Flutter Entertainment Plc (FLUT -0.05%), the global online betting and gaming company behind major brands like FanDuel, Paddy Power, and PokerStars, reported results for Q2 2025 on August 7, 2025. The highlight of the release was a strong performance on both adjusted EPS (non-GAAP) and revenue (GAAP), each beating analyst expectations. Adjusted EPS came in at $2.95, well above the $2.24 consensus (non-GAAP), and Revenue (GAAP) reached $4.187 billion, ahead of the $4.13 billion GAAP estimate. Management also upgraded its full-year 2025 outlook for revenue and adjusted EBITDA (non-GAAP). However, GAAP net income declined significantly due to exceptional non-cash charges and a higher tax expense. Overall, the quarter reflected robust growth and scale, especially in the U.S. and key international markets, while also revealing some areas for investors to watch closely.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| Adjusted EPS (Non-GAAP) | $2.95 | $2.24 | $2.04 | 45 % |
| EPS (GAAP) | $0.59 | $1.45 | (-59 %) | |
| Revenue (GAAP) | $4.19 billion | $4,128.79 million | $3.61 billion | 16 % |
| Adjusted EBITDA | $919 million | $738 million | 24.5 % | |
| Free Cash Flow (Non-GAAP) | $156 million | $171 million | (9 %) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Overview and Critical Success Areas
Flutter Entertainment operates a portfolio of leading brands in online sports betting, gaming, and digital entertainment across more than 100 countries. Its main product segments include sports betting platforms like FanDuel and Paddy Power, online casinos, and iGaming products such as online poker and bingo. The group’s focus is scale, geographic reach, and proprietary technology to deliver a differentiated digital wagering experience.
In recent years, Flutter has sharpened its strategic priorities around market expansion, regulatory compliance, continuous technological innovation, marketing, and geographic diversification. It has completed significant acquisitions in Italy and Brazil, now leading in online market share in Italy and establishing a scale position in Brazil, and has made investments in proprietary technology platforms to fuel product innovation. Key success factors include executing acquisitions smoothly, holding first or second positions in key markets, compliance with evolving regulations, and maintaining customer loyalty through brand investment and product development.
Quarter Highlights: Revenue Growth, U.S. Expansion, and Integration of New Markets
The second quarter saw a strong uptick in revenue (GAAP), outpacing both expectations and prior year results. The U.S. was a major driver, with revenue up 17%. U.S. sports betting operations, led by the FanDuel sportsbook and FanDuel iGaming (online casino) platforms, posted segment revenues of $1.79 billion. U.S. adjusted EBITDA rose 54% to $400 million, driven by higher scale and a jump in iGaming revenue of 42%. The company maintained a clear leadership position, with FanDuel holding a 41% U.S. sportsbook GGR market share. and a record 27% iGaming GGR market share.
International operations also performed well, with segment revenue up 15%. The integration of recent acquisitions—Snaitech in Italy and NSX in Brazil—helped accelerate international revenue. In Italy, Flutter now holds an estimated 30.2% share of the online market, following the Snai deal. Brazil, buoyed by the NSX acquisition, saw revenue rise 144% year-over-year. However, the Brazilian market faced short-term friction in customer re-registration due to evolving regulations. while iGaming revenues rose 27% internationally.
Despite overall adjusted EBITDA growth of 25%, GAAP net income dropped sharply—down 88% year over year—due to several non-cash factors. Most notably, a non-cash charge from the Fox Option revaluation, higher amortization on acquired assets, and increased income tax expense. Net debt rose to $8.52 billion at June 30, 2025 from $5.16 billion at December 31, 2024, with the leverage ratio (non-GAAP) now at 3.2x, reflecting recent acquisitions. The company bought back 1.25 million shares for $300 million as part of a large-scale buyback program.
On the technology front, research and development expenses rose to $256 million. Examples include launch of proprietary betting features—such as same-game parlays (SGP+) and “Your Way” outcome-based pricing in the FanDuel sportsbook, as well as new reward mechanisms and in-house game content in iGaming. In Italy, product updates included the debut of a new bingo network, aimed at broadening customer appeal.
Flutter faced increased regulatory challenges. In Illinois, a newly introduced wager fee led Flutter to implement a 50 cent fee on each bet placed in the state starting September 1, 2025, to help mitigate higher operating costs. Management responded by extending its market access partnership with Boyd Gaming in the U.S. and adjusting pricing for customers as necessary. Internationally, the group continues to navigate evolving gambling laws in the U.K. and Ireland, as well as adapting its approach in emerging markets like Brazil and India.
Free cash flow (non-GAAP), a key indicator of how much cash remains after operating expenses and investments, was $156 million—down 9% compared to Q2 2024, mainly due to higher capital expenditures and sustained investment in technology and new markets.
Looking Ahead: Upgraded Guidance and Investor Focus
Management raised its full-year FY2025 guidance following the results. Revenue is now anticipated at $17.26 billion, with adjusted EBITDA (non-GAAP) targeted at $3.295 billion. In the U.S, revenue is expected to reach $7.58 billion and adjusted EBITDA $1.25 billion, up 31% and 146% respectively over 2024 (non-GAAP, FY2025 guidance). International revenue outlook stands at $9.68 billion. This upgraded guidance reflects improved U.S. market outcomes, the impact of the Snai and NSX acquisitions, and the momentum from new product launches.
Going forward, investors will watch for further progress on integration of recent acquisitions in Italy and Brazil, the impact of evolving regulations in the U.S. and internationally, and whether strong adjusted profitability translates into durable cash flow. The company’s balance sheet leverage will be another area to watch, alongside its ability to manage non-cash accounting charges and tax expenses that have pressured GAAP earnings.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
