Revenue growth decelerated to 3.3% in 2026Q2 from 27.0% in 2024Q3, while gross margin fell from 49.2% to 39.6%, and operating income swung to a -$144M loss in 2026Q2.
Flutter Entertainment plc (FLUT) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 17.24B | 16.38B | 14.05B | 11.79B | 9.46B | 8.31B | 6.04B | 2.73B |
| Revenue Growth % | 11.68% | 16.62% | 19.15% | 24.59% | 13.9% | 37.64% | 121.1% | - |
| Cost of Goods Sold | 10.06B | 8.98B | 7.35B | 6.2B | 4.81B | 3.88B | 2.1B | 1.16B |
| COGS % of Revenue | - | 54.81% | 52.29% | 52.6% | 50.86% | 46.71% | 34.87% | 42.43% |
| Gross Profit | 7.18B | 7.4B | 6.7B | 5.59B | 4.65B | 4.43B | 3.93B | 1.57B |
| Gross Margin % | 41.63% | 45.19% | 47.71% | 47.4% | 49.14% | 53.29% | 65.13% | 57.57% |
| Gross Profit Growth % | - | 10.47% | 19.94% | 20.17% | 5.04% | 12.6% | 150.16% | - |
| Operating Expenses | 8.18B | 6.85B | 5.83B | 6.14B | 4.74B | 4.88B | 3.79B | 1.36B |
| OpEx % of Revenue | - | 41.82% | 41.52% | 52.05% | 50.07% | 58.69% | 62.79% | 49.66% |
| Selling, General & Admin | 6.48B | 5.86B | 5.01B | 5.37B | 4.19B | 4.24B | 2.69B | 1.29B |
| SG&A % of Revenue | - | 35.77% | 35.68% | 45.56% | 44.24% | 51.06% | 44.63% | 47.18% |
| Research & Development | 1.15B | 991M | 820M | 765M | 552M | 634M | 260.38M | 67.74M |
| R&D % of Revenue | - | 6.05% | 5.84% | 6.49% | 5.83% | 7.63% | 4.31% | 2.48% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 835.83M | 0 |
| Operating Income | -998M | 553M | 869M | -549M | -88M | -449M | 141.54M | 215.86M |
| Operating Margin % | -5.79% | 3.38% | 6.19% | -4.66% | -0.93% | -5.4% | 2.34% | 7.91% |
| Operating Income Growth % | - | -36.36% | 258.29% | -523.86% | 80.4% | -417.23% | -34.43% | - |
| EBITDA | 657M | 2.07B | 1.97B | 736M | 987M | 561M | 969.3M | 544.87M |
| EBITDA Margin % | 3.81% | 12.63% | 13.99% | 6.24% | 10.43% | 6.75% | 16.06% | 19.96% |
| EBITDA Growth % | -65.89% | 5.29% | 167.12% | -25.43% | 75.94% | -42.12% | 77.9% | - |
| D&A (Non-Cash Add-back) | 1.66B | 1.52B | 1.1B | 1.28B | 1.07B | 1.01B | 827.76M | 329.01M |
| EBIT | -497M | 467M | 506M | -661M | -76M | -341M | 355.01M | 189.7M |
| Net Interest Income | -649M | -522M | -427M | -385M | -212M | -215M | -190.5M | -18.62M |
| Interest Income | 26M | 73M | 71M | 45M | 7M | 7M | 1.91M | 1.31M |
| Interest Expense | 675M | 595M | 498M | 430M | 219M | 222M | 191.75M | 19.93M |
| Other Income/Expense | -156M | -674M | -853M | -542M | -207M | -114M | -140.03M | -42.74M |
| Pretax Income | -1.15B | -121M | 16M | -1.09B | -295M | -563M | 1.5M | 173.12M |
| Pretax Margin % | -6.69% | -0.74% | 0.11% | -9.25% | -3.12% | -6.78% | 0.02% | 6.34% |
| Income Tax | 71M | 286M | -146M | 120M | 75M | 194M | 48.96M | 30.36M |
| Effective Tax Rate % | -6.15% | -236.36% | -912.5% | -11% | -25.42% | -34.46% | 3254.55% | 17.54% |
| Net Income | -897M | -380M | 109M | -1.22B | -432M | -923M | 51.83M | 183.71M |
| Net Margin % | -5.2% | -2.32% | 0.78% | -10.36% | -4.57% | -11.11% | 0.86% | 6.73% |
| Net Income Growth % | -228.57% | -448.62% | 108.92% | -182.87% | 53.2% | -1880.85% | -71.79% | - |
| Net Income (Continuing) | -1.23B | -407M | 162M | -1.21B | -370M | -757M | -47.45M | 142.76M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 346M | 660M | 1.97B | 1.32B | 154.33M | 50.79M | 42.1M | 271.44M |
| EPS (Diluted) | -5.10 | -1.73 | 0.24 | -6.90 | -2.44 | -5.24 | 0.39 | 2.38 |
| EPS Growth % | -326.99% | -820.83% | 103.48% | -182.79% | 53.44% | -1443.59% | -83.61% | - |
| EPS (Basic) | - | -1.73 | 0.24 | -6.90 | -2.44 | -5.24 | 0.40 | 2.39 |
| Diluted Shares Outstanding | 176M | 179M | 180M | 177M | 177M | 176M | 132.85M | 80.33M |
| Basic Shares Outstanding | 176M | 179M | 178M | 177M | 177M | 176M | 132.85M | 80.31M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 111.48% |
Quick answers to the most common questions about buying FLUT stock.
For fiscal year 2025, Flutter Entertainment plc (FLUT) reported total revenue of $16.38B. This represents a 500.1% increase compared to $2.73B in 2019.
Flutter Entertainment plc (FLUT) reported a net loss of $380.0M for the fiscal year ending 2025.
Flutter Entertainment plc (FLUT) reported an operating income of $553.0M, resulting in an operating profit margin of 3.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Flutter Entertainment plc (FLUT) generated $7.40B in gross profit for the year, representing a gross profit margin of 45.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth deceleration and margin volatility
Metrics are mathematically derived from official filings.
Growth Momentum Cooling After Peak
Revenue growth decelerated from 27.0% in 2024Q3 to 3.3% in 2026Q2, as reported in financial statements, suggesting a maturing US market and tougher comparables.
The sharp deceleration from double-digit growth to low single digits indicates that the initial surge from market expansion and customer acquisition is fading. While 2025Q4 showed a 24.9% rebound, the subsequent quarters have seen growth stall, implying that Flutter may be reaching saturation in its core markets. Investors should monitor whether new product launches or international expansion can reaccelerate growth.
Gross Margin Erosion Pressures Profitability
Gross margin declined from 49.2% in 2024Q2 to 39.6% in 2026Q2, as per income statement data, reflecting higher promotional costs and unfavorable mix shifts.
The consistent decline in gross margin over the past two years suggests intensifying competition and increased customer acquisition costs, particularly in the US online sports betting and iGaming segments. This trend is concerning as it directly impacts the bottom line, and if sustained, could compress operating leverage. Flutter's ability to maintain pricing power and manage promotional spend will be critical to stabilizing margins.
Operating Leverage Turns Negative
Operating income swung from a $389M profit in 2025Q2 to a $144M loss in 2026Q2, as reported in SEC filings, indicating that revenue growth is no longer covering fixed costs.
The negative operating leverage is evident as SG&A expenses have grown faster than gross profit, with SG&A rising from $1.3B in 2024Q2 to $1.6B in 2026Q2, while gross profit remained flat. This suggests that Flutter's cost structure is becoming less efficient, possibly due to increased marketing spend and technology investments. The company needs to control overhead costs to restore profitability.
Earnings Volatility Masks Underlying Trends
Net income swung from a $332M profit in 2025Q1 to a $760M loss in 2025Q3, based on reported figures, highlighting the impact of non-operating items and tax anomalies.
The extreme volatility in net income, with losses in several quarters despite positive operating income, suggests that non-operating items such as fair value changes on investments or one-time charges are significantly affecting reported earnings. Additionally, the effective tax rate appears inconsistent, as seen in 2025Q4 where net income was only $23M despite $258M operating income, implying a high tax provision. Investors should focus on operating income and adjust for these items to assess underlying profitability.
SG&A Escalation Outpaces Revenue
SG&A expenses grew from $1.2B in 2024Q2 to $1.6B in 2026Q2, a 33% increase, while revenue grew only 19%, as per income statement data, indicating cost discipline challenges.
The disproportionate growth in SG&A relative to revenue suggests that Flutter is investing heavily in sales and marketing to sustain growth, but with diminishing returns. This is a red flag for investors as it indicates that customer acquisition costs are rising, and the company may be sacrificing profitability for market share. Management's ability to rationalize these expenses will be key to improving margins.
2025Q3: A Turning Point for Profitability
2025Q3 marked a significant inflection with operating income plunging to -$317M and net income to -$760M, as reported in financial statements, signaling a deterioration in operational performance.
This quarter stands out as the worst in the provided data, with a net margin of -20.0%, likely driven by a combination of higher costs, unfavorable legal settlements, or investment losses. The subsequent quarters have not fully recovered, with 2026Q2 still showing a net loss, indicating that the company has not yet regained its prior profitability levels. This inflection point may represent a structural shift in the competitive landscape or regulatory environment that warrants close monitoring.
What Could Invalidate the Base Case
Despite recent losses, Flutter's revenue growth and gross margins remain above peers like DraftKings, but sustained margin erosion and rising SG&A could undermine profitability, as per reported figures.
Short-sellers might argue that Flutter's declining gross margins and escalating SG&A indicate a structural loss of pricing power and cost control, which could lead to prolonged losses. The volatility in net income, driven by non-operating items, may also suggest that core operations are less profitable than they appear. If revenue growth continues to decelerate and margins keep compressing, the company could face a downward spiral, making it difficult to justify its premium valuation relative to peers.