Flutter Entertainment reported group revenue of $4.304bn for Q1 2026, up 17% year-on-year and ahead of analyst estimates, with adjusted EBITDA of $631m beating the $614m consensus. The company cut its full-year EBITDA guidance to $2.87bn from $2.97bn, citing unfavourable sports results since February and the early cost of launching in Arkansas.
Group Results
Adjusted EBITDA rose 2.4% year-on-year to $631m on revenue that beat estimates by 0.65%. Net income fell 38% to $209m, reflecting investment costs tied to FanDuel Predicts and the Arkansas market entry. Net cash from operating activities improved 76% year-on-year to $330m.
Full-year 2026 guidance sets revenue at $18.30bn at the midpoint. Adjusted EBITDA guidance of $2.87bn incorporates three adjustments from the February outlook: unfavourable Q1 sports results, $35m in Arkansas launch costs that were not previously included, and a reporting change for PokerStars North America that Flutter said has no net impact at the group level.
Shares rose 3.4% in after-hours trading on May 6 following the results. Flutter stock had hit a 52-week low of $98.88 earlier that day and has fallen approximately 52% year-to-date, against a 6% gain for the S&P 500 over the same period. Flutter currently trades at a 1.06x price-to-sales ratio, below the 1.51x industry average.
FanDuel US: iGaming Offsets Sportsbook Decline
FanDuel US revenue reached $1.763bn in Q1 2026, up 6% year-on-year. Division adjusted EBITDA fell 26% to $119m as promotional spending and market expansion costs increased.
Sportsbook handle fell 9% year-on-year. Sportsbook revenue rose 1%, with net revenue margin improving 80 basis points to 8.6% on more favourable sports results. Structural revenue margin slipped 40 basis points to 13.7%, attributable in part to lower NFL and NBA volume. Sportsbook average monthly players fell 6% year-on-year — a continuation of the trend that emerged at the end of 2025, when FanDuel exited the year with fewer customers than projected.
iGaming offset sportsbook weakness. Revenue grew 19% to $564m, with average monthly players up 10%. Direct casino revenue rose 28%, driven by an expanded direct player base and improved engagement among higher-value customer segments. FanDuel held 39% online sportsbook GGR market share and 27% iGaming market share in Q1.
Promotional spend rose to 4.9% of revenue, up 50 basis points, driven by Missouri and Arkansas launches. In April, Flutter migrated PokerStars customers to the FanDuel platform. The FanDuel One app also launched in April, serving sportsbook in regulated states and prediction markets in non-sportsbook states — including California, Texas, and Florida — under a single product. Flutter said it continues to see limited cannibalization of its sportsbook from prediction market operators.
International: Strong Growth With M&A Contribution
International revenue rose 27% to $2.541bn. On an organic basis, revenue was flat — strong underlying growth in Southern Europe and Australia offset adverse sports results. The Snai and Betnacional acquisitions contributed to the reported figure.
UK and Ireland brands delivered double-digit iGaming revenue growth, though Sky Bet performance lagged expectations in the period following its platform migration. Sky Bet recorded its strongest customer acquisition in five years during January. In Brazil, Betano Latino average monthly players grew more than 40% year-on-year. Snai completed the migration of approximately two million accounts in April.
Flutter’s exposure to an estimated £540m annual impact from UK gambling tax increases continues to weigh on international margin projections alongside the organic growth story.
Analyst Reaction
Most major analysts maintained positive ratings while cutting price targets. Jefferies, Barclays, Citi, JPMorgan, Deutsche Bank, Canaccord, Truist, and Berenberg all held Buy or Overweight ratings post-results. Jefferies said the stock is currently priced for structural decline rather than growth.
Bernstein and Bank of America moved to Neutral and Market Perform respectively, citing decelerating US revenue trends and questions over whether full-year guidance assumptions are sufficiently conservative. CBRE, Kepler Cheuvreux, and Craig Hallum shifted to Hold, pointing to accumulated headwinds across rising taxes, US sportsbook competition, and regulatory complexity. The mixed Q3 2025 results first flagged the combination of India exit costs and US market challenges that Flutter has continued to work through.
Peter Jackson, Group CEO, said April performance was in line with expectations across both divisions. A full loyalty programme rollout is targeted ahead of the 2026/2027 NFL season, with product improvements also planned around the FIFA World Cup as FanDuel attempts to rebuild its sportsbook customer base under new leadership.
Source: Flutter Entertainment
