Flutter stock falls 4% after cutting full-year guidance

Flutter Entertainment PLC (NYSE:FLUT) shares fell 4% after the betting giant cut its full-year guidance, overshadowing a 17% revenue beat driven by acquisitions and strong iGaming performance.

"Flutter’s Q1 performance was encouraging, with Group revenue increasing 17% year-on-year," CEO Peter Jackson said, pointing to positive signs from the company's U.S. improvement plan despite the trimmed outlook.

The Dublin-based operator reported first-quarter revenue of $4.3 billion, surpassing consensus estimates of $4.28 billion. However, net income fell 38% to $209 million as costs from recent acquisitions and investments weighed on the bottom line, with earnings per share of $1.22 missing some analyst expectations.

The guidance cut and a concurrent management shakeup at its U.S. FanDuel division sent shares tumbling. The company’s outlook was downgraded to a “Strong Sell” rating by Zacks Investment Research following the report.

Guidance and U.S. Headwinds

Flutter lowered its full-year 2026 guidance to a midpoint of $18.3 billion in revenue and $2.9 billion in adjusted EBITDA. The company attributed the revision to unfavorable sports results in the first quarter, costs associated with its recent launch in Arkansas, and continued investment in its prediction market products.

The changes come as Flutter confronts a significant slowdown in its critical U.S. market. U.S. revenue grew 6% to $1.76 billion, but sportsbook revenue increased just 1% from the prior year, while average monthly players for the segment declined by 6%. The sluggish performance prompted a leadership change, with FanDuel CEO Amy Howe exiting the company. Christian Genetski, previously FanDuel's president, will now lead the U.S. business.

Metric	Actual	Consensus	Beat/Miss
Revenue	$4.3B	$4.28B	+0.65%
EPS	$1.22	$1.15	+6.39%
U.S. Revenue	$1.76B	$1.7B	+3.5%
Intl. Revenue	$2.54B	$2.57B	-1.2%

The weaker-than-expected U.S. results overshadowed strong performance in the International segment, where revenue surged 27% to $2.5 billion, driven by the acquisitions of Snai and Betnacional.

The guidance revision and management turnover highlight the intense competitive pressures in the U.S. sports betting market. The new leadership's ability to revitalize growth at FanDuel will be a key focus for investors, who will be watching for results from the company's next earnings call.

This article is for informational purposes only and does not constitute investment advice.