Flutter Entertainment plc — Q3 2026 Earnings Summary

Financial Performance:

• Group revenue was $3,874 million, a +2% increase year-over-year (YoY).
• Net loss was $1,148 million, a 46% increase from the $789 million loss in Q3 2025.
• Adjusted EBITDA was $360 million, a 25% decrease YoY.
• Adjusted EBITDA margin was 9.3%, down 330 basis points from 12.6% in Q3 2025.
• Net cash provided by operating activities was $211 million, a +1% increase YoY.
• Free cash flow was $35 million, a 40% increase YoY.
• Free cash flow including financing capex and excluding player funds was $(91) million.
• Leverage ratio was 4.6x at September 30, 2026, up from 3.7x at December 31, 2025.
• Net debt was $10,656 million.
• Average monthly players (AMPs) were 13,669,000, a 3% decrease YoY.
• The net loss included a non-cash impairment charge of $873 million related to Brazil operations ($537 million post-tax attributable to Flutter).
• The net loss included a $105 million increase in legal loss contingencies.
• US segment adjusted EBITDA was $3 million, a 94% decrease YoY.
• International segment adjusted EBITDA was $435 million, a 14% decrease YoY.

Guidance and Future Outlook:

• Full year 2026 Group revenue midpoint guidance reduced by $300 million to $17.61 billion.
• Full year 2026 Group adjusted EBITDA midpoint guidance reduced by $160 million to $2.495 billion.
• US 2026 revenue midpoint guidance reduced by $60 million to $7.34 billion.
• US 2026 adjusted EBITDA midpoint guidance reduced by $45 million to $715 million.
• International 2026 revenue midpoint guidance reduced by $240 million to $10.27 billion.
• International 2026 adjusted EBITDA midpoint guidance reduced by $115 million to $2.09 billion.
• Transaction, restructuring, and integration costs for 2026 are now approximately $620 million, up $120 million from previous expectations.
• Management targets a leverage ratio of 2.0 - 2.5x over the medium-term.
• Management expects to deliver an additional $500 million in gross operating cost and capital expenditure savings by 2029.
• Management anticipates long-term annual revenue growth of 5-10% in International markets.
• Marketing intensity is expected to remain at 2026 levels in 2027.
• Cost of sales as a percentage of revenue is expected to be approximately 58% for 2026 and 2027.

Business Segments and Product Lines:

• US: Revenue was $1,455 million (+6% YoY). Sportsbook revenue grew 4% and iGaming revenue grew 8%. US AMPs grew 12%.
• International: Revenue was $2,419 million (flat YoY). Sportsbook revenue declined 2% and iGaming revenue grew 1%. International AMPs declined 8%.
• UKI: Revenue increased 4%. iGaming revenue grew 12% driven by cross-sell and new products. Sportsbook revenue declined 6% due to adverse sports results.
• Southern Europe and Africa (SEA): Revenue increased 13%. iGaming revenue grew 17%. Sportsbook revenue grew 3%.
• Asia Pacific (APAC): Revenue declined 4% (-10% constant currency) due to the closure of the real money gaming market in India.
• Central and Eastern Europe (CEE): Revenue grew 10%.
• Brazil: Revenue declined 31% (-35% constant currency). Operations were closed on September 26, 2026, following a Provisional Measure banning sports betting and iGaming.
• FanDuel Predicts: Volume grew 271% quarter-over-quarter in October compared to July. AMPs reached 66,000 in Q3.
• Product Launches: FanDuel launched in Alberta in July 2026, achieving a 23% GGR share.
• Restructuring: UKI business restructuring announced to right-size the business post-tax increase. Betfair operations in Brazil closed, leaving Betnacional as the sole brand.

Market and Competitive Landscape:

• FanDuel sportsbook GGR market share was 36% and handle market share was 33% in the US for Q3 2026.
• FanDuel iGaming GGR market share was 27% in the US for Q3 2026.
• Flutter holds a 32% online market share in Italy, up 2 percentage points YoY.
• Flutter is the largest online gambling business with number one positions in many of the world's most attractive betting and gaming markets.
• Competition in US iGaming is described as having "competitive dynamics" and the market is moving through the maturity curve.
• Prediction market operators are increasing marketing spend, impacting Flutter's media costs.

Risks and Challenges:

• Regulatory uncertainty in Brazil following the Provisional Measure banning sports betting and iGaming.
• Adverse sports results impacted revenue and adjusted EBITDA in both US and International segments.
• UK remote gaming duty increased from 21% to 40%, driving a 280bps reduction in International adjusted EBITDA margin.
• Legal loss contingencies increased by $105 million due to a Class Action lawsuit in Australia.
• Foreign exchange losses of $40 million impacted other income, net.
• Regulatory changes in India led to the closure of Junglee and real money gaming operations in August 2025.

Management Commentary and Tone:

• CEO Dan Taylor stated that the business enters its next phase from a position of strength but needs to simplify operations and move faster.
• Management emphasized four immediate priorities: building on US leadership, capturing the prediction markets opportunity, unlocking value from the International portfolio, and simplifying the operating model.
• Taylor expressed confidence that the US sportsbook improvement plan is delivering early progress in customer engagement and performance.
• Management acknowledged the challenging trading environment in Brazil and the need for disciplined capital deployment until regulatory clarity is achieved.
• The tone reflects a focus on deleveraging the balance sheet and prioritizing organic investment over share repurchases.

Analyst Questions and Answers:

• No specific analyst questions and answers are included in the provided text.

Other Key Points:

• The share repurchase program has been paused for the foreseeable future to prioritize deleveraging.
• Refinancing of the Revolving Credit Facility and Term Loan A was completed, extending maturities to May 2032 and increasing facility size by approximately $240 million.
• Available cash closed at approximately $1.7 billion.
• Total debt increased from $12,266 million at December 31, 2025, to $12,313 million at September 30, 2026.
• Flutter owns 56% of Flutter Brazil.
• Integration of Snai (Italy), Sky Bet (UKI), and PokerStars is unlocking revenue upside with cost benefits expected to exceed $300 million.
• The India market exit resulted in a 12 percentage point impact on International AMPs.