Super Group Q3 2026 Earnings: Casino Growth Offsets Sports Volatility

Super Group (NYSE: SGHC) reported Q3 2026 revenue of $611 million, up 10% from $557 million a year earlier, while diluted EPS increased to 27.75 cents from 18.88 cents. IFRS profit reached $142 million and non-GAAP adjusted EBITDA rose to $165 million, as casino growth and stronger African operations helped offset customer-friendly sports results.

Core Earnings Data

Revenue growth was accompanied by lower direct and marketing expenses, although general and administrative costs and depreciation and amortization increased. Reported profit grew much faster than adjusted EBITDA, partly because IFRS results included favorable provision releases and gaming tax recoveries that the company excludes from adjusted EBITDA.

Adjusted EBITDA is a company-defined non-GAAP measure. The tax expense remained at $37 million despite higher pre-tax profit, also contributing to the faster increase in profit after tax.

Business and Segment Performance

Africa was the main revenue growth engine, led by iGaming. International revenue also increased, but its sportsbook business contracted and partially offset casino growth.

America generated $193 million of reportable segment revenue, compared with $186 million a year earlier. Europe increased to $115 million from $108 million, while Rest of World revenue rose to $36 million from $34 million. Total reportable segment revenue was $606 million; an additional $5 million of brand license fees brought consolidated revenue to $611 million.

Casino Growth Helped Absorb Sports Volatility

Casino gross revenue increased 16%, providing a more stable base while sports betting results moved against the company. Customer-friendly sports outcomes reduced Q3 revenue by approximately $40 million and adjusted EBITDA by around $25 million, according to management.

This effect helps explain why adjusted EBITDA grew more slowly than revenue and why its margin edged down. Management said its longer-term sports margin remains within the expected structural range, but the quarterly volatility was large enough to prompt a revision to full-year guidance.

Profitability, Cash Flow, and Balance Sheet

Both operating segments recorded higher adjusted EBITDA. However, unallocated costs moved from a positive $6 million contribution to a $16 million expense, a $22 million negative swing that limited consolidated EBITDA growth.

Unallocated costs consist primarily of head-office expenses and other net costs that cannot practically be assigned to an operating segment. The release did not provide a more detailed explanation for the year-over-year change.

Favorable Items Lifted IFRS Profit

Reported profit included a $17 million release of a remote gaming duty provision and a $5 million release of a penalty provision following a favorable tribunal decision. Super Group also recognized $17 million from the recovery of Austrian gaming taxes previously paid. These three benefits totaled $39 million and were excluded from adjusted EBITDA.

The underlying tax matter may still be subject to further proceedings. Investors should therefore distinguish the 48% increase in IFRS profit from the 8% increase in adjusted EBITDA when assessing recurring operating performance.

Nine-Month Cash Flow and Capital Allocation

Cash and cash equivalents increased to $602 million at September 30, 2026, from $513 million at December 31, 2025. During the first nine months of 2026, Super Group generated $377 million of net operating cash flow, used $67 million for investing activities and used $215 million for financing activities. Foreign-exchange movements reduced cash by another $6 million.

Financing outflows included $203 million of dividends. Investing activity included a $28 million payment related to the Apricot sportsbook acquisition, along with spending on internally developed intangible assets and financial assets.

On October 30, the board authorized up to $150 million of share repurchases through the end of December 2027. The authorization is discretionary: Super Group is not obligated to repurchase shares, and the board may extend, shorten or terminate the program.

Earnings Guidance

Super Group revised its FY2026 outlook to reflect the effect of customer-friendly sports results. The release did not provide the previous ranges, so the size of the revision cannot be quantified from the supplied information.

Risks Investors Need to Watch

• Sports betting volatility: Customer-friendly outcomes reduced quarterly revenue by about $40 million and adjusted EBITDA by roughly $25 million. Similar volatility could affect future results and the company’s ability to deliver its revised guidance.
• International sportsbook weakness: International sportsbook revenue declined about 8%, even as the segment’s iGaming revenue increased. Continued weakness could leave growth more dependent on casino products.
• Higher unallocated costs: The $22 million negative swing in unallocated adjusted EBITDA offset a substantial portion of the improvement produced by Africa and International operations.
• Nonrecurring support for IFRS profit: Provision releases and gaming tax recoveries added $39 million to reported results but were excluded from adjusted EBITDA. The tribunal-related tax matter may also face further proceedings.

Summary

Super Group’s Q3 2026 results showed continued casino-led growth, particularly in Africa, while unfavorable sports outcomes constrained revenue, adjusted EBITDA and full-year expectations. Operating segments generated higher EBITDA, but increased unallocated costs limited margin expansion, and favorable one-time items amplified IFRS profit growth. The main items to monitor are sports betting volatility, International sportsbook revenue, unallocated costs and progress toward the revised FY2026 guidance.