New Flutter CEO bets on FanDuel promotions to win customers as profits suffer

Summary

• Flutter CEO Dan Taylor, who has led the company for five weeks, aims to convert improving engagement into stronger profits through better products and generous customer rewards.
• Third-quarter revenue and adjusted EBITDA missed Wall Street expectations, with revenue rising 2% to $3.87 billion and adjusted EBITDA falling 25% year over year to $360 million.
• The company reported an adjusted loss of 18 cents per share, beating analyst expectations of a 28-cent loss, but posted a net loss of $1.15 billion including an $873 million non-cash impairment tied to Brazil's ban on sports betting.
• FanDuel's U.S. sportsbook average monthly players rose 9% in the third quarter, while bet counts increased 15%, & total U.S. average monthly players grew 12% with 24% growth in iGaming.
• Sportsbook handle rose 13%, but revenue grew only 4% due to increased promotional spending, & the cost of sales as a percent of revenue is forecast to be 58% for 2026 & 2027.
• FanDuel launched a nationwide rewards program in September that Taylor stated resonated well, & the FanDuel Predicts platform added 140,000 new customers in October.
• Trading volume on FanDuel increased 271% since July despite fierce industry competition, & Taylor noted that about half the U.S. lacks access to regulated sports betting while 90% lacks regulated online gaming.
• Flutter cut its full-year revenue midpoint by $300 million to $17.61 billion & lowered its 2026 adjusted EBITDA outlook by $160 million to nearly $2.5 billion due to complications in Brazil & unfavorable sports results.
• Capital returns including buybacks are on hold until leverage returns to a target range of 2 to 2.5 times over the next 24 months, & the company prioritizes organic growth & debt repayment.