Flutter cuts 2026 revenue outlook by $300 million amid Brazil ban

Flutter Entertainment, the parent company of FanDuel, lowered its full-year revenue target by $300 million to $17.61 billion on Wednesday. The company also reduced its adjusted earnings before interest, taxes, depreciation, and amortization outlook by $160 million to nearly $2.5 billion.

Dan Taylor, who has served as CEO for five weeks, issued his first earnings report during a period of financial strain. The company posted a net loss of $1.15 billion for the third quarter. This figure includes an $873 million non-cash impairment charge tied primarily to Brazil, a market that banned sports betting and online gaming in September.

Revenue rose 2% to $3.87 billion, falling short of the roughly $4 billion expected by analysts at LSEG. Adjusted EBITDA declined approximately 25% year over year to $360 million. The company reported an adjusted loss of 18 cents per share, which was better than the 28-cent loss analysts had forecast.

Taylor stated that the company is increasing its investment in customer experience to drive growth. FanDuel launched a nationwide rewards program in September, which Taylor said has resonated well with users. Average monthly players on the U.S. sportsbook rose 9% in the third quarter, while bet counts increased 15%.

Despite these engagement gains, promotional spending increased, causing sportsbook revenue to grow just 4% even as total handle rose 13%. The cost of sales is forecast to remain at 58% of revenue for 2026 and into 2027. Taylor noted that FanDuel trading volume has increased 271% since July, and the new FanDuel Predicts app added 140,000 customers in October.

Taylor defended the long-term potential of the U.S. market, noting that about half the country lacks regulated sports betting and 90% lacks regulated online gaming. He argued that expanding legal markets provides consumer protections and tax revenue for states. The company plans to prioritize organic growth and debt reduction over the next 24 months, with the goal of returning leverage to a target range of 2 to 2.5 times.

Capital returns such as share buybacks are currently on hold while the company focuses on paying down debt. Taylor said the impairment in Brazil was taken to position the company for long-term success, despite the disappointment caused by the provisional measure that halted operations in that region.