Flutter Entertainment has released its financial results for the second quarter of 2026, revealing a rise in revenue but a significant drop in profit. The company's shares fell sharply following the announcement, closing at $92.91, an 11.5% decrease from the previous day's $104.96, and nearing a 52-week low.
Despite reporting group revenue of $4.326 billion, which marks a 3% increase from $4.187 billion in the same quarter last year, and an adjusted EBITDA of $508 million surpassing expectations, Flutter faced a staggering net loss of $296 million. This loss translates to $1.57 per share, a stark contrast to the earnings of 59 cents per share reported in the previous year.
CEO Peter Jackson's impending departure at the end of September after nearly nine years has added to investor concerns. Dan Taylor, currently the president of Flutter and CEO of Flutter International, will take over leadership on October 1, with Jackson remaining as an advisor until the year's end.
Flutter's adjusted EBITDA fell 45% from $919 million, and the group margin plummeted by 1,020 basis points to 11.7%. The drop in profitability was attributed to several factors, including historical tax provisions and increased interest expenses related to acquisitions.
In the U.S. market, Flutter's revenue decreased by 6% to $1.683 billion, with sportsbook revenue down 15% to $1.039 billion, although iGaming saw a 14% increase to $577 million. Jackson noted that customer-friendly sports results had a negative impact on net revenue, which was affected by approximately $21 million due to these outcomes.
Overall, while Flutter's revenue figures showed promise, the significant losses and leadership changes have raised concerns among investors about the company's future performance.