Flutter Entertainment’s stock price plummeted on Wednesday following the company’s announcement of a revised 2026 financial outlook and the resignation of Chief Executive Officer Peter Jackson.
The parent company of FanDuel, Flutter Entertainment, saw its shares drop by 10% in early trading, experiencing higher than usual volume. This decline followed the operator’s revised 2026 midpoint forecast, which now predicts an EBITDA of $2.65 billion and a revenue of $17.91 billion—reflecting reductions of $210 million and $395 million, respectively.
In May, when Flutter announced its first-quarter results, the company had communicated expectations of $2.86 billion in EBITDA on revenues of $18.4 billion for 2026. These amounts were already downward adjustments from the original targets of $18.4 billion in revenue and $2.97 billion in adjusted EBITDA.
“The full-year forecast has been revised to integrate Q2 trading, U.S. market-making revenues, U.S. operating cost efficiencies, the implications of NFL schedule changes, investments to fortify our offerings, and to enhance FanDuel’s sportsbook momentum, alongside forward foreign currency (FX) rates,” noted Flutter in a statement released earlier today.
The gaming firm mentioned experiencing positive indicators during the current quarter, bolstered by the conclusion of the World Cup and “somewhat favorable sports outcomes.”
Leadership Changes at Flutter
Additionally, Flutter has revealed that CEO Peter Jackson will depart from his position and the board of directors effective September 30. Dan Taylor, the current head of the company’s international division, will succeed him.
This international division “generated over $9 billion in annual revenue and more than $2.2 billion in adjusted EBITDA in 2025,” the company reported.
“Under his leadership, the company has grown through strategic acquisitions, transformations, and sustained organic growth, thereby solidifying Flutter’s competitive advantage in key regulated markets,” the statement added.
Jackson’s exit comes at a time when Flutter shares have decreased by 69% over the past year, shortly after the company announced the departure of Amy Howe, the former CEO of FanDuel.
In a report issued this morning, Stifel analyst Jeffrey Stantial pointed out that the new CEO transition introduces certain risks, yet expressed high regard for Taylor based on industry feedback. He has maintained a “buy” rating on the stock, setting a price target of $161.
Flutter Projects $500M in Savings for 2027
The company, known for its Paddy Power brand, informed investors that it anticipates achieving savings of up to $500 million in the next year through various cost-management strategies.
“We are on track to exceed the previously projected $300 million in savings by 2027, alongside approximately $200 million in further cost savings announced as part of our UK gaming tax mitigation strategies, also expected to be realized by 2027,” Jackson stated in a letter to shareholders.
It remains unclear whether some of these savings will be associated with reported layoffs at FanDuel, which are rumored to have affected several hundred employees.