KEY TAKEAWAYS
CONTENTS
Summary: a two-engine operator
Flutter Entertainment plc earns money mainly by taking bets and games of chance online, keeping the difference between what customers stake and what it pays out, less promotions. In fiscal 2025, the year ended December 31, 2025, the group reported $16,383 million of revenue, 53% from sportsbook, 44% from iGaming and 3% from other products, according to its annual report on Form 10-K filed with the U.S. Securities and Exchange Commission.
The business has two engines. The U.S. segment contributed $6,967 million of revenue and $922 million of adjusted EBITDA, according to the company’s February 26, 2026 earnings release. The International segment, which spans about 100 markets, contributed $9,416 million of revenue and about $2.20 billion of adjusted EBITDA. International is larger and more profitable per dollar of revenue, while the U.S. is growing faster.
This analysis explains the revenue model, the cost structure and the two segments using the company’s own filings, with every figure tied to its period. It covers how Flutter works as a business, not where to play, and is not investment advice. Figures are the company’s fiscal 2025 reporting unless stated, and the last full year available as of October 2026.
Background: from Paddy Power to a NYSE-listed group
Flutter’s history explains its structure. According to its 10-K, the company was formed in 1988 through the merger of three independent bookmakers and later operated as Paddy Power plc. It merged with Betfair Group plc on February 2, 2016, took the name Flutter Entertainment plc on May 28, 2019, and listed on the New York Stock Exchange on January 29, 2024, moving its primary listing there on May 31, 2024. It is incorporated in Ireland and its global operational headquarters is in New York.
The company earns money in several ways, depending on the product. On sportsbook bets, it sets fixed odds that include a theoretical spread and records revenue as that spread, less winnings paid and promotional costs. In casino-style iGaming against the house, revenue is gross bets less payouts, which the company calls hold. In poker, it takes a rake, a commission on each game, and in lottery it earns a commission under fixed-term concessions.
Revenue also comes from peer-to-peer products such as betting exchanges, daily fantasy sports and, since December 2025, prediction markets in the U.S., where the company makes a commission instead of betting against customers. It also sells pricing and risk management services to other businesses. To read the sportsbook mechanics in more detail, see our explainer on how sportsbooks make money. Acquisitions reshaped fiscal 2025: the company bought Boyd’s 5% interest in FanDuel for $1,553 million, a 56% interest in Brazil’s NSX Group for BRL 3,799 million ($674 million) and Italy’s Snai for about $2.6 billion.
How the model earns money: the numbers
The 10-K gives the revenue mix directly. Sportsbook is the largest product, but iGaming is close behind, and the company says 88% of group revenue came from online businesses, complemented by 1,127 retail shops, mainly in the United Kingdom, Ireland, Italy and Serbia.
Flutter Entertainment, fiscal 2025 (year ended December 31, 2025). Source: Form 10-K and Q4 2025 earnings release. Shares of revenue as reported by the company.
| Measure | Fiscal 2025 | Comment |
|---|---|---|
| Group revenue | $16,383M (+17%) | Reported |
| Sportsbook / iGaming / other | 53% / 44% / 3% | Share of revenue |
| Average monthly players | 15.9 million (+14%) | Online players only, company definition |
| Sales and marketing | $3,678M | About 22.5% of revenue (calculated) |
| Technology R&D | $991M | About 6.0% of revenue (calculated) |
| Group adjusted EBITDA | $2,845M (+21%) | 17.4% margin, non-GAAP |
Two ratios show where the money goes. Marketing, the cost of finding and keeping customers, absorbed more than a fifth of revenue, and technology absorbed about 6%.
where: $3,678M is fiscal 2025 sales and marketing spending; $16,383M is fiscal 2025 group revenue.
Sportsbook margins explain much of the variability. In the fourth quarter of 2025, the U.S. sportsbook net revenue margin was 8.9% of handle, the company says, built from a structural revenue margin of 15.5%, a 0.8-point drag from sports results and promotional spend of 5.8%. Compared with the fourth quarter of 2024, the margin rose 2.2 points: structural margin added 0.9, better sports results added 3.1 and higher promotional spend subtracted 1.8.
where: structural margin, sports results effect and promotional spend are the company’s reported components, which reconcile to the net margin; all figures are percentages of U.S. sportsbook handle, fourth quarter of 2025.
What the model means for the business
Three features follow from the numbers. First, scale is part of the cost advantage: marketing and technology are spread over 15.9 million average monthly players, and the company describes its group-wide benefits as the Flutter Edge. This is the company’s own framing, and the filings do not quantify it separately.
Second, profit depends on product mix and market maturity. International combines established markets with newer ones such as Brazil, while the U.S. is still adding states and absorbing launch costs. The company guided to a new-state adjusted EBITDA loss of about $70 million in 2026, according to its February 2026 release, which shows how expansion can lower near-term profit.
Third, strategy is shifting toward adjacent products. The 10-K says FanDuel Predicts, built with CME Group, launched in five states in December 2025, and it lists prediction markets among competitive pressures. The company said it expected an adjusted EBITDA investment toward the top of a $200 million to $300 million range in 2026 and did not include revenue from the product in its guidance. This is company guidance, not a forecast by WagerBiz.
U.S. versus International
The two segments differ in size, growth and profitability. The U.S. produced about 30% of combined segment adjusted EBITDA on 43% of revenue, because International’s margin is higher. Segment profit is shown before $279 million of unallocated corporate overhead, which is why the segments add up to more than the group’s $2,845 million.
Fiscal 2025 by reportable segment. Source: Form 10-K and Q4 2025 earnings release. Margins and shares calculated; International adjusted EBITDA is the group total plus overhead less U.S., about $2,202M, rounded by the company to $2.20 billion.
| Segment | Revenue | Revenue growth | Adjusted EBITDA | EBITDA growth | EBITDA margin |
|---|---|---|---|---|---|
| United States | $6,967M (43%) | +20% | $922M | +82% | 13.2% |
| International | $9,416M (57%) | +14% | About $2.20B | +7% | About 23.4% |
| Group | $16,383M | +17% | $2,845M (after overhead) | +21% | 17.4% |
where: adjusted EBITDA is the company’s non-GAAP measure, shown before unallocated corporate overhead.
The fourth-quarter cost structure shows why. Cost of sales takes a larger share of U.S. revenue, while International spends relatively more on general and administrative costs. Within International, the UK and Ireland were 22% of group revenue, Southern Europe and Africa 17%, Asia Pacific 9%, Central and Eastern Europe 4% and Brazil 1%.
Costs as a share of segment revenue, fourth quarter of 2025 (three months ended December 31, 2025), calculated from the company’s segment table.
| Cost line | United States | International |
|---|---|---|
| Cost of sales | 56.3% | 48.3% |
| Technology, research and development | 4.1% | 3.8% |
| Sales and marketing | 19.6% | 16.3% |
| General and administrative | 5.5% | 8.9% |
| Adjusted EBITDA margin | 14.5% | 22.7% |
Risks, limits and misreadings
Adjusted EBITDA is a company-defined, non-GAAP measure, and it excludes items such as depreciation, amortization and interest. Fiscal 2025 shows the gap: adjusted EBITDA rose 21%, yet net income swung from $162 million to a $407 million loss, in part because of a $556 million non-cash impairment the company linked to India’s ban on real-money gaming, which ended its offering there on August 22, 2025.
Results also depend on game outcomes. In the fourth quarter of 2025, the company said unfavorable sports results reduced U.S. revenue by $140 million, against $205 million included in its earlier guidance. Debt rose from $6,736 million to $12,266 million as acquisitions were financed, and the company reported a leverage ratio of 3.7x against 2.2x a year earlier. Regulation and tax can change the economics: the company said UK iGaming rates would almost double to 40% from April 2026.
Finally, this analysis ends with fiscal 2025. The company’s 2026 guidance, given February 26, 2026, projected $18.4 billion of revenue and $2.97 billion of adjusted EBITDA at the midpoint, but the company reports results quarterly, so later updates may supersede it and guidance should be read as dated.
Key figures and definitions
Key figures, with periods and sources. Calculated figures are marked.
| Metric | Value | Period | Source |
|---|---|---|---|
| Revenue | $16,383M | Fiscal 2025 | Form 10-K |
| U.S. revenue / share | $6,967M / 43% | Fiscal 2025 | Form 10-K |
| International revenue / share | $9,416M / 57% | Fiscal 2025 | Form 10-K |
| Group adjusted EBITDA | $2,845M, 17.4% margin | Fiscal 2025 | Q4 2025 release |
| Net income (loss) | $(407)M | Fiscal 2025 | Q4 2025 release |
| Sales and marketing | $3,678M (22.5%, calculated) | Fiscal 2025 | Form 10-K |
| U.S. sportsbook share of GGR | About 41% | Fiscal 2025 | Form 10-K |
| Net debt / leverage ratio | $10,591M / 3.7x | At Dec. 31, 2025 | Q4 2025 release |
Handle is the total amount wagered, and gross gaming revenue (GGR) is the amount kept after winnings. AMPs, average monthly players, count online players with a settled bet or a contribution to rake in a month. The market share is the company’s estimate of its GGR share in U.S. states where its sportsbook was live.
Related analysis and next steps
To understand the margin mechanics behind this profile, start with how sportsbooks make money, which defines handle, hold and the effect of promotions. For a view of one market where an operator like this competes, see New York sports betting revenue, which applies the same measures at state level. The next logical reads are analyses of the company’s results by period, its major acquisitions and its peers, each of which can use the definitions given here. Each of those topics depends on the same definitions: hold, adjusted EBITDA and segment margin. Reading a company this way means separating what it reports from what it guides, and stating the period each time. Primary documents are listed below.
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