How BetMakers’ FY25 Turnaround Sets Stage for US Market Growth

A Year of Transformation

BetMakers Technology Group Ltd (ASX – BET) has closed FY25 on a high note, delivering its strongest quarterly financial performance to date. The company reported revenue of $22.6 million for Q4, marking an 8.9% increase from the previous quarter and surpassing the prior corresponding period despite the loss of a legacy customer. This growth reflects the successful execution of a comprehensive transformation strategy focused on technology upgrades, AI-driven product development, and operational efficiencies.

Gross margins expanded impressively to 71.5%, up from 63.9% in Q3 FY25 and 55.2% in Q4 FY24, driven by reduced cloud costs and improved unit economics. Adjusted EBITDA soared 164% quarter-on-quarter to $3.2 million, turning around a $3.7 million loss in the same quarter last year. Operating cash flow remained robust at $3.4 million, marking the second consecutive quarter of positive free cash flow.

Strengthened Balance Sheet and Strategic Capital Allocation

BetMakers’ balance sheet is notably stronger, with all debt fully repaid during the quarter and unrestricted cash reserves standing at $18.8 million. This financial flexibility was bolstered by a successful $12.5 million capital raise, including a placement to institutional investors and a Share Purchase Plan. The proceeds have been strategically deployed to fund growth initiatives, notably the acquisition of LVDC in Nevada, which marks a significant entry into the U.S. pari-mutuel and digital wagering markets.

Executive Chair Matt Davey highlighted the disciplined execution behind these results, emphasizing the company’s commitment to sustained revenue growth and margin expansion through operating leverage and cost control. CEO Jake Henson echoed this optimism, pointing to a modernized technology stack and healthy cash reserves as foundations for scalable growth in FY26.

Looking Ahead – Growth and Innovation in FY26

BetMakers is gearing up for an ambitious FY26, with key product launches and market expansions on the horizon. The Apollo platform and API-based wagering products have already exceeded expectations, delivering strong revenue growth and margins. The GTX tote platform is production-ready, with launch plans underway across new and existing partners. Additionally, the company continues to secure contract renewals and new market entries, including in Cyprus.

The LVDC acquisition is poised to deepen BetMakers’ footprint in the U.S., complementing its existing operations in New Jersey and Nevada. While a $3.1 million payment related to minimum guarantee obligations will impact Q1 FY26 cash flow, management expects the full benefits of FY25’s transformation to flow through the coming year, underpinning long-term shareholder value.

Overall, BetMakers’ FY25 performance and strategic moves position it well to capitalize on scalable growth opportunities, product innovation, and expanding global networks.