What Just Happened To Flutter Stock

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Flutter Entertainment (FLUT) stock lost 66.5% over the year to October 29, 2026, while the S&P 500 returned 13.3%. Flutter cut its profit outlook twice during that period: first on November 12, 2025, mainly after a long winning streak by gamblers raised its payouts, and again with its second-quarter results on August 5, 2026. In between, its February 26 forecast for 2026 profit came in far below analyst estimates, and the stock fell 13.8% the next day. Heavier spending on FanDuel customers and higher UK gaming taxes are both weighing on profit. So how much profit has Flutter already given up?

Flutter Swung From Profit To Loss As Sales Rose

In the twelve months to June 30, 2026, Flutter reported a $124 million operating loss, swinging from a $988 million operating profit the year before. Revenue rose 15.2% to $17.2 billion over the same months, so the profit disappeared while sales kept growing.

The latest quarter looks weaker still. Revenue grew just 3.3% in the second quarter of fiscal 2026, and Flutter's operating loss that quarter equaled 3.3% of revenue, against an operating profit of 9.3% of revenue a year earlier.

By management's choice, Flutter is now putting more money into FanDuel customers in the U.S., and it said it would keep doing so in the second half of 2026. On the August 5 call, management said Flutter would move from a focus on margin growth to adding players and raising what each one spends, and that it could have delivered higher EBITDA in 2026 by investing less. With that spending, a one-week delay to the NFL season start, and currency moves, Flutter lowered its 2026 adjusted EBITDA guidance by $210 million to $2.655 billion at the midpoint. The same day, Flutter named Dan Taylor to succeed Peter Jackson as chief executive from October 1, 2026.

What Higher UK Gaming Taxes Mean For Flutter

The UK tax rise is already in Flutter's results, and its cost grows in 2027. On November 26, 2025, Flutter said the UK tax on online casino games, which it calls iGaming, would rise by 19 percentage points to 40% from April 2026. The tax on sports betting follows, rising to 25% from April 2027.

Before any savings, Flutter put the cost at about $320 million of adjusted EBITDA in fiscal 2026, rising to $540 million in fiscal 2027. Management said the higher UK tax, along with spending on prediction markets and World Cup marketing, led to a 45% fall in second-quarter adjusted EBITDA. Against that, Flutter expects $200 million of cost savings in 2027 from its plans to offset the UK tax.

Online Casino Sales Kept Growing At Flutter

Behind the operating loss, Flutter's iGaming business grew faster than its sportsbook in both 2024 and 2025. In fiscal 2025, iGaming revenue grew 27.5%, against 10.3% for sports betting. It also grew faster in fiscal 2024, at 22.4% against 18.9%.

When one business slows, a faster-growing second one has to carry growth. Tesla shows what happens without one: it drew 98% of last quarter's deliveries from the Model 3 and Model Y and saw deliveries fall two years in a row. Read Trefis Big Story: How Tesla Blundered.

Flutter's iGaming business brought in $7.21 billion of revenue in fiscal 2025, or 44.0% of the company's total. Management said iGaming in the UK and Ireland was still growing at 7% in the second quarter, after the higher UK tax rate took effect in April. In the third-quarter report expected in November 2026, Flutter's iGaming revenue growth is the number to watch.

How To Act On FLUT?

Now you know Flutter Entertainment better. Our purpose is to inform you so you can decide for yourself, and acting on one stock, in either direction, carries its own risk.

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