FLUT Stock Forecast & Price Target

Flutter Entertainment has demonstrated strong financial performance with a year-over-year revenue increase of 10%, reaching $2,426 million, and an EBITDA that exceeded projections by 23% over their model and 2% over consensus. The company's active monthly user base has grown by 30%, indicating robust user acquisition strategies, and it operates in over 100 countries with a diverse range of offerings across multiple brands, including FanDuel and Paddy Power. Furthermore, the anticipated launch of a predictive sports betting platform in late 2025, alongside an expected acceleration in US handle growth to 10% in the fourth quarter, positions Flutter favorably for continued growth in the competitive online gaming sector.

Flutter Entertainment reported a decline in its sportsbook net revenue margin, which fell by 30 basis points year-over-year to 12.4%, primarily due to a higher mix of revenue from lower-margin regions and unfavorable sports outcomes. The company faced significant EBITDA misses, attributed to a $30 million headwind from aggressive competitor promotions, leading to lowered guidance for 2025's EBITDA, now projected between $2.17 billion and $2.31 billion. Furthermore, Flutter anticipates a notable drop in EBITDA for 2026, forecasting a decline of 11%, reflecting ongoing competitive pressures and recent regulatory changes impacting their operations.