Flutter's Q2 earnings beat forecasts as FanDuel delivers record margins, 17% revenue growth

Online gaming and betting giant Flutter Entertainment reported stronger-than-expected second-quarter earnings on Thursday, boosted by sound U.S. performance from its FanDuel brand, which posted record gross revenue margins and a 17% year-over-year increase in revenue.

As a result of the strong performance, revenue is now expected to rise 23% to $17.3 billion in 2025, while EBITDA is forecasted to grow 40% to about $3.3 billion. That‘s up from previous guidance of $17.1 billion and $3.18 billion, respectively.

Adjusted earnings per share reached $2.95, well ahead of analysts' expectations of $2.08, according to LSEG. Revenue for the quarter totaled $4.19 billion, narrowly topping the projected $4.13 billion. In the United States, revenue came in at $1.79 billion, slightly above forecasts, and EBITDA exceeded consensus by nearly $100 million.

FanDuel’s performance in June was especially notable, delivering a 16.3% gross revenue margin, the highest in its history, driven by favorable sports outcomes and strong player engagement. The brand also saw a 32% increase in active players and rolled out a revamped FanDuel Rewards program during the quarter.

Speaking during the earnings call, Flutter CEO Peter Jackson described the quarter as one of progress and operational strength. “Our performance in Q2 positions us strongly to deliver on our objectives,” he said.

Flutter CEO Peter Jackson

However, Jackson criticized new tax policies in Illinois, where FanDuel will implement a bet surcharge starting September 1. “We’re seriously disappointed that this tax came into play,” he said. “We think the taxes that they brought in will have a really, sort of, negative impact on the very recreational, super casual users.”

Despite concerns about Illinois, Jackson downplayed the possibility of similar tax-driven surcharges in other states, calling Illinois “an outlier.”

In response to investor queries about prediction markets and their encroachment into traditional sports betting, Jackson noted Flutter’s two decades of experience with event contracts via Betfair. While he declined to offer specifics, he noted that the company is monitoring developments and evaluating its U.S. strategy accordingly.

Internationally, Flutter reported that it has secured a 30% market share in Italy, with the integration of recently acquired Snaitech progressing as planned. Brazil also remains a strategic priority, with Jackson affirming “a strong conviction that the market will be very significant.”

International revenues rose 15%, helped by new products such as single-game parlays (SGPs) in tennis during Wimbledon and a new SGP product in Italy. Flutter’s first bingo network, a joint venture with Sisal, launched in July, adding another vertical to its offerings.

Chief Financial Officer Rob Coldrake noted the company’s aim to identify $300 million in cost savings by 2027. Flutter ended the quarter with $1.7 billion in cash and $8.5 billion in debt. Coldrake also maintained the company’s plan to return $5 billion to shareholders over the next three to four years.

Marketing expenditures were down 4% in the quarter, with Coldrake noting that roughly $20 million to $25 million in spending had been postponed to coincide with the NFL and NBA seasons.

With no major state launches in the quarter, Flutter’s market presence remained steady, although the company is preparing for a major rollout in Missouri. FanDuel has allocated $70 million for its launch in the state, a figure Coldrake said reflects a consistent strategic approach.

Jackson was also asked about future opportunities in markets such as California, Latin America, and Africa. While he offered no firm commitments, he said the company continues to evaluate options and is focused on investing in existing operations. Coldrake pointed to strong performance in Southern Europe, Africa, and Turkey, though acknowledged challenges in Australia around horse racing.

On the iGaming front, Jackson explained Flutter’s strategy to grow the vertical by directly acquiring casino customers rather than cross-selling from sportsbook users. He also confirmed that FanDuel’s current portfolio is entirely sourced from third parties, with in-house development planned to reduce licensing costs over time.

Overall, both executives expressed optimism about the company's future. “As we move into the second half of the year, we’re excited about what we see,” Jackson said.