Flutter Entertainments Q2 Revenue Up 16% to $4.2bn, Shares Fall 3% Despite Record Performance

Flutter Entertainment's Q2 revenue rose 16% YoY to $4.2bn, with adjusted EBITDA increasing 25% to $919m. The US business, led by FanDuel, delivered 17% revenue growth and a record $400m in adjusted EBITDA. Flutter raised its full-year 2025 revenue guidance to $17.3bn and adjusted EBITDA to $3.3bn, but shares fell 3% despite the strong performance.

Flutter Entertainment (FLUT) reported its second-quarter (Q2) earnings on July 2, 2025, with revenue rising 16% year-over-year (YoY) to $4.19 billion, and adjusted EBITDA increasing 25% to $919 million. The company's US business, led by FanDuel, delivered 17% revenue growth and a record $400 million in adjusted EBITDA. Despite these impressive figures, Flutter's shares fell 3% on Friday, trading around the 22,330p mark, following the announcement of elevated full-year 2025 guidance [2].

The company's US division, which includes FanDuel, accounted for a significant portion of the growth, with revenues rising 17% and adjusted EBITDA increasing by 40% to $400 million. The strong performance of the US business was driven by favorable sports results and the rapid expansion of FanDuel, which has benefited from the easing of sports betting rules in various US states. Additionally, Flutter's international segment posted a 15% revenue increase, bolstered by the Snai and NSX acquisitions [3].

However, the company's net income dropped by 88% to $37 million, primarily due to non-cash charges, including a significant swing in the valuation of the Fox Option linked to FanDuel, higher amortization of acquired intangibles, and increased tax expenses. This led to a net income margin of 0.9% compared to 8.2% a year earlier. Despite the decline in net income, Flutter's adjusted earnings per share (EPS) climbed 45% to $2.95 [2].

Flutter raised its full-year 2025 revenue guidance to $17.26 billion and adjusted EBITDA to $3.3 billion, representing 23% and 40% growth, respectively. The company attributed the higher guidance to market access savings post the deal with Boyd, positive impact from US sports results, and the delayed launch in Missouri. However, the company expects annual cost savings of $65 million from the renegotiated market access agreement with Boyd, which will help offset the short-term increase in leverage metrics resulting from the acquisition of Boyd's 5% stake in FanDuel for $1.75 billion [3].

Flutter's stock has gained around 8.6% this year and is up over 53% in the last 12 months, outperforming the broad-based S&P 500 Index. The company's shares were added to the CRSP index and several Russell indices in Q2, which has helped support the stock's price action. Despite the strong performance and elevated guidance, the sharp drop in net income weighed on market sentiment [3].

References:

[1] https://www.ireland-live.ie/news/city/1866103/flutter-upgrades-full-year-forecast-as-fanduel-steals-the-show.html
[2] https://www.asktraders.com/analysis/flutter-soars-on-raised-guidance-despite-net-income-dip-analyst-optimism-fuels-share-price/
[3] https://casinobeats.com/2025/08/08/flutter-entertainment-beats-q2-earnings/