Better Collective Reports $94.1 Million in Q1 Revenue

Better Collective has shared its Q1 2025 financial results, reporting total revenue of $94.1 million, down 13% from the same period last year. Organic growth also fell by 18% year-over-year, as regulatory and market shifts in key regions shaped the quarter’s performance.

Good to know

• Brazil contributed $11.3 million in Q1 revenue, impacted by new regulations.
• North American revenue dropped by nearly $12.5 million year-over-year.
• Better Collective announced an $11.3 million share buyback, effective until August 26.

Revenue in Brazil, now a regulated market, accounted for $11.3 million. However, the company saw a 39.8% drop in adjusted EBITDA and revenue compared to Q1 2024 due to policy changes. Better Collective also noted an 8% decline in recurring revenue and a 13% drop in revenue share, attributing both to regulatory impacts on operator agreements.

Despite those declines, user behavior in Brazil showed positive signs. Better-than-expected wagering levels and stronger player retention helped reduce churn. These trends encouraged Better Collective to increase its investment in brand expansion and market visibility across Brazil, with expectations for growth to resume by 2026.

In North America, results matched internal forecasts. The company underwent what it described as “organizational rebasing” in October 2024 to realign operations. Revenue in the region dropped by nearly $12.5 million compared to Q1 last year, with around $6.2 million of that linked to the launch of North Carolina’s regulated betting market.

For the full year, Better Collective projects revenue from revenue share in North America to fall between $11.3 million and $17 million. As these earnings accumulate gradually, the region is expected to offer a steadier stream of recurring revenue going forward.

On May 21, Better Collective announced a new share buyback program worth up to $11.3 million. The buyback is set to run until August 26 or until the full amount is reached.

Co-founder and CEO Jesper Søgaard called the quarter a step in a longer-term strategy. “Overall, our Q1 results landed in line with our expectations. As we are now building the ‘New BC,’ we are setting the stage for future growth by focusing on global scalability and streamlining our House of Brands. This marks the beginning of an exciting new chapter for Better Collective.”