Better Collective has posted its highest ever quarter for profitability, as “cost discipline” drove EBITDA up 10% year on year (YoY) to €37m (£32m), though revenue dipped 2% to €94m, the affiliate announced in its 2025 annual report published today, 26 February.
While Q4 revenue climbed 2% on a constant currency basis, the disappointing performance was attributed to unusually low sportsbook win margin due to customer-friendly results, which caused a €5m hit to the top line.
Meanwhile, the ongoing regulatory transition in Brazil – including the ban on welcome bonuses – had a €3m impact on group revenue during the quarter.
Travails in Brazil, currency effects and the unusually low sports betting margin contributed to a 13% fall in recurring revenue to €55m, compared to Q4 2024.
However, the Copenhagen-based firm announced the value of customer deposits with operator partners reached an all-time high of €820m – up 6% YoY.
Management said this figure was a “strong indicator of the underlying health and future value of our revenue share database”.
New depositing customers (NDCs) amounted to 305,000 – with 73% of these players on revenue share deals with partner operators – though NDCs were down 25% on Q4 2024, yet up 9% on the previous quarter.
On a full-year basis, revenue slumped 9% YoY to €337m and EBITDA declined 10% to €102m.
Prior 2025 guidance for revenue and EBITDA had been €320m-€350m and €100m-€120m, respectively.
Though Better Collective has faced challenges in certain markets, North America “exceeded expectations”, co-founder and co-CEO Jesper Søgaard said on the earnings call.
Better Collective pointed to the benefits of AI-powered betting solution Playbook, which was launched in 2025. Users tag @playbook in any X post containing bets and it instantly creates the slip with bookmaker partners.
Meanwhile, Søgaard referenced the growth of prediction markets in the US, including how these products are a “natural extension of our core business” and are providing Better Collective with “clear tailwinds despite it being early days”.
On fourth-quarter earnings, Søgaard commented: “Q4 marked a return to growth in constant currencies. When further adjusting for the unusually low sports win margins in both Q3 and Q4, driven by customer-friendly sports results, the underlying business delivered growth in Q4.”
Reflecting on the full-year performance, he added: “2025 was a defining year for Better Collective. Beyond navigating external market transitions, it was year in which we took decisive steps to reshape the company for the decade ahead.
“We sharpened our strategic focus, simplified our operating model and continued to build a more scalable, global organisation, while maintaining disciplined investments in technology, data and new business models that will underpin our long-term growth.
“These actions are already translating into improved earnings quality and a more predictable growth profile.”
As for 2026, Better Collective is guiding organic growth of 7% to 12%, while EBITDA before special items is forecast to increase between 8% and 18%.
Net debt to EBITDA is anticipated to fall below 3x. Management expects to perform share buybacks totalling €40m throughout the year.
Better Collective shares are up more than 5% in Stockholm to SEK119 (£9.70), at the time of writing.
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The post Better Collective’s cost efficiencies drive record quarterly EBITDA of €37m first appeared on EGR Intel.
Affiliate giant’s revenue falls year on year, though customer deposits with operator partners hit an all-time high of €820m
The post Better Collective’s cost efficiencies drive record quarterly EBITDA of €37m first appeared on EGR Intel.