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Flutter Entertainment PLC (FLUT)
NYSE:FLUT
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Flutter Entertainment PLC
(NYSE:FLUT)
Select Model
Select Model
Rating:57Neutral
Price Target:
$222.00
▼(-0.47% Downside)
The overall stock score reflects a mixed outlook. Strong revenue growth and strategic achievements are overshadowed by profitability challenges, poor valuation metrics, and negative impacts from new tax regulations. The technical analysis indicates bearish trends, further weighing on the score.
Positive Factors
Revenue Growth
Consistent revenue and EBITDA growth indicate strong market demand and effective business strategies, supporting long-term financial health.
U.S. Market Leadership
Dominance in the U.S. market enhances competitive advantage and provides a robust platform for future growth and profitability.
International Expansion
Strategic acquisitions in Italy and Brazil expand market presence, offering new revenue streams and diversification benefits.
Negative Factors
Profitability Challenges
Significant reduction in net income highlights ongoing profitability challenges, potentially impacting long-term financial stability.
UK Gaming Tax Hikes
Upcoming tax hikes in the UK could significantly impact EBITDA, challenging profitability and necessitating strategic adjustments.
U.S. Tax Changes
New U.S. tax regulations increase operational costs, potentially reducing margins and affecting long-term financial performance.
Flutter Entertainment PLC (FLUT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
£39.10B
Dividend YieldN/A
Average Volume (3M)2.52M
Price to Earnings (P/E)109.4
Beta (1Y)1.27
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees27,345
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.64
Shares Outstanding176,099,560
10 Day Avg. Volume3,134,316
30 Day Avg. Volume2,517,801
Financial Highlights & Ratios
PEG Ratio-4.08
Price to Book (P/B)4.95
Price to Sales (P/S)3.27
P/FCF Ratio48.89
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£297.54Price Target Upside33.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Flutter Entertainment PLC Business Overview & Revenue Model
Company DescriptionFlutter Entertainment PLC is a leading global sports betting and gaming company, headquartered in Dublin, Ireland. The company operates across multiple sectors, including online sports betting, casino games, and poker, through a diverse portfolio of well-known brands such as Paddy Power, Betfair, and PokerStars. Flutter is committed to providing innovative gaming solutions and enhancing customer engagement through advanced technology and responsible gaming practices.
How the Company Makes MoneyFlutter Entertainment generates revenue primarily through its online betting and gaming operations. The key revenue streams include sports betting, where customers place wagers on various sporting events, and gaming, which includes online casino games and poker. The company benefits from a high-margin business model, particularly in online gaming, where it retains a percentage of the wagers placed by customers as revenue. Additionally, Flutter has established significant partnerships with various sports leagues and organizations, enhancing its brand visibility and market reach. The company also leverages data analytics to optimize marketing strategies and improve customer retention, contributing further to its earnings.
Flutter Entertainment PLC Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
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 shows strong revenue growth and cash flow generation, but struggles with profitability due to negative net income and low margins. The balance sheet is stable but return on equity is low, indicating room for improvement in financial health.Income Statement
Flutter Entertainment PLC shows a positive revenue growth trend with a 3.67% increase in TTM. However, the company is struggling with profitability as indicated by a negative net income and a low net profit margin of -2.25%. The gross profit margin remains healthy at 46.94%, but the EBIT margin is weak at 5.47%, suggesting operational challenges.65
Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 1.03, indicating a balanced approach to leveraging. However, the return on equity is low at 3.38%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 31.51%, showing a stable equity base relative to assets.60
Neutral
Cash Flow
The cash flow statement highlights a strong free cash flow growth of 19.59% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.32, suggesting adequate cash flow relative to net income. The free cash flow to net income ratio of 0.65 shows a solid cash conversion efficiency.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.44B | 14.05B | 11.79B | 9.46B | 8.31B | 6.04B |
| Gross Profit | 7.12B | 6.70B | 5.59B | 4.65B | 4.43B | 3.93B |
| EBITDA | 1.53B | 1.60B | 624.00M | 987.00M | 561.00M | 1.18B |
| Net Income | -273.00M | 109.00M | -1.22B | -432.00M | -923.00M | 51.83M |
Balance Sheet | ||||||
| Total Assets | 29.34B | 24.51B | 24.64B | 24.64B | 22.72B | 23.23B |
| Cash, Cash Equivalents and Short-Term Investments | 3.69B | 3.59B | 3.44B | 2.68B | 2.32B | 1.74B |
| Total Debt | 12.68B | 7.40B | 7.53B | 7.20B | 5.20B | 4.52B |
| Total Liabilities | 19.42B | 13.24B | 13.27B | 12.20B | 8.79B | 8.20B |
| Stockholders Equity | 9.24B | 9.29B | 10.04B | 12.28B | 13.88B | 14.99B |
Cash Flow | ||||||
| Free Cash Flow | 742.00M | 941.00M | 335.00M | 734.00M | 194.00M | 1.07B |
| Operating Cash Flow | 1.41B | 1.60B | 937.00M | 1.16B | 553.00M | 1.36B |
| Investing Cash Flow | -3.30B | -811.00M | -602.00M | -2.52B | -254.00M | 320.13M |
| Financing Cash Flow | 2.29B | -469.00M | -113.00M | 1.78B | 361.00M | ― |
Flutter Entertainment PLC Technical Analysis
Negative
223.04
Price Trends
225.19
Negative
258.05
Negative
255.35
Negative
Market Momentum
-1.32
Negative
57.96
Neutral
89.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUT, the sentiment is Negative. The current price of 223.04 is above the 20-day moving average (MA) of 204.72, below the 50-day MA of 225.19, and below the 200-day MA of 255.35, indicating a neutral trend. The MACD of -1.32 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 89.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FLUT.
Flutter Entertainment PLC Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.64B | 25.83 | 32.35% | 2.40% | 29.54% | 4389.69% | |
71 Outperform | $6.47B | 21.65 | 96.16% | 3.28% | 4.69% | 15.18% | |
68 Neutral | $4.40B | 75.93 | 29.67% | ― | 23.15% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $31.08B | ― | -29.59% | ― | 18.51% | 37.25% | |
57 Neutral | £39.10B | 109.36 | -2.00% | ― | ― | ― | |
45 Neutral | $1.86B | ― | -35.97% | ― | 8.24% | -77.54% |
* Consumer Cyclical Sector Average
FLUT
Flutter Entertainment PLC
223.04
-52.92
-19.18%
PENN
PENN Entertainment
14.28
-5.55
-27.99%
RRR
Red Rock Resorts
60.97
13.88
29.48%
DKNG
DraftKings
35.52
-3.72
-9.48%
RSI
Rush Street Interactive
19.30
5.54
40.26%
SGHC
Super Group (SGHC)
11.44
4.95
76.27%
Flutter Entertainment PLC Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Flutter Entertainment Faces New UK Gaming Tax Hikes
Negative
Nov 26, 2025
On November 26, 2025, Flutter Entertainment announced changes in UK gaming taxation as per the government’s autumn budget. Effective from April 2026, iGaming tax will increase to 40%, and from April 2027, sports betting tax will rise to 25%. These changes are expected to impact Flutter’s adjusted EBITDA by approximately $320 million in 2026 and $540 million in 2027 before mitigation. Flutter plans to offset these impacts through operational efficiencies and market share gains, although the tax increases could benefit illegal operators.
Regulatory Filings and Compliance
Flutter Entertainment Announces Change in Major Holdings
Neutral
Nov 24, 2025
On November 24, 2025, Flutter Entertainment PLC announced a notification regarding a change in major holdings, as required by the UK Financial Conduct Authority’s rules. Parvus Asset Management Jersey Limited, based in St Helier, Jersey, disclosed an acquisition or disposal of voting rights, holding 5.066561% of Flutter’s voting rights as of November 18, 2025. This announcement highlights a significant change in the company’s shareholder structure, potentially impacting its market dynamics and stakeholder interests.
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.