ASX small-cap BetMakers Technology Group (ASX: BET) has been a strong performer over the past year, with its share price up around 64% over the last 12 months.
However, the stock traded modestly lower on Thursday, down 2.5% at the close, following its latest quarterly update.
So after the update, is there more upside ahead, or is the rally starting to run out of steam?
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What did BetMakers report?
In its December quarter update (Q2 FY26), BetMakers reported revenue growth of 14.1% year on year, reflecting continued momentum across its digital wagering, content, and technology businesses.
The company also delivered adjusted EBITDA of $2.7 million, representing a meaningful turnaround from a loss in the prior corresponding period and marking the fourth consecutive quarter of positive adjusted EBITDA.
Margins continued to move in the right direction, with gross margin expanding to 66.4%, up from 61.6% a year earlier. Management attributed this improvement to the business's ongoing transition toward higher-margin, technology-led revenue streams. Operating cash flow was slightly positive in the quarter, and BetMakers finished December with approximately $30 million in cash, maintaining a solid liquidity position.
What else should investors know?
Operationally, the quarter was also notable for a series of high-profile commercial wins. BetMakers secured new or expanded agreements with major wagering operators, including Stake, PENN Entertainment, and CrownBet. While these deals reinforce the company's position as a global racing technology provider, they have not yet made a meaningful contribution to reported revenue. Management expects its financial impact to begin flowing through in the second half of FY26.
That timing likely explains Thursday's muted share price reaction. After a strong 12-month rally, some investors appear to be taking profits, while others are waiting for clearer evidence that recent contract wins will translate into sustained revenue and earnings growth.
Looking ahead, investors will be focused on whether growth can accelerate from here.
Foolish bottom line
The broader takeaway is that BetMakers looks like a stronger, more resilient business than it did a year ago. Revenue is growing, margins are improving, and profitability has returned on an adjusted basis. At the same time, expectations have risen alongside the share price.
Whether the rally continues will likely depend on execution over the next few quarters, particularly how quickly new customer agreements convert into recurring revenue and cash flow.
