New York, Feb 28, 2026, 13:41 EST — The market has closed.
- Flutter shares skidded Friday, rattled by new 2026 guidance that spooked investors.
- Attention turns to U.S. betting activity, along with promotions and margins heading into the next session.
- Analysts have cut their targets, and traders now look to management’s next move in the coming week.
Flutter Entertainment plc finished Friday at $106.14, down 13.8% for the day after shares slipped as low as $99.96 during the session. After hours, the stock edged up about 0.3%. StockAnalysis
This dip carries weight. Flutter’s U.S. arm—FanDuel at the helm—has powered profits as state after state opened up to legal online sports betting. But when customer engagement slips, the calculations on promos and margins can go sideways fast.
U.S. markets are closed for the weekend, turning attention to management’s challenge: re-energize customer engagement as the spring sports slate picks up, but don’t sacrifice the margin. The stock’s volatility is rippling through the online betting space, a sector already pressured by stiff competition and the rise of new betting formats, which have put the squeeze on valuations.
Flutter posted a 25% jump in fourth-quarter revenue, hitting $4.74 billion, with adjusted EBITDA up 27% to $832 million. For the full year, revenue landed at $16.38 billion, alongside adjusted EBITDA of $2.85 billion. Looking ahead, the company is projecting 2026 revenue to reach $18.4 billion, with adjusted EBITDA around $2.97 billion, figures based on trading data through Feb. 22. CEO Peter Jackson noted the firm counted “almost 40 million customers” in 2025 and pointed to heavier losses from its push into prediction markets—where users wager on event outcomes—now expected near the upper end of the $200 million to $300 million range previously outlined. SEC
Flutter pointed to higher-than-normal gross revenue margins in the back half of Q4 as a drag on its U.S. trends. That’s the share of bets the company keeps as revenue—leaving some bettors with less cash to play again, a phenomenon it called “unfavorable recycling.” Handle, or total amount wagered, was up 3% for the quarter. The company also said the market’s sluggishness has continued into early 2026.
Peter Jackson, CEO, admitted FanDuel’s promotions and bonuses missed the mark when the house was on a winning streak, describing it as a stumble for their “generosity strategy.” “We just didn’t execute our generosity strategy as well as we should have done,” Jackson told Reuters. FanDuel, which Flutter estimates holds 41% of the U.S. market, will roll out a loyalty program in the second quarter, aiming to beef up customer rewards before the 2026-27 NFL season. Reuters
Benchmark slashed its price target down to $175 from $285, but kept its buy call. Analyst Mike Hickey criticized the “notable lapse in execution” as the company allowed margin optimisation to go “to the point of impairing customer activity” — all during a stretch of heightened competition. Investing.com UK
The flip side of the selloff is hard to ignore: should Flutter ramp up incentives to lure gamblers back, profits could take a short-term hit, volumes or no. There’s also the move into prediction markets—potentially a magnet for stricter oversight. And that $556 million impairment tied to new Indian rules? A reminder of just how abruptly regulation can dent reported earnings.
Flutter on Friday announced it had filed its annual 10-K with the U.S. SEC for the year ending Dec. 31, 2025, and also published a separate UK annual report meeting London requirements. GlobeNewswire
The market stays shut until Monday. Investors are hunting for any signals that early-2026 betting patterns are holding steady, and they’re waiting on specifics about the loyalty launch and prediction-markets investment. Flutter’s next stop is the Morgan Stanley Technology, Media & Telecom Conference on March 4. flutter.com
