FanDuel’s third-quarter revenue fell 5% year-over-year, but strong iGaming results still helped its parent company generate $3.79 billion for the period ending Sept. 30.
Key Takeaways
- Customer-friendly results played a role in FanDuel’s 5% revenue decrease.
- New prediction platform and investment in FanDuel Sportsbook have Flutter eyeing a better Q4.
- Guidance was lowered coming out of Q3.
Flutter Entertainment announced Wednesday that Group Q3 revenue spiked 17% compared to the same quarter in 2024, which was bolstered by Italy operator Snai and Betnacional in Brazil.
Despite 9% year-over-year revenue growth in the U.S. sector, FanDuel suffered from customer-friendly results and “very high levels of uneconomic generosity from sportsbook competitors at NFL season start” during Q3 2025.
International revenue grew 21% year-over-year in Q3, while Adjusted EBITDA was up 10% compared to the same quarter in 2024. Group net loss of $789 million was much higher than the $114 million from the previous year’s Q3 due to regulatory changes in India and Flutter’s $205-million payment to Boyd Gaming to fully acquire FanDuel.
iGaming pays off
FanDuel held a 47% net gaming revenue share in the market during September, and average monthly players grew 5%.
The U.S. sector spike in Q3 profits came from iGaming’s 44% increase in revenue. A new lineup of online casino games helped the operator hold a 27% market share while also growing average monthly players by 30%.
“Flutter delivered a solid third quarter, with continued momentum in both our U.S. and International businesses,” Flutter CEO Peter Jackson said. “We are the clear number one operator in the U.S., and we will continue to build on that position to drive future profitability.”
Adjusted EBITDA in the U.S. sector fell 12% year-over-year to $51 million. Group Adjusted EBITDA of $478 million was up 6%. The entire operator’s average monthly players increased year-over-year by 9%.
Product investments
The gaming operator’s fiscal 2025 revenue outlook, however, dropped from a $17.05-billion estimate to $16.69 billion, while Adjusted EBITDA of $2.91 billion is down $380 million from midpoint projections. The decreased guidance is due to the per-wager tax in Illinois, tribal regulatory changes, and investments in two key products, Flutter said.
FanDuel Predicts, a prediction market platform, will launch in U.S. markets without legal sports betting in December.
The operator said Q3 results were not affected by prediction platforms, but the market-share leader in the U.S. is joining rival DraftKings, which recently announced a venture into the trading exchange space as well.
Confidence in profitability
FanDuel is already capitalizing on a productive fourth quarter by increasing its investment in player acquisition and retention. The U.S. operator has already seen double-digit year-over-year handle growth behind a "strong start” to the NBA season, which began in late October.
The updated guidance still projects a 19% year-over-year revenue increase and 24% growth in Adjusted EBITDA.
“Our strategic investments, including the launch of FanDuel Predicts and recent International acquisitions, position us exceptionally well to capture new opportunities and deliver sustainable, profitable growth,” Jackson said. “Our diversified portfolio and disciplined approach give me great confidence in our ability to lead the industry and increase long-term value for shareholders.”
