Key Highlights

  • BetMakers reported four consecutive quarters of positive adjusted EBITDA.
  • New and expanded partnerships broadened its global racing distribution.
  • The Business provides B2B wagering technology rather than taking bets directly.
  • Cash conversion, customer concentration and regulatory change remain material risks.

For years, BetMakers Technology Group (ASX: BET)'s story was one of ambitious global expansion outpacing profitability, as the wagering technology provider signed up racing authorities and bookmakers around the world while burning cash to build out its platform. That narrative has been shifting. The company's FY26 result, covering the year to 30 June 2026, showed adjusted EBITDA up sharply on the prior year, and management now points to four consecutive quarters of positive adjusted EBITDA as evidence the business has turned an operational corner.

BetMakers builds and licenses the technology infrastructure that sits behind fixed-odds pricing, tote wagering and race-day trading for bookmakers and racing bodies globally, rather than taking bets directly from consumers itself. That business-to-business model means its growth is closely tied to signing and retaining large wagering operators and racing authorities as customers — precisely the kind of deals the company has been announcing through 2026.

What Has Happened?

The most significant recent commercial news has been a string of Partnership announcements. BetMakers was selected by global bookmaker Stake to power an expansion of its racing offering, giving the platform provider a foothold with one of the fastest-growing operators in online wagering. The company also extended and expanded its long-running partnership with US-based PENN Entertainment into 2026, renewed and broadened distribution arrangements with Swedish racing body ATG covering Swedish and Danish racing content, and signed a strategic deal with France's PMU to expand its horse racing betting lineup. New customer wins during the fourth quarter also included CrownBet and Dafabet.com.au, while the company continues to progress its planned Acquisition of Nevada-based pari-mutuel wagering provider LVDC, expected to complete in the third quarter of FY26.

These deals matter because BetMakers' Revenue model scales with transaction volumes and licensing fees across its customer base — each additional major bookmaker or racing authority running on its platform adds recurring, relatively high-margin revenue without a proportional increase in fixed technology costs, at least once the core platform is built.

What the Numbers Show

BetMakers' fourth-quarter FY26 result, covering the three months to 30 June 2026, showed revenue of AUD 24.2 million, up 9.4% on the prior corresponding quarter's AUD 22.1 million, with adjusted EBITDA of AUD 4.5 million, up 89.3% year-on-year, at an adjusted EBITDA Margin of 18.5%. Gross margin for the quarter came in at 68.5%. Operating expenses were held to AUD 12.1 million, down slightly from AUD 12.7 million a year earlier, reflecting continued cost discipline even as the company grows its revenue base. Unrestricted cash stood at AUD 15.6 million at quarter-end, an improvement from AUD 14.8 million the previous quarter.

For the full FY26 year, the company reported that adjusted EBITDA surged materially compared with FY25, with management highlighting margin gains moving the business closer to its own medium-term targets, though the Earnings Call accompanying the result also flagged a revenue outcome that fell short of some analyst expectations even as profitability metrics improved — a reminder that a company can beat on margin and profit measures while still missing top-line forecasts, and that these are genuinely different signals for investors to weigh separately. Executive chair Matt Davey said the company's focus was on accelerating growth by leveraging its core technology platform to secure new market-leading customers globally, while chief executive Jake Henson pointed to maintaining the cost efficiencies that have led to four consecutive quarters of positive adjusted EBITDA as the foundation for further expansion.

Management's stated medium-term targets — over a three-to-five-year horizon — are for 10% annual revenue growth, gross margins above 70%, and an adjusted EBITDA margin above 25%. Against the June quarter's 18.5% adjusted EBITDA margin, the company still has a meaningful gap to close to reach that longer-term goal, underlining that while the trend line has turned positive, BetMakers is not yet operating at its own target level of profitability.

Why Investors Are Watching

BetMakers occupies an unusual niche as a picks-and-shovels technology supplier to the global wagering industry rather than a bookmaker itself, which in principle gives it exposure to industry growth without carrying the same regulatory and balance-sheet risk as a licensed betting operator. The company's screener data shows no meaningful Dividend history, consistent with a small-cap technology business still prioritising reinvestment and building Recurring Revenue scale over Capital returns to shareholders — a profile that suits growth-focused investors more than income-seekers.

The key question for the stock is whether the recent run of partnership wins — with Stake, PMU, ATG, PENN Entertainment, CrownBet and Dafabet — translates into sustained EBITDA growth rather than one-off contract signings that take time, or fail, to convert into recurring revenue at scale. Four consecutive quarters of positive adjusted EBITDA is a meaningful milestone for a company with BetMakers' history, but sustaining and growing that profitability while continuing to invest in new markets and the pending LVDC acquisition will be the real test.

The Bigger Industry Picture

Global wagering technology is consolidating around a smaller number of platform providers as racing authorities and bookmakers increasingly outsource complex pricing, trading and tote infrastructure rather than build it in-house. That trend favours scaled technology providers like BetMakers if they can win and retain enough customers to justify the Fixed Cost of maintaining a global platform, but it also means competition for the largest contracts — such as the Stake and PMU deals — is intense, with rival technology providers also chasing the same customer base.

Key Risks

BetMakers remains a small-cap company by ASX standards, and its earnings trajectory depends heavily on continued execution of its partnership pipeline; any loss of a major customer, delay in the LVDC acquisition, or slower-than-expected ramp-up of newly signed deals could set back the progress made toward its medium-term margin targets. Regulatory Risk across the many jurisdictions in which its customers operate is an ongoing consideration for a business embedded in the global wagering industry. As a smaller company, BetMakers' cash position, while improved, still warrants monitoring relative to its Investment plans and any further acquisition activity.

What Could Drive the Stock Next?

Investors will be watching whether the company can report a fifth consecutive quarter of positive adjusted EBITDA, progress on integrating the LVDC acquisition once completed, and early revenue contribution from the Stake and PMU partnerships as they move from signed agreements to operating relationships. Continued convergence toward management's medium-term targets for gross and EBITDA margins would be the clearest evidence that BetMakers' global scale is finally translating into durable earnings growth.