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    FLUT
    Earnings call· Mar 2026(Q1 FY26)

    Flutter Entertainment Q1 FY26 earnings call FLUT

    May 6, 2026 Source

    Executive summary

    Flutter Entertainment Q1 FY26 — Strong iGaming Growth and US Sportsbook Improvements

    Flutter Entertainment reported Q1 FY26 results showing strong iGaming growth and initial positive signs from U.S. sportsbook improvements, despite a smaller player base entering the year. The company is focused on strategic leadership changes, product enhancements like the One App and loyalty program, and disciplined capital allocation, including deleveraging and share buybacks. International segments like Italy and Brazil also demonstrated strong performance, while the UKI segment is showing improving momentum post-migration.

    Highlights

    5

    • Group revenue grew 17% in Q1 2026.

    • Total iGaming revenue growth of 28% in Q1 2026, with FanDuel iGaming AMPs up 10% and revenue up 19%.

    • Bet Protect+ adoption rates were double expectations.

    • Italy performance was extremely strong, with Sisal's MyCombo product driving significant parlay penetration and structural margin.

    • Betnacional AMPs in Brazil were over 40% higher year-over-year.

    Concerns

    6

    • Adjusted EBITDA increased by only 2% year-over-year.

    • Net income declined $126 million year-over-year, primarily due to a $71 million increase in interest expense and a $122 million increase in depreciation and amortization.

    • EPS and adjusted EPS declined to $1.23 and $1.22, respectively.

    • Free cash flow, excluding player funds, declined by 46%.

    • Leverage stood at 3.7x at the end of Q1 and is expected to increase through Q2 and Q3.

    • Sky Bet's performance in the UKI was behind expectations post-migration, though momentum improved in March.

    Guidance & targets

    5
    CategoryTargetConfidence
    Group Revenue
    $18.3 billion
    high materiality
    High
    Adjusted EBITDA
    $2.865 billion
    high materiality
    High
    Leverage Ratio
    2x to 2.5x
    high materiality
    Medium
    Cost Efficiency Program Savings
    $300 million run rate
    medium materiality
    High
    London Stock Exchange listing review conclusion
    conclude during Q2
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    U.S.
    Underlying growth in Q1 showed encouraging signs. Overall sportsbook performance was adversely impacted by NFL trends observed in Q4, leading to a smaller player base. iGaming delivered strong growth, driven by an expanded direct casino player base and improved frequency among higher-value cohorts.
    AMPs: 1% behind last yeariGaming AMPs: up 10%
    		6% growth6%——
    International - Italy
    Performance was extremely strong, outgrowing the market and main competitors. Sisal's market-first MyCombo product drove significant parlay penetration and structural margin. The Snai business migration onto the SEA platform was successfully completed at the end of April, transitioning around 2 million accounts.
    Market position: clear #1 operator onlineSisal MyCombo: contributed half of prematch soccer handle with over 30% of bets carrying 5 or more legs
    		————
    International - UKI
    Strong double-digit iGaming revenue growth was delivered across Paddy Power, Tombola, and Betfair. Sky Bet's performance was behind expectations post-migration, but momentum improved with underlying sportsbook revenue returning to growth in March. Market competitiveness remains stable ahead of the UK iGaming tax increase.
    iGaming revenue growth: strong double-digitSky Bet customer acquisition volumes: highest in 5 years in JanuarySky Gaming customers: more than 1 million in March
    		————
    International - Brazil
    Performance remained encouraging. Proprietary pricing capabilities will soon be integrated to unlock a best-in-class parlay product and promotional improvements ahead of the FIFA World Cup.
    Betnacional AMPs: over 40% higher year-over-year
    		————
    International - APAC
    Modest year-over-year growth in sportsbook AMPs and handle. Advertising restrictions announced in April are welcomed, with Sportsbet well placed to build on its market-leading position.
    sportsbook AMPs: modest year-over-year growthhandle: modest year-over-year growthracing (excluding greyhounds): declining year-over-year, ahead of expectations
    		————

    Operational metrics

    21
    Group Revenue Growth
    17%YoY
    Q1 FY26

    Reflected contributions from Snai and Betnacional acquisitions and a positive year-over-year swing in sports results.

    Adjusted EBITDA Growth
    2%YoY
    Q1 FY26

    Reflected contributions from Snai and Betnacional acquisitions and a positive year-over-year swing in sports results.

    Sportsbook Revenue Growth
    10%
    Q1 FY26

    With excellent underlying momentum in SEA and the U.S. showing encouraging signs of improvement.

    iGaming Revenue Growth
    28%
    Q1 FY26

    Continued strong iGaming performance across the U.S., SEA and UKI.

    Net Income
    $209 milliondeclined $126 million YoY
    Q1 FY26

    Driven by increased interest expense and depreciation and amortization, partially offset by Fox Option fair value adjustment.

    Interest Expense Increase
    $71 millionYoY
    Q1 FY26

    Contributed to net income decline.

    Depreciation and Amortization Increase
    $122 millionYoY
    Q1 FY26

    Contributed to net income decline.

    Fox Option Fair Value Adjustment
    $88 millionnoncash benefit YoY
    Q1 FY26

    Partially offset the decline in net income.

    EPS
    $1.23declined
    Q1 FY26

    Reflecting factors impacting net income and noncontrolling interest benefit.

    Adjusted EPS
    $1.22declined
    Q1 FY26

    Reflecting factors impacting net income and noncontrolling interest benefit.

    Noncontrolling Interest Benefit
    $61 millionYoY
    Q1 FY26

    As the company lapped the prior period, including an expense reflecting Boyd's 5% ownership of FanDuel.

    Net Cash Provided by Operating Activities
    $142 millionincreased 76% YoY
    Q1 FY26

    Primarily driven by a positive year-over-year swing in player funds.

    Player Funds Swing
    $153 millionpositive swing YoY
    Q1 FY26

    From an outflow in the prior year related to Sisal lottery payout with inflow in the current quarter.

    Share Buyback Executed
    $190 million
    Q1 FY26

    Part of the plan to return $250 million to shareholders commencing in H1.

    Leverage
    3.7x
    Q1 FY26

    Expected to decrease by the end of 2026, initially increasing through Q2 and Q3.

    Prediction Market Spend
    circa $40 million
    Q1 FY26

    For testing and learning around predict products and demonstrating ability to acquire customers.

    Sky Gaming Customers
    more than 1 millionfirst time ever
    March

    Big step-up in perception from a customer perspective.

    Sky Bet Underlying Sportsbook Revenue Growth
    returned to growth
    March

    Momentum improved post-migration.

    Sky Bet Normalized Revenue Growth
    9%
    March

    Compared with flat for the Q1 period as a whole.

    Bet Protect+ Adoption Rate
    double our expectations
    Q1 FY26

    Industry-first generosity mechanic, continuing to grow.

    Snai Accounts Migrated
    around 2 million
    end of April

    Successfully completed migration onto the SEA platform.

    Product announcements

    7
    ProductTypeDetails
    Sportsbook Loyalty Programlaunch
    Bet Protect+launch
    PokerStars customers to FanDuel platformexpansion
    FanDuel One Applaunch
    Market-making serviceslaunch
    New Soccer Product Featuresroadmap
    Proprietary Pricing Capabilities Integrationexpansion

    Deals & partnerships

    1
    major third-party prediction market platformmarket-making services

    Flutter began market-making services on a major third-party prediction market platform in April, leveraging its proprietary pricing capabilities.

    Risks & headwinds

    9
    NFL trends impacting customer activityQ4 2025 impacting Q1 2026

    persistently high gross revenue margins negatively impacted customer activity, leaving us with a smaller player base as we enter 2026

    Mitigation: Executing sportsbook and generosity improvement plans, including loyalty program and Bet Protect+.

    Prediction market regulatory environment

    fast-moving and complex regulatory environment has at times has made product delivery time scales challenging

    Mitigation: Prioritizing new product rollout and focusing on building operational flexibility.

    Sky Bet performance post-migrationQ1 FY26

    behind our expectations, as customers adapted to the new user interface post migration

    Mitigation: Momentum has improved with highest customer acquisition volumes in 5 years in January, and underlying sportsbook revenue returning to growth in March.

    UK iGaming tax increaseApril 1

    tax increase to 40% on the first of April

    Mitigation: Flutter is well placed to deliver material first order litigation and benefit from second order market share gains over time as less profitable operators adjust strategies.

    Increased interest expenseQ1 FY26

    $71 million increase year-over-year

    Increased depreciation and amortizationQ1 FY26

    $122 million increase year-over-year

    Lower Q1 sports resultsQ1 FY26

    unfavorable Q1 sports results in the U.S. and international

    Mitigation: Guidance unchanged on an underlying basis, adjusting only for these results and Arkansas launch costs.

    Launch costs in ArkansasQ1 FY26

    launch costs in Arkansas not previously included

    Mitigation: Guidance unchanged on an underlying basis, adjusting only for these costs and unfavorable Q1 sports results.

    Leverage increasing in short termQ2 and Q3 FY26

    leverage of 3.7x at end of Q1, initially increasing through Q2 and Q3

    Mitigation: Expected to decrease by the end of 2026, moving towards a target ratio of 2x to 2.5x over the medium term; deleveraging is a priority.

    What to watch in Q2 FY26

    5

    London Stock Exchange listing review

    Q2 FY26
    CurrentOngoing review
    TargetConclusion of review

    Why it matters

    Potential streamlining of dual listing could impact shareholder value and market access.

    We expect this review to conclude during Q2, and we'll update on our findings at that time.

    Q&A highlights

    7

    How should investors view the recent management changes, and can you provide inputs for the Q2 EBITDA expectation of $104 million?

    Management changes are about putting new leadership in place to drive the business forward, with no change in strategy. Q2 EBITDA expectations are unchanged, with trading in line with expectations and slightly favorable sports results recently. Prior year Q2 included $70 million from sports results, and current Q2 includes prediction market spend and World Cup marketing.

    “There's no change in our strategy or posture in the business.”

    asked by Jordan Bender · answered by Jeremy Jackson

    2 min read6 chapters

    Detailed Narrative

    01

    Management Changes and US Leadership

    Flutter announced management changes, with Amy Howe leaving and Daniel Taylor expanding his role, alongside Christian Genetski. These changes aim to sharpen focus on the U.S. sportsbook, strengthen connections between U.S. and international divisions, and leverage group expertise. Management believes this structure will drive long-term success and sustained growth in the significant U.S. market opportunity.

    02

    US Sportsbook and Generosity Initiatives

    Underlying growth in the U.S. sportsbook showed encouraging signs in Q1, with AMPs, handle, and structural revenue margin improving through the quarter. Initiatives include early win promotions, a new sportsbook loyalty program rolling out through Q2/Q3, and Bet Protect+, an industry-first generosity mechanic with adoption rates double expectations. Product enhancements like expanded 'Pass the Leg' and personalized NBA Same Game Parlay building are gaining traction.

    03

    iGaming Performance and Loyalty

    FanDuel delivered another strong iGaming quarter, with AMPs up 10% and revenue growth of 19% year-over-year. This was driven by an expanded direct casino player base, improved frequency among higher-value cohorts, enhanced rewards through its loyalty program, and continued rollout of exclusive content. The migration of PokerStars customers to the FanDuel platform in April is expected to unlock improved products and cross-state liquidity.

    04

    Prediction Markets Strategy and Product Rollout

    Flutter continues to view prediction markets as an incremental customer acquisition opportunity, with limited cannibalization impact on sportsbook growth. The company launched the FanDuel One App in April, dynamically serving sports betting or prediction markets based on state regulations. Early testing of generosity capabilities and market-making services on a third-party platform in April showed encouraging returns, with plans to launch an initial phase of its own market-making platform soon.

    05

    International Segment Highlights

    Italy showed extremely strong performance, with Sisal outgrowing the market and its MyCombo product driving parlay penetration. The Snai migration onto the SEA platform was successfully completed, transitioning 2 million accounts. In the UKI, strong double-digit iGaming revenue growth was delivered, and Sky Bet's underlying sportsbook revenue returned to growth in March. Brazil's Betnacional saw AMPs over 40% higher year-over-year, with proprietary pricing capabilities soon to be integrated ahead of the FIFA World Cup. APAC saw modest sportsbook AMPs and handle growth, with racing performance ahead of expectations.

    06

    Financial Performance and Capital Allocation

    Group revenue grew 17% in Q1, while adjusted EBITDA was up 2%. Net income and EPS declined due to increased interest expense and D&A. Net cash from operating activities increased significantly, but free cash flow declined. The company maintains a disciplined capital allocation policy, prioritizing organic investment and strategic opportunities like prediction markets. A $250 million share buyback program commenced in Q1, with $190 million returned by May 1. Leverage stood at 3.7x, with a target of 2x-2.5x in the medium term, and significant cost savings are being realized through efficiency programs.

    AI-generated summary of the company’s earnings call. Not investment advice.