Flutter, 2025 revenues at 16.4 billion (+17%) but share price falls due to weakness in the US
The accounts also showed that adjusted EBITDA increased by 21% to EUR 2.85bn. The International region (and Southern Europe) did well, but modest earnings growth in the US weakened the 2026 guidance and weighed down the list, which lost 14% in New York by the end of the day on Friday
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A positive 2025, with growing revenues and a region, Southern Europe (in which Italia is also included), that performed above expectations. However, difficulties in the US market, which forecast modest profit growth for 2026, well below analysts' expectations, weakened theguidance. As a result, the stock, which is listed on Wall Street, lost 14 per cent to $106.14 per share at the end of the day.
The Numbers of 2025
On a year-to-date basis, revenues of Flutter Entertainment - the world leader in online sports betting and iGaming - reached $16.4 billion, up 17 per cent, partly due to the contribution of acquisitions. Adjusted EBITDA increased by 21% to USD 2.85 billion, with a margin of 17.4%. The net result for the year, however, showed a loss of USD 407 million, compared to a profit of USD 162 million in 2024, mainly due to a non-cash impairment charge of USD 556 million as a result of new legislation introduced in India. Earnings per share stood at -$1.75, while adjusted earnings per share rose to $7.94. Operating cash flow reached 1.18 billion and free cash flow stood at 407 million. The leverage ratio stood at 3.7 times, or 3.6 times including Snai, reflecting strategic acquisitions completed in the US, Italia and Brazil. During the year, the Group also returned $1 billion to shareholders.
Looking at the "International" segment, which posted an overall revenue of $2.5 billion, it is the SEA (South Europe & Africa) area's revenues that prevailed and amounted to 898 million, up 105% (+23% excluding M&A operations). While the segment's adjusted EBITDA increased by 6%, to 588 million.
Sisal, Flutter explained in a note, also consolidated its leadership position in the fast-growing iGaming market in Italia, supported by the integration of Flutter's proprietary "casino" content and the PokerStars and Tombola migrations. The migration of the PokerStars Italy platform produced very encouraging results, with revenue growth of 13% and more than doubled volumes of new customers in Q4 year-on-year, thanks to the combination of the Sisal and PokerStars liquidity pools, with further benefits expected from the future integration of Snai. The integration of the Snai business is also progressing well. Customer acquisition initiatives led to historic record levels of AMPs in iGaming and enabled Snai to end the year with revenue growth.
"We expect to migrate Snai's online customers to the SEA platform in the first half of 2026, which will enable rapid expansion of Snai's brand offering, leveraging the full range of Flutter Edge products and capabilities," the company's note further explained.
The difficulties in the US market
Flutter, through its US company FanDuel, is also the market leader in the US with 41 per cent. However, looking ahead to 2026, management points out that in the US the current trend reflects the impact on engagement levels of the particularly high margins recorded in the second half of the fourth quarter, as well as a less engaging phase of the NFL season. Indeed, forecasts are for modest earnings growth for 2026, of just 4%, to $2.97 billion, well below the $3.5 billion expected by analysts. The stock suffered yesterday, dropping 15 per cent on Wall Street. Adjusted earnings fell to $1.74 per share, Flutter said on Thursday, one cent below Wall Street estimates. Revenues, at $4.74 billion, were also lower than analysts' forecasts. The NFL season has been a disappointment for bettors, resulting in reduced activity for FanDuel. In the second half of the season, fewer favourite teams made the playoffs, which meant there were also fewer players prompting bettors to bet.
But that is not all. In the US, the popularity of so-called 'prediction markets' is growing. These are platforms where users buy and sell 'contracts' based on future outcomes of events of any kind: political, sporting, economic. The price of each contract reflects the market's perceived probability of the expected outcome. Thanks to smart contracts, the management of bets, the closing of markets and the distribution of winnings take place automatically, without a central intermediary, as may be the case with financial exchanges or online betting platforms.
