FLUT Stock Forecast & Price Target

Flutter Entertainment's financial performance reflected strong growth, with EBITDA exceeding projections by 23% and recording a year-over-year increase of 10% on revenues of $2.426 billion. The company experienced a remarkable 30% year-over-year increase in average monthly users, supported by enhanced user acquisition strategies and successful product launches, which are anticipated to further strengthen market presence. Looking ahead, the projected acceleration in U.S. sports betting handle growth to 10% in the fourth quarter, alongside a solid structural hold increase, reinforces Flutter's competitive position in the online gaming sector.

Flutter Entertainment's sportsbook net revenue margin experienced a decrease of 30 basis points year-over-year to 12.4%, primarily due to a lower structural revenue margin from growth in lower-margin regions and adverse sports outcomes. The company's EBITDA guidance was lowered by 14% at the midpoint, forecasting annual revenues of $9.38-9.66 billion, with an adjusted EBITDA of $2.17-2.31 billion, reflecting competitive pressures and increased promotional spending from rivals. Moreover, Flutter's EBITDA for the fiscal year 2025 was projected to be approximately $81 million, significantly below prior guidance, driven by unfavorable sports results and impacts from aggressive marketing strategies adopted by competitors.