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.
Is now the time to buy Flutter Entertainment? Find out in our full research report.
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
ADVERTISEMENTFree Cash Flow Margin: 2.9%, down from 12.1% in the same quarter last year
Market Capitalization: $21 billion
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.
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.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source finance.yahoo.com ’
