Shares in sports betting firm Flutter Entertainment (FLTR) hit a five-year low after Q1 results failed to impress. In addition, the firm lowered the midpoint of its guidance range for total revenue for FY26.
Losing its appeal
Despite a 17% increase in Q1 revenue due to acquisitions, net profit dropped a whopping 38% to $209 million. Adjusted EPS fell 23% to $1.22, which was actually better than expected as the consensus was $1.11.
However, weaker average monthly player numbers and a decline in Fanduel sportbook players in particular weighed on sentiment. Moreover, continued investment in prediction markets meant EBITDA for the US business was 26% lower than last year.
The group reduced its forecast for FY revenue to $18.3 billion from $18.4 billion previously. It also trimmed its EBITDA guidance due to unfavourable Q1 sports results and new launch costs in Arkansas.
Following the update, several US brokers cut their price targets for the New York-listed shares. The Flutter board is currently reviewing the company’s London Stock Exchange listing and may decide to quit the UK market.
Since the start of August 2025, Flutter shares have lost over two thirds of their value, falling from £231 to around £70 today. By any standard that is massive value destruction, especially when the firm has bought back $1.3 billion of capital in the meantime.
We’ve never been fans of betting or gambling stocks, for various reasons, and we won’t miss Flutter if it de-lists. There are plenty of other attractive businesses out there with better margins and better growth prospects.
Read the press release here:
https://flutter.com/investors/investor-hub/results-reports
