Flutter Entertainment shares were trading about 2% lower in the premarket trading on Wednesday after the company reported weaker-than-expected third-quarter results and lowered its full-year forecasts, as unfavorable sports results and higher costs weighed on profitability across its businesses.

Revenue rose 2.1% year over year to $3.87 billion, missing the $4 billion consensus estimate, while adjusted EBITDA declined 25% to $360 million, below expectations of $417.2 million. The company posted an adjusted loss of 18 cents per share, compared with adjusted earnings of $1.64 a year earlier.

The US business showed stronger customer activity, with average monthly players up 12% to 3.9 million and sportsbook handle increasing 13%. However, adjusted EBITDA plunged 94% to $3 million. Unfavorable sports results had a $27 million negative impact on segment EBITDA, while increased promotional spending, prediction-market investment, and costs tied to the Alberta launch and FIFA World Cup preparations added pressure.

International revenue was nearly flat at $2.42 billion, missing estimates of $2.59 billion, while adjusted EBITDA declined 14% to $435 million. The segment was affected by unfavorable sports results, higher UK gaming taxes and the closure of Brazilian operations.

Flutter lowered its 2026 group revenue forecast by $300 million at the midpoint to $17.61 billion and cut its adjusted EBITDA outlook by $160 million to $2.5 billion. It also recorded $873 million in non-cash Brazil-related impairment charges.

Shares have fallen about 61% on a year-to-date basis compared to a 10.6% rise in the broader index. Short interest on FLUT stands at 9.08% of the total float.