Flutter Entertainment cuts 2026 guidance after $1.15bn Q3 loss

Flutter Entertainment recorded a net loss of $1.15 billion in the third quarter of 2026 and downgraded its full-year guidance on 5 November 2026. The group cut its 2026 revenue forecast to $17.61 billion and its adjusted EBITDA guidance to $2.49 billion, after being hit by restrictions in Brazil, higher taxes and worse-than-expected sporting outcomes.

FanDuel performance and the cost of growth

[FanDuel](/sports) continued to add customers in the United States during the quarter, but profitability was eroded by higher marketing spend and investment in prediction markets. US revenue rose 6% to $1.46 billion, supported by 8% growth in iGaming and a 4% increase in sports-betting revenue. sports-betting handle rose 13% and the number of sportsbook bets grew 15%.

Despite revenue growth, US adjusted EBITDA fell 94% to just $3 million, partly due to investment in FanDuel Predicts and the July launch of FanDuel in Alberta, Canada. The prediction-markets business reported 66,000 average monthly players, up 39% from Q2, and attracted 140,000 additional customers in October.

Dan Taylor, who replaced Peter Jackson as chief executive on 1 October, said the increase in marketing spend is broad: the industry increased media spend by more than 60% in September and more than 50% in October, driven largely by operators in prediction markets.

"It also puts pressure on some of our share of voice, and we need to be disciplined about how we spend our marketing dollars," Taylor said.

Average monthly players in the US rose 12%, including 24% growth in iGaming. FanDuel sportsbook players grew 9%, although promotional spend capped revenue gains.

Planned savings and restructuring

Taylor announced an additional target of $500 million of gross savings in operating costs and capital expenditure by 2029, separate from restructuring programmes already underway. The company plans to achieve those savings through artificial intelligence, simplification of technology systems and organisational changes. "The next phase of Flutter will be more streamlined, to maximise the benefits of scale and ensure we can do non-customer-facing work once," Taylor said. The measures relate to ongoing [restructuring](/b2b) programmes.

Existing programmes include actions affecting up to 1,400 employees in the UK, Ireland, Portugal and Romania, and the closure of Sky Bet’s operation in Malta. Taylor said he will prioritise investment in existing businesses and debt reduction; share buybacks will stay paused while the group works towards a leverage ratio of 2 to 2.5 times in roughly two years.

Brazil and impairment charges

The Brazilian government introduced a provisional ban on sports betting and online casino gaming in September that hit Flutter. The company suspended its operations in Brazil on 26 September and closed its local Betfair business, keeping Betnacional as the remaining brand for any potential re-entry under changed rules. The regulatory action is covered in our [regulation](/regulation) section.

The measure contributed $873 million in non-cash impairment charges, including $537 million after tax attributable to Flutter via its 56% ownership of Flutter Brazil. Flutter had built the business under a $356 million deal with Betnacional owner NSX Group in 2025. Taylor said the company has stopped discretionary, uncommitted spending and remains ready to return if regulatory conditions change.

International results and guidance adjustments

Outside Brazil, Flutter recorded revenue growth in several regions: UK & Ireland rose 4% to $889 million; Southern Europe and Africa grew 13% to $836 million; Central and Eastern Europe increased 10% to $166 million. Asia Pacific fell 4% to $349 million after the closure of the real-money gaming market in India.

International adjusted EBITDA fell 14%, and the increase in the remote gaming tax in the UK from 21% to 40% raised costs. Group-wide, revenues rose 2% to $3.87 billion, versus analyst expectations of about $4 billion; adjusted EBITDA fell 25% to $360 million.

Flutter also recorded an additional $105 million in provisions for legal losses related to a class action in Australia. The quarterly net loss widened from $789 million in Q3 2025 to $1.15 billion.

The company now expects full-year revenues of $17.61 billion, $300 million below the prior midpoint, and reduces adjusted EBITDA guidance by $160 million to approximately $2.49 billion. For 2026 it expects US revenues of $7.34 billion and adjusted EBITDA of $715 million. It also assumes a cost of sales of about 58% of revenues through 2027. Flutter shares have fallen more than 60% since early 2026 as management continues to reassess costs and investment priorities.