FLUT Stock Forecast & Price Target

Flutter Entertainment demonstrated a strong financial performance with EBITDA exceeding projections by 23%, resulting in a year-over-year increase of 10% on revenues of $2.426 billion. User acquisition played a pivotal role in this growth, reflected in a 30% year-over-year increase in average monthly players, while plans for new product launches in late 2025 are expected to further enhance user engagement and market penetration. In the context of revenue breakdown, sports betting accounted for 56% of total revenue, underscoring the company's robust position in key markets and its potential for sustained growth.

Flutter Entertainment reported a decline in its sportsbook net revenue margin to 12.4%, reflecting a -30 basis points year-over-year drop, attributable to a higher mix of lower-margin regions and unfavorable sports results, despite a reduction in promotional spend. The company experienced a significant EBITDA miss of approximately $30 million against implied guidance, primarily driven by competitive promotional strategies that adversely affected market share and handle, particularly in the NFL betting segment. Additionally, EBITDA estimates were revised lower, now projected at $222 million for the quarter, marking an 8% miss and indicating a broader negative trend with expected EBITDA for 2026 also reduced by 11%.