Flutter Entertainment (NYSE:FLUT) Releases Earnings Results, Misses Expectations By $0.05 EPS

Key Points

• Flutter missed earnings expectations: Q2 EPS was $0.49 versus the $0.54 consensus, while revenue rose 3.3% year over year to $4.33 billion, exceeding estimates.
• 2026 guidance was reduced: Management cut its revenue midpoint by $395 million to $17.91 billion and adjusted EBITDA guidance by $210 million to $2.655 billion, citing increased U.S. customer incentives, a delayed NFL start, foreign exchange and other investments.
• Flutter is prioritizing long-term FanDuel growth despite near-term pressure: Adjusted EBITDA fell 45% and the company reported a $296 million net loss, but it plans to invest more in U.S. sportsbook customer value and engagement while international operations remained strong.

Flutter Entertainment (NYSE:FLUT - Get Free Report) released its earnings results on Wednesday. The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.54 by ($0.05), FiscalAI reports. Flutter Entertainment had a positive return on equity of 7.20% and a negative net margin of 4.39%.The company had revenue of $4.33 billion for the quarter, compared to analyst estimates of $4.24 billion. During the same period last year, the company posted $2.95 earnings per share. The business's revenue for the quarter was up 3.3% compared to the same quarter last year.

Here are the key takeaways from Flutter Entertainment's conference call:

• 2026 guidance was reduced, with midpoint revenue lowered by $395 million to $17.91 billion and adjusted EBITDA cut by $210 million to $2.655 billion, reflecting increased U.S. customer generosity, a delayed NFL start, foreign exchange effects and other investments.
• Adjusted EBITDA fell 45% in Q2, while Flutter reported a $296 million net loss versus $37 million of net income a year earlier; leverage ended the quarter at 4.3 times, although management expects cash generation to reduce it by year-end.
• Flutter is increasing investment in FanDuel’s U.S. sportsbook to improve customer value, loyalty and engagement, accepting lower near-term margins to pursue market-share gains, higher active customers and ARPU growth in 2027 and beyond.
• International operations remained strong, with revenue up 10%, Italy and Turkey showing robust momentum, and U.K. iGaming growing 7%; management also expects the next cost-transformation phase to generate an additional $500 million of gross savings by 2029.
• Flutter is expanding FanDuel Predicts through a Crypto.com exchange integration and a nationwide One App, while its market-making business is expected to generate approximately $50 million of revenue this year; management views prediction markets as incremental but acknowledged the opportunity remains early-stage.

Flutter Entertainment Price Performance

FLUT stock traded up $0.05 during trading on Thursday, reaching $92.96. 7,400,358 shares of the company were exchanged, compared to its average volume of 2,944,034. The company has a 50-day moving average of $104.57 and a two-hundred day moving average of $113.66. The company has a market capitalization of $16.17 billion, a price-to-earnings ratio of 24.45, a P/E/G ratio of 1.27 and a beta of 1.28. Flutter Entertainment has a twelve month low of $89.71 and a twelve month high of $313.68. The company has a debt-to-equity ratio of 1.27, a current ratio of 0.90 and a quick ratio of 0.90.

Insider Activity at Flutter Entertainment

In other news, COO James Philip Bishop bought 1,000 shares of the company's stock in a transaction on Monday, May 11th. The stock was purchased at an average cost of $99.75 per share, for a total transaction of $99,750.00. Following the completion of the transaction, the chief operating officer owned 17,605 shares of the company's stock, valued at $1,756,098.75. This trade represents a 6.02% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Don H. Liu sold 1,259 shares of Flutter Entertainment stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $93.37, for a total value of $117,552.83. Following the sale, the insider directly owned 21,006 shares in the company, valued at $1,961,330.22. The trade was a 5.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have acquired 10,453 shares of company stock worth $1,045,526 and have sold 5,994 shares worth $577,293. Insiders own 0.13% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. MML Investors Services LLC boosted its stake in shares of Flutter Entertainment by 0.6% in the 2nd quarter. MML Investors Services LLC now owns 7,081 shares of the company's stock worth $2,024,000 after buying an additional 45 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Flutter Entertainment by 5.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,311 shares of the company's stock valued at $290,000 after acquiring an additional 69 shares in the last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its position in shares of Flutter Entertainment by 83.3% during the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 165 shares of the company's stock valued at $42,000 after acquiring an additional 75 shares during the last quarter. The Manufacturers Life Insurance Company lifted its holdings in Flutter Entertainment by 0.9% during the fourth quarter. The Manufacturers Life Insurance Company now owns 9,119 shares of the company's stock worth $1,961,000 after acquiring an additional 80 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its holdings in Flutter Entertainment by 74.6% during the second quarter. EverSource Wealth Advisors LLC now owns 248 shares of the company's stock worth $71,000 after acquiring an additional 106 shares during the period.

Trending Headlines about Flutter Entertainment

Here are the key news stories impacting Flutter Entertainment this week:

• Positive Sentiment: Flutter reported Q2 revenue of $4.33 billion, exceeding the $4.24 billion analyst consensus and increasing 3.3% year over year. The revenue beat provides some support for the shares despite weaker profitability. Flutter Entertainment Announces Q2 2026 Financial Results
• Positive Sentiment: Michael Burry reportedly views the selloff as a buying opportunity, offering a contrarian perspective that Flutter’s long-term prospects and FanDuel position remain undervalued. Michael Burry Disagrees With Hedge Funds Over Flutter
• Positive Sentiment: Benchmark, Stifel, Needham and BTIG retained buy ratings, although each lowered its price target. Their revised targets still imply material upside, suggesting analysts see the decline as excessive if execution improves.
• Neutral Sentiment: Dan Taylor, currently a Flutter executive, will become group CEO on October 1, succeeding Peter Jackson, who will leave the role and board on September 30. Management expects strategic continuity, but investors will watch whether the leadership change improves U.S. performance. Flutter Board Announces CEO Transition
• Negative Sentiment: Adjusted earnings per share came in at $0.49, below estimates ranging from $0.54 to $0.58 and sharply below $2.95 a year earlier. The earnings miss, along with a reported swing to a loss, contributed to the selloff. Flutter Shares Plummet on Earnings Miss and Leadership Change
• Negative Sentiment: Flutter cut its profit outlook again and issued 2026 revenue guidance of $17.4 billion to $18.4 billion, a range that only narrowly brackets consensus expectations. The weaker outlook reflects continued difficulties in the U.S. sportsbook, including unfavorable economics and higher promotional or operating pressures. Flutter CEO to Step Down as U.S. Sports-Betting Business Falters
• Negative Sentiment: Analyst target reductions and a Zacks downgrade to “strong sell” reinforce concerns about near-term earnings momentum, even though several firms continue to rate FLUT “buy.”

Analysts Set New Price Targets

FLUT has been the topic of a number of analyst reports. Wells Fargo & Company reduced their price objective on shares of Flutter Entertainment from $137.00 to $112.00 and set an "equal weight" rating on the stock in a research note on Thursday. Citizens Jmp reduced their price target on shares of Flutter Entertainment from $165.00 to $159.00 and set a "market outperform" rating on the stock in a research report on Wednesday, July 8th. UBS Group decreased their price objective on shares of Flutter Entertainment from $160.00 to $140.00 and set a "buy" rating on the stock in a research note on Thursday. Sanford C. Bernstein lowered their price objective on shares of Flutter Entertainment from $125.00 to $115.00 and set a "market perform" rating for the company in a research report on Thursday, May 7th. Finally, Truist Financial cut their target price on Flutter Entertainment from $130.00 to $120.00 and set a "buy" rating for the company in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $168.04.

About Flutter Entertainment

Flutter Entertainment plc is a global sports betting and gaming company that operates a portfolio of consumer-facing brands and digital platforms. The company's primary activities include online sports betting, casino gaming, poker, and daily fantasy sports, delivered through web and mobile applications as well as retail betting locations in select markets. Flutter focuses on product development, customer acquisition and engagement, and compliance with local gambling regulations across the jurisdictions where it operates.

Flutter's brand portfolio includes well-known names in different regional markets, such as FanDuel in the United States, PokerStars, Betfair, Paddy Power and Sky Betting & Gaming in Europe and elsewhere.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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