Jumbo Interactive has delivered a record FY26 underlying EBITDA of $85.2 million, driven by strong Australian lottery retailing and international B2C growth. The company maintains a robust balance sheet and outlines ambitious FY27 targets amid ongoing integration of UK and US acquisitions.
- Record FY26 underlying EBITDA of $85.2 million, up 25%
- International B2C segments Dream UK and Dream US show strong growth
- Debt reduced by $34 million; $77 million in available cash and undrawn debt
- Final FY26 dividend declared at 15.0 cps, total 27.0 cps for the year
- FY27 outlook targets $36m-$40m EBITDA for international segments and 46%-50% margin in Australia
Record Earnings Fueled by Australian Resilience and International Expansion
Jumbo Interactive (ASX:JIN) has reported a standout FY26 with underlying EBITDA soaring 25% to $85.2 million, marking a new record for the company. This performance was underpinned by a resilient Australian lottery retailing segment and robust growth in its international B2C operations, notably Dream UK and Dream US, acquired in October 2025. Despite a subdued jackpot environment domestically, Jumbo’s diversified portfolio cushioned the impact, with charity and proprietary products improving revenue margins.
The Australian segment maintained an underlying EBITDA margin near the top of its 46%-50% guidance range, supported by steady total transaction value (TTV) of $709 million. Meanwhile, Dream UK posted a 23% annualised growth in underlying EBITDA, and Dream US delivered its highest underlying EBITDA in five years, reflecting successful integration and a shift to shorter-duration draws.
Capital Strength and Shareholder Returns
Jumbo’s balance sheet remains robust with $77 million in combined available cash and undrawn debt, despite investing $130 million in Dream Giveaways acquisitions. The company prudently reduced debt by $34 million during FY26 and declared a final dividend of 15.0 cents per share, bringing the total dividend for the year to 27.0 cents per share; at the top end of its revised 30%-50% payout ratio range. An on-market share buyback program continues on a disciplined basis, further supporting shareholder returns.
Scaling SaaS and Managed Services Amid Integration Progress
Jumbo’s Software-as-a-Service (SaaS) segment grew external revenue by 20%, bolstered by new partnerships such as the RSL Queensland prize home lottery, Australia’s largest charity lottery program. Managed Services also showed solid momentum, with UK operations delivering a 46% increase in underlying EBITDA and Canada achieving mid-single-digit growth despite some contract renewal uncertainties.
The integration of Dream Giveaways is advancing as planned, with the first 90-day phase complete and Phase 2 focused on unlocking mobile app capabilities and enhancing data analytics. This integration aims to leverage Jumbo’s proprietary lottery platform to drive customer engagement and operational efficiencies across the UK and US businesses.
FY27 Outlook Emphasises Growth and Margin Stability
Looking ahead, Jumbo targets an underlying EBITDA of $36 million to $40 million for its international segments, reflecting continued profitable growth in the UK and US. The Australian business is expected to maintain an underlying EBITDA margin between 46% and 50%, supported by marketing investments to engage players across jackpot cycles and a slight expected decline in revenue margin due to a more normalized jackpot environment.
Key sensitivities include jackpot frequency and size, as well as foreign exchange movements. The company also plans to sustain disciplined capital management with ongoing debt reduction and opportunistic share buybacks. Jumbo continues to embed AI technologies across its operations to enhance productivity, customer insights, and compliance monitoring, positioning itself for scalable growth.
Bottom Line?
Jumbo Interactive’s record FY26 results and confident FY27 guidance highlight a company balancing growth investments with disciplined capital management, though jackpot variability and integration execution remain key variables.
Questions in the middle?
- How will Jumbo manage jackpot volatility impacting revenue margins in FY27?
- What operational synergies will the Dream Giveaways integration unlock in the medium term?
- To what extent can AI adoption accelerate customer engagement and cost efficiencies?