177% up to 5BTC + 77 Free Spins!
New players only. Exclusive Welcome Bonus of 177% + 77 Free Spins
Flutter Entertainment posted higher first-quarter revenue, but costs tied to FanDuel, prediction markets, Brazil, and US growth weighed on profit and guidance.
Good to Know
Flutter Entertainment still grew at group level in Q1, but the cost side told a tougher story. The owner of FanDuel, Paddy Power, and Betfair reported $209 million in net income for the three months ended March 31, down 38% from a year earlier.
Revenue came in much higher at $4.30 billion, up 17%, helped by iGaming growth and recent deals in Italy and Brazil. However, adjusted EBITDA only rose 2% to $631 million, while operating profit fell 66% to $76 million.
Management also trimmed full-year 2026 guidance. Flutter now expects $18.305 billion in revenue and $2.865 billion in adjusted EBITDA. Earlier forecasts stood at $18.4 billion in revenue and $2.97 billion in adjusted EBITDA.
The company pointed to poor sports results in Q1, Arkansas launch costs, and PokerStars North America reporting changes. CEO Peter Jackson still framed the quarter as progress, though he made clear that FanDuel needs more consistency.
“Flutter’s Q1 performance was encouraging, with group revenue increasing 17% year-on-year,” Chief Executive Officer Peter Jackson said. “While we made good progress during the quarter, there remains more to do to ensure the improving US sportsbook trends continue.”
FanDuel revenue in the US reached $1.763 billion, up 6%. Sportsbook revenue rose only 1%, while iGaming revenue climbed 19%. Flutter said sportsbook customer trends improved through the quarter, with average monthly player numbers going from a 5% decline in January to 1% growth in March.
Prediction markets now sit deeper inside the FanDuel plan. Flutter expects 2026 losses from the category to land near the upper end of the $250 million to $300 million adjusted EBITDA investment range. FanDuel Predicts expanded nationwide for financial, economic, and commodities contracts, while sports-related prediction contracts went live in 18 non-sportsbook states, including California, Texas, and Florida.
Flutter also launched the “One App” FanDuel platform in April. Customers in sportsbook states and prediction-market users in states without regulated sports betting can now access products through the same FanDuel app.
Jackson called prediction markets “a very attractive, incremental opportunity”. He added: “Our in-house expertise and capabilities place us in a strong position to capitalize on this opportunity in the long-term,”
Outside the US, Flutter had a much stronger revenue story. International revenue rose 27% to $2.541 billion. Southern Europe and Africa revenue jumped 110% to $940 million after the Snai acquisition in Italy. Brazil revenue rose 722% after Flutter integrated Betnacional.
Brazil remains a major focus before the FIFA World Cup. “We are investing with conviction in Brazil,” Jackson said. “We believe this is a market where we can create a local champion over time. We will soon integrate our proprietary pricing capabilities, unlocking a best-in-class parlay product and promotional improvements ahead of the World Cup.”
Flutter also reshaped leadership around the US business. Dan Taylor, now CEO of Flutter International, became President of Flutter Entertainment and will oversee FanDuel. Christian Genetski will lead the US business after Amy Howe leaves.
Citizens analysts said the quarter showed strain inside the US operation despite international gains.
“The business is showing signs of cracks, which we believe are not necessarily structural,” the analysts said. “The World Cup and prediction market spend now present an uphill battle for the US business.”
Citizens estimated that around 72% of 2026 US EBITDA for Flutter would now need to come in Q4. Even so, the brokerage kept a “Market Outperform” rating and called Flutter “drastically undervalued”.