FanDuel US profit falls 94% to $3 million as Flutter spends on FanDuel Predicts

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FanDuel's US adjusted EBITDA nearly disappeared in the third quarter of 2026, even as US revenue rose 6%. Flutter blamed spending on FanDuel Predicts and its Alberta launch, while FanDuel Casino's revenue growth slowed to 8%.

FanDuel’s US business barely turned a profit in the third quarter of 2026. US adjusted EBITDA came in at just $3 million, against $51 million a year earlier. Revenue moved the other way, climbing 6% to $1.455 billion. Flutter blamed spending on FanDuel Predicts and its launch in Alberta.

For the regulated US market, the result shows how much prediction-market spending is costing one of its online leaders. The parent company also lowered its full-year outlook for 2026. Buybacks are on hold for the foreseeable future so Flutter can focus on organic investment and paying down debt. Leverage stood at 4.6x at the end of the quarter, up from 3.7x in December 2025.

The group’s net loss widened to $1.148 billion from $789 million a year earlier. That figure includes impairments tied to Brazil, where Flutter stopped operating on Sept. 26, 2026.

Casino player growth is outpacing casino revenue growth

FanDuel Casino is adding players much faster than it is adding revenue. Flutter pointed to competition and to slower growth as US iGaming states mature. The contrast with late 2025 is sharp. In the fourth quarter of 2025, FanDuel Casino grew revenue 33% and held 28% of US iGaming gross gaming revenue.

Flutter put that share at 27% for the three months to Sept. 30, the same level it reported for the second quarter. An outside estimate is lower. FanDuel’s iGaming share was 25.1%, down from 26.6% a year earlier, according to Citizens figures published by NEXT.io. The same figures showed US iGaming growth slowing to 12% year over year in the third quarter, the lowest on record.

Sportsbook revenue grew 4%. FanDuel’s share of US sportsbook gross gaming revenue slipped to 36%, from 39% in the second quarter. Its share of handle was 33%.

FanDuel Predicts is growing while the spending weighs on profit

The product drawing the investment is gaining users. Trading volume on FanDuel Predicts rose 102% from the prior quarter to $119 million. CEO Dan Taylor said the app had 140,000 active users in October.

Alberta is the other new cost. FanDuel reached more than 20% of the gaming market there in its first quarter. Management said that was well ahead of its pace after launching in Ontario.

Together, the figures are consistent with a company trading near-term US profit for growth in newer markets and products. Taylor took over as CEO from Peter Jackson on Oct. 1, 2026. Buybacks will stay paused until leverage falls to a range of 2 to 2.5 times, a target he set for a period of about 24 months.