Is Flutter’s Full FanDuel Acquisition and Revenue Guidance Hike Changing the Investment Case for FLUT?

• Flutter Entertainment recently reported its second quarter 2025 results, raising full-year revenue guidance to US$17.26 billion, announcing new debt financing to acquire the remaining stake in FanDuel, and updating on its completed share buyback program totaling US$651.27 million.
• The combination of higher revenue guidance, further investment in FanDuel ownership, and ongoing share repurchases highlighted management's confidence in both Flutter's growth prospects and commitment to shareholder returns.
• We'll explore how the decision to acquire the outstanding FanDuel stake could reshape Flutter's investment story and long-term market positioning.

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Flutter Entertainment Investment Narrative Recap

To be a shareholder in Flutter Entertainment, one must believe in the company's ability to execute global expansion in online gambling while managing regulatory and competitive risks. The latest results, featuring higher revenue guidance and plans to acquire the remaining FanDuel stake, reinforce management’s optimism. However, the most important short-term catalyst, continued U.S. market growth, remains largely unaffected, while heightened net debt from recent financing keeps balance sheet risk front and center for investors.

Among the recent announcements, the completed US$651.27 million share buyback stands out, underlining a sustained commitment to shareholder returns even as the business takes on more leverage for acquisitions. This context adds relevant contrast, since shareholder-friendly actions could be tempered by the need to service additional debt if profitability or growth were to slow unexpectedly.

But against rising odds, investors should be aware of the financial pressures created by increasing net debt on future value and flexibility...

Read the full narrative on Flutter Entertainment (it's free!)

Flutter Entertainment's narrative projects $23.5 billion in revenue and $2.5 billion in earnings by 2028. This requires 16.4% yearly revenue growth and a $2.13 billion increase in earnings from $366.0 million today.

Uncover how Flutter Entertainment's forecasts yield a $343.11 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have submitted five fair value estimates for Flutter, spanning a wide range from US$162.65 to US$1,000. With expansion in high-growth regulated markets highlighted as a key catalyst, readers are invited to consider how such contrasting views reflect varying expectations for Flutter’s long-term global performance.

Explore 5 other fair value estimates on Flutter Entertainment - why the stock might be worth 45% less than the current price!

Build Your Own Flutter Entertainment Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Flutter Entertainment research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Flutter Entertainment research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Flutter Entertainment's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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