Flutter Q1 2026: US Recovery Signs, Prediction Market Push, and LSE Listing Review

Flutter Q1 2026 results: strong revenue growth, but profit quality is mixed

Flutter has put out a quarter that looks good on the surface, but gets more complicated once you dig in. Revenue rose 17% year-on-year to $4,304 million, helped by acquisitions, better sports results versus last year, and strong iGaming growth.

But the headline profit numbers went the other way. Net income fell 38% to $209 million, while adjusted EBITDA – a profit measure that strips out some non-cash and one-off items – rose only 2% to $631 million.

Key Q1 2026 numbers	Q1 2026	Q1 2025	Change
Revenue	$4,304 million	$3,665 million	+17%
Net income	$209 million	$335 million	-38%
Adjusted EBITDA	$631 million	$616 million	+2%
Adjusted EBITDA margin	14.7%	16.8%	-210bps
Earnings per share	$1.23	$1.57	-22%
Free cash flow	$153 million	$88 million	+74%
Leverage ratio	3.7x	3.7x at December 2025	Flat

That combination tells you a lot about where Flutter is right now. The business is still growing well, but it is spending heavily, carrying more debt from deals, and taking more amortisation and interest costs through the income statement.

Why Flutter revenue rose 17% but net income fell 38%

The main reason profit fell is not that the business suddenly got worse. It is more that the cost of getting bigger is now showing up.

Interest expense jumped to $156 million from $85 million, mainly because of financing for the Snai and NSX acquisitions and buying Boyd’s 5% stake in FanDuel. Depreciation and amortisation also increased to $416 million from $294 million, largely because of those same acquisitions.

That matters because it shows Flutter is still in expansion mode, but shareholders do not get a free ride from acquisitions. Bigger scale can help over time, but in the short term it drags on reported earnings.

Margins also softened. Group adjusted EBITDA margin fell from 16.8% to 14.7%, hit by investment in FanDuel Predicts, new state launch costs, and a mix shift towards higher cost products and regions internationally.

FanDuel US update: sportsbook recovery signs are real, but still early

The US is still the big story here. Revenue in the US rose 6% to $1,763 million, with sportsbook up 1% and iGaming up 19%.

That sportsbook number is hardly dazzling, but management is clearly trying to tell investors that trends improved as the quarter went on. January sportsbook AMPs – average monthly players – were down 5%, but March moved to 1% growth. Handle decline also improved from 10% in January to 4% in March.

That is encouraging. It suggests FanDuel’s product tweaks and promotional changes may be helping after the weaker exit rate into 2026.

Still, this is not a full recovery yet. US sportsbook AMPs were down 6% in the quarter, handle fell 9%, and US adjusted EBITDA dropped 26% to $119 million. Flutter is investing to fix the issue, but investors should note that fixing it is costing money.

Prediction markets could be interesting, but they are still a cost centre

Flutter is pushing harder into prediction markets through FanDuel Predicts. The company now offers it nationwide across financial, economic and commodities contracts, with sports available in 18 non-sportsbook states including California, Texas and Florida.

The strategic logic is easy to see. It gives Flutter a way to reach customers in states where traditional sportsbook regulation has not arrived.

But right now, the financial contribution is tiny. Flutter said Q1 revenue from FanDuel Predicts was not material, and it still expects investment losses towards the top end of its previous $250 million to $300 million adjusted EBITDA range.

In plain English, this is a future bet, not a current earnings driver. It could become valuable, but for now it is mostly about spending ahead of the opportunity.

International growth looks strong, but the organic picture is less flashy

International revenue rose 27% to $2,541 million, or 18% in constant currency. That sounds excellent, and partly it is. But a lot of the growth came from M&A, namely Snai and NSX.

On an organic basis, International revenue was only 1% higher year-on-year. Organic sportsbook revenue actually fell 7%, while organic iGaming revenue rose 8%.

That does not make the quarter bad, but it does make it more ordinary than the headline suggests.

The stronger areas were Southern Europe and Africa, especially Italy and Türkiye, plus decent iGaming growth in the UK and Ireland and Central and Eastern Europe. Brazil also remains an investment market where Flutter sees a big long-term opportunity, although it is still weighing on margins.

One notable negative for UK investors is tax. Flutter said the previously announced UK iGaming tax increase from 19% to 40% was implemented on 1 April. Management thinks it can mitigate this better than smaller rivals, which may even support market share over time, but it is still clearly a tougher backdrop.

2026 guidance has been cut – not by loads, but enough to notice

Flutter has lowered its full-year guidance. Group revenue is now expected to be $18.305 billion at the midpoint, down from $18.4 billion. Adjusted EBITDA is now expected to be $2.865 billion, down from $2.97 billion.

The company says this reflects three things: unfavorable Q1 sports results, Arkansas launch costs, and a reporting change for PokerStars North America. Arkansas alone adds $35 million in investment costs for 2026.

For me, this is a mild negative rather than a disaster. The downgrade is not enormous, but it does show that even a business with strong brands and global scale is not immune to short-term operational and sporting volatility.

The more reassuring line is that April trading was in line with expectations across both the US and International divisions. That lowers the risk of an immediate second downgrade.

Flutter London Stock Exchange listing review: why UK shareholders should pay attention

The most eye-catching corporate line in the release is the review of Flutter’s London Stock Exchange listing. The company said the review may result in the delisting of its ordinary shares from the LSE, with an update expected in Q2 2026.

The NYSE listing would not be affected.

This matters because Flutter is one of the biggest names with a London line, even though its strategic centre of gravity has shifted towards the US. A delisting would further underline that shift.

For UK retail investors, this is not automatically bad news, but it is a meaningful development. It would signal that Flutter increasingly sees its natural home as New York, where a large part of the growth story now sits.

Balance sheet, buybacks and cash flow: solid, but deleveraging now matters more

There is a mixed message here too. Operating cash flow improved strongly to $330 million, and free cash flow rose to $153 million.

But Flutter’s newer measure, free cash flow including financing capex and excluding player funds, fell 46% to $123 million. Net debt was $10,575 million and leverage stayed at 3.7x.

Management says leverage should rise in Q2 and Q3 before falling again in Q4. It has also said there will be no additional buyback tranche this quarter, because deleveraging takes priority for now.

That is sensible capital allocation, even if buyback fans will not love it.

My view on Flutter Q1 2026: still attractive, but the easy wins are gone

This was a decent quarter, not a blockbuster one. The positives are clear: revenue growth is strong, US sportsbook trends improved through the quarter, iGaming remains healthy, and International scale keeps getting bigger.

The negatives are just as real: profits fell, margins weakened, guidance came down, prediction markets are still soaking up cash, and the possible LSE delisting adds another twist for UK investors.

My overall take is that Flutter still looks like a business with serious long-term strengths, especially through FanDuel and its international brand portfolio. But this RNS also shows the next phase is going to be more operationally demanding. Investors are no longer just paying for growth. They are waiting to see cleaner execution, better US sportsbook momentum, and a more convincing conversion of scale into profit.

That is why this update matters. Flutter is still leading, but the market will want sharper proof that the engine is not just getting bigger – it is getting more efficient too.