Flutter CEO Dan Taylor bets on product upgrades and richer rewards to turn FanDuel engagement into profit

What the numbers say this quarter

Taylor's debut report arrived five weeks after he took the helm, and the headline was a mixed bag. Revenue increased 2% year over year to $3.87 billion, shy of the roughly $4 billion LSEG consensus, and adjusted EBITDA of $360 million was also below expectations.

The bottom line: a per share adjusted loss of 18 cents, better than the 28 cent loss Wall Street, per LSEG, had penciled in. Flutter posted a $1.15 billion net loss, which included a $873 million non-cash charge primarily related to Brazil, following the country's September prohibition on sports betting and online gaming.

The company now pegs full-year revenue at a midpoint of $17.61 billion, $300 million lower than before, and it trimmed the 2026 adjusted EBITDA objective to nearly $2.5 billion, a reduction of $160 million. The shares have fallen more than 60% so far this year.

Users, promos, and product bets

Taylor says the strategy is straightforward: better products and smarter rewards. "We made some changes to the product," he told CNBC, adding, "Fundamentally, the way you win this business is by delighting customers, delivering the very best experiences and delivering to them in the way that they want, with the right overall proposition." In September, FanDuel launched a rewards program across the country that he said has "resonated really, really well."

Early indicators are moving up. During the quarter, average monthly users for FanDuel's U.S. sportsbook increased 9%, while bet counts advanced 15%. Companywide in the U.S., average monthly players increased 12%, with iGaming up 24%. Sportsbook handle grew 13%, while sportsbook revenue ticked up 4% as promotional spending stepped higher.

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Taylor plans to keep investing in the customer experience and says Flutter can raise its structural margins over time by nudging customers toward a more profitable product mix.

FanDuel Predicts, costs, and the expansion map

Flutter is leaning into media spend to scale FanDuel Predicts, its predictions platform that competes with Kalshi and Polymarket. Since July, Taylor said trading volume has surged 271%, and in October the app brought in 140,000 new customers. Even so, cost of sales is projected at 58% of revenue for full year 2026 and into 2027.

Competition for bettors is intense, but Taylor argues the U.S. runway is long: roughly half the country still lacks regulated sports betting and about 90% does not have regulated online gaming. He framed market growth as nonpartisan because regulation brings consumer protections and state tax revenue.

Brazil is the near term setback. Taylor said he was disappointed by the provisional measure there, but taking the impairment was to "set ourselves up to win long-term."

Cash priorities and the investor angle

With guidance cut and leverage the focus, capital returns are paused. Taylor said buybacks are off the table until leverage returns to 2 to 2.5 times, a process he expects to take about 24 months. For now, the priorities are organic growth and paying down debt.

Why does that matter? Engagement is improving, but promotions are pressuring margins while expansion and product bets carry real cost. If Taylor's mix-shift and rewards strategy works, revenue per user and profitability should improve, but investors will be watching the pace of margin progress against that 58% cost base and the timing of any reopening for capital returns.

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