Flutter's Strong Q2 Earnings Can't Lift Shares as Trading Volume Ranks 125th Amid Regulatory Risks

Flutter (FLUT) closed August 7, 2025, down 0.29% with $840 million in trading volume, ranking 125th among listed stocks. The online gaming giant reported Q2 2025 earnings of $2.95 per share, surpassing the LSEG consensus of $2.08. Revenue reached $4.19 billion, slightly above the $4.13 billion forecast. U.S. operations, led by FanDuel, generated $1.79 billion in revenue with a record 16.3% gross margin. CEO Peter Jackson warned of potential user migration to offshore platforms due to rising state taxes, citing Illinois as a cautionary example.

The company raised full-year guidance citing favorable U.S. sports outcomes and tax adjustments. Despite strong earnings, management highlighted regulatory risks that could pressure long-term growth. Flutter shares have gained 18.8% year-to-date versus 7.9% for the S&P 500. Analysts note mixed earnings estimate revisions and a Zacks Rank #3 (Hold) rating, suggesting near-term alignment with market performance. Industry positioning remains challenging, with the Gaming sector ranking in the bottom 42% of Zacks industries.

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