REG - FlutterEntertainment - Q3 2025 Update
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RNS Number : 3316H Flutter Entertainment PLC 13 November 2025
New York, November 12, 2025: Flutter Entertainment plc (NYSE: FLUT; LSE: FLTR)
("Flutter") the world's leading online sports betting and iGaming operator
today announces Q3 results, updated 2025 guidance, and the launch of "FanDuel
Predicts" in December.
Key financial highlights:
In $ millions except where stated otherwise Three months ended September 30,
2025 2024 YOY
Average monthly players (AMPs) ('000s')(1) 14,133 12,920 +9%
Revenue 3,794 3,248 +17%
Net loss (789) (114) (592)%
Net loss margin (20.8)% (3.5)% (1,730)bps
Adjusted EBITDA(2) 478 450 +6%
Adjusted EBITDA margin(2) 12.6% 13.9% (130)bps
Loss per share ($) (3.91) (0.58) (574)%
Adjusted earnings per share ($)(2) 1.64 1.27 +29%
Net cash provided by operating activities 209 290 (28)%
Free Cash Flow(2) 25 112 (78)%
Leverage ratio(2) (December 2024 2.2x) 4.0x
Leverage ratio including Snai(2) 3.7x
Overview
• Solid Group Q3 performance with AMPs +9% and revenue +17% year-over-year
reflecting the benefit of Snai and Betnacional acquisitions ("M&A"),
combined with excellent organic iGaming growth which offset the impact of
customer-friendly sports results
• US:
• Revenue +9% year-over-year led by strong, product-driven iGaming revenue
growth of 44%
• Sportsbook AMP growth accelerated to 5% (Q2: -4%). Sportsbook revenue was -5%
year-over-year due to the temporary impacts of sports results, and very high
levels of uneconomic generosity from sportsbook competitors at NFL season
start, leading to Q3 Adjusted EBITDA of $51m, -12% year-over-year
• In response, increased FanDuel investment during Q4 has been effective, with
year-over-year handle growth +10% Q4 to date, and the NBA season off to a
strong start
• FanDuel Predicts, a new prediction market product which will include sports in
states without access to regulated sports betting, to launch in December.
Capitalizing on FanDuel's strong brand presence and CME Group's exchange
capabilities, with strategic investment to expand the FanDuel customer
ecosystem
• International:
• Revenue +21% and adjusted EBITDA of $505m, +10% year-over-year including the
benefit of M&A
• Organic iGaming revenue +10%, with strong SEA iGaming growth offsetting the
impact of previously announced regulatory changes in India3
• Organic Sportsbook revenue -6% due to the impacts of a strong European
Football Championships ("Euros") and bookmaker friendly results in the prior
year
• Group Q3 adjusted EBITDA grew 6% and adjusted EBITDA margin declined 130bps,
driven by the factors detailed above. This, combined with the benefit of
non-controlling interest credits, contributed to adjusted earnings per share
+29% to $1.64
• Group Q3 net loss of $789m was $675m higher year-over-year due to the non-cash
impairment charge of $556m triggered by Indian regulation changes3, and the
previously communicated $205m payment to Boyd to revise US market access
terms4 ("Boyd payment"). As a result, net loss margin and loss per share were
20.8% and $3.91 respectively
• Net cash provided by operating activities and free cash flow in Q3 declined by
28% and 78% respectively, due to the Boyd payment
Updated full year 2025 guidance
Q4 has started well on an underlying basis. In the US, FanDuel's increased
customer acquisition and retention investment in Q4 is proving effective with
continued player momentum and year-over-year handle growth stepping up to 10%
quarter to date with the NBA season off to a strong start. Sports results,
however, have been customer friendly across the Group with an adjusted EBITDA
impact of approximately $170m from October 1, through November 9, 2025(6).
2025 outlook(5) is therefore primarily updated to include the impact of: (i)
Q3 performance, (ii) Q4 sports results(6), (iii) Q4 sportsbook investment,
(iv) FanDuel Predicts investment(7), (v) tax costs associated with the
Illinois wager fee which we are now treating as taxable, and (vi) Indian
regulatory change
Group revenue is now expected to be $16.69bn with adjusted EBITDA of $2.915bn
at the midpoint. This reflects a reduction from previous guidance of $570m and
$380m in revenue and adjusted EBITDA expectations respectively, with updated
guidance now representing 19% and 24% year-over-year growth.
Peter Jackson, CEO, commented:
"Flutter delivered a solid third quarter, with continued momentum in both our
US and International businesses. We are the clear number one operator in the
US, and we will continue to build on that position to drive future
profitability. Our strategic investments, including the launch of FanDuel
Predicts and recent International acquisitions, position us exceptionally well
to capture new opportunities and deliver sustainable, profitable growth. Our
diversified portfolio and disciplined approach give me great confidence in our
ability to lead the industry and increase long-term value for shareholders."
To our shareholders
Flutter delivered a solid Q3 performance with AMP growth of 9%, revenue
increasing 17% and adjusted EBITDA 6% ahead year-over-year. These results
reflect the positive impact of our recent Snai and Betnacional acquisitions,
as well as excellent organic iGaming growth which helped offset
customer-friendly sports results. The Group reported a net loss of $789m for
the quarter compared to $114m in the prior year, primarily due to the impact
of a non-cash impairment charge relating to regulatory changes in India and
the previously communicated $205m payment to Boyd for improved US market
access terms.
I am really pleased with the strong positioning of Flutter's core business as
we continue to execute in the final quarter of the year. Before sharing more
detail on our Q3 performance and outlook, I first want to present how we are
strategically positioning FanDuel to capture the emerging prediction markets
opportunity. This area has been a source of significant industry discussion
over recent months and I am very excited to announce our expansion into the
market with the launch of "FanDuel Predicts", a new FanDuel branded app which
we expect to launch in December, through our joint venture with the CME Group.
FanDuel Predicts unlocks an immediate growth opportunity by allowing us to
offer a compelling sports product to the vast majority of the US adult
population in states that do not currently have access to sports betting. This
represents a significant incremental addressable market for FanDuel in
addition to our existing sportsbook and iGaming business. We believe this new
sports opportunity lies solely in these states, as prediction markets are
having a negligible impact in the states where FanDuel sportsbook is already
available to customers. FanDuel Predicts will also accelerate acquisition of
customers into the FanDuel ecosystem ahead of the state regulation of sports
betting. Furthermore, the strength of our world-class pricing and risk
management capabilities present potential market-making opportunities which we
continue to assess.
We are exceptionally well positioned to harness this growth opportunity. We
have a powerful combination of assets enabled through our strategic
partnership with CME Group, who have a long track record of operating the
world's leading derivatives marketplace, together with FanDuel's nationwide
brand presence and sports betting expertise, which has already successfully
delivered a position as the clear leader in sports betting. Our extensive
experience operating the Betfair Exchange within the Flutter Group also equips
us with a deep understanding of this space.
Our launch strategy has been developed in close consultation with state
regulators and tribal authorities, resulting in a tailored, state-specific
approach that enables us to launch in those states where no local regulation
exists. At launch, FanDuel Predicts will offer sports markets in states
without a current sports betting regulatory framework. Sports markets will
also be restricted to non-tribal lands. This means that a significant
proportion of the US population will soon have access to a brand new FanDuel
sports product, operating with the same high standards regarding customer
protection, know your customer, and anti-money laundering as all our FanDuel
products. A range of financial and cultural markets will also be offered
across virtually all states. In our existing sportsbook and iGaming states our
primary focus will continue to be the state-regulated market and strengthening
our leadership position in our core sports betting and iGaming businesses.
The opportunity to extend the FanDuel footprint into new states is significant
and our aspiration is to be the clear market leader. Our investment will
therefore be meaningful, while maintaining a disciplined approach, a strategy
which has served us so well since the inception of sports betting in the US.
At this early stage, we anticipate incremental EBITDA cost of $40-$50m in Q4
2025 and $200m-$300m in 2026 with the majority arising in H2(7). In line with
our proven investment strategy on sportsbook to date, we will closely monitor
returns with a priority on building value for the future, while also
maintaining the flexibility to accelerate investment where performance
warrants. We believe this will position FanDuel to deliver future growth and
harness the long-term opportunities for our business.
In conclusion, we believe prediction markets present a very significant
incremental growth opportunity for FanDuel, and that their evolution will also
accelerate the path to state-regulated sports betting and iGaming. In the
long-term, we firmly believe that state-regulated sports betting and iGaming
remains the most valuable long-term opportunity in the US. The importance of
having the best quality sports betting product, combined with the ability to
price increasingly complex sports products accurately, cannot be overstated.
These are both areas where Flutter and FanDuel excel. As demonstrated by
international precedent, long-term success in the US gaming sector will be
achieved by those operators with scale positions and the highest quality
sports betting product.
US update
Q3 AMP growth in the US was encouraging at 8% year-over-year, with continued
strong iGaming AMP growth of 30%, and sportsbook AMP growth of 5% representing
an acceleration in year-over-year growth compared to Q2.
FanDuel's revenue performance was underpinned by another very strong iGaming
quarter with revenue growth of 44% delivering a GGR market share of 27% in Q3.
Player frequency continued to grow with over 500 new slots titles added during
the quarter, as access to the proprietary Flutter gaming platform unlocked a
faster pace of content delivery. Exclusive content also continued to resonate
strongly and drive increased customer engagement, with new Wonka and Samurai
titles added in Q3 as well as the latest installment of our Huff and Puff
series. Huff 'N Lots of Puff was our most successful game launch to date,
setting all-time highs in actives and GGR on launch. Our consistent delivery
of innovative and engaging iGaming product features ensures we are well
positioned to capitalize on the long-term opportunity. With population
penetration still well below our long-term expectations, we believe a very
long runway for future growth remains in existing states, before factoring in
any future state legalization.
Turning to sportsbook, and while September and October have been impacted by
customer-friendly NFL sports results, it is still early in the season. We have
complete conviction in our pricing and we remain confident that this
short-term variability of outcomes will revert to expected levels over time.
Higher levels of parlay and SGP penetration ultimately drive higher structural
revenue margin, and we continue to make good progress toward our longer-term
16% structural hold expectation.
The start of the NFL season consistently sees heightened levels of competition
in the market and Q3 this year was even more pronounced than in previous
years. September was characterized by very high levels of competitor customer
generosity, including a range of unsustainable, uneconomic customer offers.
These competitive dynamics resulted in lower than anticipated FanDuel NFL
handle growth and Same Game Parlay (SGP) penetration in the opening weeks of
the season. This impact was transitory in nature, with trends significantly
improved by the start of the fourth quarter as FanDuel's disciplined
investment approach proved effective. Despite this impact in September,
FanDuel's structural advantages ensured we maintained a strong sportsbook
market share, with a 47% net gaming revenue (NGR) share of the online sports
betting market in September(8).
While market competitive intensity has moderated from the NFL season start, it
still remains at elevated levels. FanDuel's scale as the #1 operator in the US
(Q3 GGR share: 38%, Q3 NGR share: 41%), has subsequently enabled us to take
action to strengthen our market leadership. We responded in a strong but
disciplined way at the start of Q4, with increased investment in customer
acquisition and retention, and we have been very pleased with the momentum
that this has driven.
During the quarter we believe the impact from prediction market activity on
our business was negligible, as in regulated states customers continue to
prefer the richer experience provided by regulated sportsbooks. Based on our
analysis, we believe the vast majority of this activity is taking place in
states without sportsbook regulation. We therefore do not see sports
prediction markets as a meaningful challenge in states where regulated
sportsbooks like FanDuel are available.
From a product perspective, the NFL season launch in September was an
important milestone for innovation. FanDuel Futures Day showcased a new,
first-to-market NFL feature enabling customers to create season long SGPs,
driving high levels of parlay engagement. Live betting represents over half of
handle, with further enhancements to our live SGP proposition including
expanded NFL drive offerings. This helped deliver an NFL parlay penetration
increase of 300 bps in the season to date. Our Your Way feature benefited from
the addition of SGP+ capabilities and while this currently remains a separate
sportsbook experience, the underlying next-generation pricing technology now
powers our entire NFL sportsbook pricing and is driving a number of product
improvements. This included an increased range of cashout markets helping
drive a 20% increase in cashout activity.
We have been really pleased with our NBA performance since the season start in
late October. Customer engagement, handle and SGP penetration are all tracking
strongly in the early weeks of the season, giving us confidence that growth
this season is shaping up to be stronger than last year. We are excited to see
what our new strategic NBA partnership with Amazon Prime can unlock including
merchandising integrations, product integrations and in-game virtual signage.
Finally, I wanted to share my thoughts on recent concerns around sports
integrity. This is hugely important to us and something we take very seriously
across the Group. At FanDuel, we use advanced technology and real-time
monitoring to identify suspicious activity and work closely with leagues, data
monitoring groups, and law enforcement to alert them to any suspicious
activity. This highlights the important role the regulated industry plays in
assuring the integrity of these great sports. We will continue to work closely
with all key stakeholders to ensure that effective frameworks are in place to
protect sports integrity, the players and our customers.
International update
The International division delivered 21% year-over-year revenue growth, with
the Snai and Betnacional acquisitions contributing 18 percentage points of the
increase. Organic growth was impacted by the cessation of real-money gaming in
India and a strong prior-year sportsbook performance, which benefited from the
Euros and more favorable sports results. iGaming continued to drive organic
growth in Q3, with exceptional growth in Turkey and positive momentum in
SisaI's Italian online business.
Our focus on the Flutter Edge is delivering innovation across our
International business. In Southern Europe and Africa (SEA), we launched
MyCombo on Sisal, the only full SGP product available in the Italian market,
in time for the start of the Italian soccer season. Customer engagement has
been strong with half of customers placing a MyCombo bet during the first
seven rounds of the season.
The September integration of Flutter Studios into the SEA Italian online
platform has enabled in-house content to be offered to our Italian customers,
with a strong pipeline of future content. In July, we migrated PokerStars
Italian customers to our SEA platform, a key milestone in the PokerStars
transformation which will deliver material savings in 2027 after completion of
the final migration from the existing PokerStars technology stack.
The Snai integration has been progressing well; we have enhanced the iGaming
proposition, optimized retail gaming machines and commission structures, and
increased customer acquisition volumes by deploying Sisal's proven retail
signup program. The migration of Snai customers to the SEA online platform
remains on track for H1 2026, providing increased confidence in our Snai
synergy targets.
In the UK and Ireland (UKI), the successful migration of Sky Bet onto our
shared Flutter UKI platform has enabled delivery of new product and
improvements for our Sky Bet customers. This included the launch of our highly
popular SuperSub offering and the new Squad Bet proposition, powered by our
next-generation pricing capability. Continued roll out of premium content has
also helped drive positive iGaming momentum.
There has been much speculation around potential gaming tax increases in the
upcoming UK budget. We remain engaged with policymakers and expect decisions
will be based on economic merit, taking into account the industry's
substantial contribution to UK tax revenues and employment. Significant
increases to the tax rates would threaten jobs and investment across the UK
market, as well as driving more customers to unregulated operators on the
black market - where there are no player protections and regulatory oversight.
We continue to engage with policymakers and await the outcome in the Budget
later this month, however, should taxes increase, Flutter's growing scale and
market leading position will help to mitigate the impact, and we would likely
benefit from the consolidation of share among sub-scale operators over time.
Brazil is an exciting growth opportunity for Flutter and we retain a strong
conviction that scale operators with the best products will win the largest
share of the market. This quarter, our expanding portfolio of games and more
sophisticated generosity delivered record iGaming revenues. On sportsbook we
will continue to integrate Flutter's in-house pricing capabilities and
generosity functionality to materially elevate the overall customer
proposition ahead of the World Cup next year.
The good progress we are making across the numerous transformation projects
both detailed above and in previous quarters, is helping us deliver further
scale benefits and positions us to deliver enhanced experiences for our
customers. Our cost efficiency drivers go beyond the $300m target we set out
our Investor Day last year, with the redesign of our UKI organizational
structure a good example of an incremental initiative.
Outside of performance during the quarter, the enactment of the Promotion and
Regulation of Online Gaming Act, 2025 forced Junglee and all other operators
to immediately cease real-money operations. We are extremely disappointed with
the sudden and unexpected change to the regulatory landscape in India. Flutter
has invested significantly in India over the last number of years, responsibly
delivering innovative skill-based games to Indian customers. Junglee will now
only offer free-to-play gaming content as we assess our medium-term options in
that market.
Final thoughts and outlook
As I think about the remainder of the year, I am excited to expand our
portfolio in the US to include FanDuel Predicts, harnessing the significant
opportunity for FanDuel in this space. I am also confident that our US market
leadership, and the diversification of our International business will
position us well for the rest of the year and into 2026. We have a strong
platform for executing our capital allocation strategy, with a continued focus
on creating long-term shareholder value.
Sincerely,
Peter Jackson
Flutter CEO
In $ millions unless stated, unaudited US International Group
Three months ended September 30, 2025 2024 YoY 2025 2024 YoY 2025 2024 YoY
Average monthly players ('000s) 3,476 3,211 +8% 10,657 9,709 +10% 14,133 12,920 +9%
Handle 10,653 10,037 +6% 7,902 6,965 +13% 18,555 17,002 +9%
Net revenue margin 7.4% 8.2% (80)bps 12.4% 12.7% (30)bps 9.5% 10.1% (60)bps
Sportsbook revenue 783 822 (5)% 982 887 +11% 1,765 1,709 +3%
iGaming revenue 530 368 +44% 1,369 1,043 +31% 1,899 1,411 +35%
Other revenue 55 60 (8)% 75 68 +10% 130 128 +2%
Total revenue 1,368 1,250 +9% 2,426 1,998 +21% 3,794 3,248 +17%
Cost of sales (824) (737) +12% (1,168) (901) +30%
Technology, research and development expenses (88) (72) +22% (109) (105) +4%
Sales and marketing expenses (307) (277) +11% (413) (347) +19%
General and administrative expenses (98) (106) (8)% (231) (184) +26%
Reportable segment adjusted EBITDA 51 58 (12)% 505 461 +10%
Unallocated corporate overhead(9) (78) (69) +13%
Group adjusted EBITDA 478 450 +6%
Adjusted EBITDA margin 3.7% 4.6% (90)bps 20.8% 23.1% (230)bps 12.6% 13.9% (130)bps
Group
The Group delivered AMP and revenue growth of 9% and 17%, respectively.
Excluding M&A revenue grew 5%. Organic iGaming revenue growth of 19%
year-over-year helped to offset the impact of customer friendly sports
results.
The net loss of $789m for the quarter increased by $675m from $114m in Q3
2024, primarily due to:
• The non-cash, impairment charge of $556m related to the Junglee business as a
result of sudden legislative change which necessitated a shutdown of all
real-money gaming in India indefinitely
• Transaction fees and associated costs of $204m, primarily relating to the
revision of market access terms as part of the Boyd transaction
• A $54m increase in adjusted depreciation and amortization cost to $184m in Q3
2025 (Q3 2024: $130m), primarily due to M&A
• A $107m increase in the non-cash amortization of acquired intangibles to $235m
in Q3 2025 (Q3 2024: $128m) due to M&A and the SkyBet and PokerStars
platform integrations
• A $47m increase in interest expense, net year-over year to $152m (Q3 2024:
$105m)
These were partly offset by:
• A $247m year-over-year non-cash benefit relating to the Fox Option fair value
adjustment with a gain in Q3 2025 of $126m (Q3 2024 loss of $121m)(10)
• A $29m increase in the income tax credit to $45m (Q3 2024 credit of $16m)
primarily driven by a tax benefit associated with the Boyd payment
In addition to the above, the Group benefited from non-controlling interest
credits totaling $99m, primarily relating to the adjustment of Betnacional
losses and the impact of the reduction in Junglee's redemption value. The net
loss attributable to Flutter shareholders was therefore $690m with an
increased loss per share for the quarter of $3.91.
Adjusted EBITDA of $478m grew 6%, with adjusted EBITDA margin 130bps lower,
principally due to the impact of the above detailed performance drivers.
Adjusted earnings per share for the period grew 29% to $1.64 primarily
reflecting the adjusted EBITDA performance above and the impact of the
non-controlling interest credits.
The Group's net cash provided by operating activities, and free cash flow
declined by 28% and 78% respectively, primarily due to the Boyd payment of
$205m. Cashflow also reflected the adjusted EBITDA performance detailed above,
and a year-on-year benefit from derivative settlements of $179m (Q3 2025: $30m
payment, Q3 2024: $209m payment). These were offset by a smaller working
capital inflow year-over-year due to the unfavorable swing in Group sports
results year-over-year from being bookmaker friendly in Q3 2024 to customer
friendly in Q3 2025.
US
US Q3 AMPs of 3.5m grew 8% year-over-year. (Pre-2024 state AMPs +10%, and
pre-2022 state AMPs +11%(11)). Revenue grew 9%, driven by iGaming revenue
growth of 44% offsetting a sportsbook revenue decline of 5%.
Sportsbook revenue performance was driven by handle growth of 6%, offset by a
net revenue margin decline of 80 basis points year-over-year to 7.4%.
The decrease in net revenue margin included:
• Structural revenue margin of 12.9%, 10bps higher than the prior year despite a
lower than anticipated parlay mix at the start of the NFL season. This impact
was transitory and structural revenue margin has subsequently increased back
in line with our expectations
• An adverse sports results impact year-over-year of 90bps (Q3 2025: 10bps
unfavorable, Q3 2024: 80bps favorable). At a revenue level, this translated to
an adverse in-quarter impact in Q3 2025 of $45m
• Promotional spend of 5.4%, which remained in line year-over-year
iGaming revenue grew 44%, underpinned by AMP growth of 30% and an increase in
player frequency year-over-year.
Cost of sales increased by 120bps, driven primarily by the year-over-year
swing in sports results combined with the impact of higher gaming taxes in IL,
LA, NJ, and MD. These impacts were partly offset by the improved market access
terms secured through the Boyd transaction.
Sales and marketing expenses were 11% higher year-over-year in line with plans
to spend a greater proportion of 2025 investment during H2, and increased by
20bps as a percentage of revenue to 22.4% due to the impact of sports results.
Technology, research and development costs were 22% higher year-over-year,
primarily as a result of the scaling of data storage and processing costs and
talent investment. General and administrative costs were 8% lower as we lapped
Missouri referendum costs in the prior year.
Adjusted EBITDA was $51m (Q3 2024 $58m), with a reduction in adjusted EBITDA
margin of 90bps year-over-year driven by the factors detailed above.
International
In $ millions except percentages, unaudited Three months ended September 30,
International revenue by region 2025 2024 YoY YoY CC
UK and Ireland 853 846 +1% (3)%
Southern Europe and Africa 743 370 +101% +93%
Asia Pacific 363 413 (12)% (10)%
Central and Eastern Europe 151 132 +14% +11%
Brazil 87 17 +412% +412%
Other regions 229 220 +4% +1%
International total revenue 2,426 1,998 +21% +19%
Three months ended September 30,
2025 2024 YoY YoY excl M&A
Unaudited Total Total Total Sports iGaming Total Sports iGaming
UK and Ireland 853 846 +1% (7)% +7% +1% (7)% +7%
Southern Europe and Africa 743 370 +101% +114% +94% +19% +6% +24%
Asia Pacific 363 413 (12)% (9)% (35)% (12)% (9)% (35)%
Central and Eastern Europe 151 132 +14% +14%
Brazil 87 17 +412% (18)%
Other regions 229 220 +4% +4%
International revenue(12) 2,426 1,998 +21% +11% +31% +3% (6)% +10%
International adjusted EBITDA 505 461 +10%
International revenue was 21% higher year-over year (up 19% on a constant
currency(13) basis, "cc"), with AMPs 10% higher. International revenue
excluding M&A was 3% higher year-over-year.
Sportsbook revenue was 11% higher year-over-year and down 6% excluding
M&A. Sportsbook handle grew 13% year-over-year and was down 3% excluding
M&A, with the organic performance reflecting a strong 2024 prior-year
comparative period, which contained the Euros, which alone accounted for 4% of
handle in Q3 2024.
Sportsbook net revenue margin decreased by 30bps year-over-year to 12.4%:
• A 20bps reduction in structural revenue margin to 16.3%, primarily due to the
impact of faster growth in regions with currently lower structural revenue
margins including SEA, Brazil and Central and Eastern Europe (CEE)
• An adverse sports results impact year-over-year of 70bps (Q3 2025: 20bps
unfavorable, Q3 2024 50bps favorable)
• A reduction in promotional spend of 60 basis points to 3.7%
Gaming revenue was 31% higher year-over-year and increased by 10% excluding
M&A. Organic growth in SEA of 24% was driven by Sisal Italy online growth
of 46% and Turkey growth of 65%, which more than offset the cessation of
trading in India reflected in Asia Pacific (APAC).
Revenue performance across our International regions year-over-year was as
follows:
• UKI revenue grew 1% (-3% cc). Sportsbook revenue reflected a 6% decline
in handle, primarily due to the Euros in the prior year (8% of prior year
handle), combined with an unfavorable 40bps swing in sports results. iGaming
growth was driven by new content roll-out
• SEA revenue increased 101%, or 19% excluding M&A. Organic sportsbook
revenue growth of 6% was driven by 14% organic sportsbook AMP growth,
offsetting the impact of the Euros in the prior year (4% of prior year
handle). Organic iGaming revenue growth of 24% was driven by (i) Sisal Italy
online, which continues to benefit from Flutter Edge integrations and (ii)
Turkey where an expanding product offering is driving greater online
penetration
• APAC revenue declined 12%, with sportsbook performance in Australia
primarily impacted by a 110bps adverse swing in sports results. Ongoing market
trends in horse racing led to a 5% reduction in sportsbook handle, partially
offset by a 50bps reduction in generosity through more targeted spend
distribution. iGaming reflected the prohibition of real-money gaming and
subsequent cessation of our Indian operations in August
• CEE revenue grew 14%, with proprietary iGaming content and sportsbook
net revenue margin expansion helping deliver a record market share in Georgia
• Brazil revenue grew 412% with Betnacional achieving record iGaming
revenues. Excluding M&A, revenue decreased 18% with Betfair Brazil
continuing to recover from the customer re-registration friction following
introduction of regulation in January
• Other regions revenue was 4% higher reflecting a credit relating to an
historic tax provision this quarter
Adjusted EBITDA increased by 10% year-over-year to $505m and was in line
year-over-year excluding M&A. Adjusted EBITDA margin was 20.8%, a 230bps
reduction, reflective of our investment phase in Brazil.
Cost of sales as a percentage of revenue increased by 300bps to 48.1%, with
the acquisition of Snai and Betnacional contributing 200bps of the increase.
The remaining 100bps organic increase was primarily driven by increased taxes
in CEE and in Betfair Brazil, along with a continued shift in revenue mix in
favor of iGaming, which incurs higher third party costs than sportsbook.
Sales and marketing expenses increased by 19% year-over-year and decreased by
3% excluding M&A. As a percentage of revenue, sales and marketing reduced
by 40bps to 17.0%, benefitting from the growth in SEA and CEE regions where
marketing spend is lower as a percentage of revenue.
Technology, research and development costs were 4% higher year-over-year but
decreased by 4% excluding M&A. General and administrative costs were 26%
higher and increased by 12% excluding M&A with the organic increase driven
by additional investment in SEA, and the lapping of a $18m credit relating to
a historic legal case adjustment in Q3 2024.
Unallocated corporate overhead increased by 13% year-over-year driven by the
transfer of some technology costs from our International division to be
managed and reported centrally within corporate.
Capital structure
Available cash increased $244m year-over-year, closing at approximately
$1.7bn. The change in total debt from $6,736m at December 31, 2024 to $12,099m
at September 30, 2025 reflects financing secured at attractive terms for the
Snai and Betnacional acquisitions, and the purchase of Boyd's 5% interest in
FanDuel for $1.76bn on July 31, 2025. Net debt was $10,602m at the end of Q3
2025, with a leverage ratio(2) of 4.0x at September 30, 2025 (2.2x at December
31, 2024). The leverage ratio would be 3.7x based on the last 12 months
adjusted EBITDA including Snai(2). We continue to expect our leverage to
reduce rapidly given the highly visible and profitable growth opportunities
that exist across the Group. We remain committed to our medium-term leverage
ratio target of 2.0-2.5x.
The share repurchase program continued in Q3 2025, with 770 thousand shares
repurchased in the quarter for a consideration of $225m excluding excise
duties. The authorized Q4 program subsequently completed on November 3, 2025,
with the repurchase of a further 1.02 million shares for a consideration of
$245m. This brings the total cash returned to shareholders since the beginning
of the share repurchase program to $1.12bn, of a total of $5bn to be returned
over the coming years, representing 2% of Flutter's issued share capital(14).
The program will continue into 2026, with a Q1 2026 repurchase of up to $250m.
Guidance
Q4 has started well on an underlying basis. In the US, FanDuel's increased
customer acquisition and retention investment in Q4 is proving effective with
continued player momentum and year-over-year handle growth stepping up to 10%
quarter to date with the NBA season off to a strong start. Sports results,
however, have been customer friendly across the Group with an adjusted EBITDA
impact of approximately $170m from October 1, through November 9, 2025(6).
2025 outlook(5) is therefore primarily updated to include the impact of: (i)
Q3 performance, (ii) Q4 sports results(6), (iii) Q4 sportsbook investment,
(iv) FanDuel Predicts investment(7), (v) tax costs associated with the
Illinois wager fee which we are now treating as taxable, and (vi) Indian
regulatory change
The reduction to the midpoints of our previous guidance are summarized in the
table below:
US International Corporate Group
($ in millions) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Adjusted EBITDA Revenue Adjusted EBITDA
US existing states 7,610 1,315
US new states (30) (70)
Previous Guidance 7,580 1,245 9,680 2,300 (250) 17,260 3,295
Q3 trading (110) (30) 20 (110) (10)
Q3 sports results(6) (45) (30) (60) (40) (105) (70)
Q4 sports results(6) (205) (150) (30) (20) (235) (170)
Q4 sportsbook investment (50) (40) (50) (40)
Q4 Predictions investment(7) (45) 0 (45)
IL wager fee tax (15) 0 (15)
India (70) (30) (70) (30)
Cost transfer 10 (10) 0 0
Change (410) (310) (160) (60) (10) (570) (380)
Revised Guidance(5) 7,170 935 9,520 2,240 (260) 16,690 2,915
US existing states 7,200 1,005
US new states (30) (70)
Our updated outlook for 2025 now includes the following midpoints:
Group: revenue and adjusted EBITDA of $16.69bn and $2.915bn, representing 19%
and 24% year-over-year growth, respectively.
US: revenue and adjusted EBITDA of $7.17bn and $935m, representing
year-over-year growth of 24% and 84%, respectively.
This comprises guidance for both existing and new states as follows:
• Existing states revenue of $7.200bn and adjusted EBITDA of $1.005bn, with
year-over-year growth of 24% and 98%, respectively, reduced from previous
guidance due to the factors outlined in the table above
• New states: negative revenue of $30m and an adjusted EBITDA cost of $70m
International: revenue and adjusted EBITDA of $9.52bn and $2.24bn,
representing year-over-year growth of 15% and 8%, respectively.
Unallocated corporate overhead: cost guidance of $260m due to a movement of
costs from International.
Other items: unchanged from Q2 guidance.
Updated 2025 guidance Previous guidance
Low Midpoint High Midpoint
Group revenue $16.39bn $16.69bn $16.99bn $17.26bn
Group adjusted EBITDA $2.765bn $2.915bn $3.065bn $3.30bn
US existing state revenue $7.04bn $7.20bn $7.36bn $7.61bn
US existing state adjusted EBITDA $0.925bn $1.005bn $1.085bn $1.315bn
US new states revenue cost Approximately $(30)m ($30m)
US new states adjusted EBITDA Approximately $(70)m ($70m)
US total revenue $7.01bn $7.17bn $7.33bn $7.58bn
US total adjusted EBITDA $0.855bn $0.935bn $1.015bn $1.245bn
International revenue $9.38bn $9.52bn $9.66bn $9.68bn
International adjusted EBITDA $2.17bn $2.24bn $2.31bn $2.30bn
Unallocated corporate overhead Approximately $(260)m $(250)m
Interest expense, net $525m $535m $545m $535m
Depreciation and amortization excl. acquired intangibles Approximately $670m $670m
Non-controlling interests credit(15) Approximately $120m N/A
Capital expenditure(16) Approximately $820m $820m
Share repurchases $1bn $1bn
Guidance is provided (i) on the basis that sports results are in line with our
expected margin for the remainder of the year, (ii) at stated foreign exchange
rates(17) and (iii) on the basis of a consistent regulatory and tax framework
except where otherwise stated.
A reconciliation of our forward-looking non-GAAP financial measures to the
most directly comparable GAAP financial measure cannot be provided without
unreasonable effort. This is due to the inherent difficulty of accurately
forecasting the occurrence and financial impact of the adjusting items
necessary for such a reconciliation to be prepared of items that have not yet
occurred, are out of our control, or cannot be reasonably predicted.
Conference call:
Flutter management will host a conference call today at 4:30 p.m. ET (9:30
p.m. GMT) to review the results and be available for questions, with access
via webcast and telephone.
A public audio webcast of management's call and the related Q&A can be
accessed by registering here (https://events.q4inc.com/attendee/395837962) or
via www.flutter.com/investors. For those unable to listen to the live
broadcast, a replay will be available approximately one hour after the
conclusion of the call. This earnings release and supplementary materials will
also be made available via www.flutter.com/investors.
Analysts and investors who wish to participate in the live conference call
must do so by dialing any of the numbers below and using conference ID 20251.
Please dial in 10 minutes before the conference call begins.
+1 888 500 3691 (North America)
+44 800 358 0970 (United Kingdom)
+353 1800 943926 (Ireland)
+61 1800 519 630 (Australia)
+1 646 307 1951 (International)
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements reflect
our current expectations as to future events based on certain assumptions and
include any statement that does not directly relate to any historical or
current fact. These statements include, but are not limited, to statements
related to our expectations regarding the performance of our business, our
financial results, our operations, our liquidity and capital resources, the
conditions in our industry and our growth strategy (including our plans and
expectations related to new product offerings). In some cases, you can
identify these forward-looking statements by the use of words such as
"outlook," "believe(s)," "expect(s)," "potential," "continue(s)," "may,"
"will," "should," "could," "would," "seek(s)," "predict(s)," "intend(s),"
"trends," "plan(s)," "estimate(s)," "anticipates," "projection," "goal,"
"target," "aspire," "will likely result," and or the negative version of these
words or other comparable words of a future or forward looking nature. Such
forward-looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause actual
outcomes or results to differ materially from those indicated in these
statements. Such factors include, among others: Flutter's ability to
effectively compete in the global entertainment and gaming industries; Adverse
changes to the regulation (including taxation) of online betting and iGaming;
Flutter's ability to retain existing customers and to successfully acquire new
customers; Flutter's ability to accurately determine the odds in relation to
any particular event exposes us to trading, liability management and pricing
risk; Flutter's ability to develop new product offerings; Flutter's ability to
successfully acquire and integrate new businesses; Flutter's ability to
maintain relationships with third-parties; Flutter's ability to maintain its
reputation; Public sentiment towards online betting and iGaming generally; The
potential impact of general economic conditions, including inflation, tariffs
and/or trade disputes, fluctuating interest rates and instability in the
banking system, on Flutter's liquidity, operations and personnel; Flutter's
ability to obtain and maintain licenses with gaming authorities; The failure
of additional jurisdictions to legalize and regulate online betting and
iGaming; Flutter's ability to comply with complex, varied and evolving U.S.
and international laws and regulations relating to its business; Flutter's
ability to raise financing in the future; Flutter's success in retaining or
recruiting officers, key employees or directors; Litigation and the ability to
adequately protect Flutter's intellectual property rights; The impact of data
security breaches or cyber-attacks on Flutter's systems; and Flutter's ability
to remediate material weaknesses in its internal control over financial
reporting.
Additional factors that could cause the Company's results to differ materially
from those described in the forward-looking statements can be found in Part I,
"Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2024 filed with the Securities and Exchange
Commission (the "SEC") on March 4, 2025 and other periodic filings with the
SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly,
there are or will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these statements. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included in the
Company's filings with the SEC. The Company undertakes no obligation to
publicly update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as required by
law.
About Flutter Entertainment plc
Flutter is the world's leading online sports betting and iGaming operator,
with a market leading position in the US and across the world. Our ambition is
to leverage our size and our challenger mindset to change our industry for the
better. By Changing the Game, we believe we can deliver long-term growth while
promoting a positive, sustainable future for all our stakeholders. We are
well-placed to do so through the distinctive, global advantages of the Flutter
Edge, which gives our brands access to group-wide benefits, as well as our
clear vision for sustainability through our Positive Impact Plan.
Flutter operates a diverse portfolio of leading online sports betting and
iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet,
PokerStars, Paddy Power, Sisal, Snai, tombola, Betfair, MaxBet, Junglee Games,
Adjarabet and Betnacional. We are the industry leader with $14,048m of revenue
globally for fiscal 2024, up 19% YoY, and $3,794m of revenue globally for the
quarter ended September 30, 2025.
Contacts:
Investor Relations: Media Relations:
Paul Tymms, Investor Relations Kate Delahunty, Corporate Communications
Ciara O'Mullane, Investor Relations Lindsay Dunford, Corporate Communications
Chris Hancox, Investor Relations Rob Allen, Corporate Communications
Email: investor.relations@flutter.com Email: corporatecomms@flutter.com
Notes
1 Average Monthly Players ("AMPs") is defined as the average over the applicable
reporting period of the total number of players who have placed and/or wagered
a stake and/or contributed to rake or tournament fees during the month. This
measure does not include individuals who have only used new player or player
retention incentives, and this measure is for online players only and excludes
retail player activity. In circumstances where a player uses multiple product
categories within one brand, we are generally able to identify that it is the
same player who is using multiple product categories and therefore count this
player as only one AMP at the Group level while also counting this player as
one AMP for each separate product category that the player is using. As a
result, the sum of the AMPs presented at the product category level is greater
than the total AMPs presented at the Group level. See Part II, "Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations-Key Operational Metrics" of Flutter's Annual Report on Form 10-K
for the year ended December 31, 2024 filed with the SEC on March 4, 2025 for
additional information regarding how we calculate AMPs data, including a
discussion regarding duplication of players that exists in such data.
2 Adjusted EBITDA, adjusted EBITDA margin, last twelve months adjusted EBITDA
including Snai, Free Cash Flow, net debt, leverage ratio, leverage ratio
including Snai, constant currency, adjusted net income attributable to Flutter
shareholders and adjusted earnings per share are non-GAAP financial measures.
See "Definitions of non-GAAP financial measures" and "Reconciliations of
Non-GAAP Financial Measures" sections of this announcement for definitions of
these measures and reconciliations to the most directly comparable financial
measures calculated in accordance with GAAP. Due to rounding, these numbers
may not add up precisely to the totals provided.
3 The non-cash impairment relating to the cessation of real-money gaming in
India of $556m is comprised of goodwill of $517m, acquired and developed
intangibles of $32m and other long-lived assets of $7m. The impairment charge
exceeds the cash total consideration paid to acquire a 95% ownership interest
the Junglee business ($237m) as a result of the re-allocation of total
International goodwill following the re-segmentation of the Flutter group at
the start of 2025, as required by US GAAP. The goodwill attributed to Junglee
reflects the exceptional performance of the business at the time. The
impairment charge will not result in any current or future cash expenditure
and does not impact adjusted EBITDA
The cessation of real-money gaming in India will have the following adverse
impact on the future results of the APAC region within the International
division, compared to management expectations prior to the cessation of
operations:
• 2025: Revenue -$70m, EBITDA -$30m
• 2026: Revenue -$250m, EBITDA -$90m
• 2027: Revenue -$310m, EBITDA -$130m
4 On July 10, 2025 Flutter announced the extension of its long-term strategic
partnership with Boyd Gaming Corporation ("Boyd") to 2038 and the buyout of
Boyd's 5% stake in FanDuel Group. The strategic benefits of the transaction
provided an increase in Flutter's ownership in the number 1 sports betting and
iGaming operator in the US, FanDuel, as well as securing significantly reduced
market access costs expected to translate to annual savings of $65m beginning
July 1, 2025. Consideration comprised approximately $1.553bn attributable to
the acquisition of Boyd's 5% stake in FanDuel and $205m attributable to the
revision of various existing commercial terms. The amount of $205m is included
in the income statement and as a cash outflow within net cash provided by
operating activities during Q3 2025.
5 A reconciliation of our forward-looking non-GAAP financial measures to the
most directly comparable GAAP financial measure cannot be provided without
unreasonable effort. This is due to the inherent difficulty of accurately
forecasting the occurrence and financial impact of the adjusting items
necessary for such a reconciliation to be prepared of items that have not yet
occurred, are out of our control, or cannot be reasonably predicted.
6 Impact of US sports results:
• YTD through Nov 9: revenue $390m unfavorable, adjusted EBITDA $260m
unfavorable
• Q4TD through Nov 9: revenue $205m unfavorable, adjusted EBITDA $150m
unfavorable
• Q3: revenue $45m unfavorable, adjusted EBITDA $30m unfavorable
• Q2: revenue $90m favorable, adjusted EBITDA $70m favorable
• Q1: revenue $230m unfavorable, adjusted EBITDA $150m unfavorable
International Q3 impact reflects the impact of August and September sports
results. The benefit of sports results for July year to date was included in
International Q2 guidance. International Q4 impact reflects the impact of
sports results through Nov 9.
7 Investment represents expected adjusted EBITDA impact of FanDuel Predicts, for
FanDuel only. FanDuel will consolidate the results of FanDuel Predicts fully
in its reported results. Under the terms of the partnership with CME Group,
CME Group will receive a revenue share of approximately 50% of the gross
revenue generated by FanDuel Predicts, before deduction of promotional spend.
This revenue share cost will be accounted for in cost of sales. FanDuel will
bear 100% of costs to support the FanDuel Predicts mobile app (promotional
costs, sales and marketing, and non-exchange related cost of sales). CME Group
will bear all costs to support the exchange.
8 US market position based on available market share data for states in which
FanDuel is active. Online sportsbook market share is the gross gaming revenue
(GGR) and net gaming revenue (NGR) market share of our FanDuel brand for the
three months to September 30, 2025 in the states in which FanDuel was live
(excluding Tennessee as they no longer report this data), based on published
gaming regulator reports in those states. iGaming market share is the GGR
market share of FanDuel for the three months to September 30, 2025 in the
states in which FanDuel was live, based on published gaming regulator reports
in those states. US iGaming GGR market share including PokerStars US (which is
reported in the International segment) for the three months to September 30,
2025 was 28%.
9 Unallocated corporate overhead includes shared technology, research and
development, sales and marketing, and general and administrative expenses that
are not allocated to a specific segment.
10 Fox has an option to acquire an 18.6% equity interest in FanDuel (the Fox
Option). Gains or losses in the fair
value of the Fox Option primarily due to changes in the fair value of FanDuel
during the reporting period are
recorded in Other income (expense), net. See Part II, "Item 8. Financial
Statements and Supplementary Data-Fair Value Measurements" of Flutter's Annual
Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on
March 4, 2025 for additional information regarding the Fox Option.
11 US analysis by state cohort includes relevant states and provinces by FanDuel
launch date and relates to online sportsbook and iGaming only. Pre-2024,
states in order of launch include: New Jersey, Pennsylvania, West Virginia,
Indiana, Colorado, Illinois, Iowa, Michigan, Tennessee, Virginia, Arizona,
Connecticut, New York, Ontario, Louisiana, Wyoming, Kansas, Maryland, Ohio,
Massachusetts and Kentucky.
12 Total International revenue by region and year-over-year movements includes
Other revenue in addition to Sports and iGaming revenue separately identified.
13 Constant currency growth rates are calculated by retranslating the non-US
dollar denominated component of Q3 2024 at Q3 2025 exchange rates. See
reconciliation below.
14 Number of repurchased ordinary shares expressed as a percentage of total
ordinary shares in issue as at 31 October 2024.
15 Guidance for non-controlling interests relates to the aggregate of net income
(loss) attributable to non-controlling interests and redeemable
non-controlling interests, and the adjustment of redeemable non-controlling
interests to redemption value.
16 Capital expenditure is defined as payments for the purchase of property and
equipment, the purchase of intangible assets and capitalized software.
17 The impact of changes in foreign exchange rates versus those used in the
guidance issued on August 7, 2025 is not significant. Therefore, foreign
exchange rates assumed for 2025 guidance remain unchanged versus those used
for guidance issued on August 7, 2025 of USD:GBP of 0.746, USD:EUR of 0.878
and USD:AUD of 1.563
Definitions of non-GAAP financial measures
This press release includes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Net Income Attributable to Flutter Shareholders, Adjusted Earnings Per Share
("Adjusted EPS"), leverage ratio, leverage ratio including Snai, Net Debt,
Free Cash Flow, and constant currency which are non-GAAP financial measures
that we use to supplement our results presented in accordance with U.S.
generally accepted accounting principles ("GAAP"). These non-GAAP measures are
presented solely as supplemental disclosures to reported GAAP measures because
we believe that these non-GAAP measures are useful in evaluating our operating
performance, similar to measures reported by its publicly-listed U.S.
competitors, and regularly used by analysts, lenders, financial institutional
and investors as measures of performance. Adjusted EBITDA, Adjusted EBITDA
Margin, Adjusted Net Income Attributable to Flutter Shareholders, Adjusted
EPS, leverage ratio, Net Debt, Free Cash Flow, and Adjusted Depreciation are
not intended to be substitutes for any GAAP financial measures, and, as
calculated, may not be comparable to other similarly titled measures of
performance of other companies in other industries or within the same
industry.
Constant currency reflects certain operating results on a constant-currency
basis in order to facilitate period-to-period comparisons of our results
without regard to the impact of fluctuating foreign currency exchange rates.
The term foreign currency exchange rates refer to the exchange rates used to
translate our operating results for all countries where the functional
currency is not the U.S. Dollar, into U.S. Dollars. Because we are a global
company, foreign currency exchange rates used for translation may have a
significant effect on our reported results. In general, our financial results
are affected positively by a weaker U.S. Dollar and are affected negatively by
a stronger U.S. Dollar. References to operating results on a constant-currency
basis mean operating results without the impact of foreign currency exchange
rate fluctuations. We believe the disclosure of constant-currency results is
helpful to investors because it facilitates period-to-period comparisons of
our results by increasing the transparency of our underlying performance by
excluding the impact of fluctuating foreign currency exchange rates. We
calculate constant currency revenue, Adjusted EBITDA and Segment Adjusted
EBITDA by translating prior-period revenue, Adjusted EBITDA and Segment
Adjusted EBITDA, as applicable, using the average exchange rates from the
current period rather than the actual average exchange rates in effect in the
prior period.
Last twelve months ("LTM") net income is defined on a Group basis as net
income for the year ended December 31, 2024, minus net income for nine months
ended September 30, 2024 and plus net income for nine months ended September
30, 2025.
LTM net income including Snai is defined on a Group basis as LTM net income
plus Snai's net income for the seven months ended April 30, 2025 prior to the
completion of acquisition. Snai's historical condensed consolidated financial
statements have been prepared in accordance with International Financial
Reporting Standards ("IFRS"). We have made adjustments to conform Snai's
financial information prepared under IFRS to U.S. GAAP.
LTM adjusted net income including Snai is defined on a Group basis as LTM
adjusted net income, after adjusting for the following:
• Transaction fees and associated costs and restructuring and integration costs
related to the acquisition assumed to have incurred prior to or soon after the
acquisition date of January 1, 2024, and therefore are reversed from the
twelve months result ended September 30, 2025
• New debt financing required to complete the acquisition of Snai is assumed to
have occurred on January 1, 2024. The additional interest expense recognized
is calculated, together with the associated hedge impact and the amortization
of related debts issuance costs. For the new debt at floating rate, we have
assumed the actual 3 months SOFR rates for Q3 2025 was constant from October
2024 to April 2025.
• Intangible assets are assumed to be recorded at their estimated fair value as
of January 1, 2024, and are amortized over their estimated useful lives from
that date along with the consequent deferred tax benefit. The amortization
expense relating to the historical fair value uplift on Snai's intangible
assets acquired by Playtech in 2018, together with the deferred tax benefit
are reversed.
Adjusted EBITDA is defined on a Group basis as net income (loss) before income
taxes; other income, net; interest expense, net; depreciation and
amortization; transaction fees and associated costs; restructuring and
integration costs; impairment of property and equipment, intangible assets,
right-of-use assets and goodwill and share based compensation expense.
LTM adjusted EBITDA including Snai is defined on a Group basis as LTM adjusted
net income including Snai before income taxes; other expense, net; interest
expense, net; depreciation and amortization; share-based compensation expense;
transaction fees and associated costs; and restructuring and integration
costs.
Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue,
respectively.
Adjusted Net Income Attributable to Flutter Shareholders is defined as net
income (loss) as adjusted for after-tax effects of transaction fees and
associated costs; restructuring and integration costs; gaming taxes dispute,
amortization of acquired intangibles, accelerated amortization, loss (gain) on
settlement of long-term debt; impairment of property and equipment, intangible
assets, right-of-use assets and goodwill; financing related fees not eligible
for capitalization; gain from disposal of businesses, fair value (gain)/loss
on derivative instruments, fair value (gain)/loss on contingent consideration,
fair value (gain)/loss on Fox Option Liability and fair value (gain)/loss on
investment, and share-based compensation.
Adjusted EPS is calculated by dividing adjusted net income attributable to
Flutter shareholders by the number of diluted weighted-average ordinary shares
outstanding in the period.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net income attributable to
Flutter shareholders and Adjusted EPS are non-GAAP measures and should not be
viewed as measures of overall operating performance, indicators of our
performance, considered in isolation, or construed as alternatives to
operating profit (loss), net income (loss) measures or earnings per share, or
as alternatives to net cash provided by (used in) operating activities, as
measures of liquidity, or as alternatives to any other measure determined in
accordance with GAAP.
Management has historically used these measures when evaluating operating
performance because we believe that they provide additional perspective on the
financial performance of our core business.
Adjusted EBITDA has further limitations as an analytical tool. Some of these
limitations are:
• it does not reflect the Group's cash expenditures or future requirements for
capital expenditure or contractual commitments;
• it does not reflect changes in, or cash requirements for, the Group's working
capital needs
• it does not reflect interest expense, or the cash requirements necessary to
service interest or principal payments, on the Group's debt;
• it does not reflect share-based compensation expense which is primarily a
non-cash charge that is part of our employee compensation;
• although depreciation and amortization are non-cash charges, the assets being
depreciated and amortized will often have to be replaced in the future, and
Adjusted EBITDA does not reflect any cash requirements for such replacements
• it is not adjusted for all non-cash income or expense items that are reflected
in the Group's statements of cash flows; and
• the further adjustments made in calculating Adjusted EBITDA are those that
management consider not to be representative of the underlying operations of
the Group and therefore are subjective in nature.
Net debt is defined as total debt, excluding premiums, discounts, and deferred
financing expense, and the effect of foreign exchange that is economically
hedged as a result of our cross-currency interest rate swaps reflecting the
net cash outflow on maturity less cash and cash equivalents.
Leverage ratio is defined as net debt divided by last twelve months Adjusted
EBITDA. We use this non-GAAP financial measure to evaluate our financial
leverage. We present net debt to Adjusted EBITDA because we believe it is more
representative of our financial position as it is reflective of our ability to
cover our net debt obligations with results from our core operations, and is
an indicator of our ability to obtain additional capital resources for our
future cash needs. We believe net debt is a meaningful financial measure that
may assist investors in understanding our financial condition and recognizing
underlying trends in our capital structure. The Leverage Ratio is not a
substitute for, and should be used in conjunction with, GAAP financial ratios.
Other companies may calculate leverage ratios differently.
Leverage ratio including Snai is defined as net debt divided by LTM adjusted
EBITDA including Snai.
Free Cash Flow is defined as net cash provided by (used in) operating
activities less payments for property and equipment, intangible assets and
capitalized software. We believe that excluding these items from free cash
flow better portrays our ability to generate cash, as such items are not
indicative of our operating performance for the period. This non-GAAP measure
may be useful to investors and other users of our financial statements as a
supplemental measure of our cash performance, but should not be considered in
isolation, as a measure of residual cash flow available for discretionary
purposes, or as an alternative to operating cash flows presented in accordance
with GAAP. Free Cash Flow does not necessarily represent funds available for
discretionary use and is not necessarily a measure of our ability to fund our
cash needs. Our calculation of Free Cash Flow may differ from similarly titled
measures used by other companies, limiting their usefulness as a comparative
measure.
Adjusted depreciation is defined as depreciation and amortization excluding
amortization of acquired intangibles
Condensed Consolidated Balance Sheets
($ in millions except share and per share amounts) As of As of
September 30, December 31,
2025 2024
Current assets:
Cash and cash equivalents 1,727 1,531
Cash and cash equivalents - restricted 68 48
Player deposits - cash and cash equivalents 1,939 1,930
Player deposits - investments 26 130
Accounts receivable, net 158 98
Prepaid expenses and other current assets 864 607
Total current assets 4,782 4,344
Investments 7 6
Property and equipment, net 615 493
Operating lease right-of-use assets 529 507
Intangible assets, net 7,241 5,364
Goodwill 15,804 13,352
Deferred tax assets 226 267
Other non-current assets 135 175
Total assets 29,339 24,508
Liabilities, redeemable non-controlling interests and shareholders' equity
Current liabilities:
Accounts payable 402 266
Player deposit liability 1,839 1,940
Operating lease liabilities 127 119
Long-term debt due within one year 146 53
Other current liabilities 2,448 2,212
Total current liabilities 4,962 4,590
Operating lease liabilities - non-current 458 428
Long-term debt 11,953 6,683
Deferred tax liabilities 1,114 605
Other non-current liabilities 933 935
Total liabilities 19,420 13,241
Commitments and contingencies
Redeemable non-controlling interests 485 1,808
Shareholders' equity
Ordinary share (Authorized 3,000,000,000 shares of €0.09 ($0.11) par value 36 36
each; issued September 30, 2025: 175,899,661 shares; December 31, 2024:
177,895,367 shares)
Additional paid-in capital 1,929 1,611
Accumulated other comprehensive loss (1,061) (1,927)
Retained earnings 8,340 9,573
Total Flutter Shareholders' Equity 9,244 9,293
Non-controlling interests 190 166
Total shareholders' equity 9,434 9,459
Total liabilities, redeemable non-controlling interests and shareholders' 29,339 24,508
equity
Condensed Consolidated Statements of Comprehensive Income (Loss)
($ in millions except share and per share amounts) Three months ended September 30,
2025 2024
Revenue 3,794 3,248
Cost of sales (2,168) (1,752)
Gross profit 1,626 1,496
Technology, research and development expenses (275) (213)
Sales and marketing expenses (966) (748)
General and administrative expenses (702) (438)
Goodwill impairment (517) -
Operating (loss) profit (834) 97
Other income (expense), net 152 (122)
Interest expense, net (152) (105)
Loss before income taxes (834) (130)
Income tax benefit 45 16
Net loss (789) (114)
Net (loss) income attributable to non-controlling interests and redeemable (29) 5
non-controlling interests
Adjustment of redeemable non-controlling interest to redemption value (70) (16)
Net loss attributable to Flutter shareholders (690) (103)
Loss per share
Basic (3.91) (0.58)
Diluted (3.91) (0.58)
Other comprehensive income (loss), net of tax:
Effective portion of changes in fair value of cash flow hedges 12 (124)
Fair value of cash flow hedges transferred to the income statement (13) 119
Changes in excluded components of fair value hedge 5 (1)
Foreign exchange (loss) gain on net investment hedges (66) 27
Foreign exchange (loss) gain on translation of the net assets of foreign (82) 570
currency denominated entities
Other comprehensive (loss) income (144) 591
Other comprehensive income (loss) attributable to Flutter shareholders (181) 599
Other comprehensive income (loss) attributable to non-controlling interest and 37 (8)
redeemable non-controlling interest
Total comprehensive (loss) income (933) 477
Condensed Consolidated Statements of Cash Flows(1)
Three months ended September 30,
($ in millions) 2025 2024
Cash flows from operating activities
Net (loss) income (789) (114)
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization 419 258
Impairment loss 559 -
Change in fair value of derivatives (11) 26
Non-cash interest expense, net 73 12
Non-cash operating lease expense 35 31
Unrealized foreign currency exchange gain, net (27) (34)
Loss on disposals 1 7
Share-based compensation - equity classified 60 52
Share-based compensation - liability classified 11 1
Other (income) expense, net (126) 121
Deferred tax benefit 11 (34)
Loss on extinguishment 9 -
Change in operating assets and liabilities:
Player deposits 4 18
Accounts receivable 3 (10)
Prepaid expenses and other current assets (86) (61)
Accounts payable 53 28
Other liabilities (96) (43)
Player deposit liability 138 67
Operating leases liabilities (32) (35)
Net cash provided by operating activities 209 290
Cash flows from investing activities:
Purchases of property and equipment (13) (37)
Purchases of intangible assets (63) (52)
Capitalized software (108) (89)
Acquisitions, net of cash acquired - (28)
Cash settlement of derivatives designated in net investment hedge 14 (5)
Net cash used in investing activities (170) (211)
Cash flows from financing activities:
Proceeds from issue of ordinary share upon exercise of options 1 -
Proceeds from issuance of long-term debt (net of transactions costs) 4,080 -
Transaction costs with third parties from issuance of long-term debt (20) -
Repayment of long-term debt (1,914) (10)
Acquisition of redeemable non-controlling interests (1,620) -
Distributions to non-controlling interests (11) (4)
Repurchase of ordinary shares and taxes withheld and paid on employee share (261) -
awards
Net cash provided by (used in) financing activities 255 (14)
Net increase in cash, cash equivalents and restricted cash 294 65
Cash, cash equivalents and restricted cash - Beginning of the period 3,515 3,235
Foreign currency exchange gain (loss) on cash and cash equivalents (75) 110
Cash, cash equivalents and restricted cash - End of the period 3,734 3,410
Cash, cash equivalents and restricted cash comprise of:
Cash and cash equivalents 1,727 1,483
Cash and cash equivalents - restricted 68 56
Player deposits - cash & cash equivalents 1,939 1,871
Cash, cash equivalents and restricted cash - End of the period 3,734 3,410
Supplemental disclosures of cash flow information:
Interest paid 104 112
Income tax paid (net of refunds) 74 63
Operating cash flows from operating leases 42 43
Non-cash investing and financing activities:
Purchase of intangible assets with accrued expense(2) 52 -
Capitalized software with accrued expense(2) 23 -
Purchase of property and equipment with accrued expense(2) 9 -
Right of use assets obtained in exchange for new operating lease liabilities 4 66
Adjustments to lease balances as a result of remeasurement 14 31
Business acquisitions (including contingent consideration) - (26)
Non-cash issuance of common stock upon exercise of options(2) 29 -
Non-cash transaction costs on issuance of long-term debt(2) 8 -
Dilapidation provision 10 -
1. The Condensed Consolidated Statements of Cash Flows for the three months ended
September 30, 2025 is derived by subtracting the cash flows from the six
months ended June 30, 2025 from the cash flows for the nine months ended
September 30, 2025. As such it does not reflect the settlement of pre-existing
relationships for which Flutter has recognized an asset
2. Figures represent the closing position at the end of the reporting period and
not the movement during the period.
Reconciliations of non-GAAP financial measures
Adjusted EBITDA reconciliation
See below a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to
net income, the most comparable GAAP measure.
Three months ended September 30,
($ in millions) 2025 2024
Net loss (789) (114)
Add back:
Income taxes (45) (16)
Other (income) expense, net (152) 122
Interest expense, net 152 105
Depreciation and amortization 419 258
Share-based compensation expense 71 53
Transaction fees and associated costs (1) 204 -
Restructuring and integration costs (2) 59 42
Impairment (3) 559 -
Group Adjusted EBITDA 478 450
Group Revenue 3,794 3,248
Group Adjusted EBITDA Margin 12.6% 13.9%
1. Fees primarily associated with the revision of Boyd market access agreements.
2. Costs primarily relate to various restructuring, acquisition integration and
other strategic initiatives to drive synergies. The programs are expected to
run until 2027. These actions include efforts to consolidate and integrate our
technology infrastructure, back-office functions and relocate certain
operations to lower cost locations. It also includes business process
re-engineering cost, planning and design of target operating models for the
Group's enabling functions and discovery and planning related to the Group's
anticipated migration to a new enterprise resource planning system. The costs
primarily include severance expenses, advisory fees and temporary staffing
costs
3. Impairment primarily relates to Junglee. The Promotion and Regulation of
Online Gaming Act, 2025 (the "Act"), which was passed by the Indian Parliament
and received Presidential assent on August 22, 2025, bans all forms of online
real money gaming in India. As a result of the Act, from August 22, 2025,
Junglee ceased offering all real-money games in India. The Junglee impairment
charge is $556m before income taxes. The assets impaired substantially consist
of goodwill of $517m, acquired and developed intangibles of $32m and other
long-lived assets of $7m. The $517m of goodwill impaired is not deductible for
tax purposes, and therefore there is no income tax benefit. Income tax impacts
arising for acquired and developed intangibles and other long-lived assets are
not material
Adjusted net income attributable to Flutter shareholders
See below a reconciliation of Adjusted net income attributable to Flutter
shareholders to net income/ (loss), the most comparable GAAP measure.
Three months ended September 30,
($ in millions) 2025 2024
Net loss (789) (114)
Less:
Transaction fees and associated costs 204 -
Restructuring and integration costs 59 42
Impairment 559 -
Amortization of acquired intangibles 235 128
Share-based compensation 71 53
Loss on settlement of long-term debt 9 -
Financing related fees not eligible for capitalization 2 2
Fair value (gain) / loss on derivative instruments (11) 25
Fair value (gain) / loss on Fox Option Liability (126) 121
Tax impact of above adjustments(1) (26) (46)
Adjusted net income 187 211
Less:
Net income attributable to non-controlling interests and redeemable (29) 5
non-controlling interests(2)
Adjustment of redeemable non-controlling interest(3) (70) (16)
Adjusted net income attributable to Flutter shareholders 286 222
Weighted average number of shares 176 178
1 Tax rates used in calculated adjusted net income attributable to Flutter
shareholders is the statutory tax rate applicable to the geographies in which
the adjustments were incurred
2. Represents net income attributed to the non-controlling interest in Sisal
offset by the net loss attributed to the redeemable non-controlling interest
in MaxBet, Junglee and Betnacional
3. Represents the adjustment made to the carrying value of the redeemable
non-controlling interests in MaxBet and Junglee to account for the higher of
(i) the initial carrying amount adjusted for cumulative earnings allocations,
or (ii) redemption value at each reporting date through retained earnings
Adjusted earnings per share reconciliation
See below a reconciliation of adjusted earnings per share to diluted earnings
per share, the most comparable GAAP measure.
Three months ended September 30,
$ 2025 2024
Loss per share to Flutter shareholders (3.91) (0.58)
Add/ (Less):
Transaction fees and associated costs 1.16 -
Restructuring and integration costs 0.34 0.24
Impairment 3.18 -
Amortization of acquired intangibles 1.34 0.73
Share-based compensation 0.40 0.30
Loss on settlement of long-term debt 0.05 -
Financing related fees not eligible for capitalization 0.01 0.01
Fair value (gain) / loss on derivative instruments (0.06) 0.14
Fair value (gain) / loss on Fox Option Liability (0.72) 0.69
Tax impact of above adjustments (0.15) (0.26)
Adjusted earnings per share 1.64 1.27
Last twelve months adjusted EBITDA
See below a reconciliation of LTM adjusted EBITDA to net income.
($ in millions) Year ended December 31, 2024 Nine months ended September, 2024 Nine months ended September 30, 2025 Twelve months ended September 30, 2025
Unaudited
Net income (loss) 162 6 (417) (261)
Add back:
Income taxes (146) 52 142 (56)
Other expense (income), net 434 207 (294) (67)
Interest expense, net 419 325 347 441
Depreciation and amortization 1,097 827 1,082 1,352
Share-based compensation expense 202 153 200 249
Transaction fees and associated costs 54 45 224 233
Restructuring and integration costs 135 87 170 218
Impairment 0 0 559 559
LTM adjusted EBITDA 2,357 1,702 2,013 2,668
Net debt 10,602
Leverage ratio 4.0x
See below a reconciliation of LTM adjusted EBITDA including Snai to net
income. These figures have been adjusted to include the relevant amounts for
Snai during the pre-acquisition period as though it formed part of the Group
since January 1, 2024.
($ in millions) Twelve months ended September 30, 2025
Unaudited
Net income for Fiscal 2024 162
Less: Net income for nine months ended September 30, 2024 (6)
Add: Net loss for nine months ended September 30, 2025 (417)
LTM net loss (261)
Snai's net income for the seven months ended April 30, 2025 49
LTM net loss including Snai (212)
Transaction costs (17)
Interest expense (93)
Additional amortization expense (net of deferred tax impact) (43)
Reversal of previous PPA amortization expense (net of deferred tax impact) 8
LTM adjusted net loss including Snai (357)
Add:
Income taxes (35)
Other expense, net (65)
Interest expense, net 531
Depreciation and amortization 1,440
Share-based compensation expense 293
Transaction fees and associated costs 256
Restructuring and integration costs 218
Impairment 559
LTM adjusted EBITDA including Snai 2,840
Net debt 10,602
Leverage ratio including Snai 3.7x
Net debt reconciliation
See below a reconciliation of net debt to long-term debt, the most comparable
GAAP measure.
($ in millions) As of As of
September 30, December 31,
2025 2024
Long-term debt 11,953 6,683
Long-term debt due within one year 146 53
Total Debt 12,099 6,736
Add:
Transactions costs, premiums or discount included in the carrying value of 98 52
debt
Less:
Unrealized foreign exchange on translation of foreign currency debt (1) 132 (97)
Cash and cash equivalents (1,727) (1,531)
Net Debt 10,602 5,160
1. Representing the adjustment for foreign exchange that is economically hedged
as a result of our cross-currency interest rate swaps to reflect the net cash
outflow on maturity
Free Cash Flow reconciliation
See below a reconciliation of Free Cash Flow to net cash provided by operating
activities, the most comparable GAAP measure.
Three months ended September 30,
($ in millions) 2025 2024
Net cash provided by operating activities 209 290
Less cash impact of:
Purchases of property and equipment (13) (37)
Purchases of intangible assets (63) (52)
Capitalized software (108) (89)
Free Cash Flow 25 112
Constant currency growth rate reconciliation
See below a reconciliation of constant currency growth rates to nominal
currency growth rates, the most comparable GAAP measure.
($ millions except percentages) Three months ended September 30,
Unaudited 2025 2024 YOY 2025 2024 YOY
FX impact CC CC
Revenue
US 1,368 1,250 +9% - 1,250 +9%
International 2,426 1,998 +21% 47 2,045 +19%
Group 3,794 3,248 +17% 47 3,295 +15%
Adjusted EBITDA
US 51 58 (12)% (1) 57 (11)%
International 505 461 +10% 8 469 +8%
Unallocated corporate overhead (78) (69) +13% (3) (72) +9%
Group 478 450 +6% 4 454 +5%
See below a reconciliation of other reported constant currency revenue growth
rates to nominal currency
growth rates.
Three months ended September 30,
YoY YoY YoY
Unaudited Nom FX impact CC
International sportsbook revenue +11% +2% +9%
International iGaming revenue +31% +3% +28%
International total revenue +21% +2% +19%
UKI sportsbook revenue (7)% +4% (11)%
UKI iGaming revenue +7% +4% +3%
UKI total revenue +1% +4% (3)%
SEA sportsbook revenue +114% +12% +102%
SEA iGaming revenue +94% +4% +90%
SEA total revenue +101% +8% +93%
APAC sportsbook revenue (9)% (2)% (7)%
APAC iGaming revenue (35)% (3)% (32)%
APAC total revenue (12)% (2)% (10)%
CEE total revenue +14% +3% +11%
Brazil total revenue +412% -% +412%
Other total revenue +4% +3% +1%
International adjusted EBITDA +10% +2% +8%
International revenue by region
($ millions except percentages) Three months ended September 30,
Unaudited 2025 2024 YoY YoY YoY
Nom FX impact CC
UK and Ireland 853 846 +1% +4% (3)%
Southern Europe and Africa 743 370 +101% +8% +93%
Asia Pacific 363 413 (12)% (2)% (10)%
Central and Eastern Europe 151 132 +14% +3% +11%
Brazil 87 17 +412% -% +412%
Other regions 229 220 +4% +3% +1%
International revenue 2,426 1,998 +21% +2% +19%
Reconciliation of supplementary non GAAP information: Adjusted depreciation
and amortization
($ millions) Three months ended September 30, 2025 Three months ended September 30, 2024
Unaudited US Intl Corp Total US Intl Corp Total
Depreciation and Amortization 35 375 9 419 31 218 9 258
Less: Amortization of acquired intangibles (4) (231) - (235) (4) (124) - (128)
Adjusted depreciation and amortization(1) 31 144 9 184 27 94 9 130
1. Adjusted depreciation and amortization is defined as depreciation and
amortization excluding amortization of acquired intangibles
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