Betmakers Technology Group (BET) H2 2025 earnings summary

Executive summary

• Achieved operational turnaround and technology-led transformation, with positive adjusted EBITDA and operating cash flow, and a 5.6% revenue increase in the second half over the first half of FY25.

• Record half-yearly adjusted EBITDA of $5.9m and operating cash flow of $6.4m in 2H FY25.

• Maintains a strong balance sheet with nearly AUD 20 million ($18.8m) in unrestricted cash and zero debt.

• Enhanced and consolidated platform, streamlined cost base, and focus on international expansion and scalability.

Financial highlights

• FY25 revenue was $85.1m, down 10.6% year-over-year, but gross margin improved to 64% from 60%.

• Delivered over AUD 6 million in operating cash flow in the second half, with a year-on-year improvement of AUD 12.4 million.

• Adjusted EBITDA turned positive at AUD 4.6 million, up AUD 11.8 million from FY24, with a 5% margin.

• Cash operating costs reduced by 19.9% to AUD 57.3 million year-over-year.

• Gross margin expanded to 68.1% in 2H FY25, with a blended annual gross margin of 64%.

Outlook and guidance

• Targeting long-term gross margin of 70%+, with current performance ahead of expectations.

• Aiming for 10%+ annual revenue growth and 25%+ EBITDA margin over the long term.

• Strong sales pipeline and robust Q1 FY26 start, outperforming expectations due to upgraded technology and products.

• Focus remains on operating leverage, free cash flow generation, and no material increase in cost base expected.

• Long-term incentive plan targets AUD 20 million EBITDA, with a stretch target of AUD 30 million.