Global online betting powerhouse Flutter Entertainment (NASDAQ:FLUT) missed Wall Street’s revenue expectations in Q4 CY2025, but sales rose 24.9% year on year to $4.74 billion. Its GAAP loss of $0.05 per share was significantly below analysts’ consensus estimates.
Flutter Entertainment (FLUT) Q4 CY2025 Highlights:
- Revenue: $4.74 billion vs analyst estimates of $4.97 billion (24.9% year-on-year growth, 4.6% miss)
- EPS (GAAP): -$0.05 vs analyst estimates of $0.76 (significant miss)
- Adjusted EBITDA: $832 million vs analyst estimates of $892.8 million (17.6% margin, 6.8% miss)
- Operating Margin: 5.4%, down from 7.4% in the same quarter last year
- Free Cash Flow Margin: 2.9%, down from 12.1% in the same quarter last year
- Market Capitalization: $21 billion
Company Overview
With its digital fingerprints on nearly every aspect of global gambling, from the Super Bowl bettor to the online poker aficionado, Flutter Entertainment (NASDAQ:FLUT) operates a portfolio of leading online sports betting and gaming brands including FanDuel, PokerStars, Paddy Power, and Sky Betting & Gaming.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Flutter Entertainment grew its sales at a 30% compounded annual growth rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Flutter Entertainment’s recent performance shows its demand has slowed as its annualized revenue growth of 17.9% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. Note that COVID hurt Flutter Entertainment’s business in 2020 and part of 2021, and it bounced back in a big way thereafter.
This quarter, Flutter Entertainment generated an excellent 24.9% year-on-year revenue growth rate, but its $4.74 billion of revenue fell short of Wall Street’s high expectations.
Looking ahead, sell-side analysts expect revenue to grow 16.8% over the next 12 months, similar to its two-year rate. We still think its growth trajectory is attractive given its scale and implies the market is baking in success for its products and services.
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Operating Margin
Flutter Entertainment’s operating margin has been trending down over the last 12 months and averaged 3% over the last two years. The company’s profitability was mediocre for a consumer discretionary business and shows it couldn’t pass its higher operating expenses onto its customers.
In Q4, Flutter Entertainment generated an operating margin profit margin of 5.4%, down 1.9 percentage points year on year. This reduction is quite minuscule and indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although Flutter Entertainment’s full-year earnings are still negative, it reduced its losses and improved its EPS by 21.3% annually over the last four years. The next few quarters will be critical for assessing its long-term profitability.
In Q4, Flutter Entertainment reported EPS of negative $0.05, down from $0.45 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street is optimistic. Analysts forecast Flutter Entertainment’s full-year EPS of negative $1.81 will flip to positive $4.52.
Key Takeaways from Flutter Entertainment’s Q4 Results
We struggled to find many positives in these results. Its revenue missed and its EPS fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 9.2% to $111.70 immediately after reporting.
Flutter Entertainment underperformed this quarter, but does that create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
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