March Madness Betting Results Drag Down Flutter’s Q1 Financial Performance: FanDuel Parent Reports Earnings Miss

Flutter’s Q1 Financial Results Overview

Flutter Entertainment’s first-quarter financial performance fell significantly short of market expectations, with adjusted earnings per share coming in at $1.59, missing the Wall Street consensus estimate of $1.89 per share according to LSEG data. Revenue for the period was similarly disappointing at $3.67 billion, below analyst projections of $3.84 billion.

The underperformance marks a challenging period for Flutter, which has otherwise seen strong growth in recent quarters as sports betting continues to expand across the United States. The company’s U.S. segment, primarily driven by FanDuel, has been a key growth driver for the global gambling giant, but faced unexpected headwinds during this particular reporting period.

How March Madness Impacted Performance

According to CEO Peter Jackson, the 2025 NCAA men’s basketball tournament—colloquially known as March Madness—produced results that were particularly favorable to bettors. This annual tournament attracts massive betting interest across the United States, with millions of Americans placing wagers on game outcomes, often favoring higher-seeded teams.

The 2025 tournament featured several notable upsets in early rounds, but the later stages saw many favorites advancing and covering point spreads, resulting in more predictable outcomes that typically benefit bettors. When heavily-backed teams perform well, sportsbooks like FanDuel must pay out significantly more in winnings, directly impacting their gross gaming revenue and profit margins.

This phenomenon isn’t unprecedented in the sports betting industry. Quarterly results often fluctuate based on sporting outcomes, with operators sometimes benefiting from unpredictable results and at other times facing headwinds when customer-favored teams perform well. However, the timing of March Madness—occurring near the end of Flutter’s first quarter—magnified its impact on the quarterly financial results.

Changes to Full-Year Guidance

In response to the challenging first quarter, Flutter has adjusted its full-year financial outlook, lowering specific guidance for its U.S. operations. This revision reflects both the impact of the first-quarter results and potentially more conservative projections for upcoming sporting events.

However, the company simultaneously raised its outlook for global performance, citing positive factors including favorable currency adjustments and the impact of recent international acquisitions. This mixed guidance update suggests that while the U.S. segment faced temporary challenges, the broader business maintains positive momentum.

CEO Peter Jackson’s Perspective

In his comments to CNBC, Flutter CEO Peter Jackson provided context for the earnings miss, directly attributing the underperformance to the specific sports results during March Madness rather than any fundamental business weakness. This framing suggests the company views the financial impact as a temporary variance rather than a structural concern.

Jackson emphasized that sports betting outcomes naturally fluctuate, with results sometimes favoring operators and sometimes favoring customers. The long-term statistical advantage remains with the house, even though short-term results can vary significantly based on specific game outcomes.

“The NCAA tournament results were particularly customer-friendly this year, which impacted our first-quarter performance. However, we remain confident in the underlying strength of our business model and the continued growth potential in the U.S. sports betting market.”

Consumer Spending Outlook Amid Economic Concerns

Despite broader economic uncertainties affecting consumer spending in many sectors, Jackson expressed confidence that Flutter’s customers would maintain their spending on online sports betting and casino gaming. This perspective contrasts with concerns in other consumer discretionary categories, where spending has shown signs of weakening amid inflation and economic pressures.

Several factors may contribute to the resilience of gambling expenditure during economic uncertainty:

• The entertainment value and engagement factor of sports betting
• The potential for financial returns (unlike pure entertainment expenses)
• The increasing normalization of sports betting as a mainstream activity
• The convenience and accessibility of mobile betting platforms
• The expanding legal market creating new customer acquisition opportunities

Industry data suggests that gambling spending has historically shown resilience during economic downturns, though the current landscape of widespread legal sports betting in the U.S. represents a relatively new market dynamic without extensive historical precedent during economic contractions.

International Performance and Acquisitions

While U.S. operations faced challenges, Flutter’s international segments showed stronger performance, contributing to the company’s decision to raise global guidance. The company has been actively expanding its global footprint through strategic acquisitions, which are beginning to positively impact financial results.

Currency adjustments also played a role in the improved international outlook. As a global operator with significant business in multiple markets including the UK, Ireland, Australia, and various European countries, Flutter’s financial results are influenced by exchange rate fluctuations, which appeared favorable in the updated guidance.

Market Reaction and Analyst Commentary

Following the earnings announcement, Flutter shares experienced volatility as investors processed the mixed results and guidance adjustments. While the earnings miss created initial pressure, the company’s explanation regarding the temporary nature of the sports betting variance and positive international outlook provided some offsetting perspective.

Analysts’ reactions were similarly mixed, with some emphasizing the transient nature of sports betting variances and others expressing concern about the potential impact on near-term growth expectations. Several analysts noted that Flutter’s strong market position in the U.S. through FanDuel remains intact despite the quarterly fluctuation.

Broader Implications for Sports Betting Industry

Flutter’s earnings miss due to March Madness results highlights the inherent volatility in the sports betting business model. While operators maintain a statistical advantage over time, individual quarters can see significant variance based on sporting outcomes, creating challenges for forecasting and investor expectations.

Other major sports betting operators likely experienced similar impacts from March Madness results, though the relative effect would vary based on their market share, customer betting patterns, and risk management approaches. Companies with more diversified revenue streams—including online casino operations and international presence—may have greater insulation from sports result variability.

For the broader industry, Flutter’s experience reinforces the importance of effective risk management and diversification strategies to mitigate the impact of unfavorable sporting results. It also highlights the distinction between short-term result variance and long-term business trajectory in investor communications.