Flutter Entertainment reported third-quarter 2025 financial results showing revenue growth of 17% to $3.79 billion, driven by recent acquisitions and strong iGaming performance, though the company faced headwinds from customer-friendly sports results and regulatory changes in India.
The global online betting and iGaming operator posted a net loss of $789 million for the quarter, compared to a loss of $114 million in the prior year period. The increased loss stemmed primarily from a $556 million non-cash impairment charge related to its Indian operations and a $205 million payment to Boyd Gaming to revise US market access terms.
Average monthly players grew 9% year-over-year to 14.1 million, while adjusted EBITDA increased 6% to $478 million. However, adjusted EBITDA margin declined 130 basis points to 12.6%, reflecting the impact of sports results and competitive pressures.
US Performance Shows Mixed Results
FanDuel’s US operations generated revenue of $1.37 billion, up 9% year-over-year, led by exceptional iGaming growth of 44%. The company maintained its market leadership position with a 47% net gaming revenue share in September.
However, sportsbook revenue declined 5% due to unfavorable sports results and intense promotional activity from competitors at the start of the NFL season. US adjusted EBITDA fell 12% to $51 million as a result.
The company responded with increased customer acquisition and retention investment in the fourth quarter, which has driven year-over-year handle growth of 10% quarter-to-date, with the NBA season showing strong early momentum.
FanDuel Predicts Enters Prediction Markets
Flutter announced the December launch of FanDuel Predicts, a new prediction market product developed through a joint venture with CME Group. The offering will initially focus on states without regulated sports betting, representing what the company called “a significant incremental addressable market.”
The company expects the new product to generate incremental adjusted EBITDA costs of $40-50 million in Q4 2025 and $200-300 million in 2026, with the majority of investment occurring in the second half of next year.
International Division Drives Growth
Flutter’s International segment delivered revenue of $2.43 billion, up 21% year-over-year, with the Snai and Betnacional acquisitions contributing 18 percentage points of growth. Organic iGaming revenue increased 10%, with strong performance in Turkey and Italy’s Sisal online business offsetting the India impact.
International adjusted EBITDA reached $505 million, up 10% year-over-year, with margin declining 230 basis points to 20.8% due to investment in Brazil operations.
The UK and Ireland region posted modest revenue growth of 1%, while Southern Europe and Africa surged 101% including acquisition contributions. Asia Pacific revenue fell 12%, reflecting the cessation of real-money gaming in India.
India Operations Shut Down
The Indian Parliament’s passage of the Promotion and Regulation of Online Gaming Act in August 2025 forced Flutter to immediately cease all real-money operations through its Junglee platform. The company recorded a $556 million impairment charge, comprising $517 million in goodwill and $39 million in other assets.
Flutter expressed disappointment with the regulatory change but said Junglee will continue offering free-to-play content while the company assesses medium-term options for the market.
Guidance Revised Downward
Flutter updated its full-year 2025 guidance, now expecting revenue of $16.69 billion at the midpoint, down from $17.26 billion previously. Adjusted EBITDA guidance was reduced to $2.915 billion from $3.295 billion.
The revisions primarily reflect Q3 performance, unfavorable Q4 sports results through early November, increased Q4 sportsbook investment, FanDuel Predicts investment, Illinois tax treatment changes, and the India regulatory impact.
The company reported leverage of 4.0x at quarter-end, up from 2.2x at year-end 2024, reflecting debt financing for recent acquisitions. Including Snai on a pro forma basis, the leverage ratio would be 3.7x.
Flutter continued its share repurchase program, buying back 770,000 shares for $225 million during the quarter. The company has returned $1.12 billion to shareholders since launching the program, representing 2% of issued share capital, with plans to continue repurchases into 2026.
“Flutter delivered a solid third quarter, with continued momentum in both our US and International businesses. We are the clear number one operator in the US, and we will continue to build on that position to drive future profitability. Our strategic investments, including the launch of FanDuel Predicts and recent International acquisitions, position us exceptionally well to capture new opportunities and deliver sustainable, profitable growth,” CEO Peter Jackson stated.
Source: Flutter Entertainment
