Highlights

  • Second quarter revenue rose 3% to $4.33 billion, but Flutter reported a $296 million net loss versus $37 million income.
  • Non-GAAP adjusted EBITDA fell to $508 million from $919 million as sales and marketing and cost of sales increased.
  • U.S. revenue fell 6% to $1.68 billion, while International revenue rose 10% to $2.64 billion, aided by acquisitions.
  • Flutter delisted from the London Stock Exchange on August 3, 2026 and held $1.56 billion of corporate cash.

Flutter Entertainment (NYSE:FLUT) shares were trading near their 52-week low at USD 79.65 on October 21, 2026, up 0.85%. The online sports betting and iGaming operator expanded FanDuel Predicts nationwide in the first quarter, delisted from the London Stock Exchange on August 3, and reported second quarter 2026 results in a Form 10-Q filed August 5 that showed a quarterly operating loss.

Flutter is an Irish-incorporated company with principal executive offices at One Madison Avenue in New York, and describes itself as the world's leading online sports betting and iGaming operator by revenue. Its products include sportsbook, iGaming, exchange betting, daily fantasy sports and U.S. prediction markets. It reports two segments: U.S., led by the FanDuel brand, and International, which operates in about 100 countries. Its fiscal year ends December 31.

Revenue Up 3%, Margins Under Strain

Revenue for the three months ended June 30, 2026 was $4.33 billion, up from $4.19 billion. Average monthly players fell 11% to 14.3 million, which the company attributed mainly to ceasing operations in India in 2025. Cost of sales rose 17% to $2.61 billion, or 60% of revenue against 53%, so gross profit fell to $1.71 billion from $1.96 billion.

Sales and marketing expenses rose 28% to $1.01 billion, reflecting FIFA World Cup spending and investment in FanDuel Predicts, and general and administrative expenses included a $33 million accrual for historical U.S. sales and use taxes. The operating loss was $144 million against a $389 million profit. Net interest expense climbed to $162 million, while a $40 million gain on the Fox Option liability lifted other income. The net loss attributable to Flutter shareholders was $274 million, or $1.57 per diluted share, versus income of $0.59.

Non-GAAP adjusted EBITDA was $508 million, with a margin of 11.7% versus 21.9%. For six months, revenue was $8.63 billion and the net loss was $87 million.

U.S. and International Segments Diverge

U.S. revenue fell 6% to $1.68 billion. Sportsbook revenue declined 15% to $1.04 billion even as stakes rose 2% to $11.96 billion, because net revenue margin slipped to 8.7% from 10.4% on higher promotional spend and less favorable sports results. iGaming revenue grew 14% to $577 million, and U.S. average monthly players rose 9% to 3.8 million. Segment adjusted EBITDA fell to $119 million from $400 million.

International revenue grew 10% to $2.64 billion, with the Snai and NSX acquisitions adding 6 points. Segment adjusted EBITDA fell 19% to $476 million, with the company citing the UK remote gaming duty increase from 21% to 40% effective April 2026.

Cash, Debt, Buybacks and Legal Matters

Operating cash flow for the six months rose 27% to $693 million. Long-term debt had an aggregate principal amount of $12 billion at June 30, with $52 million due within 12 months, and the company has a committed revolving credit facility of 1.1 billion pounds. Flutter has repurchased 6.78 million shares for $1.37 billion under its $5 billion authorization.

The filing details several contingencies. After India's Supreme Court upheld a retrospective 28% GST levy in May, Flutter recorded a $62 million provision and expects any final demand to be significantly below the previously disclosed $2.1 billion. It paid $53 million toward disputed Australian tax assessments, and the IRS proposed adjustments for 2018 to 2021 relating to fantasy sports winnings, which Flutter disagrees with and has not provided for. A class action over Sportsbet's Fast Codes service was scheduled for trial in August 2026, and the filing reports no outcome.

Regulatory Calendar and Outlook Items

The 10-Q provides no numerical guidance. It notes the UK betting duty increase from 15% to 25% effective April 2027, Irish betting licenses that began July 1, 2026, and Australian advertising reforms expected in early 2027. Restructuring and integration programs are expected to run until 2027, and Flutter's extended deadline to respond to the IRS notices was September 2026.