Flutter 2025 Q1 Earnings Strong Performance as Net Income Surges 289%

Flutter (FLUT) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The results exceeded expectations with net income soaring by 289% year-over-year, marking a significant turnaround from the previous year's losses. The company also raised its guidance for 2025, showcasing confidence in continued growth. Flutter's impressive performance was driven by strong revenue growth across its US and international operations, along with strategic acquisitions that are expected to further bolster its market position.

Revenue
The total revenue of Flutter increased by 7.9% to $3.67 billion in 2025 Q1, up from $3.40 billion in 2024 Q1. Leading the segments, the Sportsbook generated $2.01 billion, while iGaming contributed $1.52 billion. The 'Other' category added $129 million, culminating in total revenue of $3.67 billion.

Earnings/Net Income
Flutter returned to profitability with an EPS of $1.59 in 2025 Q1, reversing from a loss of $1.10 per share in 2024 Q1, marking a 244.5% positive change. The company achieved a net income of $335 million in 2025 Q1, representing a 289.3% positive swing from the net loss of $-177 million in 2024 Q1. The EPS indicates a strong financial recovery.

Post-Earnings Price Action Review
Over the past five years, buying Flutter shares following a quarter with revenue growth and holding for 30 days has yielded moderate returns. This strategy delivered a 9.02% return, slightly below the benchmark of 10.68%. Despite a maximum drawdown of -5.43%, the strategy demonstrated reasonable risk-adjusted performance with a Sharpe ratio of 0.75. However, volatility was relatively high at 9.39%. The compound annual growth rate (CAGR) was 7.06%, indicating steady growth over the period. These metrics suggest that while the strategy underperformed the benchmark, it still provided a reliable return with a manageable risk profile.

CEO Commentary
Peter Jackson, CEO of Flutter, expressed optimism regarding the company's growth trajectory, highlighting a year-over-year net income increase of 289% and adjusted EBITDA growth of 20%. He emphasized Flutter's sustainable business model, underscoring the importance of Responsible Gaming in long-term strategies. Jackson noted the company's leadership in the US sports betting and iGaming markets, with market shares of 43% and 27%, respectively. He acknowledged the challenges posed by fluctuating sports results but maintained confidence in Flutter's resilient performance and strategic investments, including acquisitions and a share buyback program, which position the company for continued value creation.

Guidance
Flutter anticipates continued growth driven by its innovative product offerings and strong market leadership. The company expects to maintain its competitive edge through the launch of new capabilities, such as next-generation pricing technology and customer engagement features. Jackson conveyed confidence in achieving long-term targets, stating that the company remains well-positioned to invest across multiple opportunities while delivering returns to shareholders. Overall, Flutter's outlook reflects strong organic performance and a commitment to leveraging its diverse portfolio to capitalize on the global market potential.

Additional News
Flutter has made significant strides in expanding its portfolio, highlighted by the acquisition of Snai in Italy, which was completed on April 30, 2025. This acquisition enhances Flutter's scale in Italy, capitalizing on Europe's largest regulated market. Additionally, Flutter is set to complete the acquisition of NSX in Brazil by the end of May, positioning itself favorably in a fast-growing and newly regulated market. These strategic acquisitions are expected to contribute $1.07 billion in revenue and $120 million in adjusted EBITDA to Flutter's 2025 results. Alongside these moves, Flutter continues its share buyback program, demonstrating its commitment to returning value to shareholders.