanwhile, US average monthly players increased 12%, including 24% growth in iGaming. FanDuel sportsbook players grew 9%, although promotional spending limited revenue gains.

Flutter Plans $500 Million in Additional Savings

Taylor, who replaced Peter Jackson as CEO on October 1, wants Flutter Entertainment to operate with fewer overlapping functions and lower technology costs.

The company aims to save another $500 million in gross operating expenses and capital expenditure by 2029 through artificial intelligence, simpler technology systems and organizational changes.

“The next phase of Flutter will be more streamlined, to maximise the benefits of scale and ensure we can do non-customer-facing work once,” Taylor said.

The new target comes on top of existing restructuring programs, including plans affecting up to 1,400 employees across the UK, Ireland, Portugal and Romania. Flutter is also closing its Sky Bet operation in Malta.

Taylor intends to prioritize investment in existing businesses and debt reduction. Share buybacks will remain on hold while the company works toward a leverage ratio of 2 to 2.5 times over approximately two years.

Brazil Gambling Ban Drives $873 Million Charge

Brazil accounted for much of the quarterly loss after the government introduced a provisional ban on sports betting and online casino gambling in September.

Flutter suspended its Brazilian operations on September 26 and closed its local Betfair business, leaving Betnacional as its remaining brand for a potential return.

The restrictions contributed to $873 million in non-cash impairment charges, including $537 million after tax attributable to Flutter through its 56% ownership of Flutter Brazil.

Flutter established the business through a $356 million agreement with Betnacional owner NSX Group in 2025.

“In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend,” Taylor said.

Flutter remains “ready to resume operating” if regulatory conditions allow.

Higher Gambling Taxes Hit International Earnings

Outside Brazil, Flutter reported revenue growth across several regions. UK and Ireland revenue increased 4% to $889 million, while Southern Europe and Africa climbed 13% to $836 million.

Central and Eastern Europe recorded 10% growth to $166 million. However, Asia Pacific revenue declined 4% to $349 million following the closure of the real-money gaming market in India.

International adjusted EBITDA fell 14%, with the increase in UK remote gaming duty from 21% to 40% adding to costs.

Group revenue still increased 2% to $3.87 billion, although analysts had expected approximately $4 billion. Adjusted EBITDA declined 25% to $360 million.

Flutter also recorded $105 million in additional legal loss provisions linked to an Australian class action, adding another expense beyond the Brazil impairment.

The quarterly net loss widened from $789 million in Q3 2025 to $1.15 billion.

Flutter Lowers Full Year Revenue and EBITDA Guidance

Flutter now expects annual revenue of $17.61 billion, down $300 million from its previous forecast midpoint. Adjusted EBITDA guidance also fell $160 million to approximately $2.49 billion.

The company attributed the revisions mainly to weaker sports betting results and the interruption of operations in Brazil.

For 2026, Flutter expects US revenue of $7.34 billion and adjusted EBITDA of $715 million. The company also anticipates cost of sales of approximately 58% of revenue through 2027.

Flutter shares have fallen more than 60% since the beginning of 2026, while management continues reducing costs and reviewing investment priorities.

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