The Jumbo Interactive Ltd (ASX: JIN) share price is pushing higher on Wednesday. This follows the company's release of its half-year results for the 6 months ended 31 December 2025.
In early trade, Jumbo shares are up 1.37% to $9.59. Despite today's gain, the stock remains down roughly 10% over the past month.
Here's what the lottery software and digital gaming group reported.
Image source: Getty Images
Revenue jumps 29% following acquisitions
Jumbo reported revenue of $85.3 million for the half, up 29% on the prior corresponding period.
Total transaction value rose 15.6% to $524.1 million, reflecting continued demand across its lottery and managed services segments.
Statutory net profit after tax (NPAT) came in at $15.5 million, down 13.4% year on year. However, underlying NPAT increased 22.6% to $22.8 million, highlighting the impact of acquisition-related and other non-recurring items.
Underlying EBITDA climbed 22.6% to $37.5 million, with the underlying EBITDA margin holding above 40%.
The company declared a fully-franked interim dividend of 12 cents per share, representing a 49% payout ratio. The dividend will be paid on 18 March 2026.
Dream Giveaways delivers strong contribution
A key driver of growth during the half was the Dream Giveaways business in the UK and the US.
The UK operation delivered strong revenue and EBITDA performance, with management noting it is tracking ahead of expectations. The US business is progressing in line with plan following its October acquisition.
The Managed Services segment also contributed positively, with Canada guidance upgraded. Underlying EBITDA growth in Canada is now expected to be between 20% and 25% in FY26.
Meanwhile, the core Australia Lottery Retailing business remained resilient despite a softer jackpot environment compared with the prior period.
Strong cash generation and balance sheet flexibility
Operating cash flow rose 9% on a 4-year compound basis, with the company reporting a cash conversion ratio of 129%.
Jumbo finished the half with $44.7 million in available cash and $57.8 million in available funds, including undrawn debt facilities.
Net leverage remains conservative at 0.8x, and management confirmed it continues to pursue an on-market share buyback alongside dividend payments.
FY26 outlook upgraded
Jumbo upgraded guidance for parts of its business, particularly Dream Giveaways UK and Canada Managed Services.
For Australia, underlying EBITDA margin guidance remains between 46% and 50%.
Dream Giveaways UK is now expected to deliver underlying EBITDA of 8 million to 8.3 million pounds in FY26. Meanwhile, the US business is forecast to contribute between US$2.7 million and US$3 million.
Foolish Takeaway
Jumbo delivered solid underlying earnings growth in the first half, supported by recent acquisitions and continued momentum across its platform businesses.
Although statutory profit fell due to acquisition-related costs, underlying earnings improved, and management lifted guidance for parts of FY26.
