Flutter CEO Bets on FanDuel Upgrades to Drive Profit Growth

Flutter’s newly appointed chief executive, Dan Taylor, is emphasizing product enhancements and more generous customer rewards as the key to converting FanDuel’s rising engagement into improved profitability. In his first earnings report since taking the helm, the company posted third‑quarter revenue and adjusted EBITDA that missed analysts’ expectations, contributing to a share decline of more than 60% year‑to‑date.

Taylor, who has been in the role for just five weeks, told CNBC that the firm has “made some changes to the product” and that success hinges on “delighting customers, delivering the very best experiences, and offering the right overall proposition.” In September, FanDuel launched a nationwide rewards program that he said has “resonated really, really well.”

Early metrics show progress: average monthly players on FanDuel’s U.S. sportsbook rose 9% in the third quarter, while bet counts increased 15%. Flutter’s overall U.S. average monthly players grew 12%, including a 24% jump in iGaming. Sportsbook handle climbed 13%, but revenue grew only 4% as promotional spending rose.

The company plans to continue investing in customer experience and believes it can improve structural margins by shifting the mix of products consumers use. Flutter has also increased media spend for its FanDuel Predicts platform, which added 140,000 new customers in October. However, the cost of sales is projected to remain at 58% of revenue for 2026 and 2027.

Taylor noted intense industry competition, yet FanDuel’s trading volume has surged 271% since July. He defended the long‑term U.S. opportunity, pointing out that roughly half of the country still lacks regulated sports betting and 90% lacks regulated online gaming, and argued that expanding legal markets is non‑partisan because it offers consumer protection and state tax revenue.

For the third quarter, Flutter reported an adjusted loss of 18 cents per share, better than the expected 28‑cent loss, while revenue rose 2% to $3.87 billion, below the $4 billion consensus. Adjusted EBITDA fell about 25% year over year to $360 million. The company posted a net loss of $1.15 billion, including an $873 million non‑cash impairment tied to Brazil, which banned sports betting and online gaming in September.

Flutter trimmed its full‑year revenue midpoint by $300 million to $17.61 billion and lowered its 2026 adjusted EBITDA outlook by $160 million to approximately $2.5 billion. Capital returns are paused as the firm focuses on organic growth and debt reduction, aiming to bring leverage back to a 2–2.5× range over the next 24 months before considering share buybacks.

— CNBC’s Mallory Leonard contributed to this report.

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