Flutter Entertainment Q1 Earnings Call Highlights

Key Points

• Flutter posted solid Q1 growth, with revenue up 17% year over year and adjusted EBITDA up 2%. However, net income fell due to higher interest expense and depreciation/amortization, even as operating cash flow improved sharply.
• FanDuel’s U.S. sportsbook showed early recovery signs after a weak fourth quarter, with sequential improvement in players, handle and margins through the quarter. Flutter is leaning on promotions, loyalty features and new product tools to rebuild engagement.
• International iGaming and prediction markets remain key growth themes, with strong performance in Italy, the U.K./Ireland and Brazil, while Flutter continues investing in prediction markets through FanDuel One and market-making initiatives. The company left full-year guidance essentially unchanged, though it flagged higher Q1 sports-related costs and ongoing review of its London listing structure.

Flutter Entertainment NYSE: FLUT reported 17% revenue growth in the first quarter of 2026 and said it is seeing early signs of improvement in its U.S. sportsbook business, while announcing changes to the leadership structure at FanDuel.

Chief Executive Officer Peter Jackson said Amy Howe will leave the business, thanking her for her contributions to Flutter and FanDuel since joining in 2021. Jackson said Dan Taylor’s role will be expanded and that Christian Genetski will continue to play a key leadership role after helping scale FanDuel to market leadership.

“These changes will sharpen our focus on the U.S. sportsbook, strengthen the connection between our U.S. and international divisions, and fully leverage the group’s expertise, capital, and strategic ambition,” Jackson said.

Revenue Rises, Earnings Pressured by Interest and Amortization

Chief Financial Officer Rob Coldrake said group revenue rose 17% in Q1, while adjusted EBITDA increased 2%. He said performance reflected contributions from the SNAI and Betnacional acquisitions and a positive year-over-year swing in sports results.

Flutter reported 10% sportsbook revenue growth and 28% iGaming revenue growth. Net income declined by $126 million year-over-year to $209 million, which Coldrake attributed to a $71 million increase in interest expense and a $122 million increase in depreciation and amortization. Those headwinds were partially offset by an $88 million non-cash year-over-year benefit from the fair value adjustment of the FOX option.

Earnings per share and adjusted earnings per share were $1.23 and $1.22, respectively. Coldrake said operating cash flow rose $142 million, or 76%, primarily due to a year-over-year swing in player funds related to a prior-year Sisal lottery payout.

Flutter ended the quarter with leverage of 3.7 times. Coldrake said the company expects leverage to rise initially through the second and third quarters before declining in the fourth quarter, moving toward a medium-term target ratio of 2 to 2.5 times.

FanDuel Sportsbook Sees Sequential Improvement

In the U.S., Jackson said average monthly players were 1% below the prior year, while revenue rose 6%. He said sportsbook performance was affected by trends seen during the fourth quarter, when persistently high gross revenue margins hurt customer activity and left FanDuel with a smaller player base entering 2026.

Jackson said Flutter is executing against sportsbook and generosity improvement plans, including early win promotions during March Madness, betting offers tied to social engagement and the rollout of a sportsbook loyalty program. He also highlighted BetProtect+, which allows customers to insure bets for a small fee, saying adoption rates were double company expectations and continuing to grow.

Product updates in the quarter included expansion of the Pass the Leg feature to the Super Bowl, more personalized NBA same-game parlay building and full-screen streaming for key sports. Jackson said average monthly players, handle and structural revenue margin improved through the quarter, and the company expects positive trends to continue into the second quarter.

During the question-and-answer session, Jackson said there was “no change in our strategy or posture of the business,” adding that the company is returning to a customer-first approach. Coldrake said Flutter is seeing sequential improvement across multiple U.S. key performance indicators in Q2.

U.S. iGaming Growth Remains Strong

FanDuel’s U.S. iGaming business delivered what Jackson called another strong quarter, with average monthly players up 10% and revenue up 19% year-over-year. He said growth was driven by an expanded direct casino player base, improved frequency among higher-value customers, enhanced rewards through the loyalty program and new exclusive content.

Jackson also said PokerStars customers were migrated to the FanDuel platform at the start of April, which he said unlocked improved products and cross-state liquidity for poker customers.

Prediction Markets Remain an Investment Focus

Jackson said Flutter continues to see limited cannibalization from prediction market operators on its sportsbook growth, citing differences in product propositions, customer age profiles and the concentration of prediction market activity among entertainment-first and lower-value users.

He said the company views prediction markets as an incremental customer acquisition opportunity ahead of sports betting regulation in new states. Flutter launched the FanDuel One app at the start of April, dynamically serving sports betting in states where it is regulated and prediction markets in non-sportsbook states.

Q1 revenues from prediction markets were modest, reflecting the early stage of the effort, Jackson said. He added that Flutter is focused on improving the product ahead of the 2026-2027 NFL season and the FIFA World Cup. The company also began providing market-making services on a major third-party prediction market platform in April and expects to launch the initial phase of its own market-making platform in the coming months.

Coldrake said Flutter spent about $40 million on prediction markets in Q1 and expects spending to increase slightly in Q2, with most spending still expected in the second half of the year. He said the company will remain disciplined and monitor customer acquisition costs and lifetime value as the product develops.

International Business Led by Italy, UK iGaming

Jackson said Flutter’s performance in Italy was “extremely strong,” with the company the clear number one online operator. He said Sisal’s My Combo product had strong engagement, with multi-leg bets contributing half of pre-match soccer handle, while the SNAI migration onto the SEA platform was completed at the end of April, transitioning around 2 million accounts.

In the U.K. and Ireland, Jackson said Paddy Power, Tombola and Betfair delivered strong double-digit iGaming revenue growth. Sky Bet was behind expectations after customers adapted to a new user interface following migration, but he said momentum improved, with the brand recording its highest customer acquisition volumes in five years in January and underlying sportsbook revenue returning to growth in March.

Jackson said Brazil remained encouraging, with Betnacional average monthly players more than 40% higher year-over-year. He said Flutter will integrate proprietary pricing capabilities ahead of the FIFA World Cup. In APAC, sportsbook average monthly players and handle posted modest year-over-year growth, while racing excluding greyhounds declined but performed ahead of expectations.

Flutter left its full-year guidance unchanged on an underlying basis, adjusting only for unfavorable Q1 sports results in the U.S. and international markets and Arkansas launch costs that were not previously included. The company now expects 2026 revenue of $18.3 billion at the midpoint and adjusted EBITDA of $2.865 billion, representing year-over-year growth of 12% and 1%, respectively.

Jackson also said Flutter is reviewing its London Stock Exchange listing as it considers streamlining its dual listing structure, with the review expected to conclude during the second quarter.

About Flutter Entertainment NYSE: FLUT

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.

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