BetMakers Delivers $6M EBITDA Turnaround With CrownBet and Stake Partnerships
BetMakers delivers $7.3 million EBITDA turnaround in 1H FY26
BetMakers Technology Group Limited has reported a decisive shift to profitability in its 1H FY26 results, delivering positive Adjusted EBITDA of $6.0 million. The result represents a $7.3 million improvement compared to the $1.3 million loss recorded in 1H FY25.
Revenue for the half-year reached $46.1 million, reflecting 13.8% growth versus adjusted 1H FY25 revenue of $40.5 million. Gross margin expanded to 66.5% (adjusted for inventory write-off), up from 59.7% in the prior corresponding period. Management framed the result as validation of the company’s transformation strategy and technology-led operating model, positioning BetMakers for further scalability.
The turnaround was underpinned by growth in the Digital and Data segment, cost discipline from prior restructuring programmes, and the recent launch of major partnerships including CrownBet and Stake.
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What is Adjusted EBITDA and why does it matter for growth companies?
Adjusted EBITDA is a measure of operational profitability before interest, tax, depreciation, amortisation, and certain non-cash or one-off items. Technology companies commonly use this metric to demonstrate underlying business performance by removing accounting items that do not reflect day-to-day operations.
For BetMakers, the adjustment removes the following items from Statutory EBITDA of $4.5 million to arrive at Adjusted EBITDA of $6.0 million:
- Share-based payments expense ($0.8 million) – non-cash remuneration tied to employee equity incentives
- Inventory write-off ($1.3 million) – one-off charge related to obsolete or slow-moving hardware inventory
- Net foreign exchange loss ($0.8 million) – unrealised balance sheet revaluations driven by currency movements
- Revenue and expense adjustments ($0.9 million and $0.4 million) – non-recurring timing adjustments related to FY25 performance obligations and expenses
The adjusted figure strips out volatility and focuses on the core operational performance of the business, providing investors with a clearer view of recurring profitability. For a company transitioning from investment-led growth to profitability, this distinction is critical in assessing whether the business model is delivering sustainable cash generation.
CrownBet and Stake partnerships signal commercial validation
BetMakers has secured two Tier-1 partnerships that materially expand its contracted recurring revenue base and validate its Apollo wagering platform in the global market.
The company entered into an exclusive 5-year technology partnership with CrownBet to deliver the full wagering stack via the Apollo platform. The agreement launched on 26 February 2026 and includes a hybrid commercial model combining fixed fees and revenue share, aligning BetMakers’ returns with CrownBet’s long-term success. The partnership establishes a strategic alignment with Crown Resorts, one of Australia’s most recognised entertainment and hospitality groups.
Strategic Significance
“The partnership is a significant strategic and commercial milestone for the Apollo platform and further validates BetMakers’ strategy to provide a complete, vertically integrated B2B wagering solution to leading operators globally.”
Separately, BetMakers signed a 3-year agreement (with a 2-year extension option) with Stake to deliver its RaceOdds+ solution for global horse racing expansion. The contract was awarded following a global tender process and includes access to BetMakers’ full pricing and trading capability, global racing content, BetStream vision player, and the Racelab suite of products. Commercial terms include a mixture of fixed and variable revenue, with the customer expected to go live in H2 FY26.
The Stake agreement underscores competitive differentiation in a global tender environment and extends BetMakers’ reach into high-growth international markets. Both partnerships provide contracted revenue visibility and demonstrate that the Apollo platform is capable of scaling across diverse wagering operator requirements.
Revenue breakdown shows Digital and Data driving growth
Revenue performance across BetMakers’ two operating segments reflected the structural shift toward higher-margin Digital and Data products, which is central to the company’s gross margin expansion trajectory.
| Segment | 1H FY26 Revenue | 1H FY25 Revenue | Growth |
|---|---|---|---|
| Global Betting Services (GBS) | $28.0M | $23.3M | 20.3% |
| Global Tote | $25.1M | $23.9M | 4.8% |
| Total Revenue | $46.1M | $40.5M | 13.8% |
The Global Betting Services division delivered 20.3% growth, driven primarily by the Apollo product suite and new customer contracts in the Digital and Data segment. Content revenue also exceeded expectations due to increased distribution of vision products. The strong performance in this segment reflects growing monetisation of the existing customer base through an expanded product set, alongside new customer wins.
Global Tote revenue grew 4.8%, reflecting steady performance from core tote hosting and managed services. Management noted challenging conditions in some global markets and the impact of a stronger Australian dollar on revenue. While the segment remains material, the slower growth rate highlights BetMakers’ strategic pivot toward higher-margin Digital and Data offerings, which support gross margin expansion and reduce reliance on legacy tote infrastructure.
The revenue mix shift is a key driver of the 6.8 percentage point improvement in adjusted gross margin to 66.5%, positioning the business closer to its long-term target of 70%+.
Las Vegas digital wagering completion opens new revenue stream
BetMakers finalised the Las Vegas Digital Wagering Completion (LVDC) in February 2026, unlocking a greenfield opportunity in Nevada’s underpenetrated digital racing market. The company expects the initiative to contribute approximately $4.5 million of annualised revenue at a minimum Adjusted EBITDA breakeven in the first year.
Nevada’s racing market is currently less than 5% digital, compared to the US average of over 50%, representing a significant untapped gap. BetMakers’ existing customer access includes Caesars, MGM, Wynn, and Boyd, with commercial discussions underway for calendar year 2026. The company’s strategy addresses both the digital void and a content gap in Nevada’s key 7pm-2am wagering window.
BetMakers’ four-part Nevada strategy includes:
- Launch GTX Digital Platform – Deploy white-label apps and embedded wallet solutions (ready for state regulatory testing)
- Inject Modern Features – Integrate Racelab and Punting Form data, prompts, and insights (ready for digital and retail terminal rollout)
- Deliver Global 24/7 Racing – Fill the content void with high-demand Australasian racing (building new economic models with operators)
- Upgrade, Cross-Sell, Monetise – Service existing retail relationships and cross-sell high-margin digital solutions (commercial talks in progress for CY2026)
The LVDC represents a revenue stream built on existing infrastructure and customer relationships, with minimal incremental capital expenditure. The combination of premium operator access, modern digital capabilities, and 24/7 global racing content positions BetMakers to monetise the structural gap between Nevada’s current digital penetration and the broader US market average.
Cost discipline supporting operating leverage
BetMakers’ operating cost base has been materially optimised following the restructuring programme initiated in FY24, improving the company’s ability to convert revenue growth into profitability. Operating expenses decreased by $2.6 million (10.0%) compared to 1H FY25, reflecting the impact of cost discipline and operational efficiency initiatives.
The annualised operating cost base has been structured to support future growth with only minor incremental investment required for key growth initiatives. Management stated that the underlying cost base is optimised for future scaling, with some opportunities remaining for minor efficiencies via technology and overhead reductions.
Depreciation for the half-year included approximately $1.9 million from historical terminal purchases (annualised at approximately $5.0 million). Terminal capital expenditure requirements for the 12 months to 31 December 2026 are expected to be under $1 million, representing a significant reduction in capital intensity compared to historical levels. The shift reduces the company’s hardware dependency and improves free cash flow conversion as the business scales.
Operating expense also included $3.3 million of capitalised staff costs, reflecting continued investment in platform development while maintaining overall cost discipline. The combination of a streamlined cost structure and reducing capital expenditure requirements means that incremental revenue from CrownBet, Stake, and LVDC should flow through at high margins, supporting the path to free cash flow generation.
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Outlook points to continued momentum in 2H FY26
Management outlined an outlook for sustainable and profitable growth through the second half of FY26, supported by recently launched partnerships, gross margin expansion, and operating leverage.
The outlook is anchored on three key drivers:
- Major new agreements – The recent launch of CrownBet as a core technology partner and the implementation of Stake’s global racing solution via RaceOdds+ are expected to contribute incremental revenue in 2H FY26 and beyond.
- Continued gross margin expansion toward 70%+ – Supported by the revised PENN content deal and incremental margin from recently signed major contracts, the company is positioned to further close the gap to its long-term gross margin target.
- Operating leverage to drive free cash flow – As the business scales, an optimised cost base and focus on operational efficiency are expected to improve cash generation and support reinvestment into platform development.
Management also noted that the business continues to assess a range of potential strategic opportunities that can leverage its scalable platform and support long-term growth, including adjacent verticals such as sports wagering, iGaming, lottery-style games, and virtual racing products.
Key catalysts for 2H FY26 include:
- CrownBet revenue contribution – Full-period impact of the CrownBet partnership launched in late February 2026
- Stake go-live – Expected implementation of the RaceOdds+ solution for Stake in H2 FY26
- LVDC revenue ramp – Contribution from the Las Vegas Digital Wagering Completion as commercial discussions with premium operators progress
- Gross margin expansion toward 70%+ – Continued trajectory toward the long-term target driven by Digital and Data revenue growth and cost discipline
The combination of contracted recurring revenue, margin expansion, and cost discipline provides visibility into improving financial performance through FY26 and supports the investment case for further operating leverage as the platform scales.
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