PointsBet Reports Flat EBITDA Under New MIXI Ownership Amid Margin Pressure
PointsBet reports steady H1 FY26 result under new MIXI ownership
PointsBet Holdings Limited has delivered stable PointsBet H1 FY26 Results following the completion of MIXI’s controlling stake acquisition in October 2025. The wagering operator reported Normalised EBITDA of ($3.3m), up 2% versus the prior corresponding period (PCP), while Group Revenue increased 4% to $129.3m.
The result marks the first reporting period since MIXI Australia Pty Ltd acquired a 66.4% controlling stake in PointsBet (ASX: PBH), positioning the company as a subsidiary of Japan’s MIXI, Inc. (TSE: 2121). Total Net Win climbed 4% to $139.9m, driven by growth across both Australian and Canadian operations, though this was partially offset by regulatory cost headwinds.
Gross Profit declined 1% to $64.2m, reflecting margin compression from increased product fees and taxes. Cash Active Clients remained steady at 290,700, with management emphasising a strategic focus on client quality over volume. Australia saw a 3% decline in active clients, while Canada delivered 8% growth.
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Total Net Win | $139.9m | $135.1m | +4% |
| Group Revenue | $129.3m | $124.4m | +4% |
| Gross Profit | $64.2m | $65.0m | (1%) |
| Normalised EBITDA | ($3.3m) | ($3.3m) | +2% |
Operating expenses decreased 1% versus the PCP, supporting underlying operational stability during the ownership transition. The Normalised EBITDA figure excludes $6.4m in MIXI transaction costs, providing investors with visibility into core operational performance separate from acquisition-related expenses.
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What does Normalised EBITDA mean for betting companies?
Normalised EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) is a key metric for assessing the underlying operational performance of wagering businesses. It measures earnings before accounting for financing costs, tax obligations, and non-cash depreciation charges.
The “normalised” component is particularly important for investors evaluating PointsBet (ASX: PBH). This adjustment excludes non-recurring items such as share-based payments and one-off transaction costs. In the H1 FY26 reporting period, $6.4m in MIXI acquisition-related costs were excluded from the Normalised EBITDA calculation.
For loss-making growth companies in the wagering sector, Normalised EBITDA provides a clearer view of operational trajectory by stripping out the noise created by ownership changes or non-cash compensation schemes. This allows investors to assess whether the core business is progressing towards profitability, independent of strategic or financing decisions.
Australia delivers $7.1m segment EBITDA despite margin pressure
PointsBet’s Australian operations generated Statutory Segment EBITDA of $7.1m, down 34% versus the PCP, reflecting a challenging regulatory and margin environment. Turnover reached $1,192.9m, up 4%, with Sports Turnover growth supporting a strategic shift towards a 50/50 Sport/Racing mix.
Racing Turnover was actively suppressed due to strengthened compliance standards and the impact of the National Self-Exclusion Register (NSER) on high-staking and high-volume Racing clients. Revenue declined 1% to $104.9m despite the Turnover growth, driven by softness in Gross Win Margin, which reached 13.1%, down from 13.4% in the PCP.
Net Win Margin fell below the 10% target, primarily due to customer-friendly results across the Spring Racing Carnival and an increasing share of Sports volume, which typically carries lower margins than Racing. Gross Profit decreased 6% to $52.3m, impacted by the introduction of a new AFL product fee model and rising Point of Consumption Tax (POCT) costs.
Regulatory and product costs consumed 48.7% of Net Win, up from 47.9% in the PCP. Key cost drivers included:
- GST obligations
- POCT levies
- Product Fees, including the new AFL model
Cost Pressure Breakdown:
Regulatory & Product Fees
Total costs of $56.2m paid across GST, POCT, and Product Fees represented 48.7% of Net Win, a 0.8 percentage point increase versus H1 FY25.
Canada iGaming drives 34% revenue growth
PointsBet’s Canadian operations delivered Revenue of $24.4m, up 34% versus the PCP, powered by strong iGaming performance. iGaming Net Win surged 58%, driven by Turnover growth and Gross Win Margin expansion across all core game types, with Slots performance particularly strong.
Sports Turnover declined, attributed to lower VIP play and margin normalisation following exceptionally customer-friendly results in the PCP. Sports Gross Win Margin improved to 10.2% from 7.0%, reflecting a return to historical norms.
Net Win Margin recovery was evident across both Sports Betting and iGaming, as margins normalised from the PCP’s suppressed levels. Gross Profit increased 30% to $11.8m, while Statutory Segment EBITDA improved 28% to ($8.8m), demonstrating meaningful progress towards profitability.
Cash Active Clients grew 8%, reflecting successful client acquisition and retention strategies. Management highlighted two near-term catalysts:
- Alberta registration expected H2 CY26 – Commencement of the registration process positions PointsBet to enter a new provincial market.
- iGaming platform upgrade due H1 CY26 – An enhanced platform is expected to improve user experience and operational efficiency.
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Canada Revenue | $24.4m | $18.2m | +34% |
| iGaming Net Win | $17.2m | $10.9m | +58% |
| Gross Profit | $11.8m | $9.1m | +30% |
| Statutory Segment EBITDA | ($8.8m) | ($12.2m) | +28% |
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Cash position and balance sheet outlook
PointsBet reported corporate cash of $8.9m at 31 December 2025, down from $40.2m at 30 June 2025. Net Cash Outflow from operating activities was ($4.3m), however, excluding MIXI transaction costs, underlying operating cash flow turned positive at $2.2m, a constructive signal for investors monitoring the path to cash flow breakeven.
The company continued to invest in product and technology, with $9.1m capitalised during the period. This investment supports PointsBet’s competitive positioning in both Australia and Canada, particularly ahead of the Alberta expansion and iGaming platform upgrade.
Net assets moved to ($13.1m) from $6.0m at 30 June 2025, reflecting the cash drawdown and transaction costs associated with the MIXI acquisition. Total cash receipts from customers reached $139.9m, including $122.8m from Sportsbook and $17.2m from iGaming.
The tightening cash runway will be a focus area for investors assessing capital requirements under the new ownership structure. The positive underlying operating cash flow (excluding one-off costs) provides evidence that the core business is moving towards self-funding operations.
What’s next for PointsBet?
PointsBet is aligning its financial reporting with MIXI’s requirements, including J-SOX compliance and consolidation of financial performance into MIXI’s statements from 1 October 2025. The company is also preparing for a change in financial year end from 30 June to 31 March, bringing reporting into line with MIXI’s fiscal calendar.
Governance protocols have been established to support PointsBet’s strategic independence under MIXI ownership, with the Board reconstituted to include MIXI representation bringing expertise in digital entertainment, legal and compliance, and post-merger integration.
Near-term catalysts for investors to monitor include:
- Alberta launch – Registration process underway, with go-live expected in H2 CY26.
- iGaming platform upgrade – Scheduled for H1 CY26, expected to enhance user experience and operational efficiency.
- Continued Sports mix shift – Strategic rebalancing towards a 50/50 Sport/Racing split in Australia.
The MIXI relationship provides capital stability and strategic support, while operational independence is preserved through agreed governance protocols. This structure positions PointsBet to pursue growth initiatives in both established and new markets while maintaining focus on regulatory compliance and margin recovery.
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