Flutter earnings CEO change sends shares down 13% after outlook cut

Flutter earnings CEO change news landed alongside a sharp market reaction on Wednesday: shares fell 13% after the FanDuel parent missed adjusted earnings expectations, reduced its outlook and announced a chief executive transition. For investors, the combined update put the focus on whether Flutter can restore momentum in its U.S. sportsbook while accepting lower near-term profit.

Flutter reported second-quarter adjusted earnings per share of 49 cents, below the 60-cent consensus estimate compiled by LSEG, according to CNBC. Revenue rose 3% from a year earlier to $4.326 billion, narrowly exceeding the $4.26 billion LSEG estimate, CNBC and the company’s results release said.

The revenue beat did not overcome weaker profitability and a reduced outlook. Flutter reported a $296 million net loss for the quarter, compared with $37 million of net income a year earlier. Reported loss per share was $1.57, while adjusted earnings per share were 49 cents, the company said.

Why did Flutter shares fall after its earnings report?

Investors were weighing an earnings shortfall, lower guidance and continuing pressure in Flutter’s U.S. operation. The company cut its full-year group revenue outlook by $395 million, to a midpoint of $17.91 billion, and reduced adjusted EBITDA guidance by $210 million, to a midpoint of $2.655 billion.

CNBC reported that Flutter also reduced its full-year U.S. adjusted EBITDA guidance by 22% to $760 million. Adjusted EBITDA was $508 million in the second quarter, down 45% from the prior-year period, according to Flutter.

The company’s U.S. revenue declined 6% to $1.683 billion in the quarter, with sportsbook revenue down 15%. U.S. adjusted EBITDA fell 70% to $119 million. Flutter said the year-over-year comparison included a six-percentage-point adverse effect from sports results. The Wall Street Journal also reported lower betting sales and customer churn in the U.S. business.

Flutter said FanDuel remained the No. 1 operator in U.S. sportsbook and iGaming, reporting gross gaming revenue market shares of 39% and 27%, respectively. Those market-share figures are company-reported.

Who will replace Peter Jackson as Flutter CEO?

Peter Jackson will leave the CEO role at the end of the current quarter after nearly nine years leading Flutter. Dan Taylor, Flutter’s president and chief executive of its international division, will become CEO on Oct. 1. Jackson will support the handover during the third quarter, the company said.

The transition follows another management change at FanDuel. CNBC reported that Taylor was given oversight of the business in May after FanDuel CEO Amy Howe was ousted.

Flutter is responding to the U.S. slowdown with more spending rather than protecting its prior profit targets. CNBC reported the company plans roughly $270 million of additional U.S. EBITDA investment in the second half of 2026, aimed at rewards, promotions and customer protections. Promotional spending is expected to move nearer 6% of handle, according to CNBC.

That plan creates the central trade-off in the update: Flutter is spending more to strengthen FanDuel’s sportsbook momentum while its U.S. revenue and earnings have declined. Separately, S&P Global Ratings changed Flutter’s ratings outlook to negative from stable in April while affirming its BB+ issuer rating, citing weaker credit metrics and delayed deleveraging.

This story draws on original reporting from CNBC.