Better Collective Q3 Revenue Hits €78M Despite Record-Low Sports Win Margin
Better Collective A/S reported total Q3 2025 revenues of €78 million, a 4% decrease year-over-year. The results were significantly impacted by a record-low sports win margin, especially in September, which lowered revenue by €10 million compared to the previous year.
After normalizing for this external factor, the company affirmed it achieved underlying organic growth. EBITDA before special items was €21 million, resulting in a healthy 26% margin.
North America Drives Recurring Revenue
The North American market, predominantly the US, showed strong strategic momentum. Revenue share from North America more than doubled, growing by €4 million and strengthening the company’s recurring revenue foundation.
Co-CEO Jesper Søgaard noted, “In North America, revenue share more than doubled compared to last year, further strengthening our base of recurring revenue in the region.”
The shift to a revenue share model in the US is a key strategic move. CFO Flemming Pedersen highlighted that this transition leads to a significant improvement in the quality of earnings because the revenue is fully recurring and tied to player performance.
North American revenue reached €20.8 million for the quarter, an organic growth of 10%. The region’s EBITDA before special items was €3.3 million, a strong reversal from a loss in the year-ago period.
AI-Powered Playbook Launches in US
A significant operational milestone for Better Collective was the September 2025 launch of Playbook. This new, AI-powered betting solution is integrated in partnership with X (formerly Twitter) in the US.
The platform uses artificial intelligence to understand user intent and context, turning fan engagement into real-time, data-driven betting experiences.
Søgaard described Playbook as a strategic evolution, transforming how the company connects with fans and deepening engagement. The launch expands Better Collective’s focus beyond new customer acquisition to include user retention and long-term engagement.
Early results were encouraging, with the solution having already generated millions of placed bets within weeks of its debut. This demonstrates strong user intent and conversion rates for the new product innovation.
Cost Efficiency and Financial Metrics
Better Collective maintained its financial outlook for the full year 2025. The company continued to execute its cost efficiency program, reducing Group costs to €57 million.
This figure is 18% lower than the peak cost recorded in the second quarter of 2024, reflecting a more streamlined operating structure.
Despite the headwinds from the low win margin, Recurring Revenue stood at €50 million, accounting for 64% of total revenue.
Another key performance indicator, the Value of Deposits (VoD), reached €726 million, up 2% year-over-year. Additionally, profit after tax grew to €1.64 million, up from €1.12 million in the previous year’s quarter.
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