Better Collective returns to growth in Q1 despite Brazil and foreign exchange pressure
Better Collective closed the first quarter of 2026 with €86 million in revenue, representing 5 per cent organic growth and a 9 per cent increase in constant currencies year-on-year. EBITDA before special items reached €25 million, up 14 per cent, with a margin of 29 per cent. The company also maintained its 2026 guidance unchanged. According to the company, the result was driven by Paid Media, Talent-led Media, North American revenue share, and the HLTV esports community.
The quarter, however, did not deliver steady growth. In the report, the company stated that foreign exchange movements reduced revenue by around €4 million year-on-year, mainly due to the US dollar. In addition, sports betting win margin had a negative impact of €1.3 million on revenue and EBITDA compared to last year, and a €3.7 million impact compared to the company’s normalised margin. Brazil also continued to affect results, with an estimated impact of around €1 million following regulatory changes. Even so, the company said underlying growth reached €9 million, mainly driven by Paid Media, Talent-led Media, and increased revenue share in North America.
Recurring revenue grows as North America stands out
Recurring revenue increased by 2 per cent to €50 million, while revenue share rose 7 per cent. In this scenario, North America was one of the main highlights, with revenue share in the region increasing by 46 per cent to €6 million during the quarter. The company reiterated that since the third quarter of 2022, it has been transitioning its US contracts to a revenue-sharing model. Better Collective said this temporarily reduced reported revenue but created a stronger base for recurring revenue in the coming quarters and years. The company also reported that sponsorship revenue increased 21 per cent, with strong contributions from Playmaker HQ and HLTV.
Strategically, one of the main developments was the expansion of the partnership with X. According to the report, Playbook™ became the platform’s official and exclusive global AI-powered betting product, with a new global agreement, expanded scope, and direct integration of Playbook™ into X’s direct messages.
In the CEO letter, Jesper Søgaard stated that the product has advanced in engagement, development, and monetisation, and that the company sees the prediction markets segment growing above expectations, in both audience interest and commercial performance. He also said that Playmaker HQ remains very strong, with a talent-led media model, a strong presence in North American sports podcasts, and growing demand not only from sportsbooks but also from brands outside the gambling sector.
Brazil remains a key concern
In Brazil, the tone of the report was more cautious. Søgaard stated that the market remains “muted”, affected by the prohibition of welcome bonuses and other regulatory changes. He also mentioned a bill proposing a potential ban on the sector, describing the scenario as unlikely, although the public debate is affecting short-term confidence.
At the same time, the company reiterated its support for “sound and responsible” regulation and said it remains optimistic about Brazil in the long term, citing the country’s large market, passion for sports, and growth potential as the market matures.
The report also showed a more controlled operation in terms of costs and cash flow. Total costs increased by only 1 per cent, with lower spending in Publishing and Esports partially offset by a 9 per cent increase in Paid Media investments.
Operating cash flow before special items reached €25 million, compared to €21 million in the same quarter of 2025, with a cash conversion of 101 per cent. The company also completed €6.7 million in share buybacks during the quarter and ended March with €75 million in capital reserves, consisting of €20 million in cash and €55 million in unused bank credit facilities. Total bank credit facilities amounted to €319 million. Net debt to EBITDA before special items stood at 2.45x.
Consolidated quarterly figures
On a consolidated basis, the company reported revenue of €86.323 million, compared to €82.590 million in the same period last year. Recurring revenue totalled €50.141 million.
EBITDA before special items reached €25.086 million, while depreciation amounted to €1.706 million. EBITA before special items stood at €23.380 million. Net special items represented an expense of €1.810 million. Amortisation and impairment reached €8.591 million, while EBIT before special items came to €14.789 million.
Financial results were negative by €2.538 million, while profit after tax totalled €7.322 million. Earnings per share stood at €0.12, unchanged on a diluted basis.
The revenue structure shows how the group remains diversified across multiple business areas. During the quarter, Revenue Share accounted for €39.518 million, CPA for €21.392 million, Subscription for €4.331 million, Sponsorships for €14.216 million, CPM for €6.291 million, and Other for €575 thousand.
In percentage terms, revenue was distributed across 47 per cent revenue share, 25 per cent CPA, 5 per cent subscription, 16 per cent sponsorships, 7 per cent CPM, and 0 per cent other. Recurring revenue, defined by the company as revenue share, CPM/advertising, and subscription, represented €50.141 million, equivalent to 58 per cent of total revenue.
By segment, Publishing delivered revenue of €53.986 million, up 1 per cent. Within this total, revenue share represented €27.434 million, CPA reached €5.402 million, subscription totalled €4.331 million, sponsorships reached €11.193 million, CPM accounted for €5.051 million, and other revenue amounted to €575 thousand.
EBITDA before special items for the division reached €15.392 million, with a margin of 29 per cent, while operating profit before amortisation totalled €13.937 million. The company explained that the segment benefited from revenue-share growth despite foreign-exchange pressures and regulatory impacts in Brazil. Meanwhile, the decline in CPA reflected a higher proportion of revenue-share contracts combined with a positive contribution from prediction markets.
Paid Media accelerates growth
In Paid Media, revenue increased 12 per cent to €27.610 million. Revenue share represented €11.627 million, while CPA reached €15.983 million.
EBITDA before special items increased 25 per cent to €6.765 million, with a margin of 25 per cent. According to the company, the division continued to grow strongly, with a balanced mix between revenue share and CPA, strong performance in the UK ahead of the regulatory changes introduced on 1 April, and proprietary AI models that increased deposit values and are expected to improve efficiency and returns over time.
Esports also returned to growth, with revenue increasing 8 per cent to €4.727 million. EBITDA before special items reached €2.929 million, with a margin of 62 per cent.
Sponsorship revenue in the vertical increased 29 per cent to €3.023 million, driven by HLTV. On the other hand, CPM revenue fell 31 per cent to €1.240 million, impacted by the weaker performance of the latest EA FC title and lower FUTBIN traffic. The company stated that initiatives such as FanReach have already been launched to offset this trend and strengthen future monetisation.
Balance sheet shows stronger equity and share reduction
On the balance sheet, Better Collective ended March with equity of €639.537 million, compared to €631.004 million at the end of 2025. Total assets reached €1.092 billion. Current assets totalled €112.404 million, while current liabilities stood at €64.400 million. Net debt reached €257.696 million.
The company highlighted that equity benefited from €7 million in net profit, €6 million in positive currency translation adjustments, and €2 million in hedge adjustments. On the other hand, there was a negative impact of €7 million from share buybacks and €1 million from share-based payments. The company also confirmed the cancellation of 3,204,020 treasury shares, equivalent to 5.2 per cent of the company’s outstanding share capital.
Corporate developments and DraftKings partnership
Better Collective also detailed several corporate developments during the quarter. On 9 January, the extraordinary general meeting approved a 5.17 per cent reduction in share capital, and the company’s treasury shareholding fell below 5 per cent.
In February, the company announced that Lind Value II ApS, part of Lind Invest, had increased its holding to 6.53 per cent of share capital and voting rights. In March, Triton Administration indirectly acquired 3,076,663 shares, representing approximately 5.24 per cent of the share capital and voting rights.
Also in March, the company announced the expansion of content and products focused on prediction markets for the US audience. During the AGM held on 24 March, the Annual Report 2025 was approved and Thomas Plenborg was elected as the new chairman of the board, replacing Jens Bager. In addition, subsidiary Mindway AI announced a partnership with DraftKings to expand responsible gambling tools.
For the remainder of the year, the company maintained its 2026 targets of organic revenue growth between 7 per cent and 12 per cent, EBITDA before special items growth between 8 per cent and 18 per cent, annual share buybacks of €40 million, and leverage below 3x.
For 2027 and 2028, management also reiterated its focus on organic growth, EBITDA margin between 35 per cent and 40 per cent, strong cash generation, and net debt below 3x. The capital allocation policy continues to prioritise debt reduction when leverage exceeds 3x, investments in organic growth and selective acquisitions, and shareholder returns, mainly through share buybacks.
Shareholder structure and operational risks
The report also detailed the company’s shareholder structure and operational risks. As of 31 March 2026, Better Collective had 58,754,850 issued shares, share capital of €587,548.50, only one class of shares, and one vote per share. The company remains listed on Nasdaq Stockholm and Nasdaq Copenhagen under the tickers BETCO and BETCO DKK.
The number of shareholders reached 5,237, while the maximum dilution from long-term incentive programmes was estimated at 4.72 per cent. The 2026 programme included 461,012 options for 56 key employees, with a total value of €3.5 million calculated using the Black-Scholes model.
The report also highlighted increased compliance and financial risks linked to expansion across North and South America. According to the company, these risks are being mitigated through engagement with regulators, performance-based acquisitions, and local governance, finance, HR, and legal teams.
This article was first published in Portuguese on 22 May 2026.
In Mexico City, from September 1st to 3rd, 2026, North America meets Latin America. SiGMA North America welcomes 4,000 participants for three days of business, insights, and inspiration for startups. Real insights. Real business. Reserve your spot.
