Overview
- Flutter reported Q4 revenue of $4.74 billion versus $4.97 billion expected and adjusted EBITDA of $832 million versus $893 million forecast, with adjusted EPS also below estimates.
- 2026 guidance calls for $18.4 billion in revenue and $2.97 billion in adjusted EBITDA, roughly 4% EBITDA growth and well under analyst expectations of about $19.3 billion and $3.5 billion, respectively.
- Management attributed the slowdown to weaker U.S. engagement tied to less compelling NFL playoffs and promotions that underperformed, with U.S. sportsbook handle up just 3% for 2025.
- Flutter will increase investment in its FanDuel Predicts platform, expecting a 2026 adjusted EBITDA drag toward the top of a $200 million–$300 million range, as the app expands non‑sports markets nationwide and sports markets in 18 states including California, Texas and Florida.
- An internal review found only a low‑single‑digit impact from prediction markets on sportsbook handle, and FanDuel plans a Q2 loyalty program and product enhancements as it targets catalysts like March Madness and the 2026 World Cup.