betr Entertainmen (BBT) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 FY2026 trading momentum with turnover up 27% year-on-year to $363.0m and Net Win up 36% to $38.0m, outpacing a near-flat market and indicating market share gains.

• Net Win Margin held at 10.5%, within target range, despite customer-friendly results in key sporting events.

• Completed PointsBet offer, securing a 27.7% stake and executing a selective buyback, enhancing exposure to a profitable business and positioning for future synergies.

• Launched a refreshed brand and innovative products, including a global-first live tracker and Sky Racing integration, driving customer engagement and higher net wind per active customer.

• Maintained strong business momentum post-migration, with continued organic turnover growth and increased engagement in high-margin products.

Financial highlights

• Q1 turnover reached $363 million, up 27% year-on-year; Net Win was $38.0 million, up 36% year-on-year; Gross Win Margin increased to 14.3% (up 0.9pp YoY), and Net Win Margin reached 10.5% (up 0.7pp YoY).

• Cash Active clients totaled 154,735 as of September, reflecting sustained engagement post-migration.

• Cash balance at September 30, 2025, was $95.2 million, including $13.7 million in client balances.

• Net cash outflows from operating activities were $5.7 million, mainly due to increased seasonal marketing and $3 million in brand launch production costs.

• Advertising and marketing outflows totaled $11.5 million, including $3.0 million for the new brand campaign.

Outlook and guidance

• Confident in maintaining strong turnover and activity metrics into Q2, with positive trends leading into the Melbourne Cup Carnival, despite challenging racing results early in the quarter.

• Expect Net Win Margins to revert to historical averages over the balance of the quarter.

• Well-capitalized balance sheet and strong shareholder support position the business for further inorganic growth.

• Continued investment in marketing and product innovation to drive sustainable and profitable growth.