Flutter Entertainment NYSE: FLUT reported second-quarter revenue growth of 3% as strong customer engagement around the FIFA World Cup and acquisitions helped offset customer-friendly U.S. sports results and higher taxes in the United Kingdom.
The company also announced that Chief Executive Officer Peter Jackson will step down at the end of September after nearly nine years in the role. Jackson said Dan, whom he identified only by first name during the call, will take over as CEO on Oct. 1. Jackson said the incoming leader has been closely involved in the company’s strategy and execution.
“After nearly nine years as CEO, this is the right time to hand over to Dan,” Jackson said, adding that he had “tremendous confidence” in the company’s future and its leadership team.
Profitability Declines Amid Investment and Tax Costs
Chief Financial Officer Rob Coldrake said adjusted EBITDA declined 45% during the quarter, reflecting the U.K. gaming-tax increase as well as planned investment in prediction markets and World Cup marketing. Flutter posted a net loss of $296 million, compared with net income of $37 million in the second quarter of 2025.
Coldrake said the loss was driven mainly by lower segment profitability and $95 million of one-off historical tax costs. Loss per share was $1.57, while adjusted loss per share was $0.49.
Free cash flow, including financing capital expenditures and excluding player funds, fell 56% year over year. Flutter ended the quarter with a leverage ratio of 4.3 times. The company expects second-half cash generation to reduce leverage by year-end and reiterated its goal of returning to a 2-times-to-2.5-times target range in the medium term.
Flutter updated its full-year outlook, lowering midpoint revenue guidance by $395 million to $17.91 billion and adjusted EBITDA guidance by $210 million to $2.655 billion. The outlook incorporates favorable second-quarter trading, an expected $50 million contribution from market making, $45 million of U.S. operating-cost savings, foreign-exchange effects, additional customer investment and the impact of a one-week delay to the 2026-27 NFL season start.
Source: MarketBeat
