BetMakers delivered a step-change in Q1 FY27 profitability, with constant-currency revenue rising 16.3% and adjusted EBITDA climbing 176% to $5.9 million. Positive operating cash flow and stronger margins add weight to the company’s technology-led growth story, although the figures remain unaudited.
- Q1 revenue rose 16.3% to $24.7 million on a constant-currency basis
- Adjusted EBITDA increased 176% to $5.9 million
- Adjusted EBITDA margin expanded to 23.8% from 10.0%
- Operating cash flow turned positive at $2.8 million
- Gross margin improved to 69.1%, approaching the 70% long-term goal
Revenue Growth Converts Into Q1 EBITDA Expansion
BetMakers Technology Group Ltd (ASX:BET) has opened FY27 with a much stronger earnings profile, reporting quarterly revenue of $24.7 million and adjusted EBITDA of $5.9 million. Revenue increased 16.3% from the prior corresponding period on a constant-currency basis, while adjusted EBITDA rose $3.8 million, or 176%, from $2.1 million.
The result suggests the company captured a large share of its revenue growth at the earnings line. BetMakers said operating expenses fell despite the higher revenue base, with the improvement attributed to operating leverage, cost discipline and a technology-led operating model. Its latest quarter builds on the sharp profitability improvement reported in its FY26 financial results, when full-year adjusted EBITDA rose 205% to $14.1 million.
Margins Move Closer to Long-Term Targets
Adjusted EBITDA margin more than doubled to 23.8%, from 10.0% in Q1 FY26. Gross margin also improved by 5.2 percentage points to 69.1%, putting it within 0.9 percentage points of BetMakers’ stated long-term target of 70% or higher.
The company identified growth in its digital customer base as a key revenue driver, alongside commercial momentum for its Apollo platform. Global Tote also contributed, with BetMakers pointing to cloud and cost efficiencies. The presentation says the technology roadmap is intended to support further enhancements, but it does not provide a quantified forecast for the contribution from those initiatives.
Operating Cash Flow Turns Positive
Operating cash flow was positive at $2.8 million, compared with an outflow of $1.2 million in Q1 FY26. BetMakers said the figure was achieved after a US$2.0 million outflow during the quarter for the annual true-up payment to Monmouth Park under a minimum-guarantee arrangement.
Unrestricted cash stood at $16.0 million at quarter-end, up $0.4 million from the previous quarter despite that payment. The company said it continues to work towards consistent free-cash-flow generation as the business scales, though the Q1 update does not present free cash flow as a reported metric.
Annualised EBITDA Still Carries Important Caveats
BetMakers’ presentation says adjusted EBITDA has improved by about $51 million since FY23 and describes the business as well positioned for FY27. It also shows a Q1 adjusted EBITDA margin of 23.8% against a long-term goal of at least 25%.
That comparison should not be treated as a full-year forecast. The company’s annualised Q1 EBITDA calculation simply multiplies the quarter by four and excludes potential effects from seasonality, foreign exchange and other annual factors. The underlying quarterly figures are unaudited, while adjusted EBITDA is a non-IFRS measure that excludes items including share-based payments, restructuring and integration costs, transaction costs, impairments and bad-debt expenses.
Bottom Line?
The next test is whether Q1’s margin and cash-flow gains persist through the year, particularly as BetMakers approaches its 70% gross-margin and 25% adjusted EBITDA-margin goals.
Questions in the middle?
- Can the 23.8% adjusted EBITDA margin be sustained beyond a single quarter?
- Will operating cash flow remain positive after recurring minimum-guarantee and other annual payments?
- How much further can digital growth and Apollo commercial momentum lift revenue without a corresponding rise in operating costs?