Flutter Lowers Its 2025 Guidance Following Tough Third Quarter
Strong Revenue Growth Overshadowed by Rising Losses
Flutter Entertainment, a leading company in online sports betting and iGaming, announced its financial results for the third quarter ending September 30. The company reported impressive revenue growth, reaching $3.8 billion, which is 17% higher compared to the previous year. The United States segment saw a 9% increase, while the international business surged by 21%.
Adjusted EBITDA also showed improvement, rising by 6% to $478 million, with an EBITDA margin of 12.6%. This growth was fueled by the acquisitions of Snai and Betnacional, alongside a strong performance in the iGaming division.
However, despite these positive figures, Flutter experienced a significant increase in its net loss, which widened from $114 million in Q3 2024 to $789 million in Q3 2025. This translated to a loss of $3.91 per share, a sharp rise from $0.58 per share in the previous year. The steep loss was mainly due to a non-cash impairment charge of $556 million caused by unexpected changes in India’s gaming regulations, as well as a $205 million payment to Boyd to amend access terms to the US market.
On a brighter note, adjusted earnings per share rose by 29% to $1.64, reflecting an improved operational performance when excluding one-time charges.
Cash flow from operations declined by 28% to $209 million, primarily due to the Boyd payment, and free cash flow fell steeply by 78% year-over-year to just $25 million by the end of the quarter.
Revised 2025 Forecast Reflects Current Challenges
In response to the difficulties encountered in Q3 and the forthcoming launch of FanDuel Predicts, Flutter has adjusted its financial outlook for 2025. The company now anticipates total group revenue of $16.69 billion and an adjusted EBITDA of $2.915 billion. These projections represent decreases of $570 million and $380 million respectively from earlier estimates. Nevertheless, the forecast still indicates healthy year-over-year growth rates of 19% for revenue and 24% for adjusted EBITDA.
CEO Expresses Confidence Despite Obstacles
Peter Jackson, the CEO of Flutter Entertainment, expressed satisfaction with the quarter’s outcome, describing it as solid despite the challenges faced. He highlighted excitement around the upcoming FanDuel Predicts launch and recent international acquisitions, which are seen as vital for future growth.
“We have a strong platform for executing our capital allocation strategy, with a continued focus on creating long-term shareholder value.”
Peter Jackson, CEO, Flutter Entertainment
Meanwhile, the FanDuel brand has withdrawn from the Nevada market amid regulatory disputes over the legality of prediction markets in the state, signaling ongoing industry challenges.
