Flutter Entertainment (NYSE:FLUT) Announces Earnings Results, Misses Estimates By $0.37 EPS

Flutter Entertainment (NYSE:FLUT) issued its quarterly earnings data on Thursday. The company reported $1.74 earnings per share for the quarter, missing the consensus estimate of $2.11 by ($0.37), FiscalAI reports. The business had revenue of $4.74 billion during the quarter, compared to analyst estimates of $4.87 billion. Flutter Entertainment had a positive return on equity of 11.91% and a negative net margin of 1.89%.Flutter Entertainment’s revenue for the quarter was up 24.9% compared to the same quarter last year. During the same quarter last year, the firm earned $2.94 EPS.

Here are the key takeaways from Flutter Entertainment’s conference call:

• Flutter delivered strong Q4 headline results (group revenue +25%, Adjusted EBITDA +27%), but FanDuel saw customer churn and some market-share loss after very high NFL gross margins (~19%) led to adverse recycling and mis-timed generosity in Q4.
• The company launched FanDuel Predicts in Q4 with encouraging early signals and is committing to significant investment — guiding prediction markets spend toward the upper end of its prior range (closer to $300 million) to drive customer acquisition and market-making opportunities in non‑regulated states.
• Profitability and cash metrics were mixed — net income and free cash flow declined due to higher interest, tax and M&A/CapEx spend, yet management completed $1 billion of buybacks in 2025, plans $250 million of returns in H1 2026, and targets leverage of 2.0–2.5x over the medium term.
• Operational transformation is progressing — Flutter is on track for targeted $300 million of cost savings by 2027, driven by platform migrations (e.g., Sky Bet, PokerStars, Snai) and efficiency programs that free up investment for growth.
• International momentum continues (Q4 international revenue +19%) with strategic expansions in Italy and Brazil — PokerStars migrations boosted Italian revenues and Brazil customer acquisition is up materially, with increased investment planned to capture share ahead of the 2026 FIFA World Cup.

Flutter Entertainment Stock Down 13.7%

FLUT stock opened at $106.24 on Friday. The firm has a 50-day moving average price of $174.32 and a 200-day moving average price of $223.80. Flutter Entertainment has a 12 month low of $99.96 and a 12 month high of $313.68. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 1.27. The stock has a market capitalization of $18.62 billion, a P/E ratio of -59.02, a price-to-earnings-growth ratio of 0.25 and a beta of 1.88.

Key Flutter Entertainment News

Here are the key news stories impacting Flutter Entertainment this week:

• Positive Sentiment: Several Wall Street firms kept “buy”/”overweight” stances and continue to see meaningful upside despite trimming targets, signalling continued conviction in Flutter’s long‑term position (analysts cite competitive strengths and attractive risk/reward). TipRanks story
• Positive Sentiment: Top-line growth remains solid: revenue rose ~25% year‑over‑year in the quarter, showing demand expansion even as profitability is under pressure. Earnings press release
• Neutral Sentiment: Annual Report and Accounts 2025 published — useful for detailed financials and accounting disclosures but not market moving on its own. GlobeNewswire
• Neutral Sentiment: Some outlets note a small EPS beat versus a narrow consensus (Zacks view) but that contrasts with broader consensus misses — mixed signals on the quarter depending on which benchmark you use. Zacks
• Negative Sentiment: Disappointing Q4 results and weak FY‑2026 guidance: EPS missed broader consensus (reported $1.74 vs. an often‑cited $2.11 consensus) and revenue was below estimates; management forecasted materially softer profit growth for 2026, citing U.S. market headwinds. This guidance shortfall is the primary driver of the stock decline. Reuters
• Negative Sentiment: Operational headwinds in the U.S.: high NFL hold and promotional missteps reduced betting volumes and customer engagement, and management said customer growth moderated while market share slipped in Q4. These are concrete execution risks for FanDuel, Flutter’s largest profit driver. LegalSportsReport
• Negative Sentiment: Market reaction and analyst re‑pricing: shares dropped sharply after the report and multiple brokers cut price targets (examples include Needham, Benchmark, Truist, BTIG, Citizens/JMP, Barclays and Oppenheimer), reflecting a re‑rating of near‑term earnings power. That repricing increases downside risk near term. Benzinga roundup

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Citizens Jmp dropped their price target on shares of Flutter Entertainment from $275.00 to $195.00 and set a “market outperform” rating for the company in a research report on Friday. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $170.00 price objective on shares of Flutter Entertainment in a report on Friday, February 6th. Zacks Research lowered Flutter Entertainment from a “hold” rating to a “strong sell” rating in a report on Monday, January 19th. Benchmark decreased their price target on Flutter Entertainment from $285.00 to $175.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Morgan Stanley dropped their price target on Flutter Entertainment from $352.00 to $315.00 and set an “overweight” rating for the company in a research note on Friday, December 12th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, five have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $237.15.

Hedge Funds Weigh In On Flutter Entertainment

Several institutional investors and hedge funds have recently added to or reduced their stakes in FLUT. Sivia Capital Partners LLC acquired a new position in Flutter Entertainment in the 2nd quarter valued at approximately $405,000. AXA S.A. acquired a new position in shares of Flutter Entertainment during the second quarter worth $234,000. Coldstream Capital Management Inc. bought a new stake in shares of Flutter Entertainment in the third quarter worth $207,000. Captrust Financial Advisors bought a new stake in shares of Flutter Entertainment in the second quarter worth $203,000. Finally, Quarry LP raised its position in Flutter Entertainment by 694.8% during the 3rd quarter. Quarry LP now owns 763 shares of the company’s stock worth $194,000 after purchasing an additional 667 shares during the last quarter.

About Flutter Entertainment

Flutter Entertainment plc is a global sports betting and gaming company that operates a portfolio of consumer-facing brands and digital platforms. The company’s primary activities include online sports betting, casino gaming, poker, and daily fantasy sports, delivered through web and mobile applications as well as retail betting locations in select markets. Flutter focuses on product development, customer acquisition and engagement, and compliance with local gambling regulations across the jurisdictions where it operates.

Flutter’s brand portfolio includes well-known names in different regional markets, such as FanDuel in the United States, PokerStars, Betfair, Paddy Power and Sky Betting & Gaming in Europe and elsewhere.