Flutter Entertainment on Thursday reported 2025 earnings and sales below expectations, with handle growth of 3% missing forecast.

The New York-based bookmaker which owns FanDuel, Betfair and Paddy Power said its net income declined to USD10 million in the three months to December from USD156 million a year prior.

Adjusted earnings before interest, tax, depreciation and amortisation improved 27% to USD832 million from USD655 million. Adjusted earnings per share dropped 41% to USD1.74 from USD2.94.

Revenue increased 25% to USD4.74 billion from USD3.79 billion with average monthly players up 3.2% to 15,072 from 14,605. 

Flutter said fourth quarter growth was driven by M&A and more favourable US sports results year-over-year. Sportsbook revenue growth reflected a net revenue margin of 8.9%, up 220 basis points year-over-year, driven by continued structural gross revenue margin expansion of 90bps, and a positive sports results impact year-over-year of 310bps.

Handle growth of 3% was behind expectations and reflected a moderation in market growth which has continued into 2026, primarily due to the unfavourable recycling impact from sustained, bookmaker-friendly sports results.

Flutter said the impact of prediction markets on its sportsbook growth would only be “in the low single digits percentage points”. The company blamed a slowdown in betting revenues for the three months to December on an unusual series of sports results, which led users to pull back from placing wagers after suffering short-term losses.

Trading on prediction markets, which allow customers to bet on binary outcomes of future events, has increased significantly since they successfully tipped Donald Trump as the favourite in the 2024 presidential election. Prediction markets have been able to bypass sports gambling bans in some US states by arguing that their regulatory status under the Commodity Futures Trading Commission pre-empts state-level laws.