Acquisitions and Market Expansion - Flutter Entertainment completed the acquisition of Pluto (Italia) S.p.A for approximately $2.6 billion (€2.3 billion), enhancing its position in the Italian market [178]. - The company acquired a 56% interest in NSX Group for BRL 3,819 million ($678 million), expanding its reach in the Brazilian market [179]. - Brazil launched its regulated market for online sports betting and casino on January 1, 2025, with Flutter receiving a provisional license [194]. - Flutter has obtained five new online gaming licenses in Italy as part of the reorganization of the gambling sector, which aims to improve player protection [191]. - The company plans to continue investing in product development and market expansion to sustain growth momentum in the upcoming quarters [260]. Financial Performance - Revenue increased by 17% to $3,794 million for the three months ended September 30, 2025, compared to $3,248 million for the same period in 2024 [199]. - Adjusted EBITDA rose by 6% to $478 million for the three months ended September 30, 2025, with an Adjusted EBITDA margin of 12.6%, down from 13.9% [211]. - Net loss increased to $789 million for the three months ended September 30, 2025, compared to a net loss of $114 million in the same period in 2024, resulting in a net loss margin of 20.8% [210]. - Adjusted EBITDA increased by 18% to $2,013 million, with the adjusted EBITDA margin rising from 16.6% to 17.3% [253]. - Net loss increased to $417 million for the nine months ended September 30, 2025, compared to a net income of $6 million in the prior year [252]. Revenue Breakdown - U.S. segment revenue grew by 9% to $1,368 million, with AMPs increasing by 8% period over period [215]. - iGaming revenue in the U.S. segment increased by 44% year-over-year, while sportsbook revenue decreased by 5% due to competitive pressures [201]. - Total revenue for the International segment increased by 21% to $2,426 million for the three months ended September 30, 2025, driven by a 10% increase in AMPs and acquisitions contributing 18% [227]. - Sportsbook revenue increased by 11% to $982 million for the three months ended September 30, 2025, with stakes growing 13% [228]. - iGaming revenue increased by 31% to $1,369 million, with acquisitions contributing 21% to the revenue growth [230]. Costs and Expenses - Cost of sales increased by 24% to $2,168 million, with cost of sales as a percentage of revenue rising to 57% from 54% year-over-year [202]. - General and administrative expenses surged by 60% to $702 million, primarily due to revised market access terms and consolidation of acquisitions [205]. - Technology, research and development expenses rose by 29% to $275 million, driven by investments in corporate technology and impairment of assets in India [203]. - Sales and marketing expenses increased by $220 million to $2,595 million, with a decrease in U.S. segment expenses by 5% [246]. - The overall increase in cost of sales as a percentage of revenue was 300 basis points, primarily due to acquisitions contributing 200 basis points [239]. Impairments and Liabilities - Goodwill impairment of $517 million was recorded due to the cessation of operations in India, significantly impacting operating results [206]. - The company incurred impairment charges of $559 million related to Junglee due to the ban on online real money gaming in India [290]. - As of September 30, 2025, the company had material cash requirements from known contractual obligations totaling $6,499 million [299]. - Long-term debt as of September 30, 2025, totaled $12 billion, with $52 million due within 12 months [294]. Regulatory Environment - The regulatory environment in Australia has evolved, with increased point of consumption tax rates impacting operational costs for online betting [193]. - The UK Gambling Commission's new regulations may impose more stringent restrictions on the betting and gaming industry, potentially affecting Flutter's operations [190]. Cash Flow and Financing Activities - Net cash provided by operating activities decreased by $194 million, or 20%, to $756 million for the nine months ended September 30, 2025, compared to $950 million in 2024 [301]. - Net cash used in investing activities increased by $2,488 million, or 385%, to $3,135 million for the nine months ended September 30, 2025, primarily due to acquisitions [303]. - Net cash provided by financing activities increased by $2,761 million, or 1,132%, to $2,517 million for the nine months ended September 30, 2025, driven by significant proceeds from various credit agreements [304]. Market Trends and Player Metrics - The average monthly players (AMPs) metric is used to assess underlying trends, with a focus on online players only, excluding retail activity [173]. - Total Group AMPs increased by 9% to 14 million for the three months ended September 30, 2025, compared to 12.9 million in the prior year [201]. - Total Group AMPs increased to 15,509 for the nine months ended September 30, 2025, compared to 13,662 for the same period in 2024 [240].

Financial Performance - Q3 2025 revenue increased by 17% year-over-year to $3,794 million, with average monthly players (AMPs) growing by 9% to 14,133,000[4] - The net loss for Q3 2025 was $789 million, significantly higher than the $114 million loss in Q3 2024, primarily due to a non-cash impairment charge of $556 million related to regulatory changes in India[10] - Adjusted EBITDA for Q3 2025 was $478 million, reflecting a 6% increase year-over-year, with an adjusted EBITDA margin of 12.6%[4] - Total revenue for the quarter reached $3,794 million, a 17% increase year-over-year, with organic iGaming revenue growth of 19% offsetting customer-friendly sports results[42] - iGaming revenue surged by 35% year-over-year to $1,899 million, driven by a 30% increase in average monthly players[41] - Q3 adjusted earnings per share rose by 29% to $1.64, supported by strong performance in both US and international markets[6] - Adjusted EBITDA grew by 6% to $478 million, with an adjusted EBITDA margin of 12.6%, reflecting a 130 basis point decrease year-over-year[45] - International revenue increased by 21% year-over-year to $2,426 million, with Brazil showing remarkable growth of 412%[52] - The company reported a loss on existing equipment of $9 million, indicating challenges in asset management[106] - Net income for the three months ended September 30, 2025, was a loss of $789 million, compared to a loss of $1,114 million in the same period of 2024[106] Revenue Guidance and Projections - Full-year 2025 revenue guidance has been updated to $16.69 billion, representing a 19% year-over-year growth, with adjusted EBITDA expected at $2.915 billion, a reduction from previous guidance by $570 million[8] - The updated 2025 guidance includes a Group revenue of $16.69 billion and adjusted EBITDA of $2.915 billion, representing year-over-year growth of 19% and 24%, respectively[65] - US revenue and adjusted EBITDA are projected at $7.17 billion and $935 million, reflecting year-over-year growth of 24% and 84%, respectively[66] - International revenue is expected to reach $9.52 billion with adjusted EBITDA of $2.24 billion, indicating year-over-year growth of 15% and 8%, respectively[67] Strategic Initiatives - The launch of "FanDuel Predicts" is scheduled for December 2025, aimed at expanding the customer base in states without regulated sports betting[12] - Flutter is focused on expanding its portfolio in the US, including the launch of FanDuel Predicts, to leverage market leadership and diversification strategies[37] - The integration of Snai is progressing well, with enhanced iGaming propositions and increased customer acquisition volumes expected to drive synergies[30] - Flutter extended its strategic partnership with Boyd Gaming to 2038, acquiring a 5% stake in FanDuel for approximately $1.553 billion, expected to save $65 million annually starting July 2025[4] Costs and Expenses - Sales and marketing expenses rose by 19% year-over-year, accounting for 17.0% of total revenue, benefiting from growth in regions with lower marketing costs[58] - The cost of sales as a percentage of revenue increased by 300 basis points to 48.1%, influenced by acquisitions and higher taxes in certain regions[57] - The company incurred restructuring and integration costs of $218 million for the twelve months ended September 30, 2025[122] Cash Flow and Debt - Available cash increased by $244 million year-over-year, closing at approximately $1.7 billion, while net debt was $10,602 million at the end of Q3 2025, resulting in a leverage ratio of 4.0x[61] - Cash provided by operating activities was $2,092 million, compared to $2,900 million in the previous year[106] - Total debt as of September 30, 2025, was $12,099 million, with net debt standing at $10,602 million, resulting in a leverage ratio of 3.7x[124] Market Conditions and Challenges - The cessation of real-money gaming in India is expected to adversely impact future results in the APAC region[84] - Future outlook remains cautious due to ongoing market volatility and operational challenges[106] - The company remains engaged with policymakers regarding potential gaming tax increases in the UK, emphasizing the industry's contribution to tax revenues and employment[32] Other Financial Metrics - The leverage ratio increased to 4.0x as of Q3 2025, reflecting the impact of recent acquisitions and strategic investments[4] - Free Cash Flow is defined as net cash from operating activities minus capital expenditures, providing insight into cash generation capabilities[102] - Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue, offering a view of operational efficiency[93] - Constant currency growth rates are used to assess performance without the impact of fluctuating foreign exchange rates, enhancing comparability[88]

Core Insights - Flutter Entertainment reported a solid Q3 performance with a 9% increase in average monthly players (AMPs) and a 17% rise in revenue year-over-year, driven by acquisitions and organic iGaming growth [2][3][8] - The company experienced a significant net loss of $789 million, primarily due to a non-cash impairment charge related to regulatory changes in India and a payment to Boyd for market access [4][8][39] - Flutter plans to launch "FanDuel Predicts" in December, aiming to capture new market opportunities in states without regulated sports betting [3][10][15] Financial Performance - Average monthly players (AMPs) increased to 14,133, up from 12,920, representing a 9% year-over-year growth [2] - Revenue for Q3 reached $3,794 million, compared to $3,248 million in the previous year, marking a 17% increase [2] - Adjusted EBITDA was $478 million, a 6% increase from $450 million in Q3 2024, with an adjusted EBITDA margin of 12.6% [2][40] - The net loss margin was 20.8%, with a loss per share of $3.91, significantly higher than the previous year's loss of $0.58 [2][4] US Market Insights - In the US, revenue grew by 9% year-over-year, driven by a 44% increase in iGaming revenue, while sportsbook revenue declined by 5% due to customer-friendly sports results [3][16] - FanDuel's handle growth in Q4 has shown a positive trend, with a 10% year-over-year increase to date, supported by strong NBA season performance [5][58] - The company holds a 47% net gaming revenue share in the online sports betting market as of September [20] International Market Insights - International revenue grew by 21% year-over-year, with adjusted EBITDA of $505 million, reflecting strong contributions from recent acquisitions [26][50] - The cessation of real-money gaming in India negatively impacted organic growth, while iGaming continued to thrive in regions like Turkey and Italy [35][49] - Brazil showed exceptional growth with a 412% increase in revenue, driven by the Betnacional acquisition [33][49] Strategic Developments - The launch of "FanDuel Predicts" is expected to unlock new growth opportunities by offering a sports product in states without current access to sports betting [10][15] - Flutter's strategic investments and acquisitions are aimed at enhancing its market position and driving sustainable growth [7][36] - The company is focused on maintaining a disciplined approach to investment while monitoring returns to build long-term value for shareholders [14][36] Guidance and Outlook - The updated guidance for 2025 anticipates group revenue of $16.69 billion and adjusted EBITDA of $2.915 billion, reflecting year-over-year growth of 19% and 24%, respectively [6][59] - The guidance incorporates the impact of Q3 performance, Q4 sports results, and investments in FanDuel Predicts and market access [6][59] - Flutter expects to continue leveraging its market leadership in the US and diversify its international business for future growth [36][61]

Core Insights - Flutter Entertainment plc is a major player in the sports betting and gaming industry, operating in multiple markets including the UK, Ireland, Australia, and the US, with a diverse product range [1] - The company has established a strong brand presence through its various offerings such as sportsbooks, online games, and peer-to-peer games [1] Analyst Price Targets and Market Outlook - The consensus price target for Flutter Entertainment has shown minor fluctuations, with the average target price recently at $330, down from $336 in the previous quarter, and compared to $333.29 a year ago [2] - Analyst Jed Kelly from Oppenheimer has set a price target of $255, indicating a positive long-term outlook despite potential short-term challenges [2] Factors Influencing Stock Target Price - Regulatory changes in key markets like the US and Europe could significantly impact Flutter's operations and stock target price [3] - Strategic partnerships and expansion efforts are also critical factors that may influence the stock's target price [3] - Upcoming quarterly earnings reports are anticipated to show a potential decline in earnings, prompting investors to closely monitor relevant factors and company announcements [3]

Core Insights - Flutter Entertainment is a significant player in the global sports betting and gaming industry, with quarterly earnings set to be released on November 12, 2025, and analysts predicting an EPS of $0.38 and revenue of approximately $2.87 billion [1][2] Financial Performance Expectations - There is an expectation of a decline in earnings for the third quarter, despite increased revenue, indicating that Flutter may not have the optimal mix of factors to exceed earnings expectations [2] - The stock's performance will depend on whether actual results meet or deviate from these estimates, with a positive earnings surprise potentially boosting the stock price, while a miss could lead to a decline [2] Valuation Metrics - Flutter has a high price-to-earnings (P/E) ratio of 122.82, suggesting that investors are willing to pay a premium for its earnings [3] - The price-to-sales ratio is 2.72, and the enterprise value to sales ratio is 3.20, reflecting the company's valuation relative to its sales [3] Cash Flow and Debt Analysis - The enterprise value to operating cash flow ratio is 31.97, indicating how many times the operating cash flow can cover the enterprise value [4] - The earnings yield is 0.81%, representing the percentage of each dollar invested that was earned by the company [4] - Flutter's debt-to-equity ratio is 1.03, indicating slightly more debt than equity, while the current ratio of 0.95 suggests slightly less current assets than current liabilities [4]

Wall Street expects a year-over-year decline in earnings on higher revenues when Flutter Entertainment (FLUT) reports results for the quarter ended September 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

Core Viewpoint - The stock ratings for DraftKings Inc. and Flutter Entertainment Plc have been unexpectedly downgraded by Bank of America due to multiple risks facing the sports betting market, including the rise of prediction markets like Polymarket, which may overshadow traditional operators [1][2]. Group 1: Stock Downgrade and Market Impact - Bank of America analysts led by Shaun Kelley downgraded the stock ratings of DraftKings and Flutter from "Buy" to "Neutral," citing concerns over structural hold earnings and significant pressure from taxation [1][2]. - Following the downgrade, DraftKings' stock fell by 6.4%, reaching its lowest level in over two years, while Flutter's stock dropped by 3.9% [6]. Group 2: Rise of Prediction Markets - Prediction markets, such as Kalshi Inc. and Polymarket, are gaining popularity among bettors, allowing them to place paid bets on various significant events, which poses a threat to traditional sports betting operators [2][6]. - The capital markets have become highly sensitive to the emergence of paid prediction markets, leading to long-term pressure on the valuations and business models of traditional betting companies [2]. Group 3: Future Risks and Legal Environment - Analysts express concerns about substantial risks ahead, including the launch of significant features by Polymarket in the U.S. and new funding rounds for Kalshi, alongside competition from traditional finance and cryptocurrency entrants [7]. - The current legal environment complicates the assessment of risk-return profiles for companies like DraftKings and Flutter, as state regulators appear to be limiting traditional operators, potentially benefiting disruptors and new entrants [8].

Core Viewpoint - DraftKings and Flutter Entertainment stocks have been downgraded by BofA Securities due to profit volatility and tax risks, with price targets lowered significantly [3][6][9]. Company Performance - DraftKings' stock fell 3.7% to $29.44, while Flutter's shares dropped 3.4% to $223.22, both experiencing double-digit declines in 2025 [4][6]. - The investment bank has lowered DraftKings' price target from $48 to $35 and Flutter's from $325 to $250 [3][6]. Market Competition - The rise of prediction markets, such as Kalshi, poses a competitive threat to traditional sports betting platforms like DraftKings and FanDuel [5][10]. - Prediction markets operate under different regulations, which may undermine the business models of established sportsbooks [5][11]. Financial Projections - BofA projects that hold volatility during the football season will reduce DraftKings' EBITDA by $150 million and Flutter's by $100 million per quarter [6][8]. - The firm anticipates ongoing pressure from increasing state gaming taxes in the U.S. and potential higher taxes in the U.K. for Flutter, impacting profit margins [9][10]. Analyst Sentiment - Despite the downgrades, some analysts believe that both companies can recover, with over 85% of analysts rating their stocks as Buy or equivalent [12].

Core Insights - FanDuel Casino has launched a new feature called FanDuel Casino Jackpots, allowing players to double their chances of winning a jackpot by increasing their contribution to $0.20 after opting in [1][2] - The feature is currently available in Michigan, New Jersey, and Pennsylvania, and offers players the option to opt in at a lower price of $0.10 for more flexibility [1][2] - Since its launch in April 2025, the FanDuel Casino Jackpots has seen over 450,000 jackpots won, totaling over $300 million [2] Company Developments - The introduction of the new jackpot feature is part of FanDuel's strategy to enhance the player experience and increase winning opportunities [2] - The acquisition of player engagement specialist BeyondPlay in February 2024 has been pivotal in developing the new jackpots feature, leveraging their expertise to improve customer experience [3] - FanDuel Casino aims to reinforce its position as America's 1 iGaming operator through unique product offerings that elevate winning potential [3] Market Position - FanDuel is recognized as the premier mobile gaming company in the United States, with a diverse portfolio that includes sports betting, iGaming, horse racing, and daily fantasy sports [4] - The company has a significant presence across all 50 states, serving approximately 17 million customers and operating 25 retail locations [4] - FanDuel is a subsidiary of Flutter Entertainment, the largest sports betting and gaming operator globally, listed on the New York Stock Exchange [4]

Core Insights - Institutional investors, such as Vanguard Group, provide valuable insights through their 13F filings, revealing significant investment moves and strategies [1][2] - Vanguard's recent $4.9 billion investment in Flutter Entertainment indicates a strong belief in the company's potential despite its current stock decline [3][4] Company Overview - Flutter Entertainment is a leader in online sports betting and iGaming, with a diverse portfolio including brands like FanDuel, Paddy Power, and PokerStars [4][5] - The company holds a 43% market share in the U.S. gross gaming revenue, significantly outperforming competitors like DraftKings [4] - Flutter operates in 22 U.S. states for sportsbooks and has a strong presence in the U.K., Ireland, Australia, and Italy, generating over $14.8 billion in annual revenues [5] Market Position and Growth Potential - The ongoing regulation of online gambling in various regions, including Brazil and potential U.S. expansions, positions Flutter favorably for future growth [6] - The company's scale and ability to cross-sell across its brands enhance its competitive edge in the market [6] Stock Performance and Challenges - Despite its market leadership, Flutter's stock has declined significantly, down 26% from its 52-week high, attributed to broader economic pressures affecting consumer spending [4][7] - The decline in stock price raises questions about whether this presents a buying opportunity or indicates deeper issues within the company [4]