Flutter Posts 25% Revenue Growth and 27% EBITDA Rise; UBS Cuts Target to $300
Flutter Entertainment’s Q4 group revenue climbed 25% and adjusted EBITDA rose 27%, driven by 33% growth in U.S. revenue and a 90% jump in U.S. adjusted EBITDA despite softer sportsbook handle trends. UBS lowered its price target to $300 from $320, echoing Citizens’ cut to $275 over weaker-than-expected U.S. betting growth.
1. Q4 financial performance
Flutter reported Q4 group revenue of €X billion, up 25% year-over-year, and adjusted EBITDA of €X billion, up 27%. U.S. operations delivered 33% revenue growth and a 90% rise in adjusted EBITDA, while group net income was $10 million, with EPS down by $0.50.
2. Market dynamics and segment update
FanDuel iGaming revenue grew 33% on an 18% rise in average monthly players, and sportsbook revenue increased 35%. Management cited high gross margins and misaligned promotional phasing as factors weighing on handle, and launched FanDuel Predicts with a view to invest $300 million in 2026.
3. Analyst price target adjustments
UBS cut its price target to $300 from $320, noting slower U.S. online sports betting growth, while Citizens lowered its target to $275 after underperformance in late-season margins. Both firms retained their Buy ratings despite trimming long-term outlooks.
4. 2026 guidance and capital allocation
The company forecasts 2026 U.S. revenue of $7.8 billion (12% growth) and adjusted EBITDA of $1.05 billion (14% growth), with international revenue of $10.6 billion (13%) and adjusted EBITDA of $2.23 billion. Share repurchases of $245 million in Q4 bring 2025 total to $1 billion, with $250 million planned in H1 2026, and a $300 million cost-savings program underway targeting 2027 completion.