Q3 FY2026
Filed Nov 4, 2026Q3 revenue increased 2% to $3,874m, but Group adjusted EBITDA declined 25% to $360m and net loss widened to $1,148m amid Brazil impairment, adverse sports results and higher costs; 2026 guidance was reduced.
US and International underlying execution, customer engagement and market-share gains were offset by adverse sports results, Brazil closure and impairment, UK gaming-tax pressure, a wider net loss and reduced full-year revenue and adjusted EBITDA guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Group average monthly players (AMPs) ('000s), Q3 2026other | 13,669 | – | (3 )% |
| Group handle, Q3 2026other | $20.59B | – | +11 % |
| Group net revenue margin, Q3 2026other | 8.6 % | – | (90 )bps |
| Group revenue, Q3 2026GAAP | $3.87B | – | +2 % |
| Group sportsbook revenue, Q3 2026GAAP | $1.78B | – | +1 % |
| Group iGaming revenue, Q3 2026GAAP | $1.95B | – | +3 % |
| Group other revenue, Q3 2026GAAP | $143M | – | +10 % |
| Gross profit, Q3 2026GAAP | $1.52B | – | – |
| Cost of sales, Q3 2026GAAP | −$2.36B | – | – |
| Technology, research and development expenses, Q3 2026GAAP | −$350M | – | – |
| Sales and marketing expenses, Q3 2026GAAP | −$1.17B | – | – |
| General and administrative expenses, Q3 2026GAAP | −$650M | – | – |
| Goodwill impairment, Q3 2026GAAP | −$541M | – | – |
| Operating loss, Q3 2026GAAP | −$1.19B | – | – |
| Net loss, Q3 2026GAAP | −$1.15B | – | +46 % |
| Net loss margin, Q3 2026GAAP | (29.6 )% | – | (880 )bps |
| Net loss attributable to Flutter shareholders, Q3 2026GAAP | −$862M | – | – |
| Loss per share, diluted, Q3 2026GAAP | $(4.90 ) | – | +25 % |
| Adjusted (loss) earnings per share, Q3 2026non-GAAP | $(0.18 ) | – | (111 )% |
| Group adjusted EBITDA, Q3 2026non-GAAP | $360M | – | (25 )% |
| Group adjusted EBITDA margin, Q3 2026non-GAAP | 9.3 % | – | (330 )bps |
| Net cash provided by operating activities, Q3 2026GAAP | $211M | – | +1 % |
| Free cash flow, Q3 2026non-GAAP | $35M | – | +40 % |
| Free cash flow including financing capex and excluding player funds, Q3 2026non-GAAP | −$91M | – | (22 )% |
| Leverage ratio, September 30, 2026non-GAAP | 4.6x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| USSportsbook revenue grew 4%, iGaming revenue grew 8%, and other revenue grew 20%, primarily driven by market-making activity. | $1.46B | – | +6 % |
| InternationalStrong momentum in UKI and SEA was offset by adverse sports results and a challenging trading environment in Brazil. | $2.42B | – | — % |
| UK and IrelandiGaming revenue grew 12%, while sportsbook revenue declined 6% as handle growth was offset by an adverse swing in sports results. | $889M | – | +4 % |
| Southern Europe and AfricaiGaming revenue grew 17%, supported by Italy execution, Türkiye product expansion and PokerStars customer migrations. | $836M | – | +13 % |
| Asia PacificRevenue reflected the closure of the real money gaming market in India; APAC organic revenue declined 4%. | $349M | – | (4 )% |
| Central and Eastern EuropeGrowth reflected iGaming market-share gains in Georgia, Serbia and Armenia and strong engagement during the FIFA World Cup. | $166M | – | +10 % |
| BrazilRevenue was affected by socio-economic measures, adverse sports results and the September 26, 2026 closure of operations following the Provisional Measure. | $60M | – | (31 )% |
| Other regionsDecline primarily reflected transfers of PokerStars Southern European and North American customers to SEA and US, respectively, and lower activity on the PokerStars global platform. | $119M | – | (48 )% |
2026 outlook
- RevenueGroup revenue of $17.335bn to $17.885bn; US total revenue of $7.165bn to $7.515bn; International revenue of $10.17bn to $10.37bn
- NoteGroup adjusted EBITDA of $2.345bn to $2.645bn
- NoteUS total adjusted EBITDA of $0.615bn to $0.815bn
- NoteInternational adjusted EBITDA of $2.04bn to $2.14bn
- NoteUnallocated corporate overhead of approximately $(310)m
- NoteInterest expense, net of approximately $(640)m
- NoteDepreciation and amortization excl. acquired intangibles of approximately $(730)m
- NoteCapital expenditure of approximately $(815)m
- NoteTransaction, restructuring and integration costs of approximately $(620)m
- NoteShare repurchases of approximately $(250)m (complete)
Capital returns
- Share repurchases: approximately $(250)m (complete)
- The existing share repurchase program has been paused for the foreseeable future.
- Immediate capital allocation priorities are to deleverage the balance sheet while investing in organic growth opportunities.
What drove it
- US sportsbook handle increased +13 %, while player frequency rose +4% and bet count grew +15%.
- US iGaming AMPs grew +24%, supported by new content and the Alberta launch in July.
- US promotional spend increased by 60bps to 6.0% of handle.
- International sportsbook handle increased +8%, but sportsbook net revenue margin decreased by 120bps to 11.2% due to adverse sports results.
- International adjusted EBITDA margin declined by 280bps to 18.0%, primarily due to the increase in UK remote gaming duty from 21% to 40%, partially offset by UK tax mitigation savings and Brazil cost actions.
- Brazil impairment charges totaled $873m, primarily comprising $296m related to long-lived assets and $541m related to goodwill.
- The company expects to deliver an additional $500 million in gross operating cost and capital expenditure savings by 2029.
Concerns
- The Group recognized a net loss of $(1,148)m, including $873m of non-cash Brazil impairment charges and a $105m increase in legal loss contingencies.
- Brazil operations closed on September 26, 2026 following the Provisional Measure banning online betting and gaming, with uncertainty remaining around the future operating environment.
- Unfavorable sports results affected both US and International performance in Q3 and Q4 to date.
- Leverage ratio increased to 4.6x from 3.7x at December 31, 2025.
- Prediction market operators are increasing marketing spend, affecting overall media costs.
What to watch
- Execution against the updated 2026 midpoint guidance of $17.61bn in Group revenue and $2.495bn in Group adjusted EBITDA.
- Whether US sportsbook product, rewards and promotional investments sustain improved market-share trajectory while promotional spend remains at similar levels in Q4 and 2027.
- International margin recovery amid UK remote gaming duty, sports-results variability and delivery of UKI, PokerStars and Brazil cost actions.
- The regulatory outcome in Brazil and conditions for potential resumption of operations.
- Growth and investment levels in FanDuel Predicts, where Q3 volume was $119m and October volume growth was 271% compared with July.
- Progress toward the 2.0 - 2.5x medium-term leverage target and the continued pause in share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $1,708m as of September 30, 2026, compared with $1,828m as of December 31, 2025.
- Available cash closed at approximately $1.7bn.
- Total Debt was $12,313m as of September 30, 2026, compared with $12,266m as of December 31, 2025.
- Net Debt was $10,656m as of September 30, 2026, compared with $10,591m as of December 31, 2025.
- The Group completed refinancing of its Revolving Credit Facility and Term Loan A facilities, increasing overall facility size by approximately $240m and extending maturity from November 2028 to May 2032.
- The target leverage range is 2.0 - 2.5x over the medium-term.
Analysis
Flutter reported Q3 Group revenue of $3,874m, up +2 %, as US revenue increased +6 % to $1,455m and International revenue was flat at $2,419m. The demand picture was divergent. US sportsbook handle increased +13 %, with player frequency up +4% and bet count up +15%, while iGaming AMPs increased +24%. International handle increased +8%, and UKI, Southern Europe and Africa, and Central and Eastern Europe delivered revenue growth, but these gains were offset by adverse sports results, the India exit and a sharp Brazil decline.
Profitability weakened materially. Group adjusted EBITDA fell to $360m from $478m and margin declined to 9.3 % from 12.6 %. US adjusted EBITDA was $3m versus $51m, as higher promotional spend, FanDuel Predicts investment, Alberta launch costs and FIFA World Cup investment weighed on the segment. International adjusted EBITDA declined to $435m from $505m, with the UK remote gaming duty increase from 21% to 40% a central margin headwind. International sportsbook margin fell to 11.2 % from 12.4 % because customer-friendly sports results had an approximately $131m in-quarter revenue impact.
The GAAP loss widened to $(1,148)m from $(789)m. The principal driver was $873m of non-cash Brazil impairment charges, including $296m related to long-lived assets and $541m related to goodwill, following challenging trading conditions and the Provisional Measure banning sports betting and iGaming. Results also reflected a $105m increase in legal loss contingencies and lower segment profitability. These factors were partly offset by the absence of the prior-year Boyd market-access payment and a higher income tax benefit. Adjusted loss per share was $(0.18), versus adjusted EPS of $1.64 in Q3 2025.
Cash generation remained positive but modest relative to the operating pressures. Net cash provided by operating activities was $211m, free cash flow was $35m and free cash flow including financing capex and excluding player funds was $(91)m. Net debt was $10,656m and leverage was 4.6x, up from 3.7x at December 31, 2025. Management completed a refinancing that extended Revolving Credit Facility and Term Loan A maturities to May 2032, but paused the share repurchase program for the foreseeable future to prioritize deleveraging and organic investment.
The full-year outlook was reduced for unfavorable sports results and Brazil. Group revenue guidance is now $17.335bn to $17.885bn and Group adjusted EBITDA guidance is $2.345bn to $2.645bn, with midpoints of $17.61bn and $2.495bn. The guide incorporates a reduction in US revenue and adjusted EBITDA of $60m and $45m, respectively, and International reductions of $240m and $115m. Management also raised transaction, restructuring and integration costs to approximately $(620)m and expects an additional $500 million in gross operating cost and capital expenditure savings by 2029.
Management, verbatim
Our Q3 performance gives me confidence that we are moving in the right direction. In the US, our sportsbook improvement plan is delivering early but tangible progress in customer engagement and performance. Our International business continues to benefit from strong underlying momentum and the impact of our cost transformation programs.
Dan Taylor, CEO
Sports results went against us in the quarter, however, which is reflected in our updated 2026 guidance.
Dan Taylor, CEO
Our immediate capital allocation priorities are to deleverage the balance sheet, while still investing in those organic growth opportunities which will deliver attractive, long-term returns.
Dan Taylor, CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported Q3 operating metrics
- GAAP gross margin
- GAAP operating margin
- Dividend information
- Tax-rate guidance
- Gross-margin guidance
- Operating-expense guidance
- Prior-release outlook for formal actual-versus-prior-guidance comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.