01—Abstract
Summary
Summary of the 10-Q filed November 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc's Form 10-Q for the quarter ended September 30, 2026 shows a widening loss driven largely by impairments tied to Brazil.
Revenue for the three months rose to $3,874 milliona from $3,794 million, but the operating loss deepened to $1,191 million from $834 million, and the net loss grew to $1,148 million from $789 million. The filing attributes the Brazil charges to a $873 million impairment (including $541 million of goodwill), following a provisional government measure announced September 25, 2026 that banned fixed-odds sports betting and online gaming. Adjusted EBITDA fell to $360 million from $478 million, and Adjusted EBITDA margin declined to 9.3% from 12.6%.
U.S. segment Adjusted EBITDA was $3 millionb versus $51 million a year earlier, reflecting higher sales and marketing spend and cost of sales. The balance sheet and cash flow show a company focused on deleveraging. Total assets fell to $27,434 million and total shareholders' equity to $8,156 million, while long-term debt was $12,143 million.
Net cash from operating activities was $904 millionc for the nine months, against $524 million used in investing activities and $243 million used in financing activities. The Board's share repurchase program was paused in the third quarter to prioritize deleveraging. Subsequent events include an amended credit agreement extending term A facilities and the revolver to May 3, 2032, with the revolver increased to $1.86 billion, and a UKI restructuring plan affecting up to 1,400 employees with estimated pre-tax charges of $80 million to $90 million.
The filing also discloses significant contingent exposures. These include an HMRC assessment that would result in a tax liability of $383 milliond (£290 million) excluding interest if upheld, which the company is appealing; proposed IRS adjustments totaling approximately $181 million, excluding interest, for fantasy sports, against which no provision has been recorded; and a Indian GST tax demand of ₹50.6 billion ($527 million) plus interest and penalties, against which a $54 million provision is recorded.
02—Key points
Key Highlights
- Net loss widened to $1,148 million for Q3 2026 from $789 million, with the operating loss rising to $1,191 million from $834 million, driven by a $541 million goodwill impairment and other Brazil-related charges.
- Brazil impairments totaled $873 million for the three and nine months ended September 30, 2026, following a provisional measure banning fixed-odds sports betting and online gaming announced September 25, 2026; Flutter ceased operations in Brazil on September 26, 2026.
- Q3 2026 revenue was $3,874 million, up from $3,794 million, while Adjusted EBITDA declined to $360 million from $478 million and Adjusted EBITDA margin fell to 9.3% from 12.6%.
- U.S. segment Adjusted EBITDA was $3 million for Q3 2026 versus $51 million a year earlier, with the Adjusted EBITDA margin falling to 0.2% from 3.7%, due to higher sales and marketing spend including investments in FanDuel Predicts, the FIFA World Cup and the Alberta launch.
- Operating cash flow for the nine months was $904 million; the 2024 share repurchase program was paused in Q3 2026 to prioritize deleveraging, and long-term debt stood at $12,143 million.
- Post-quarter, the company amended its credit agreement, extending the term A facilities and revolving credit facility to May 3, 2032 and increasing the revolver to $1.86 billion, and committed to a UKI restructuring plan affecting up to 1,400 employees with estimated pre-tax charges of $80 million to $90 million.
- Significant tax and legal exposures remain, including an HMRC assessment with a potential $383 million (£290 million) liability excluding interest, proposed IRS adjustments of approximately $181 million excluding interest, and Indian GST demands of $527 million plus interest and penalties, against which a $54 million provision is recorded.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, Flutter Entertainment lost $0.30.
- Revenue$3.87B100.0%
- Cost of revenue−$2.36B60.8%
- Gross profit$1.52B39.2%
- Operating costs−$2.71B69.9%
- Operating income−$1.19B30.7%
- Interest, other & tax$43.0M1.1%
- Net income−$1.15B29.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 4, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.87B$3.79B | +2.1% |
| Cost of Revenue | $2.36B$2.17B | +8.7% |
| Gross Profit | $1.52B$1.63B | −6.6% |
| R&D Expenses | $350.00M$275.00M | +27.3% |
| Operating Income | -$1.19B-$834.00M | −42.8% |
| Interest Expense | $169.00M$167.00M | +1.2% |
| Net Income | -$1.15B-$789.00M | −45.5% |
| EPS (Basic) | $-4.90$-3.91 | −25.3% |
| EPS (Diluted) | $-4.90$-3.91 | −25.3% |
| Shares Outstanding (Basic) | 176.00M176.00M | 0.0% |
| Shares Outstanding (Diluted) | 176.00M176.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did Flutter's net loss increase in the third quarter of 2026?
The net loss rose to $1,148 million from $789 million mainly because of impairment charges and higher operating costs. The filing records a $541 million goodwill impairment and other Brazil-related impairments tied to the government ban on fixed-odds sports betting and online gaming, plus higher sales and marketing and technology expenses.
What happened to Flutter's Brazil operations?
A provisional measure announced September 25, 2026 banned fixed-odds sports betting and online gaming in Brazil. Flutter ceased operating sports betting and iGaming there on September 26, 2026, recorded $873 million of impairments, and in October 2026 announced the closure of Betfair Brazil to focus on Betnacional. The company is pursuing legal challenges to the ban.
How is Flutter's liquidity and debt position after the quarter?
Flutter reported $1,708 million of cash and cash equivalents available for corporate use and long-term debt of $12,143 million as of September 30, 2026. In October 2026 it amended its credit agreement, extending the term A facilities and revolver to May 3, 2032, and raising the revolver to $1.86 billion. The company paused share repurchases in the third quarter to prioritize deleveraging.
What restructuring is Flutter undertaking in the UK?
On October 20, 2026, Flutter committed to a restructuring plan for its UKI business to mitigate increases in UK gaming taxation. It is expected to reduce headcount by up to 1,400 employees, with aggregate pre-tax charges of approximately $80 million to $90 million, mainly cash severance and related costs, plus non-cash stock-based compensation charges that cannot yet be estimated.
What major tax and legal contingencies could affect Flutter?
The filing discloses an HMRC assessment that would result in a liability of $383 million (£290 million), excluding interest, if upheld; the company is appealing. Proposed IRS adjustments total approximately $181 million excluding interest related to fantasy sports, with no provision recorded. An Indian GST demand of ₹50.6 billion ($527 million) plus interest and penalties has been issued, against which a $54 million provision is recorded.
06—Continue