Shares of Flutter Entertainment fell sharply on Wednesday after the sports betting group reported weaker-than-expected quarterly earnings, reduced its U.S. profit forecast and announced another major leadership transition.
Flutter shares declined more than 11% after the company reported second-quarter earnings of 49 cents per share. Analysts surveyed by LSEG had expected earnings of 60 cents per share.
Quarterly revenue reached $4.33 billion, slightly above Wall Street expectations of $4.26 billion.
Investor concerns intensified after Flutter lowered its full-year adjusted EBITDA forecast for its U.S. operations to $760 million. The revised outlook represents a 22% reduction from the company’s previous guidance.
Flutter also announced that Chief Executive Peter Jackson will step down at the end of the current quarter. Dan Taylor, who currently leads Flutter’s international division, will become group CEO on October 1.
Jackson has led Flutter for nine years, overseeing the company’s acquisition and expansion of FanDuel, which became one of the most prominent sports betting platforms in the United States.
However, FanDuel has faced growing pressure as competitors have gained market share. Jackson acknowledged that the business had reduced promotions and customer incentives too aggressively, weakening its position entering 2026.
Flutter now plans to invest approximately $270 million of additional EBITDA into its U.S. operations during the second half of the year. The spending will focus on customer rewards, promotional offers and protective betting features.
Promotional spending is expected to rise closer to 6% of betting handle as the company attempts to attract customers and rebuild FanDuel’s market position.
Flutter said early signs of improvement were already emerging. FanDuel’s loyalty programme reached about 70% of customers during the quarter and is expected to become available nationwide before the football season.
The company also highlighted stronger customer activity across major sporting events. Active users during the NBA Finals increased 26% per game, while nearly one-third of FanDuel’s 2.3 million World Cup customers were reactivated.
FanDuel also recorded its strongest-ever Major League Baseball week, according to the company.
Flutter said the increased spending could reduce short-term profitability but strengthen customer growth and market share ahead of 2027.
The company is also expanding into prediction markets. Its sports and novelty event contracts are being moved from CME to Crypto.com, while CME will continue supporting financial market contracts.
Flutter believes prediction markets could help FanDuel reach customers in states where traditional sports betting remains restricted. The company expects around $50 million in market-making revenue from the segment this year.
Taylor will take control at a critical time for the group. In May, he was given responsibility for FanDuel following the departure of the division’s former CEO, Amy Howe.
His priorities will include improving execution, strengthening customer retention and converting recent engagement gains into sustainable revenue growth.
Despite the earnings disappointment and reduced guidance, some analysts remain positive about Flutter’s longer-term prospects. However, investors are likely to closely monitor whether increased promotional spending can restore FanDuel’s U.S. market momentum without placing further pressure on profitability.
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