Flutter cuts 2026 guidance after $1.15bn Q3 net loss driven by $873m Brazil impairment
Flutter reported 2% Q3 revenue growth to $3.874bn but swung to a net loss of $1.148bn, driven by Brazil impairments, and lowered its full-year outlook in new CEO Dan Taylor's first quarter in charge.
GamblingSource: SBC News
Flutter Entertainment has lowered its full-year guidance after a third quarter in which a large net loss overshadowed modest revenue growth. It was the first reporting period under Group CEO Dan Taylor.
Group revenue rose 2% year on year to $3.874bn, compared with $3.794bn a year earlier. US revenue was $1.4bn, while International revenue was flat at $2.4bn, which Flutter attributed to gaming tax increases in the UK and the betting ban in Brazil. Adjusted EBITDA fell from $478m to $360m. US adjusted EBITDA dropped 94% to $3m, and International fell 14% to $435m.
The net loss reached $1.148bn, up 46% from the prior year. Non-cash impairment charges of $873m relating to Brazil were a major contributor. They reflect Flutter's investment in the market, including its 56% stake in NSX's Betnacional brand and the build-out of its own Brazilian operations. Flutter cut its revenue guidance midpoint by $300m to $17.61bn and its adjusted EBITDA guidance by $160m to $2.495bn.
Product performance was steadier. Sportsbook revenue rose 1% to $1.78bn and iGaming revenue rose 3% to $1.95bn. In the US, sportsbook revenue grew 4% to $817m and iGaming revenue grew 8% to $572m. International sportsbook revenue fell 2% to $963m, while international iGaming edged up 1% to $1.37bn. The quarter included the late stages of the 2026 World Cup, which brought high engagement, including record customer engagement in the UK and Ireland. Cost of sales rose 10% in both divisions.
In the UK and Ireland, revenue increased 4% to $889m, with iGaming up 12% to $540m despite the higher remote gaming duty. Average monthly players in UKI iGaming grew 20%. Flutter recently announced a restructuring of the unit involving 1,400 job losses, which Taylor said should right-size the business for the post-tax-increase environment.
In a letter to shareholders, Taylor set out four priorities: building on FanDuel's leading US position, pursuing opportunities in prediction markets following the December launch of FanDuel Predicts, extracting more value from the international brand portfolio, and simplifying the operating model. Flutter's share price has fallen by more than 60% so far this year.
Based on reporting by SBC News.