Flutter Entertainment, the global leader in online sports betting and iGaming, posted second-quarter 2025 results that comfortably outpaced analyst projections, propelled by strong performances in both the U.S. and overseas markets. The group reported adjusted earnings of $2.95 per share, handily topping the $2.08 estimate from LSEG’s analyst survey. Quarterly revenue reached $4.19 billion, exceeding consensus expectations of $4.13 billion and marking a 16% year-over-year increase.

FanDuel, Flutter’s flagship U.S. sportsbook, proved a standout performer. U.S. revenue climbed 17% year-on-year to $1.79 billion, with sportsbook revenue up 11% and iGaming soaring 47%. Adjusted EBITDA in the U.S. reached $400 million, well ahead of last year’s $260 million, with margins rising to 22.3%. June brought particularly favorable sports results, delivering FanDuel’s best-ever gross revenue margin of 16.3%.

International operations also contributed meaningfully, growing revenue 15% to $2.4 billion, boosted by acquisitions such as Italy’s Snai and Brazil’s NSX, according to the company’s report (pdf). In markets like Southern Europe, Africa, and Turkey, growth rates exceeded 60% in some segments, underscoring the breadth of the company’s global expansion.

CEO Highlights Growth But Flags Tax Concerns

Flutter CEO Peter Jackson praised the quarter’s operational momentum: “I am pleased with the excellent underlying performance we have delivered in the second quarter alongside the good progress made on a number of key strategic initiatives.” He noted milestones including the accelerated move to 100% ownership of FanDuel, market leadership in Italy following the Snai deal, and the establishment of a strong foothold in Brazil through the NSX acquisition.

However, Jackson also warned about the potential fallout from recent state tax changes in the U.S., especially in Illinois. “If you look at Illinois,” he said, “we’re very disappointed what they’ve done now. We think the taxes that they brought in will have a really, sort of, negative impact on the very recreational, super casual users.”

Illinois recently introduced a per-wager tax of $0.25, which doubles to $0.50 after 20 million annual bets. Flutter anticipates a $40 million annual hit from new taxes across Illinois, New Jersey, and Louisiana. To counter the Illinois levy, FanDuel will introduce a $0.50 transaction fee on all online wagers starting September 1.

Strategic Moves and Future Plans

Beyond tax mitigation, Flutter is evaluating entry into the emerging U.S. prediction market space, leveraging its two decades of Betfair Exchange experience. “We offer this product in lots of markets around the world, and it shares some similar characteristics of the event contracts, which will obviously be helpful to us as we consider the landscape and any developments,” Jackson said.

The quarter also saw the migration of nine million Sky Bet customers to Flutter’s shared UK and Ireland platform, as part of a $300 million cost-saving program. The transformation of PokerStars remains underway, with the largest milestone achieved in July via migration of Italian players to a consolidated Southern Europe and Africa platform. Most savings from this initiative will materialize toward the program’s conclusion in 2027.

In a further signal of confidence, Flutter announced the fourth tranche of its multi-year $5 billion share repurchase program, with up to $245 million earmarked for buybacks between October and December 2025 on the New York Stock Exchange. This year alone, the company expects to return about $1 billion to shareholders through the program.

Full-Year Guidance Raised Despite Profit Drop

Despite the quarter’s revenue strength, net income fell sharply to $37 million from $297 million a year earlier, largely due to non-cash charges related to Fox’s option to acquire an 18.6% stake in FanDuel and the amortization of acquired intangibles.

Still, Flutter is raising its 2025 guidance. Full-year revenue is now forecast at $17.26 billion, up from $17.08 billion, while adjusted EBITDA is projected at $3.295 billion, an increase from $3.18 billion. The uplift reflects favorable U.S. sports results, renegotiated market access terms, and timing of state launches.

Shares of Flutter closed at $306.07 in New York on Thursday before results were announced, edging up slightly in pre-market trading Friday. As Jackson summed up, “Looking ahead to the remainder of the year, our strong performance in the first half of 2025 underlines the strength of Flutter’s fundamentals. I feel confident as I consider our positioning heading into the second half of 2025.”