FLUT

Flutter is the global leader in online sports betting and iGaming, anchored by FanDuel in the US. The growth engine is intact: FY2025 revenue rose 16.6% to $16.4B, the fourth straight year of expansion from $9.46B in FY2022, with gross margin of 45.2% on $7.40B of gross profit. The diversified product mix (Sportsbook, iGaming, Italian lottery, Betfair Exchange) and geographic spread give it durable scale that management argues 'help mitigate the impact of any single adverse regulatory change.'

The ugly headline — a -$407M net loss and -$1.75 diluted EPS, with a meaningless -58.2x P/E — is largely non-cash and deal-driven rather than a sign of a broken business. Depreciation & amortization jumped 38.3% to $1.52B (inflated by the 2025 Snai/Pluto Italia acquisition, which added 12% of total assets), and that amortization alone explains the swing from FY2024's $162M profit to the FY2025 loss given operating income of just $36.0M. The company still generated $1.18B of operating cash flow and, tellingly, spent $1.12B on share buybacks (up 413%) while shares declined 1.2% — capital allocation that signals management's confidence the loss is transitory.