In short: FanDuel needs a reset. Q2 revenue grew just 3% Y/Y to $4.3B (a $90M beat) with adjusted EPS of $0.49 missing by $0.06, and adjusted EBITDA plunged 45% to $508M — hit by customer-friendly sports results, higher UK gaming taxes, prediction-market investment and World Cup marketing. The US is the problem: FanDuel revenue fell 6%, including a 15% decline in sportsbook revenue, as the market stayed subdued after last year's unfavorable NFL season and elevated churn, and Flutter is responding by "increasing customer generosity and product investment rather than protecting near-term margins." The leadership reset escalated — after FanDuel CEO Amy Howe departed last quarter, Flutter CEO Peter Jackson steps down on September 30, with Dan Taylor taking over (Taylor was already tasked with fixing FanDuel in May). International revenue grew 10% and prediction-market market-making is now expected to contribute about $50M of FY26 revenue, with early Q3 trading improving during the World Cup knockout rounds. Flutter cut FY26 revenue guidance ~$400M to $17.91B and adjusted EBITDA ~$210M to $2.66B, partly reflecting another $270M of deliberate US investment. "Q2 confirmed the reset will take longer and cost more." A disclosed author holding.
Flutter owns FanDuel, the largest US sports betting brand. Revenue grew just 3%, and core profit fell 45% to $508 million.
Several things hit at once. Sports results went the customers' way — in betting, an unlucky run of favourites winning costs the bookmaker directly. UK gaming taxes rose. Flutter is spending on prediction markets, a newer product where people trade on outcomes rather than place fixed bets. And it marketed heavily around the World Cup.
The deeper issue is FanDuel itself, where revenue fell 6% and sportsbook revenue fell 15%. Customers have been churning since last year's unfavourable NFL season, and rather than cut promotions to protect profit, Flutter is doing the opposite: spending more on customer offers and product to win them back. That is defensible strategically and expensive immediately — full-year revenue guidance was cut by about $400 million and profit guidance by $210 million.
The leadership response has escalated to the top. FanDuel's CEO left last quarter; now group CEO Peter Jackson departs on 30 September, with Dan Taylor — who was put in charge of fixing FanDuel back in May — taking over the whole company. The article's verdict: the reset will take longer and cost more than Q1 suggested. The author owns it; analysis, not a recommendation.
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