Key Points
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Q3 revenue rose 10% to $611 millionand adjusted EBITDA grew 8% to $165 million, but customer-favorable sports results reduced revenue by about $40 million and EBITDA by roughly $25 million. Super Group lowered 2026 guidance to $2.525–$2.575 billion in revenue and $700–$720 million in adjusted EBITDA.
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Africa remained a growth driver:revenue increased 17% to $262 million and adjusted EBITDA rose 23% to $88 million. International adjusted EBITDA climbed 24% to $93 million, while the company secured additional African casino and sports betting licenses.
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Super Group ended the quarter with $602 million in cash and authorized a $150 million share repurchase program, while saying it would balance shareholder returns with investment in organic growth and selective acquisitions.
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Super Group (SGHC) (NYSE:SGHC) reported third-quarter revenue growth and reiterated confidence in its operating model despite customer-friendly sports betting results that reduced quarterly margins and prompted a revision to its full-year outlook.
Total third-quarter revenue rose 10% year over year to $611 million, while adjusted EBITDA increased 8% to $165 million, representing a 27% margin, Chief Financial Officer Alinda van Wyk said. Average monthly active customers increased 9% to 6 million, while total casino wagering rose 11% and sports wagering increased 4%.
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The company said sports results during August and September favored customers, pulling its quarterly sports margin to 12.1%, below its trailing 24-month average of 13.7%. Van Wyk said the lower sports margin reduced revenue by about $40 million and adjusted EBITDA by approximately $25 million. However, year-to-date sports margin was 13.8%, within the company's stated structural range.
Guidance Revised After Sports Results
Super Group lowered its full-year 2026 guidance to revenue of $2.525 billion to $2.575 billion and adjusted EBITDA of $700 million to $720 million. The outlook assumes fourth-quarter sports margins remain within the company's normal range.
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"Quarter four is off to a great start," van Wyk said, adding that casino continues to grow and that October produced the company's highest sports margin of the year.
Chief Executive Officer Neal Menashe said the company's casino business continued to provide stability during periods of sports betting volatility. Record iCasino wagers increased 11% year over year, or 14% excluding the United States. September active customers reached 6.2 million as major European football leagues returned following summer seasonality.
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Menashe said Super Group's African parlay business can create a different earnings pattern than more traditional international sportsbooks. Large customer wins in Africa may take longer to recycle into future betting and casino activity because customers often continue making smaller wagers over time, he said.
Africa and International Operations Expand
Africa revenue increased 17% year over year to $262 million, while adjusted EBITDA rose 23% to $88 million, producing a 34% margin. Sports wagers in the region increased 6%, while casino wagers grew 21%.
The company said it has secured new casino licenses in Nigeria, Tanzania and Zambia, as well as sports betting and casino licenses in Rwanda. It is also pursuing further African expansion opportunities.
In Mozambique, Menashe said changes to online casino regulation are expected to improve the market's commercial attractiveness. In Namibia, however, changes to the local regulatory framework have delayed the company's anticipated launch until 2027, subject to adoption of the new policy.
Super Group also said it has reapplied for a license in Kenya, where it had previously surrendered its license after tax increases. Menashe said Kenya has since become one of the more favorable regulatory environments in Africa from a tax perspective, although the company plans to assess tax conditions, capital controls, products and local staffing before restarting operations.
International revenue increased 5% year over year, or 9% excluding the U.S., to $344 million. Adjusted EBITDA from international operations increased 24% to $93 million, with margin expanding by more than 400 basis points despite higher U.K. taxes.
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European revenue increased 6%, led by 13% growth in the United Kingdom.
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North American revenue rose 10% excluding the U.S.
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Canada revenue excluding Ontario and Alberta increased 15%, supported by casino performance.
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Rest-of-world revenue increased 5%, while New Zealand revenue rose 3% during a mandatory marketing hiatus.
In Alberta, Super Group completed the migration of customers to the newly regulated market in early October. Menashe said customers are adjusting to product changes, including the removal of autoplay features, and the company expects Alberta to be a more rational competitive market than Ontario.
New Zealand, Germany and Supercoin Plans
Super Group secured three of 15 available casino licenses in New Zealand ahead of the expected 2027 regulated-market launch. Menashe said the company had continued to preserve revenue in the country despite restrictions on marketing and expects the licenses to allow it to resume promotional activity. The licenses run for eight years and cost approximately $1 million annually, according to management.
The company also said it expects to launch online slots in Germany after modifying its platform to accommodate the country's separate-wallet requirements for sports betting and iCasino. Menashe cautioned that the German regulatory environment remains restrictive, including deposit limits.
Meanwhile, Supercoin, the company's digital payment platform, is live on South Africa's three largest exchanges. Management said additional wallet functionality is expected to roll out during the fourth quarter, with a full public launch targeted for early 2027 and potential expansion outside South Africa.
Capital Returns and Marketing Discipline
Super Group ended the quarter with $602 million in cash, up 30% year over year, and reported year-to-date free cash flow conversion of 70%. Over the past 12 months, the company returned about $223 million to shareholders, including approximately $25 million of dividends during the third quarter.
The board authorized a $150 million share repurchase program. Menashe said the company would execute the program opportunistically while preserving balance-sheet flexibility for organic investment and selective acquisitions.
Management said its capital-allocation priorities remain unchanged: invest first in organic growth, consider external opportunities only when returns meet its threshold, and return excess capital to shareholders through dividends, special dividends or repurchases.
Super Group expects marketing expense to remain within a range of roughly 20% to 22% of revenue, with spending directed toward markets offering the strongest returns. The company also highlighted its new Manchester United partnership, which management said has generated positive customer engagement, particularly in Africa.
About Super Group (SGHC) (NYSE:SGHC)
Super Group (SGHC) Ltd. is a global online sports betting and gaming company. Its principal brands are Betway, an online sportsbook and casino operator, and Spin, an online casino brand. Through these businesses, Super Group offers sports wagering, casino games, live casino products and related digital gaming services.
The company serves customers across multiple international markets, including regions in Africa, Asia, Europe, North America and South America, subject to local regulatory requirements.
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The article " What Super Group (SGHC) (SGHC) Said on Its Q3 Earnings Call " was originally published by MarketBeat.
