The reported quarter was roughly in line, not a material upside surprise. Revenue of $4.326bn was close to the published consensus of roughly $4.35bn, while adjusted EPS of $0.49 matched one published consensus measure; US adjusted EBITDA of $119m was modestly ahead of the roughly $113m Street expectation cited before the release. That narrow operational outperformance is overshadowed by much weaker year-on-year profitability: group adjusted EBITDA fell 45% and the adjusted EBITDA margin compressed 1,020 basis points to 11.7%. (Key financial highlights; Segment results table)
| Metric | Q2 2026 | Q2 2025 | Versus expectation / prior outlook |
|---|---|---|---|
| Revenue | $4.326bn | $4.187bn | +3%; roughly in line with published consensus of about $4.35bn (Key financial highlights) |
| Adjusted EPS | $0.49 | $2.95 | Roughly in line with a published $0.49 consensus; down 83% year over year (Key financial highlights; Adjusted EPS reconciliation) |
| Group adjusted EBITDA | $508m | $919m | -45%; margin fell to 11.7% from 21.9% (Key financial highlights; Adjusted EBITDA reconciliation) |
| US revenue / adjusted EBITDA | $1.683bn / $119m | $1.791bn / $400m | Revenue -6%; EBITDA -70%, despite a modest EBITDA beat versus pre-release expectations (Segment results table) |
| FY26 group revenue guidance midpoint | $17.91bn | Prior: $18.305bn | Cut by $395m, entirely from the US outlook (Updated 2026 guidance) |
| FY26 group adjusted EBITDA guidance midpoint | $2.655bn | Prior: $2.865bn | Cut by $210m; US midpoint now $760m versus $970m (Updated 2026 guidance) |
The real negative is a second US reset, not the headline loss. Management lowered full-year US revenue guidance by $395m and US adjusted EBITDA by $210m. The company attributes most of the reduction to approximately $385m of incremental investment to improve FanDuel’s sportsbook proposition and accelerate customer momentum, plus a more cautious view of market growth and a one-week NFL schedule shift. In plain terms: Flutter is choosing to spend more now because its US sportsbook recovery is not strong enough to support the former profit outlook. (Guidance; US update)
Underlying US indicators improved sequentially, but the current economics deteriorated sharply. US AMPs rose 9% and handle rose 2%, while iGaming revenue grew 14%; yet sportsbook revenue fell 15%, net revenue margin declined 170 basis points, and sales and marketing expense jumped 61%. Some of that was sports-result timing and FIFA World Cup spending, but the filing also confirms increased promotional generosity and prediction-market investment. The market had already been focused on the FanDuel turnaround; this filing extends the time and spending required for it. (US update; Segment results table)
International held its outlook, but cannot offset the US profitability shortfall. International revenue grew 10% reported and 4% organically, and its full-year revenue and adjusted EBITDA guidance remained unchanged. But quarterly International adjusted EBITDA still fell 19%, pressured by the UK gaming-tax increase and World Cup marketing. Stable International guidance limits the breadth of the reset, but it does not replace the $210m cut to the group EBITDA outlook. (International update; Guidance)
Cash flow and leverage make the lower-profit outlook more consequential. Operating cash flow held near flat at $363m and ordinary free cash flow increased to $189m, but free cash flow including financing capex and excluding player-fund movements dropped 56% to $125m. Net debt was $10.48bn and leverage rose to 4.3x from 3.7x at year-end, leaving less near-term flexibility while the company funds a larger US investment program. (Key financial highlights; Capital structure; Free cash flow reconciliation)
The CEO change adds a separate transition risk rather than fixing the earnings issue. Peter Jackson will hand the CEO role to Dan Taylor on October 1, 2026. Taylor is an internal successor, which reduces disruption relative to an external search, but the handover arrives as Flutter is resetting US profitability and committing to more competitive spending. (CEO Transition; US update)
Read the original 8-K on SEC EDGAR ↗