Flutter Entertainment PLC (FLTR1N) Q3 2026 Earnings Report

The call presented strong underlying operational momentum, including U.S. and international market share gains, improving customer engagement, rapid product development, prediction-market progress, and planned cost savings. However, these positives were offset by a 25% decline in adjusted EBITDA, unfavorable sports results, reduced 2026 guidance, a $873 million Brazil impairment, higher legal contingencies, elevated leverage, paused buybacks, and continued competitive and regulatory pressure. The positive operating trends and long-term opportunities were balanced by significant near-term financial and execution challenges.

For 2026, full year group revenue midpoint guidance was reduced by $300 million to $17.61 billion and full year adjusted EBITDA guidance by $160 million to $2.495 billion; group transaction restructuring and integration costs will now be approximately $620 million, an increase of approximately $120 million. Leverage was 4.6x at Q3, with expectations to deleverage significantly through 2027 and return to the 2 to 2.5x target range over the medium term. The company expects to deliver an additional £500 million in gross operating cost and capital expenditure savings by 2029, while maintaining its target of 5% to 10% annual growth. For 2027, promotional spend is expected to remain at similar levels in Q4 and throughout 2027, marketing intensity at the elevated levels observed for 2026, net revenue margin broadly flat year over year, and cost of sales as a percentage of revenue at 58% for 2026 to remain at the same level. Market making guidance remains $50 million revenue and around circa $40 million EBITDA for this year, building next year; international EBITDA growth is expected to be at the high end of 5 to 10%, with revenue growth slightly lower.