BetMakers Delivers Record Quarterly Adjusted EBITDA as Revenue Rises

BetMakers Technology Group reported record first-quarter Adjusted EBITDA of $5.9 million on revenue of $24.7 million for the three months ended 30 September 2026, in a quarterly activities report and Appendix 4C cash-flow filing the ASX-listed wagering technology company released on 29 October 2026.

All figures are unaudited and stated in Australian dollars, with prior-period comparisons prepared on a constant-currency basis. Revenue rose 16.3% from $21.2 million in the prior corresponding period, while Adjusted EBITDA, a non-IFRS measure of earnings before interest, tax, depreciation and amortisation that adds back items including share-based payments, transaction and restructuring costs, impairments and bad debts, increased 176.1% from $2.1 million in Q1 FY26. The company described the Adjusted EBITDA figure as a record quarterly result. The Adjusted EBITDA margin improved to 23.8% from 10.0% a year earlier, and gross margin rose to 69.1% from 63.9%.

Total operating expenses fell to $11.2 million from $11.4 million despite the revenue growth. The underlying profit and loss summary in the report shows gross profit of $17.1 million, staff costs of $8.5 million and overheads of $2.6 million, with the Adjusted EBITDA figure stated after adjustments for deal costs of $0.4 million, bad debts of $0.1 million and severance costs of $0.1 million.

Executive Chair Matt Davey attributed the performance to the company’s operating structure. “Delivering $5.9m in Adjusted EBITDA at a 24% margin, alongside $2.8m positive operating cash flow reflects the operating leverage embedded in our business model, ensuring our top-line expansion flows efficiently to the bottom line,” Davey said.

A companion quarterly presentation lodged with the ASX shows the Adjusted EBITDA margin has expanded in each of the past five quarters, from 10.0% in Q1 FY26 through 11.8%, 14.7% and 18.5% to 23.8% in Q1 FY27, while gross margin moved from 63.9% through 66.4%, 67.0% and 68.5% to 69.1% over the same period. Quarterly revenue growth against the prior corresponding period ran at 3.4%, 14.1%, 12.6%, 9.4% and 16.3% across those five quarters; the Q1 FY26 growth figure is stated as 7.7% when normalised for a legacy customer. The presentation notes that Q1 FY27 operating expenses include LVDC operating costs that were not in the prior period, and that capitalised staff costs were $2.0 million against $1.4 million in Q1 FY26.

The presentation also states that Adjusted EBITDA has improved by approximately $51 million since FY23, from a loss of $27.8 million in FY23 to a loss of $7.2 million in FY24, then to positive results of $4.6 million in FY25 and $14.1 million in FY26, reaching a $23.5 million annualised run rate at Q1 FY27. The company notes the annualised figure multiplies the quarter by four and does not account for seasonality or exchange-rate changes.

Management continues to operate the business against long-term goals of annual revenue growth above 10%, gross margin above 70% and an Adjusted EBITDA margin above 25% over a three-to-five-year period, targets set out in an investor presentation lodged with the ASX on 28 August 2025.

Cash Flow and Balance Sheet Detail

Net cash from operating activities was $2.8 million for the quarter, against a $1.2 million outflow in Q1 FY26, delivered after the annual Monmouth Park minimum guarantee payment of US$2.0 million. Unrestricted cash at quarter end was $16.0 million, up from $15.6 million at 30 June 2026.

The Appendix 4C, the quarterly cash-flow report lodged with the ASX, shows receipts from customers of $25.9 million, against payments of $10.7 million for product manufacturing and operating costs, $9.0 million for staff costs and $2.9 million for administration and corporate costs. Net cash used in investing activities was $1.2 million, including $2.25 million for intellectual property and $210,000 the filing says predominantly relates to the development and construction of new BetLine betting terminals and other on-track and in-venue hardware for use in the US. An inflow of $1.2 million classified as other investing predominantly reflects movement in customer funds held on deposit for the Global Tote Hub and ADW operations, and the restricted cash balance stood at $23.4 million at the end of September 2026.

Cash and cash equivalents rose to $39.3 million at quarter end from $37.9 million at the start of the period, with exchange-rate movements reducing cash held by $227,000. The filing also discloses payments of $190,000 to directors for services during the quarter.

Technology and Commercial Developments

BetMakers said its Apollo platform recorded record levels of wagering activity during the quarter, and that after quarter end, on 17 October 2026, Apollo handled its highest-ever traffic on Caulfield Cup and The Everest Day with platform performance maintained throughout. Feature development progressed across the Apollo and Global Tote platforms, and the company continued embedding artificial intelligence tools across its engineering, product and operations teams to automate workflows and improve productivity, code quality and delivery speed.

Development of the company’s parimutuel-powered reveal games continued during the quarter, following commercial agreements with Bragg Gaming Group and Dreamstreak announced in the Q4 FY26 quarterly activities report. The company said go-to-market for the reveal games is expected during Q3 FY27.

The report identifies expansion of the digital customer base as the key driver of revenue growth. Its stated strategic priorities for the remainder of the year are digital expansion across domestic and international channels, cost discipline, margin growth toward the long-term targets, product evolution including the reveal games and advanced digital wagering features, and customer delivery.

Commenting on the result, chief executive Jake Henson said: “Reaching $24.7m in quarterly revenue while generating $2.8m in operating cash flow and $5.9m in Adjusted EBITDA reflects the strong commercial adoption across our product suite and continued operational discipline from our global team.”

Tabcorp Scheme and Incentive Plan Vesting

The report confirms that the vesting condition for Tranche 2 of the company’s Long-Term Incentive Plan has been achieved. The condition required either an EBITDA run rate of at least $20.0 million over six consecutive months together with EBITDA of at least $15.0 million for the corresponding 12-month period, or a volume-weighted average share price of at least $0.33 over 40 consecutive trading days. BetMakers said vesting occurred under the EBITDA test, with EBITDA of $10.4 million for the six months to 30 September 2026, a run rate of $20.8 million, and EBITDA of $17.1 million for the 12 months to 30 September 2026. A total of 41,900,000 Tranche 2 performance rights have vested and are eligible to be converted into the same number of fully paid ordinary shares.

The report also restates the status of the company’s proposed acquisition by Tabcorp Holdings. As announced on 10 August 2026, BetMakers entered a binding scheme implementation deed under which Tabcorp agreed to acquire 100% of the issued shares in BetMakers by way of a scheme of arrangement. The scheme remains subject to conditions including clearance from the Australian Competition and Consumer Commission, the receipt of required gaming, racing and regulatory consents, an independent expert concluding and continuing to conclude that the scheme is in the best interests of BetMakers shareholders, and shareholder and court approvals.

The BetMakers board unanimously recommends that shareholders vote in favour of the scheme in the absence of a superior proposal and subject to the independent expert’s conclusion. The report states that both companies continue to progress the outstanding conditions precedent, including the regulatory approval processes, and that subject to satisfaction of the conditions, the scheme remains on track for targeted implementation during Q3 FY27.