Betmakers Technology Group (BET) Q1 2026 TU earnings summary

Executive summary

• Achieved positive Adjusted EBITDA of $2.4M in Q1 FY26, a $3.4M turnaround from a $0.9M loss in Q1 FY25, driven by revenue growth, margin expansion, and cost discipline.

• Quarterly revenue reached $22.1M, up 7.7% year-over-year after normalizing for a legacy customer loss, with gross margin expanding to 64.7% from 57.8% in Q1 FY25.

• Strategic initiatives advanced, including the LVDC acquisition and launch of Betsy, supporting future growth.

• Operating expenses reduced by $1.4M (10.8%) compared to Q1 FY25, demonstrating continued cost discipline.

Financial highlights

• Revenue for Q1 FY26 was $22.1M, a 7.7% increase year-over-year after adjusting for a legacy customer.

• Gross profit improved 15.7% to $14.3M, with gross margin at 64.7%, up 6.9 percentage points year-over-year.

• Adjusted EBITDA improved to $2.4M from a $0.9M loss in Q1 FY25, a 361% increase.

• Staff costs decreased 9.0% year-over-year, supporting profitability.

• Operating cash flow was a $1.2M loss, but excluding a $3.0M annual payment for New Jersey Fixed Odds, adjusted operating cash flow was $1.8M positive.

Outlook and guidance

• Gross margin is expected to continue improving throughout FY26, with further opportunities identified via content cost management.

• LVDC acquisition expected to close by mid-FY26, with anticipated annual revenue contribution of $4.5M and at least break-even performance in the first 12 months.

• Board remains optimistic for continued margin expansion and strategic growth in key global markets, underpinned by a robust pipeline for FY26 and FY27.

• Focus remains on organic and strategic initiatives to accelerate growth and leverage market-leading technology.