Flutter Entertainment is stepping up investment in prediction markets despite mounting pressure on profitability, as the betting giant positions FanDuel Predicts as a long-term growth driver in the US.
The company said investment losses tied to prediction markets are now expected to remain near the top end of its previously guided $250 million to $300 million adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) range for 2026, even as it cut full-year earnings guidance following weaker first-quarter profitability.
This comes on the backdrop of Flutter lowering its full-year guidance after first-quarter profits fell sharply. The owner of FanDuel, Paddy Power, Betfair and PokerStars reported revenue of $4.30 billion for the three months ended 31 March, up 17 per cent from $3.67 billion a year earlier. But net income dropped 38 per cent to $209 million, while EBITDA rose just 2 per cent to $631 million.
2026 guidance cut after weaker quarter
Flutter now expects full-year 2026 revenue of $18.31 billion and adjusted EBITDA of $2.87 billion at the midpoint, down from previous guidance of $18.4 billion and $2.97 billion, respectively. The company said the revision reflected unfavourable sports results during the quarter, costs linked to the Arkansas launch and changes to PokerStars North America reporting. Even with the downgrade, Flutter still expects 12 per cent revenue growth and 1 per cent adjusted EBITDA growth for the year.
Chief executive Peter Jackson said the company remained confident about its long-term prospects despite the softer outlook. “Flutter’s Q1 performance was encouraging, with Group revenue increasing 17 per cent year-on-year,” Jackson said.“While we made good progress during the quarter, there remains more to do to ensure the improving US sportsbook trends continue.”
FanDuel recovery plan shows early signs of progress
Flutter’s US business generated revenue of $1.76 billion, up 6 per cent year-on-year. Sportsbook revenue rose just 1 per cent, while iGaming revenue climbed 19 per cent as FanDuel continued to benefit from strong casino engagement.
The company said sportsbook growth remained affected by customer churn and weaker recycling trends carried over from late 2025. However, underlying performance improved through the quarter. FanDuel sportsbook customer declines improved from 5 per cent in January to 1 per cent growth in March, while betting handle trends also stabilised.
$FLUT Q1 2026 earnings: Top-Line Holds via M&A, But Earnings Growth Evaporates
— Finsee (@Finsee_main) May 6, 2026
Flutter delivered 17% revenue growth in Q1, heavily supported by international acquisitions (Snai and Betnacional) and resilient iGaming performance. However, the U. S. sportsbook engine stalled… pic.twitter.com/sPxjJcEiiT
The company also announced leadership changes at its US FanDuel brand. Dan Taylor, chief executive of Flutter International, has been appointed president of Flutter Entertainment and will oversee FanDuel. Christian Genetski will now lead the US business after Amy Howe’s departure.
Prediction markets become major investment focus
Flutter said prediction markets remain a key strategic priority despite mounting investment costs. The company expanded FanDuel Predicts nationwide during the quarter across financial, economic and commodities contracts, while sports contracts are now available in 18 non-sportsbook states, including California, Texas and Florida.
At the start of April, Flutter launched its “One App” experience, allowing customers in sportsbook states to access betting products, while users in non-regulated states can use prediction markets through the same FanDuel app. Flutter said it had also begun trialling market-making services on a third-party prediction market platform, with a wider rollout expected later this year.
Jackson said the company viewed prediction markets as “a very attractive, incremental opportunity”. Adding that, “Our in-house expertise and capabilities place us in a strong position to capitalise on this opportunity in the long term,” he said.
International business growth
International revenue rose 27 per cent to $2.54 billion, supported by acquisitions including Snai in Italy and Betnacional in Brazil. Southern Europe and Africa delivered the strongest regional performance, with revenue rising 110 per cent due to the Snai acquisition and continued momentum in Italy and Türkiye.
In the UK and Ireland, iGaming revenue grew 14 per cent, supported by strong performances from Paddy Power, Tombola and Betfair. Flutter also warned that higher UK gambling taxes, introduced in April, could push some consumers towards unregulated operators. In APAC, Flutter reported modest growth in sportsbook customers and betting handle, while racing performance improved compared with expectations. Central and Eastern Europe revenue rose 14 per cent.
Cash flow improves despite earnings pressure
Despite weaker profitability, Flutter reported stronger cash generation during the quarter. Net cash provided by operating activities increased 76 per cent to $330 million, while free cash flow rose 74 per cent to $153 million.
Average monthly players across the group fell 3 per cent to 14.4 million, mainly due to Flutter’s exit from the Indian market. Looking ahead, Flutter said trading in April was in line with expectations across both its US and international businesses, while management said organisational changes would help position the company for its “next phase of growth”.
Q4 2025 results and lawsuits
For the forth quarter of 2025, Flutter Entertainment reported robust growth even as it withdrew from India’s real-money gaming market and expanded into US prediction markets. Group revenue for the three months to December rose 25 per cent year-on-year to $4.74 billion. The company said the increase was driven largely by mergers and acquisitions, alongside favourable sports results in the United States. Net income fell sharply to $10 million, down from $156 million in the same period a year earlier.
The United States remained the group’s main engine of growth. Revenue in the US market rose 33 per cent in the quarter. While expanding in the US, Flutter wound down operations from India following the enactment of the Promotion and Regulation of Online Gaming Act, 2025. The legislation required operators to halt real-money gaming services immediately.
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