FanDuel’s year-over-year sports betting revenue declined 15% during the second quarter of 2026 amid investor concerns and a 50% drop in shares over the first seven months of the year.
Key Takeaways
- FanDuel grew AMPs by 8%, but customers had a strong performance.
- iGaming profits spiked 14% compared to Q2 2025.
- Group revenue was up 3% year over year.
The Flutter-owned U.S. market-share leader reported in its earnings release that it generated $1.68 billion in sports betting and iGaming combined revenue during a Q2 highlighted by a large portion of the FIFA World Cup, which helped produce a 2% handle increase during the period ending June 30.
Average monthly players grew 8% in Q2, but outgoing Flutter CEO Peter Jackson said customer-friendly results in soccer and with the New York Knicks winning the NBA Finals led to the decline in sports betting profits of $1.03 billion.
“Adjusting for the year-over-year impact of sports results and marquee events, underlying sportsbook performance was broadly in line with expectations, with AMPs, handle and revenue excluding sports results all improving sequentially,” said Jackson, who will hand over the CEO role to Dan Taylor at the start of October.
“This reflected good progress in delivering our sportsbook improvement plan as we strengthen our proposition and address the operational challenges which contributed to FanDuel exiting 2025 with a smaller customer base.”
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Staying on top
FanDuel continued to be the U.S. leader with 39% market share in sports betting and 27% in iGaming, which generated $577 million in revenue, a 14% year-over-year increase. Adjusted EBITDA of $119 million was ahead of market expectations but still dipped 70% compared to Q2 2025.
Unfavorable sports betting net revenue of approximately $21 million was down from a favorable $90 million in Q2 2025, dipping 170 basis points “from the timing of sports results related to generosity changes,” the company said. FanDuel did see a 14% structural revenue margin increase from what the company said reflected “high levels” of Same Game Parlay infiltration during the World Cup.
FanDuel’s promotional spending was higher, and year-over-year sales and marketing expenses rose 61% due to prediction market platform investments and to help U.S. customer acquisition and retention during the World Cup.
“I am encouraged by the progress we have made in the U.S., delivering continued sequential improvement in key sportsbook metrics alongside sustained iGaming growth,” Jackson said. “The new U.S. leadership team is driving a renewed, customer-first approach, and we are making proactive investments to strengthen our leadership position and place the business in the best possible position for growth in 2027.”
Group gains, declines
Flutter’s group revenue of $4.3 billion increased 3% from Q2 2025, while handle spiked 7%. AMPs were up an impressive 11% year over year. Sports betting revenue declined slightly from $2.26 billion to $2.23 billion, but iGaming group revenue of $1.9 billion was up 9%.
Adjusted EBITDA of $508 million for all operations was down 45%, with margins dipping from 21.9% to 11.7%.
Flutter attributed a net income loss of $296 million, compared to a $37 million gain in Q2 2025, to reductions in segment profitability, “historical” $95 million tax provisions and accruals in India, a $52-million increase in interest expense from acquisitions, and $30 million rise in depreciation and $399 million amortization cost from Italy and Brazilian acquisitions.
The international segment’s Adjusted EBITDA of $476 million declined 19% year over year, but Flutter reported “strong fundamentals with revenue growth offset by UK tax increase and FIFA World Cup marketing spend.”
Looking ahead
Revenue from FanDuel Predicts was “not material” in Q2, Flutter said. Despite concerns over Flutter’s positioning in the prediction market space and slow operational progress during the first half of 2026, Jackson is still bullish on the company’s trading product.
“It is very early days, but we already expect to generate approximately $50 million of revenue from market-making this year, demonstrating both the good progress made so far, and the potential opportunity that exists in market-making,” Jackson said. “We will continue to build out this capability in the second half of the year.”
Flutter is also pleased with early third-quarter results, driven primarily by more operator-friendly outcomes during the knockout stages of the World Cup than in the first portion of the tournament.
Still, the company reduced its FanDuel guidance for 2026. Projected revenue of $7.4 billion is down $395 million from the previous guidance, and Adjusted EBITDA was dropped $210 million to $760 million for the year.
“This results in 2026 U.S. revenue growth year-over-year of 6% and a reduction in adjusted EBITDA of 18% year-over-year, at the midpoint,” the company said. “We expect approximately 20% of full year revenue to arise in Q3 with adjusted EBITDA expected to be approximately breakeven in the quarter.”
