New York, Feb 28, 2026, 13:41 EST — The session wrapped up with markets now closed.
- Flutter shares tumbled on Friday after the company issued fresh 2026 guidance that unsettled investors.
- Focus shifts to U.S. betting flows, plus a look at promotions and margins heading into the next session.
- Targets have been slashed by analysts, leaving traders watching for management’s next steps over the coming week.
Flutter Entertainment plc closed out Friday at $106.14, marking a 13.8% drop for the session after tumbling to $99.96 at its lowest point. Shares ticked up roughly 0.3% in after-hours trading.
This drop matters. FanDuel, the engine behind Flutter’s U.S. business, has been delivering profits as more states legalize online sports betting. Still, when user activity tapers off, promo spending and margins can suddenly get out of whack.
With U.S. markets shut for the weekend, the spotlight shifts to management’s task: ramp up customer engagement as the spring sports calendar heats up—but keep an eye on margin discipline. The stock’s swings are making waves across the online betting sector, where fierce competition and the emergence of fresh betting formats have already weighed on valuations.
Flutter’s fourth-quarter revenue surged 25% to $4.74 billion, while adjusted EBITDA came in 27% higher at $832 million. Full-year numbers: revenue landed at $16.38 billion, adjusted EBITDA totaled $2.85 billion. The company is targeting $18.4 billion in revenue and about $2.97 billion in adjusted EBITDA for 2026, using trading data up to Feb. 22. CEO Peter Jackson said the firm expects “almost 40 million customers” in 2025, and flagged that losses from its expansion into prediction markets—where users bet on event outcomes—will likely come in near the top of its previous $200 million to $300 million guidance. SEC
Flutter cited unusually high gross revenue margins during the latter part of Q4, which weighed on its U.S. performance. That margin represents the portion of bets retained as revenue, and according to the company, it led to “unfavorable recycling”—bettors simply had less to wager in subsequent rounds. Handle for the quarter rose 3%. Flutter also flagged that the market’s slow pace has lingered into early 2026.
Peter Jackson, CEO, conceded that FanDuel’s approach to promotions and bonuses fell short during a stretch when the house kept winning—calling it a misstep for their “generosity strategy.” “We just didn’t execute our generosity strategy as well as we should have done,” Jackson said to Reuters. Flutter puts FanDuel’s U.S. market share at 41%. The company is now planning a new loyalty program for launch in the second quarter, hoping to strengthen customer rewards ahead of the 2026-27 NFL season. Reuters
Benchmark chopped its price target for the stock to $175, down from $285, while sticking with a buy rating. Analyst Mike Hickey didn’t hold back, pointing to a “notable lapse in execution” and saying the company let margin optimisation “go to the point of impairing customer activity”—right as rivals ramped up the pressure. Investing.com UK
The other edge of the recent selloff isn’t subtle: if Flutter throws more incentives at gamblers to win them back, profits could feel the pinch right away, volumes aside. Then there’s that pivot into prediction markets—an area likely to attract heavier regulatory scrutiny. As for the $556 million impairment from the new Indian rules, it underlines how fast regulatory shifts can hit the bottom line.
Flutter said Friday it had submitted its annual 10-K to the U.S. SEC for the year ended Dec. 31, 2025. The company also posted a standalone UK annual report to comply with London rules.
Markets remain closed through Monday. Traders are scanning for confirmation that early-2026 betting trends haven’t budged, while the crowd is also on alert for details about the loyalty rollout and investment in prediction markets. Flutter heads to the Morgan Stanley Technology, Media & Telecom Conference on March 4.
