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Better Collective A/S (SE:BETCO)
:BETCO
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Better Collective A/S
(BETCO)
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Rating:68Neutral
Price Target:
kr156.00
▲(8.79% Upside)
Action:ReiteratedDate:02/27/26
The score is driven primarily by solid but mixed financial performance (strong cash flow rebound and manageable leverage, but revenue decline, gross margin compression, and lower ROE). Technicals are supportive with the stock above major moving averages and positive momentum. Valuation is less supportive at ~24x earnings given recent top-line and EBITDA declines, while the earnings call adds a modest positive from improving guidance and buyback plans tempered by ongoing external headwinds and a free-cash-flow miss versus guidance.
Positive Factors
Cash Generation
A sharp rebound in free cash flow and ~92% cash conversion in 2025 indicates high-quality earnings and stronger internal funding. Durable cash generation supports share buybacks, debt management and reinvestment capacity, reducing reliance on external financing over the medium term.
Cost Efficiency
Delivery of the EUR 50m efficiency program and sustained cost reductions show management capability to structurally lower the cost base. Persistently lower operating costs improve margin resilience and increase operational leverage as revenue normalizes, strengthening multi-quarter profitability.
Product & Audience Innovation
New products (AI-driven Playbook) and FanReach audience scale (>50m U.S. reach) broaden monetization channels and data assets. This diversifies reliance on classic SEO funnels, supports recurring revenue mix, and strengthens long-term competitive positioning in U.S. growth markets.
Negative Factors
Top-line & Margin Pressure
A meaningful revenue decline and sharp gross margin compression reduce operating leverage and long-term profitability. Sustained top-line weakness and margin erosion weaken return on invested capital and limit the company’s ability to fund growth without higher reinvestment or restructuring.
External & Regulatory Risks
Material EBITDA impact from Brazil regulatory changes, sports win-margin volatility and FX highlights structural exposure to regulation and external volatility. These factors can persist or recur, constraining predictable user acquisition and recurring revenue over multiple quarters.
Cash Flow Volatility
A sizable free-cash-flow miss and historical FCF volatility reduce confidence in cash predictability. Inconsistent cash conversion complicates capital allocation (buybacks, M&A, reinvestment) and raises refinancing or timing risk if investments or working-capital swings recur.
Better Collective A/S (BETCO) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr8.43B
Dividend YieldN/A
Average Volume (3M)94.34K
Price to Earnings (P/E)27.4
Beta (1Y)0.40
Revenue Growth-7.81%
EPS Growth-8.76%
CountrySE
Employees1,556
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)5.16
Shares Outstanding58,754,850
10 Day Avg. Volume54,708
30 Day Avg. Volume94,342
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)1.05
Price to Sales (P/S)1.92
P/FCF Ratio12.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
kr120.00Price Target Upside-16.32% Downside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.82
Revenue Forecast (FY)kr362.51M
Better Collective A/S Business Overview & Revenue Model
Company DescriptionBetter Collective A/S, together with its subsidiaries, operates as a sports betting media company worldwide. The company primarily focuses on online sports betting and gambling platforms. It offers various community-based digital platforms, including bettingexpert.com, social network of sports betting tipsters; SpilXperten, a sports betting media platform; Action Network, a source for sports betting insights; Irishracing.com, a website, which provides coverage of Irish, British, and international horse racing; Speltips.se for betting tips; HLTV.org, a website for news from the e-sport industry, CS:GO match information, and player and team rankings; RotoGrinders for fantasy sports; Wettbasis, which provides betting tips for German betting enthusiasts; VegasInsider, a platform for betting tips and picks in the United States; Betarades, a platform for online betting news in Greece; PariuriX, a platform in Romania for finding the sports betting tips; ScoresAndOdds, a statistical analysis designed for sports bettors in the US; Wettfreunde, an iGaming Platform in the German language. In addition, it provides Sportwettentest, a bookmaker stress tester; Bonus Code Bets; SmartBets, a customizable odds comparison site; Bookmakers.tv, a site for bookmaker reviews and offers; Us-bookies.com, a platform dedicated to the American punter; Roulette Geeks, which offers educational materials that teach users about casino strategies; and Spelsidor.se, which provides information about bonuses, igaming companies and gambling news. Better Collective A/S was founded in 2004 and is headquartered in Copenhagen, Denmark.
How the Company Makes MoneyBetter Collective primarily makes money through performance marketing (affiliate) agreements with online betting and iGaming operators. It attracts audiences to its owned-and-operated sports and betting media properties via content, SEO, social media, and community engagement, and then monetizes that traffic by referring users to operator partners. Revenue is typically earned when referred users complete predefined actions under partner contracts—most commonly (a) revenue share: Better Collective receives an agreed percentage of the net gaming revenue generated by referred customers over time; (b) CPA (cost-per-acquisition): a fixed fee per new depositing customer or other qualifying acquisition event; and/or (c) hybrid structures combining CPA and revenue share. In addition, the company generates income from advertising and sponsorships sold across its media inventory (e.g., display/video advertising, branded content, and partner placements) and may earn fees from other media or technology-related commercial arrangements connected to its owned brands and platforms; if more specific breakdowns or named partnerships are required, null.
Better Collective A/S Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but resilient picture: the company delivered record quarterly profitability, materially reduced costs through a EUR 50 million efficiency program, outperformed expectations in North America, and launched strategic products (Playbook and FanReach) with promising early traction. However, full-year top-line and EBITDA declined (~9% and ~10% respectively) due to substantial external headwinds (Brazil regulation, sports win margin volatility and FX) that together reduced EBITDA by more than EUR 40 million. Management provided constructive 2026 guidance (7–12% revenue growth, 8–18% EBITDA growth), a EUR 40 million buyback and medium-term margin targets (35–40%), indicating confidence in a return to growth. Overall the positives around operational leverage, product innovation and balance-sheet actions are offset by meaningful near-term headwinds and timing-related cash flow effects.Q4-2025 Updates
Positive Updates
Q4 Revenue and Constant Currency Growth
Group revenue in Q4 reached EUR 94 million, down 2% year-over-year but up 2% in constant currencies; management notes that normalizing for a lower sports win margin would have implied ~7% revenue growth in Q4.
Record Quarterly EBITDA and Margin Expansion
Delivered record EBITDA before special items of EUR 37 million in Q4, a 10% increase year-over-year, translating to a 39% EBITDA margin (highest quarterly EBITDA in company history).
Cost Savings and Efficiency Program Delivered
Completed the full EUR 50 million efficiency program; group costs declined ~8% year-over-year and cost reductions contributed ~EUR 10 million to EBITDA upside in Q4.
North America Revenue Share Outperformance
North America revenue share amounted to EUR 22 million for the full year versus prior expectation of EUR 10–15 million, with EUR 17 million classified as pure revenue share—improving earnings quality and recurring revenue mix.
Record Value of Deposits and Engagement
Value of deposits reached a record quarterly level of EUR 820 million (approximately +6–7% year-over-year and +13% quarter-over-quarter as referenced), indicating high engagement and quality of existing cohorts.
Product and Audience Innovation (Playbook & FanReach)
Launched Playbook (AI-powered betting solution) with strong early engagement (millions of bets sent) and launched FanReach in the U.S. (reaching >50 million sports fans), expanding monetization channels and data-driven media capabilities.
2026 Guidance and Capital Allocation
Guidance for 2026 targets organic revenue growth of 7–12% and EBITDA growth of 8–18% (EUR 110–120 million); Board approved annual share buyback of EUR 40 million and target to keep net debt-to-EBITDA below 3x.
Strong Financing, Cash Conversion and Long-Term Growth Rates
Secured a new EUR 319 million 3-year committed facility plus a EUR 50 million M&A facility; delivered 92% cash conversion for the year; since 2018 reported revenue CAGR of 35% and EBITDA CAGR of 30% (long-term track record).
Negative Updates
Full Year Revenue Decline
Full-year 2025 revenue declined to EUR 337 million from EUR 371 million in 2024, a decrease of 9% year-over-year.
Full Year EBITDA Decline
EBITDA before special items fell to EUR 102 million in 2025 from EUR 113 million in 2024, a decrease of 10% year-over-year.
Large Combined External Headwinds
Management quantified combined headwinds on EBITDA in 2025 of more than EUR 40 million driven by: regulatory transition in Brazil (EUR 22 million negative impact), lower sports win margin volatility (EUR 17 million), and foreign exchange effects (EUR 9 million revenue headwind for the year).
Q4 External Detractors to Revenue
In Q4 foreign exchange reduced revenue by ~EUR 4 million, sports win margin volatility reduced revenue by ~EUR 5 million, and Brazil regulatory transition reduced revenue by ~EUR 3 million — totaling ~EUR 12 million negative impact year-over-year.
Regulatory Challenges in Brazil Impacting New Customer Intake
Marketing restrictions in Brazil (limits on welcome bonuses) continued to limit the ability to acquire and send new customers to partners, weighing on net depositing customers (NDC) and near-term new intake.
Free Cash Flow Miss vs. Guidance
Free cash flow landed at EUR 38 million versus guidance at the low end of EUR 55 million; management attributes the deviation to EUR 15 million of short-term working capital timing and investments in new partnerships.
Exposure to Sports Win Margin and FX Volatility
Business performance was materially impacted by sports win margin volatility and foreign exchange movements (EUR 9 million revenue FX headwind noted for the year), highlighting sensitivity to external volatility.
Risks in Future Publishing and Emerging Channels
Management flagged that future publishing growth (NDC/CPA-driven) has higher exposure to changes in search/discovery and AI-driven platform shifts; prediction markets and international expansion of Playbook are early-stage and may face increased competition.
Company Guidance
Better Collective guided 2026 organic revenue growth of 7–12% and EBITDA before special items growth of 8–18%, which they quantify as EUR 110–120 million, and noted an annual share buyback of EUR 40 million; the company expects net debt/EBITDA to remain below 3.0x, has baked ~EUR 8 million of tax effects into the 2026 outlook, and looks beyond 2026 for continued positive organic growth with a 2027–28 EBITDA margin target of 35–40% while preserving strong cash conversion (2025: 92%) and financial discipline.Better Collective A/S Financial Statement Overview
Summary
Overall fundamentals are healthy with solid operating profitability and manageable leverage, supported by a strong 2025 free cash flow rebound and improved cash conversion. Offsetting this, 2025 saw a revenue decline, sharp gross margin compression, and materially lower ROE versus earlier years, indicating a tougher profitability/efficiency phase.Income Statement
Revenue growth has been strong over the cycle (notably 2021–2023), but the latest annual period shows a decline in revenue (2025 vs. 2024) and a meaningful drop in gross margin (from ~41% in 2024 to ~28% in 2025). Operating profitability remains solid (EBIT margin ~18% in 2024–2025), but net margin has compressed versus prior years (2025 ~7% vs. 2022 ~18%), signaling weaker bottom-line conversion despite still-positive earnings.66
Positive
Balance Sheet
Leverage looks manageable with debt-to-equity in a mid range (~0.40–0.61 historically; ~0.44 in 2025), and equity remains sizable relative to total assets. However, returns on equity have stepped down materially from earlier highs (2020–2022) to a low-single-digit level in 2025 (~3.8%), suggesting reduced efficiency in generating profits from the capital base.72
Positive
Cash Flow
Cash generation improved notably in 2025, with free cash flow rebounding sharply and nearly matching net income (free cash flow to net income ~1.0), indicating high-quality earnings in the most recent year. That said, cash flow has been volatile historically (including a negative free cash flow year in 2022 and weak conversion in 2024 where free cash flow covered only a small portion of net income), which raises confidence risk around consistency.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 342.98M | 371.49M | 326.69M | 269.30M | 177.05M |
| Gross Profit | 95.60M | 151.32M | 138.47M | 116.87M | 71.38M |
| EBITDA | 103.97M | 109.83M | 115.12M | 83.62M | 55.46M |
| Net Income | 24.03M | 34.01M | 39.84M | 48.08M | 17.29M |
Balance Sheet | |||||
| Total Assets | 1.07B | 1.17B | 937.86M | 785.23M | 597.38M |
| Cash, Cash Equivalents and Short-Term Investments | 13.45M | 37.67M | 50.36M | 31.50M | 28.60M |
| Total Debt | 271.92M | 276.63M | 264.69M | 236.24M | 123.89M |
| Total Liabilities | 441.57M | 486.19M | 502.59M | 372.31M | 252.53M |
| Stockholders Equity | 628.81M | 685.93M | 435.27M | 412.92M | 344.85M |
Cash Flow | |||||
| Free Cash Flow | 51.79M | 12.02M | 56.40M | -50.06M | 19.28M |
| Operating Cash Flow | 52.14M | 49.50M | 89.01M | 48.20M | 31.56M |
| Investing Cash Flow | -35.33M | -154.83M | -106.25M | -112.63M | -219.22M |
| Financing Cash Flow | -41.32M | 99.15M | 29.33M | 65.74M | 188.76M |
Better Collective A/S Technical Analysis
Positive
143.40
Price Trends
121.80
Positive
117.46
Positive
123.16
Positive
Market Momentum
7.02
Positive
67.82
Neutral
42.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:BETCO, the sentiment is Positive. The current price of 143.4 is above the 20-day moving average (MA) of 135.75, above the 50-day MA of 121.80, and above the 200-day MA of 123.16, indicating a bullish trend. The MACD of 7.02 indicates Positive momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 42.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:BETCO.
Better Collective A/S Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | kr8.43B | 27.41 | ― | ― | -7.81% | -8.76% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | kr2.64B | 34.18 | 32.28% | 1.41% | 11.23% | 16.24% | |
60 Neutral | kr9.15B | 22.70 | 8.26% | 1.14% | 14.41% | -4.45% | |
55 Neutral | kr1.26B | 2.92 | ― | 1.92% | -8.38% | -38.17% | |
55 Neutral | kr1.09B | 7.94 | ― | ― | 0.86% | 73.68% | |
44 Neutral | kr2.09B | -17.17 | ― | ― | 10.25% | -698.93% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.