What Happened?
Shares of global online betting powerhouse Flutter Entertainment (NASDAQ: FLUT) fell 14.6% in the afternoon session after the company reported disappointing fourth-quarter 2025 results that missed Wall Street's expectations on several key metrics.
The global online betting powerhouse reported revenue of $4.74 billion, which, despite growing 24.9% year-over-year, fell short of analyst estimates. More concerning for investors was the company's profitability, as it posted a GAAP loss of $0.05 per share, a significant miss compared to consensus estimates and a sharp reversal from a profit of $0.45 in the same quarter last year. Other key metrics also disappointed, with adjusted EBITDA missing expectations. Profitability was squeezed, as the company's operating margin declined to 5.4% from 7.4% a year ago, and its free cash flow margin fell sharply to 2.9% from 12.1%. Overall, the quarterly report showed a company struggling with profitability despite strong sales growth, leading to a negative reaction from investors.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Flutter Entertainment? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Flutter Entertainment’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Flutter Entertainment and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 4.4% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty.
The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Flutter Entertainment is down 51.6% since the beginning of the year, and at $105.73 per share, it is trading 65.7% below its 52-week high of $308.60 from August 2025. Investors who bought $1,000 worth of Flutter Entertainment’s shares 5 years ago would now be looking at an investment worth $526.00.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
