Flutter Entertainment’s 50% share price drop over the past year has triggered a shift in its shareholder base and raised questions about its profitability outlook.

The operator generated around $13bn in revenue but reported significant net losses in 2025, weakening investor confidence in its ability to turn scale into profit. The decline has led to contrasting investor moves.

On the latest iGaming Daily podcast, SBC Editor-at-Large Ted Menmuir and SBC News Editor Ted Orme-Claye pointed to a clear split. US-based Capital Group has reduced its stake, while UK activist fund Parvus has doubled its holding to become Flutter’s second-largest shareholder.

Menmuir said the scale of the drop is difficult to justify for a market leader.

He stated: “Flutter was seen as untouchable. It’s the market leader and shouldn’t be in this position, but that hasn’t held true.”

Flutter is facing pressure across key markets. In the UK, higher taxes are impacting margins. In Brazil, high entry costs and regulatory uncertainty are weighing on performance. In the US, competition is increasing, including from prediction market platforms.

The group has launched a share buyback programme to support its valuation, but investor pressure is building. Parvus’ increased stake has led to speculation over potential structural changes.

The fund previously pushed major changes at William Hill. Analysts believe it could push Flutter to review its portfolio, including selling assets like PokerStars, restructuring its European business, or separating its US and international operations.

These discussions increase scrutiny on CEO Peter Jackson, especially as Flutter continues to prioritise its US business following its New York listing.

While competitors including Evoke, DraftKings and Entain have also seen share price declines, Flutter’s drop is more significant given its size and market position.