Betmakers Technology Group delivered a striking operational turnaround in FY26, posting adjusted EBITDA of $14.1 million compared with $4.6 million in the prior year, a 205 percent increase that signals meaningful progress toward sustainable profitability. The racing technology platform operator achieved this through a combination of revenue growth, margin expansion, and disciplined cost management, demonstrating the value of its restructuring efforts and technology investments across fixed odds and tote products globally.
The adjusted EBITDA margin expansion from 5.5 percent to 15.2 percent in the year is the headline achievement here. This reflects gross margin improvement of 2.8 percentage points on an adjusted basis, moving to 66.9 percent, while operating expenses fell $3.1 million despite 8.8 percent revenue growth. The company noted that Q4 FY26 gross margin reached 68.5 percent, suggesting momentum toward its 70 percent long-term target. This operating leverage is exactly what investors should focus on: Betmakers is able to grow while improving its cost structure simultaneously.
Revenue reached $92.6 million, up 8.8 percent year-on-year, or 11.2 percent on a constant currency basis. The tote products segment continues to provide recurring revenue and exposure to major wagering markets, while digital customer growth of 20.3 percent is becoming an increasingly important contributor. New customer deployments launched in the second half of FY26 are expected to drive growth further into FY27, and management sees opportunities to expand its content network among its expanding digital customer base.
Operating cash flow strengthened to $5.0 million, up $2.2 million on the prior year and $14.7 million from FY24, underpinning the company’s progress toward consistent free cash flow generation as it scales. The unrestricted cash balance fell $2.2 million year-on-year, though this included approximately $1.2 million in acquisition costs related to LVDC, suggesting the underlying business generated sufficient cash to offset growth investments.
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Become an AR or CARManagement’s strategic priorities for FY27 center on expanding digital revenues both domestically and internationally, optimizing the cost base through technology efficiencies, and delivering further adjusted EBITDA growth and margin expansion. Investors should track the company’s success in converting its digital customer growth into revenue and launching new international customers, alongside any updates on margin progression toward that 70 percent gross margin target. The degree to which operating leverage continues as revenue scales remains the key metric to monitor.
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About Betmakers Technology Group Ltd (ASX: BET)
Betmakers Technology Group Ltd is an Australian software and technology company that develops and provides wagering technology, data, content, and analytics solutions for the global betting industry. The company serves licensed bookmakers, pari-mutuel wagering operators, and racing bodies across more than 30 countries through its Global Betting Services and Global Tote divisions. Its primary markets include Australia, New Zealand, the United States, the United Kingdom, and Europe.
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