Better Collective Reports Q3
Better Collective reported revenue of €78 million for Q3 2025, down 4% year-over-year, primarily due to an unusually low sports win margin and ongoing regulatory shifts in Brazil. Despite these temporary headwinds, recurring revenue reached €50 million, and the company maintained its full-year guidance while highlighting strong momentum in AI-driven innovation and North American growth.
Revenue Affected by Player-Friendly Results
The company’s Q3 results reflected an estimated €10 million negative impact from player-favorable sports outcomes, marking a record-low sports win margin in September. Additionally, foreign exchange fluctuations reduced revenue by €2 million, and the regulatory transition in Brazil contributed a further €4 million decrease.
However, Better Collective’s North American revenue share doubled year-over-year, adding approximately €4 million to quarterly earnings. The company credited this to the ongoing shift from upfront payments to recurring revenue models, which began in 2022. This strategic transition, while temporarily affecting reported revenue, is designed to provide long-term stability and predictability across its global operations. Co-founder and Co-CEO Jesper Søgaard said:
“I’m pleased to see that, when adjusting for the unusually low sports win margin of the quarter, Better Collective is back to organic revenue growth. It’s a clear sign of the strength and resilience of our diversified business model and the solid execution across our organization.”
AI-Powered Playbook Marks Strategic Shift
In September, Better Collective launched Playbook, an AI-powered betting solution that integrates seamlessly into the way fans interact with sports. The tool has already generated millions of bets through partner platforms, positioning the company for further engagement growth. Søgaard emphasized that Playbook represents a new phase for the group – one focused not only on customer acquisition but also on retention and long-term value creation. Søgaard said:
“The launch of Playbook marks the next evolution of Better Collective as the digital home of sports fans – expanding our focus from customer acquisition to retention. Playbook is already generating millions of bets with our partners, showing strong early traction and user adoption. Thanks to all my colleagues for your hard work, innovation, and commitment to pushing us forward.”
The company also announced a content partnership with BetMGM in September, introducing new sports and casino shows, and a strategic collaboration with X to position Playbook as a leading sports betting bot across the U.S.
Financial Stability and Cost Efficiency
EBITDA before special items totaled €21 million, corresponding to a 26% margin – slightly below last year’s figure due to reduced revenue and the regulatory challenges in Brazil. Costs decreased by 2% compared to Q3 2024, reflecting the success of the €50 million cost-efficiency program launched in 2024, which delivered approximately €8 million in annualized savings.
Free cash flow reached €11 million in the quarter and €32 million year-to-date, aligning with the company’s guidance range of €55-75 million for the full year. At the end of September, Better Collective strengthened its financial position by securing a new three-year credit facility worth €319 million, with an additional €80 million accordion option, extending its maturity to October 2028.
Continued Share Buybacks and Market Growth
In Q3, the company completed a share buyback program totaling €10 million and launched a new €20 million program running through March 2026. Combined, the programs represent up to 6% of total shares outstanding. Better Collective also canceled 1.8% of its share capital earlier this year, underlining its commitment to shareholder value.
Despite regulatory turbulence in Brazil, Better Collective’s key performance indicators remain solid. Value of Deposits (VoD) reached €726 million, up 2% year-over-year, indicating strong player quality and sustained partner engagement. The company’s full-year outlook remains unchanged, backed by resilient recurring revenue and growing contributions from North America.