Flutter Entertainment has lowered its full-year financial forecasts after reporting a $1.15 billion net loss in the third quarter of 2026, as regulatory restrictions in Brazil and unfavorable sports results weighed on its performance.
The company reduced its annual revenue guidance midpoint by $300 million to $17.61 billion and its adjusted EBITDA forecast by $160 million to $2.49 billion.
Meanwhile, newly appointed CEO Dan Taylor announced plans to generate an additional $500 million in gross operating cost and capital expenditure savings by 2029 through organizational restructuring, artificial intelligence adoption and technology simplification.
“The next phase of Flutter will be more streamlined, to maximise the benefits of scale and ensure we can do non-customer-facing work once,” Taylor said.
CEO Dan Taylor
The savings target excludes previously announced restructuring measures, including potential layoffs affecting up to 1,400 employees across the company’s UK and Ireland operations and its hubs in Portugal and Romania. Flutter is also closing Sky Bet’s Malta operation, NEXT.io reported last month.
The restructuring will instead focus on reducing duplication, improving technology efficiency and consolidating support functions while maintaining investment in customer-facing activities.
Flutter’s third-quarter revenue rose 2% year over year to $3.87 billion, below analysts’ expectations of approximately $4 billion, according to LSEG. Adjusted EBITDA declined 25% to $360 million, while the adjusted loss per share stood at $0.18, compared with analysts’ expectations of $0.28.
The net loss widened from $789 million in the corresponding quarter of 2025, largely reflecting $873 million in non-cash impairment charges associated with its Brazilian business.
Of this amount, $537 million in post-tax impairment related to Flutter’s 56% stake in Flutter Brazil, established last year through a $356 million transaction with Betnacional owner NSX Group.
Flutter's Brazil office
Following Brazil’s provisional ban on sports betting and online gaming in September, Flutter suspended its local operations and closed its Betfair business, leaving Betnacional as its sole brand in the market. The closure also resulted in redundancies.
“In response, we have acted decisively; our operations are currently closed, and we have paused all discretionary and uncommitted spend,” Taylor said in a letter to shareholders. He added that the company was “ready to resume operating” if the Brazilian market reopened.
In the United States, Flutter’s revenue increased 6% to $1.46 billion, supported by 4% growth in sportsbook revenue and an 8% increase in iGaming revenue. However, adjusted EBITDA fell 94% to $3 million, reflecting investment in prediction markets and FanDuel’s July launch in Alberta, Canada.
FanDuel’s sportsbook average monthly players increased 9%, while bet counts rose 15%. Total U.S. average monthly players grew 12%, including 24% growth in iGaming. Sportsbook handle increased 13%, although higher promotional spending limited sportsbook revenue growth.
Flutter’s prediction markets platform, FanDuel Predicts, recorded 66,000 average monthly players during the quarter, up 39% from the previous quarter, and added 140,000 customers in October.
Taylor said industry-wide media spending increased more than 60% year over year in September and more than 50% in October, primarily due to spending by prediction market operators.
“It also puts pressure on some of our share of voice, and we need to be disciplined about how we spend our marketing dollars,” he said. The company expects cost of sales to represent 58% of revenue for 2026 and into 2027.
Elsewhere, UK and Ireland revenue increased 4% to $889 million, while Southern Europe and Africa recorded 13% growth to $836 million. Central and Eastern Europe revenue rose 10% to $166 million, while Asia Pacific revenue declined 4% to $349 million following the closure of India’s real-money gaming market.
International adjusted EBITDA declined 14%, primarily reflecting the increase in the UK’s remote gaming duty from 21% to 40%, effective April 1. Taylor, who succeeded Peter Jackson on October 1, said Flutter would prioritize organic growth and debt reduction before resuming share buybacks, targeting leverage of 2 to 2.5 times over approximately the next 24 months.
Flutter’s shares have declined more than 60% year-to-date.
