Flutter Entertainment plc

Q2 revenue increased 3% year over year. Adjusted EBITDA declined 45% in the quarter. Net loss was $296 million versus net income of $37 million in Q2 2025, while loss per share was $1.57 and adjusted loss per share was $0.49. Revenue growth was helped by M&A and FIFA World Cup engagement, partly offset by adverse U.S. sports results and higher U.K. gaming taxes. Full-year 2026 guidance was updated to midpoint revenue of $17.91 billion and midpoint adjusted EBITDA of $2.655 billion, implying reductions of $395 million and $210 million, respectively. Capital expenditure guidance improved to $815 million, depreciation and amortization guidance was lowered to $730 million, and group transaction, restructuring and integration costs are now expected to be approximately $500 million. The company said it expects second-half cash generation to reduce leverage by year-end 2026; leverage was 4.3x at quarter-end. Management also expects about $50 million of revenue from market making this year and about $50 million of adjusted EBITDA benefit from market making in the updated guidance.

Peter Jackson framed the quarter as a deliberate pivot toward long-term growth, saying Flutter is willing to accept lower near-term earnings to strengthen its U.S. position and build for 2027 and beyond. He highlighted continued progress on the sportsbook improvement plan, the loyalty rollout to 70% of customers, and early traction in prediction markets through FanDuel Predicts and the One App. His tone was confident and strategic, emphasizing customer-first investment, market-share ambitions, and the belief that stronger content and better product execution will ultimately drive higher returns.

Rob Coldrake said Q2 was ahead of expectations on revenue, but adjusted EBITDA declined because of U.K. gaming taxes and planned investment in prediction markets and World Cup marketing. He noted net loss of $296 million, loss per share of $1.57, and adjusted loss per share of $0.49, with free cash flow down 56% year over year and leverage at 4.3x. On capital allocation, he said Flutter will keep prioritizing organic investment and strategic initiatives while deleveraging over time, targeting a return to 2 to 2.5x leverage in the medium term. He also detailed cost transformation: Phase 1 is ahead of plan, Phase 2 targets an additional $500 million of gross savings by 2029, and 2026 restructuring and integration costs are now expected to be about $500 million.

Analysts focused on the new U.S. investment in generosity, asking whether increased promo spend and marketing would earn acceptable returns and how much of the investment was tied to promotions versus CAC. Management said the spend is a deliberate choice because sportsbook momentum and marketing returns are strong, and they argued the business is better off leaning in now than maximizing near-term EBITDA. Questions also centered on prediction markets and market making, including cannibalization risk, the shift to Crypto.com, and the One App; management said cannibalization remains low, market making is early but promising, and the new app should expand catalog, liquidity, and customer experience. In the U.S. and abroad, analysts pressed on why the company is favoring U.S. investment over international, and management answered that it is investing behind attractive returns in both regions.