Outgoing Flutter CEO Peter Jackson held what is scheduled to be his last investor call alongside CFO Rob Coldrake in the wake of mixed Q2 2026 financial results released earlier today.
The pair addressed the operator’s significant losses of almost $300m during the second quarter, as well as discussing its 45% year-over-year drop in EBITDA to $508m, juxtaposed by a 3% rise in group revenue to $4.3bn. Now, reduced financial guidance for the year has been outlined, alongside a heavy focus on US investment and shifting prediction market infrastructure through H2.
Stakeholders who joined the call also wished Jackson luck, following the recent announcement of his departure as CEO after eight years at the helm.
Flutter migrates sports predictions to Crypto.com
Flutter confirmed that all FanDuel Predict and novelty contracts will migrate to Crypto.com during its investor call, while existing financial markets will remain with CME Group under a 50/50 economic split. Jackson said the move will expand the sports catalog and slightly improve the overall proposition alongside an “enhanced sportsbook experience.” The operator also outlined ambitions to introduce a "traveling wallet" feature, allowing customers to carry prediction market positions across state borders.
Indeed, it was acknowledged that FanDuel Predict has progressed more slowly than initially planned. However, Coldrake outlined that the product enables Flutter to acquire customers in additional state markets. Overall, $15m in year-to-date revenue has been generated by FD Predict, with the company maintaining expectations of around $50m by year-end as volumes continue to grow. Meanwhile, Kalshi is being sued by New York for $36bn. Contrast those numbers...
The executives added that leveraging FanDuel's existing sportsbook capabilities should provide a competitive advantage and, while still in the early stages, prediction markets have the potential to become a "meaningful revenue stream." The question investors will be asking is: Why hasn't it already?
Responding to questions around North Carolina's online sports betting tax increase and the proposed 6% tax on prediction markets, management said significant regulatory uncertainty remains. Flutter's priority is expanding regulated opportunities across both sportsbook and iGaming while integrating its sportsbook and prediction market strategies rather than treating them as separate businesses.
Heavy US investment raised questions around global strategy
Flutter CEO Peter Jackson likened the group's current investment strategy in the US to the heavy spending behind FanDuel in 2019 and 2020, acknowledging that the approach is weighing on short-term financial results but describing it as a deliberate – albeit potentially “unpopular” – decision to capitalize on the long-term sports betting opportunity.
During the Q&A section of the call, analysts questioned whether Flutter's additional $270m EBITDA investment into the US business risked coming at the expense of international markets.
Jackson explained the investment is cenetred on FanDuel's sportsbook improvement plan, supported by strong betting handle around major US sporting events. Executives described the spending as proactive, citing attractive marketing returns – boosted by the FIFA World Cup – and stressed that Flutter continues to invest behind organic growth opportunities across both its US and international operations.
Prediction markets have the potential to become a meaningful revenue stream... but why haven't they already?
Addressing softer market-wide trends in the US, the pair pointed to strong engagement during marquee events including the NBA Finals, the MLB and the World Cup. Parlays remain popular, while product enhancements are expected to improve performance further. Executives also argued that any overlap between sportsbook and prediction markets should be viewed as an incremental customer acquisition opportunity, adding that the migration of sports contracts to Crypto.com will represent a significant expansion of FanDuel's prediction market offering.
Flutter also noted that demand for online sports betting remains robust, with the company recording its strongest-ever month during the World Cup. The company also confirmed it has updated its operational schedule and guidance to reflect the delayed start to the NFL season.
What comes next for the gambling giant?
Looking further ahead, Flutter said it is targeting EBITDA breakeven in Q3 before generating approximately $500m in Q4.
Overall, Q2 exceeded expectations despite EBITDA falling 45%, driven by acquisition-related activity and weaker market conditions. Looking ahead, Flutter said early Q3 trading has outperformed expectations and updated its full-year outlook to reflect stronger trading, with financial guidance reduced to now outline an expectation of $17.91bn in revenue and an EBITDA figure of $2.6bn.
The operator also expects iGaming to deliver high-teens growth this year, supported by several exclusive content launches before year-end.
Discussing sportsbook-to-iGaming cross-sell, Jackson outlined that Flutter “successfully leveraged the World Cup” to drive player activation but remains focused on acquiring customers directly into iGaming. Executives said betting handle improved in July compared with June and expressed greater confidence heading into the upcoming football season, admitting that "last year saw some execution issues on our end."
FanDuel Predict went live in collaboration with CME Group across 50 states in January this year
