01—Abstract
Summary
Summary of the 10-Q filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc reported a net loss of $296 milliona for the three months ended June 30, 2026, compared with net income of $37 million in the same period of 2025.
Revenue rose to $4,326 millionb from $4,187 million, but cost of sales climbed to $2,613 million, and sales and marketing expenses rose to $1,012 million from $789 million, driven by FIFA World Cup spend and investment in FanDuel Predicts. Operating loss was $144 million versus operating profit of $389 million. Adjusted EBITDA fell to $508 million from $919 million, with the Adjusted EBITDA margin at 11.7% compared with 21.9%.
For the six months, revenue was $8,630 millionc and the net loss was $87 million, against net income of $372 million a year earlier. The U.S. segment's revenue declined 6% in the quarter, with sportsbook revenue down 15% and iGaming revenue up 14%. U.S. Adjusted EBITDA was $119 million versus $400 million.
International revenue grew 10% to $2,643 milliond, helped by the Snai and NSX acquisitions, but International Adjusted EBITDA fell to $476 million from $591 million. Fair value gains on the Fox Option liability ($40 million in the quarter, $333 million year to date) partly offset operating pressure in other income.
The filing also discloses several contingencies that bear on the outlook: an accrual for historical U.S. sales and use tax, a $62 million provision tied to Indian GST, an Australian Tax Office amended assessment for which the company paid $53 million as a deposit, a proposed IRS assessment on fantasy sports for which no provision has been recorded, and an Australian class action with trial scheduled for August 2026. Cash and cash equivalents were $1,563 million at June 30, 2026, with long-term debt of $11,872 million (non-current), and the company repurchased 1,252,519 shares in the quarter.
02—Key points
Key Highlights
- Q2 2026 net loss of $296 million versus net income of $37 million in Q2 2025; operating loss of $144 million versus operating profit of $389 million
- Revenue up 3% to $4,326 million; U.S. revenue down 6% while International revenue rose 10%, aided by the Snai and NSX acquisitions
- Adjusted EBITDA fell to $508 million from $919 million, with the margin down to 11.7% from 21.9%
- Sales and marketing expenses rose to $1,012 million from $789 million, reflecting FIFA World Cup spend and FanDuel Predicts investment
- Other income included a $40 million fair value gain on the Fox Option liability in Q2 2026, versus an $81 million loss a year earlier
- Accruals of $95 million in the quarter for U.S. sales and use tax and the Indian GST matter, and a $62 million Indian GST provision
- Operating cash flow of $693 million for the six months, up from $547 million; net debt-funded acquisitions absent in 2026 versus $2,688 million in 2025
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, Flutter Entertainment lost $0.07.
- Revenue$4.33B100.0%
- Cost of revenue−$2.61B60.4%
- Gross profit$1.71B39.6%
- Operating costs−$1.86B42.9%
- Operating income−$144.0M3.3%
- Interest, other & tax−$152.0M3.5%
- Net income−$296.0M6.8%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 5, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.33B$4.19B | +3.3% |
| Cost of Revenue | $2.61B$2.23B | +17.3% |
| Gross Profit | $1.71B$1.96B | −12.6% |
| R&D Expenses | $300.00M$256.00M | +17.2% |
| Operating Income | -$144.00M$389.00M | −137.0% |
| Interest Expense | $171.00M$128.00M | +33.6% |
| Net Income | -$296.00M$37.00M | −900.0% |
| EPS (Basic) | $-1.57$0.59 | −366.1% |
| EPS (Diluted) | $-1.57$0.59 | −366.1% |
| Shares Outstanding (Basic) | 175.00M177.00M | −1.1% |
| Shares Outstanding (Diluted) | 175.00M179.00M | −2.2% |
05—Questions
Frequently Asked Questions
Why did Flutter swing to a net loss in the second quarter?
Operating profit turned to a $144 million loss from a $389 million profit. Cost of sales rose 17% to $2,613 million, with the U.S. cost of sales ratio up 510 basis points, and sales and marketing expenses rose 28% to $1,012 million. Legal loss contingencies of $95 million and higher depreciation and amortization also weighed on results, and the income tax line became a $3 million benefit.
How did the U.S. and International segments perform?
U.S. revenue fell 6% to $1,683 million, with sportsbook revenue down 15% and iGaming revenue up 14%; U.S. Adjusted EBITDA dropped to $119 million from $400 million. International revenue rose 10% to $2,643 million, but International Adjusted EBITDA declined 19% to $476 million, reflecting higher UK remote gaming duty and a higher cost base at the acquired Snai business.
What legal and tax matters could affect future results?
The filing discloses an Indian GST matter for which a $62 million provision was recorded, with the Supreme Court of India having upheld a 28% retrospective levy. The Australian Tax Office issued amended assessments, and the company paid $53 million as a deposit while disputing them. The IRS proposed adjustments on fantasy sports, for which no provision has been recorded, and a response is due in September 2026. A Sportsbet Fast Codes class action has a trial scheduled for August 2026, with no loss recorded.
How is the balance sheet and liquidity position?
At June 30, 2026, cash and cash equivalents were $1,563 million, and total debt principal was $12,060 million including accrued interest. Long-term debt, net of the current portion, was $11,872 million. Shareholders' equity was $8,978 million. Net cash from operating activities for the six months was $693 million, and the company was in compliance with all debt covenants. Share repurchases totaled $264 million in the first half, including taxes withheld on employee awards.
What are the key drivers behind the revenue growth in the International segment?
International revenue grew 10% in the quarter. The acquisitions of Snai and NSX contributed 6 percentage points, and favorable foreign exchange added 3 percentage points. Southern Europe and Africa revenue rose 36% and Brazil rose 64%, while Other regions fell 38% due to the transfer of PokerStars' customers to other segments and continued decline on the PokerStars platform.
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