FLUT Stock Forecast & Price Target

Flutter Entertainment has demonstrated robust financial performance, with EBITDA exceeding expectations by 23% against both internal models and consensus forecasts, alongside a year-over-year revenue increase of 10% resulting in total revenues of $2,426 million. The company's strategic focus on user acquisition is reflected in a 30% year-over-year growth in average monthly players, reinforcing its market position across its key markets including the US, UK, and Australia. Additionally, Flutter is poised for continued growth with plans to launch a new predictive sports betting platform in late 2025, supported by enhanced product offerings and increased user engagement through proprietary and exclusive content.

Flutter Entertainment's financial outlook is negatively impacted by a declining sportsbook net revenue margin, which fell by 30 basis points year-over-year to 12.4%, primarily due to a higher mix of lower-margin regions and unfavorable sports outcomes. Additionally, the company reported an EBITDA miss of approximately $30 million, largely attributed to aggressive promotional spending by competitors, leading to significant share loss, particularly during the NFL season. Furthermore, management has reduced EBITDA guidance by 2%-3% at the midpoint to reflect recent challenges, including lackluster sports results and increased competition, resulting in a projected EBITDA fall of 27% and a subsequent 11% decline in forecasts for 2026.