Flutter cuts FY26 guidance after Brazil exit and weak sports results hit Q3 earnings

Flutter Entertainment has lowered its FY2026 outlook after a messy quarter: Brazil was shut down, sports results went against the house, and adjusted EBITDA took a 25% hit. For PSPs and high-risk operators, the useful part is not the headline loss, but the mechanics: regulatory shutdowns can turn into immediate impairment charges, closed operations, and guidance cuts faster than any quarterly deck can smooth over.

1. In Q3, Flutter reported a net loss of $1.15 billion for the three months ending 30 September, versus $789 million in Q3 2025. Revenue still rose 2% to $3.87 billion, but the quarter was weighed down by $873 million in non-cash impairment charges tied to its Brazilian business.
2. Of that post-tax impairment charge, $537 million was linked to Flutter’s 56% stake in Flutter Brazil. The business was formed last year in a deal where Flutter, through Paddy Power owner, paid $356 million to NSX Group, owner of Betnacional.
3. Following President Lula’s late-September ban on betting in Brazil, Flutter closed its Betfair business in the country and now has Betnacional as its sole brand there. In other words, the market did not just get harder to operate in; it was shut down, and Flutter responded by closing operations and pausing all discretionary and uncommitted spend.
4. Adjusted EBITDA fell 25% year on year to $360 million. Flutter said the downgrade reflects the Brazil shutdown as well as unfavorable sports results in its US and International segments, both of which hit the quarter at the same time.
5. The company cut its FY2026 guidance midpoint by $300 million on revenue to $17.61 billion, and reduced full-year adjusted EBITDA guidance by $160 million to $2.495 billion. CEO Dan Taylor, who replaced Peter Jackson on 1 October, said the company was “very disappointed” by the provisional measure banning betting in Brazil.

On the US side, FanDuel revenue rose 6% to $1.46 billion, helped by sportsbook growth of 4% and iGaming growth of 8%. But FanDuel’s adjusted EBITDA dropped 94% to $3 million, which Flutter attributed to investment in its prediction market offering and its July launch in Alberta. Taylor also said measures such as the launch of FanDuel Rewards had delivered “encouraging returns” and helped the brand gain sportsbook market share.