Flutter Entertainment PLC (FLUT) AI Stock Analysis

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Flutter Entertainment PLC

(NYSE:FLUT)

Rating:63Neutral

Price Target:

$310.00

▲(3.05% Upside)

Flutter Entertainment PLC's overall stock score is driven by strong financial performance and strategic achievements, particularly in the U.S. and International markets. However, the high P/E ratio and lack of dividend yield suggest overvaluation, which, combined with challenges in net income reduction and tax impacts, temper the overall score.

Positive Factors

Financial Performance

Flutter reported strong Q2 2025 results with revenue exceeding consensus estimates, driven by robust growth in the US and continued international momentum.

Partnerships

Flutter Entertainment announced a strategic partnership with CME Group to develop an event-contracts platform for FanDuel customers in the United States.

Regulatory Strategy

The strategy to enter unregulated markets could give Flutter a significant advantage by building a potential sports bettor database before legalization.

Negative Factors

Regulatory Risk

Tactically we approach 2H25 cautiously given elevated tax hike/regulatory risk.

Revenue Concerns

While there are certain specific use cases well suited to prediction markets, the activity and revenue generated from these contracts will likely remain small compared to traditional offerings.

Flutter Entertainment PLC (FLUT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

£52.97B

Dividend YieldN/A

Average Volume (3M)2.03M

Price to Earnings (P/E)148.2

Beta (1Y)1.30

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees27,345

SectorConsumer Cyclical

Sector Strength80

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)2.95

Shares Outstanding176,099,560

10 Day Avg. Volume1,370,275

30 Day Avg. Volume2,025,667

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

£347.21

Price Target Upside15.42% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering23

Flutter Entertainment PLC Business Overview & Revenue Model

Company DescriptionFlutter Entertainment PLC (FLUT) is a global sports betting, gaming, and entertainment provider. Operating across various sectors, the company offers a wide range of products and services, including online and retail sports betting, casino games, poker, and daily fantasy sports. Flutter Entertainment is the parent company to several well-known brands, such as Paddy Power, Betfair, FanDuel, PokerStars, and FOX Bet, serving millions of customers worldwide with a focus on regulated markets.

How the Company Makes MoneyFlutter Entertainment PLC generates revenue primarily through its diversified portfolio of betting and gaming brands. The company's revenue streams include online sports betting, where customers place bets on sports events through its platforms like FanDuel and Betfair. Another significant source of income is online gaming, which includes casino games and poker through brands such as PokerStars. Additionally, Flutter earns from retail betting shops, mainly under the Paddy Power brand, where customers can place bets in physical locations. The company also benefits from partnerships, such as the collaboration with FOX Corporation for FOX Bet, which helps it expand its reach in the competitive U.S. market. These diverse revenue streams are bolstered by strategic marketing, technology investments, and a commitment to responsible gambling, which collectively enhance customer engagement and loyalty.

Flutter Entertainment PLC Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance and strategic achievements, particularly in the U.S. and International markets, as well as successful cost efficiency measures. However, significant challenges were noted in terms of net income reduction and adverse impacts from new U.S. tax changes.

Q2-2025 Updates

Positive Updates

Strong Financial Performance

Group revenue increased by 16% and adjusted EBITDA grew 25%, driven by the U.S. business's growth, NSX and Snai acquisitions, and continued International growth. Adjusted earnings per share grew 45%.

U.S. Market Leadership

Flutter maintained its position as the #1 online operator in both sportsbook and iGaming in the U.S., with revenue growth of 17% and exceptional iGaming growth of 42%.

International Expansion Success

Completed Snai and NSX transactions, creating a leadership position in Italy and establishing a scale position in Brazil, with International revenue growing by 15%.

Cost Efficiency Achievements

Successful migrations of PokerStars and Sky Betting & Gaming customers onto shared platforms; expected $300 million savings by 2027.

Positive Strategic Developments

Extended U.S. market access partnership with Boyd, increasing ownership of FanDuel to 100% and securing U.S. state market access on favorable terms.

Negative Updates

Significant Net Income Reduction

Net income reduced by 88% year-over-year due to increased noncash charges, largely related to the Fox Option valuation and amortization of acquired intangibles.

Illinois Wager Fee Impact

Introduction of a $0.50 fee on each bet placed in Illinois due to a new wager fee, significantly increasing operating costs in the state.

Challenges with U.S. Tax Changes

A $40 million adverse impact from U.S. tax changes in Illinois, Louisiana, and New Jersey expected, partially mitigated by Boyd market access savings.

Company Guidance

During Flutter Entertainment's Q2 2025 update call, the company provided an optimistic outlook for the remainder of the year, raising its full-year adjusted EBITDA guidance to $3.295 billion, reflecting a 40% year-over-year growth. The group reported a 16% increase in revenue and a 25% rise in adjusted EBITDA for the quarter. Despite an 88% year-over-year reduction in net income due to increased noncash charges, cash from operating activities increased by $36 million. Notable developments included a U.S. market access agreement extension with Boyd, securing 100% ownership of FanDuel, and entry into Italy and Brazil through Snai and NSX acquisitions. The U.S. market saw revenue grow by 17%, with iGaming revenue up 42% and sportsbook growth of 11%, while internationally, revenue grew by 15% supported by recent acquisitions. Flutter also highlighted its strategic focus on cost efficiency, expecting $300 million in savings by 2027, and maintained its commitment to returning up to $5 billion to shareholders over 3-4 years.

Flutter Entertainment PLC Financial Statement Overview

Summary

Flutter Entertainment PLC demonstrates strong revenue growth and cash generation capabilities, but struggles with profitability and increasing leverage. The company has made operational improvements, as seen in its EBIT and EBITDA margins, and maintains a strong equity base. Future focus should be on turning revenue growth into sustainable profitability and managing debt levels.

Income Statement

Neutral

Flutter Entertainment PLC has shown impressive revenue growth, increasing from $2.83 billion in 2019 to $14.05 billion in 2024. However, the company has faced challenges with profitability, recording net losses over the past few years, including a $130 million loss in 2024. While gross profit margins have improved, net profit margins remain negative. The company has improved its EBIT and EBITDA margins in 2024, which reflects operational improvements.

Balance Sheet

Positive

The company's financial position shows a stable equity base with stockholders' equity at $9.29 billion in 2024. The debt-to-equity ratio has increased over the years, indicating rising leverage, which poses potential risks. However, the equity ratio remains strong, reflecting a solid asset base relative to equity. Return on equity is currently negative due to net losses.

Cash Flow

Positive

Operating cash flow has been consistently positive, reflecting strong cash generation capabilities, with $1.6 billion in 2024. Free cash flow has also shown significant growth, indicating improved cash management. The ratio of operating cash flow to net income highlights operational efficiency, despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.89B	14.05B	11.79B	9.46B	8.31B	6.04B
Gross Profit	6.99B	6.70B	5.59B	4.65B	4.43B	3.93B
EBITDA	2.01B	1.61B	653.00M	987.00M	561.00M	1.18B
Net Income	335.00M	109.00M	-1.22B	-432.00M	-923.00M	51.83M
Balance Sheet
Total Assets	29.87B	24.51B	24.64B	24.77B	22.68B	23.23B
Cash, Cash Equivalents and Short-Term Investments	3.47B	3.59B	3.42B	2.70B	2.31B	1.74B
Total Debt	10.56B	7.28B	7.53B	7.24B	5.19B	4.52B
Total Liabilities	17.23B	13.24B	13.27B	12.27B	8.77B	8.20B
Stockholders Equity	10.21B	9.29B	10.04B	12.35B	13.86B	14.99B
Cash Flow
Free Cash Flow	970.00M	941.00M	344.10M	558.14M	339.44M	920.64M
Operating Cash Flow	1.49B	1.60B	937.00M	1.03B	736.87M	1.21B
Investing Cash Flow	-3.34B	-811.00M	-602.00M	-2.76B	-324.97M	-1.79B
Financing Cash Flow	2.02B	-469.00M	-113.00M	1.87B	79.35M	1.24B

Flutter Entertainment PLC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price300.82

Price Trends

50DMA

291.27

Positive

100DMA

265.96

Positive

200DMA

263.66

Positive

Market Momentum

MACD

1.49

Negative

RSI

56.73

Neutral

STOCH

94.99

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUT, the sentiment is Positive. The current price of 300.82 is above the 20-day moving average (MA) of 296.56, above the 50-day MA of 291.27, and above the 200-day MA of 263.66, indicating a bullish trend. The MACD of 1.49 indicates Negative momentum. The RSI at 56.73 is Neutral, neither overbought nor oversold. The STOCH value of 94.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLUT.

Flutter Entertainment PLC Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGHC	77 Outperform	$6.17B	44.01	21.57%	1.89%	21.11%	272.97%
RSI	75 Outperform	$4.95B	107.39	27.07%	―	26.99%	―
RRR	72 Outperform	$6.60B	23.58	97.52%	3.18%	7.47%	2.58%
FLUT	63 Neutral	£52.97B	148.17	3.76%	―	―	―
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
DKNG	61 Neutral	$42.44B	―	-26.38%	―	25.80%	27.64%
PENN	57 Neutral	$2.90B	―	-2.50%	―	7.34%	93.83%

* Consumer Cyclical Sector Average

Performance Comparison

FLUT

Flutter Entertainment PLC

305.34

98.45

47.59%

PENN

PENN Entertainment

19.91

1.21

6.47%

RRR

Red Rock Resorts

62.97

8.34

15.27%

DKNG

DraftKings

47.80

13.45

39.16%

RSI

Rush Street Interactive

21.80

12.88

144.39%

SGHC

Super Group (SGHC)

12.14

8.93

278.19%

Flutter Entertainment PLC Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance

Flutter Entertainment Aligns Shares with UK Regulations

Neutral

Oct 30, 2024

Flutter Entertainment plc announced a block listing application for its ordinary shares to align with UK regulatory requirements. This move involves their Deferred Share Incentive Plan and other schemes, adjusting the balance of unissued shares through a regular update. Key figures include an increase and allotment of shares under various incentive plans, showcasing active management of their equity incentives.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 20, 2025