01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc's Form 10-Q for the quarter ended March 31, 2026 reports revenue of $4,304 milliona, up from $3,665 million in the prior-year quarter.
Operating profit fell to $79 millionb from $223 million, and net income decreased to $209 million from $335 million. Net income attributable to Flutter shareholders was $218 million, against $283 million a year earlier. Diluted EPS was $1.23 versus $1.57.
Adjusted EBITDA rose to $631 millionc from $616 million, while Adjusted EBITDA margin declined to 14.7% from 16.8%. The filing attributes the higher revenue largely to the Snai and NSX acquisitions, and cites higher cost of sales (57% of revenue versus 53%), higher depreciation and amortization of $416 million versus $294 million, and higher interest expense of $156 million versus $85 million. Other income of $311 million, driven mainly by a $293 million fair value gain on the Fox Option liability, offset much of the operating decline and helped keep pre-tax income at $234 million versus $354 million.
Operating cash flow rose to $330 milliond from $188 million. Cash and cash equivalents were $1,512 million at quarter end, and long-term debt totaled $11,794 million on the balance sheet, with aggregate principal of about $12 billion. Total shareholders' equity was $9,292 million.
The company repurchased 1,152,508 shares in March 2026 under its $5 billion program, which had $3,758,594,161 remaining authorization at quarter end. The filing also discloses several contingent matters, including a pending Indian GST assessment on PokerStars India and Junglee totaling ₹198.5 billion ($2.1 billion) that the company disputes and has not accrued, an Austrian and German player claims exposure with €17 million ($20 million) accrued, and an HMRC discovery assessment that the company is appealing. Management notes that UK remote gaming taxes on online iGaming will rise from 21% to 40% beginning April 2026.
02—Key points
Key Highlights
- Revenue rose to $4,304 million from $3,665 million, with International revenue up 27% to $2,541 million, driven by the Snai and NSX acquisitions.
- Net income fell to $209 million from $335 million, and diluted EPS was $1.23 versus $1.57, with the decline reflecting higher depreciation and amortization ($416 million vs. $294 million) and interest expense ($156 million vs. $85 million).
- Adjusted EBITDA increased to $631 million from $616 million, but Adjusted EBITDA margin decreased to 14.7% from 16.8%.
- Other income of $311 million, including a $293 million fair value gain on the Fox Option liability, supported pre-tax income of $234 million.
- Operating cash flow was $330 million versus $188 million, while the company repaid $744 million of long-term debt and drew $450 million on its GBP revolving credit facility during the quarter.
- U.S. Adjusted EBITDA fell to $119 million from $161 million, with the U.S. Adjusted EBITDA margin declining to 6.7% from 9.7%, citing higher tax rates and general and administrative costs.
- Material contingent exposures include a disputed Indian GST notice of ₹198.5 billion ($2.1 billion) against PokerStars India and Junglee, which the company has not accrued.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Flutter Entertainment kept $0.05.
- Revenue$4.30B100.0%
- Cost of revenue−$2.47B57.3%
- Gross profit$1.84B42.7%
- Operating costs−$1.76B40.8%
- Operating income$79.0M1.8%
- Interest, other & tax$130.0M3.0%
- Net income$209.0M4.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.30B$3.67B | +17.4% |
| Cost of Revenue | $2.47B$1.96B | +26.1% |
| Gross Profit | $1.84B$1.71B | +7.5% |
| R&D Expenses | $259.00M$215.00M | +20.5% |
| Operating Income | $79.00M$223.00M | −64.6% |
| Interest Expense | $164.00M$103.00M | +59.2% |
| Net Income | $209.00M$335.00M | −37.6% |
| EPS (Basic) | $1.24$1.59 | −22.0% |
| EPS (Diluted) | $1.23$1.57 | −21.7% |
| Shares Outstanding (Basic) | 176.00M178.00M | −1.1% |
| Shares Outstanding (Diluted) | 177.00M180.00M | −1.7% |
05—Questions
Frequently Asked Questions
Why did net income decline despite higher revenue?
Revenue grew 17% to $4,304 million, but cost of sales rose to 57% of revenue from 53%, operating expenses increased, and depreciation and amortization nearly rose to $416 million from $294 million. Interest expense also increased to $156 million from $85 million, and operating profit fell to $79 million from $223 million. A $293 million Fox Option fair value gain in other income partly offset these pressures.
What drove the increase in International segment revenue?
The filing states the acquisitions of Snai and NSX contributed a 21% increase in International segment revenue. Favorable foreign exchange added 8%, and iGaming grew 32% to $1,386 million. Southern Europe and Africa revenue more than doubled to $940 million from $448 million.
How is the company's liquidity and debt position?
At March 31, 2026, the company held $1,512 million of cash and cash equivalents available for corporate use and had an undrawn revolving credit commitment of $1,185 million. Aggregate principal of long-term debt was about $12 billion, with $52 million due within 12 months, and the company stated it was in compliance with all debt covenants.
What is the significance of the Fox Option liability?
The Fox Option liability was valued at $260 million at March 31, 2026, down from $560 million at December 31, 2025. The decline produced a $293 million gain in earnings this quarter. The filing notes its fair value is sensitive to inputs such as enterprise value of FanDuel, volatility, and the probability of Fox obtaining a license, and may fluctuate significantly.
What share repurchase activity occurred during the quarter?
The company repurchased 5,525,026 shares cumulatively under its $5 billion 2024 program for a total of $1,242 million. In the first quarter, it repurchased 1,152,508 shares in March 2026 at a weighted average price of $104.72, leaving $3,758,594,161 available under the program.
06—Continue