Better Collective Q3 2025 results show steady growth

Better Collective, a leading digital sports media group, has released its financial results for the third quarter of 2025, reflecting a combination of strategic growth initiatives, market dynamics, and emerging technological innovations. The report shows steady underlying business performance despite temporary headwinds from unusually low sports win margins and ongoing regulatory transitions in certain markets.

Jesper Søgaard, Co-founder and Co-CEO of Better Collective, emphasized the strength and resilience of the company’s business model. “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. 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 continues to prioritize sustainable growth, innovation in digital solutions, and the development of recurring revenue streams across diverse markets.

Q3 2025 Financial Highlights

The key figures for the third quarter are as follows:

• Revenue: 78 million EUR, reflecting a 4% decline compared to the same quarter in 2024.
• Recurring revenue: 50 million EUR, representing 64% of total revenue.
• EBITDA before special items: 21 million EUR, corresponding to a 26% margin.
• North American market growth: Revenue share income doubled compared to last year.
• AI betting solution Playbook: Successfully launched, sending millions of bets to partners.

The company confirmed that its full-year guidance remains unchanged, indicating confidence in long-term objectives despite short-term fluctuations.

Revenue Performance Analysis

Impact of sports win margin

One of the primary factors affecting revenue this quarter was the unusually low sports win margin in September. Player-friendly outcomes during the period resulted in a record-low margin, negatively affecting total Q3 revenue by approximately 10 million EUR year-over-year. Adjusted for this anomaly, Better Collective reports that organic revenue growth is back on track.

Regional market contributions

Better Collective’s diverse geographical presence played a critical role in stabilizing overall performance:

Brazil: Revenue share income from Brazil developed ahead of expectations, though ongoing regulatory transitions imposed a temporary negative impact of around 4 million EUR.

North America: The North American market saw a remarkable surge, with revenue share income doubling compared to Q3 2024. This growth reflects the transition from upfront payments to recurring revenue models since Q3 2022, laying a stronger foundation for future financial stability.

Currency effects

Foreign exchange (FX) fluctuations had a marginal negative impact of approximately 2 million EUR on revenue. While relatively minor, FX effects continue to play a role in quarterly reporting for companies with international operations.

Recurring Revenue and Long-Term Strategy

Recurring revenue remained strong at 50 million EUR, though showing a modest decline of 5% year-over-year. The decrease largely stemmed from the lower sports win margin and regulatory adjustments in Brazil.

Since Q3 2022, Better Collective has emphasized transitioning to revenue share agreements in North America. While this approach has temporarily suppressed reported revenue, it is expected to create a more sustainable and predictable recurring revenue base in the medium to long term. The significant increase in North American revenue share income this quarter confirms the effectiveness of this strategic shift. Management anticipates that North American revenue share will continue to grow steadily, gradually mirroring the company’s established recurring revenue model in other markets.

Technological Innovation and Playbook

AI-driven betting solution

A notable highlight for the quarter was the successful launch of Better Collective’s AI-powered betting solution, Playbook. This platform enhances the user experience by enabling real-time, data-driven betting recommendations. Playbook has already facilitated millions of bets for the company’s partners, demonstrating both strong adoption rates and early commercial traction.

Strategic shift from acquisition to retention

Historically, Better Collective focused heavily on customer acquisition through its digital media assets. The introduction of Playbook marks a deliberate shift toward user retention, helping the company cultivate deeper engagement with sports fans. By offering advanced betting analytics and personalized insights, Playbook strengthens partner relationships while building recurring interactions, which are expected to enhance both short-term revenue and long-term customer loyalty.

Advertising and CPM-Based Revenue

CPM-based revenue remained largely flat during Q3 2025, reflecting normalization of market rates following a weaker first half of the year. Better Collective’s internal initiatives, particularly under the AdVantage program, are anticipated to drive incremental growth in upcoming quarters. AdVantage initiatives focus on improving targeting, maximizing ad revenue efficiency, and strengthening the company’s overall media portfolio.

Cost Management and Efficiency Programs

Total costs decreased by approximately 2% year-over-year, largely reflecting the execution of the company’s 50 million EUR cost-efficiency program launched in 2024. This initiative generated around 8 million EUR in savings for the quarter.

It is important to note that the comparative quarter in 2024 benefitted from one-off cost reductions of roughly 6 million EUR, including variable pay reversals. Additionally, higher spending in the Paid Media business—up 2 million EUR—offset some of the cost reductions.

Despite these factors, EBITDA before special items stood at 21 million EUR, representing a margin of 26%. While profitability was affected by record-low sports win margins and the Brazilian regulatory transition, the company maintains a solid operational base.

Strategic Outlook and Future Growth

Better Collective remains committed to expanding its digital sports media ecosystem, optimizing recurring revenue models, and investing in technological innovation. Key areas of focus include:

• Revenue share expansion: Continued growth in North America and other strategic markets.
• Technological leadership: Ongoing development of Playbook and other AI-driven solutions to enhance user engagement.
• Operational efficiency: Execution of cost programs and resource optimization to sustain profitability.
• Market diversification: Leveraging paid media, sports media, and talent-led initiatives to drive organic growth.

Management’s continued confidence in full-year guidance underscores the company’s resilience and strategic foresight.

Conclusion

Better Collective’s Q3 2025 results highlight a business navigating short-term challenges while strengthening its long-term foundation. Record-low sports win margins and regulatory transitions temporarily impacted revenue, but the company’s diversified model, technological innovation, and geographic expansion provide a strong base for sustained growth.

The successful launch of Playbook demonstrates Better Collective’s commitment to leading the digital transformation of sports media, moving beyond acquisition to foster retention, engagement, and recurring revenue streams. With a clear strategic vision and disciplined execution, the company is well-positioned to maintain growth, expand market share, and deliver value to partners and stakeholders alike.

FAQs

What caused the revenue decline in Q3 2025?
Revenue decreased primarily due to an unusually low sports win margin and regulatory transitions in Brazil.

How much revenue did Better Collective generate in Q3 2025?
Total revenue for the third quarter was 78 million EUR.

What is Playbook and why is it significant?
Playbook is Better Collective’s AI-powered betting solution, enhancing customer retention and generating millions of bets through partners.

How did North America contribute to revenue growth?
Revenue share income in North America doubled compared to last year, reflecting the transition from upfront payments to recurring revenue models.

What is the recurring revenue figure for Q3 2025?
Recurring revenue stood at 50 million EUR, representing 64% of total revenue.

How did foreign exchange rates impact revenue?
FX fluctuations negatively affected revenue by approximately 2 million EUR during the quarter.

What cost-saving measures did Better Collective implement?
The company executed a 50 million EUR cost-efficiency program, generating 8 million EUR in savings.

How did the Brazilian market perform?
Revenue share income exceeded expectations but was impacted by ongoing regulatory transitions, reducing revenue by around 4 million EUR.

What is the company’s outlook for full-year 2025?
Management maintains unchanged guidance, indicating confidence in achieving strategic and financial objectives.

Which business segments contributed most to growth?
Paid Media, Sports Media, and Talent-led Media were key contributors to underlying business growth of approximately 9 million EUR.