Super Group (SGHC) Limited (SGHC) Q3 2026 Earnings Report, Transcript and Summary

Hello, and welcome to Super Group Third Quarter 26 Earnings Webcast and Conference Call. Please note that this call is being recorded. After the speakers' prepared remarks, there will be a Q&A session. If you would like to ask a question during that time, please press star and then 1 on your telephone keypad. Thank you. I would now like to hand the call over to Nkem Ojougboh, head of investor relations. Please go ahead.

Good morning, everyone. And thank you for joining us today to discuss Super Group's results for the third quarter of 2026. During this call, Super Group may make comments of a forward looking nature that are subject to risk, uncertainties, and other factors discussed further in its SEC filings which could cause the actual results to differ materially from historical results or from our forecast. We assume no responsibility to update forward looking statements other than as required by law. On today's call, we may refer to certain non GAAP financial measures. These measures are in addition to, not a substitute for, measures of financial performance prepared in accordance with GAAP. Reconciliations to the most comparable GAAP measures are included in the press release issued yesterday and available on the Investor Relations page of our website. We recommend that investors refer to the supplementary presentation posted to our website. Today, I am joined by Neal Menashe, chief executive officer and Alinda Van Wyk, chief financial officer. After our prepared remarks, we will open the call up for questions. And now, I would like to turn the call over to Neal.

Thank you, Nkem, and good morning, everyone. Super Group continues to deliver. After a record second quarter, Q3 was a softer sports quarter with favorable outcomes for our sports customers. But casino once again offset that volatility. Record casino wages increased 11% year over year and 14% ex-U.S. Providing predictable revenue that absorbs a softer sports quarter and supports ongoing growth. Customer activity reflected its typical summer seasonality across European football. As the major leagues returned, engagement rebounded quickly, reaching 6.2 million active customers in the month of September. The start of the new football season also marked the launch of our Manchester United partnership. This agreement supplements Betway's exclusive partnership portfolio with the world's top football clubs and Man U strongly resonates with our African customers. In Africa, revenue grew 17% year over year to $262 million and adjusted EBITDA was up 23% to $88 million. With a robust EBITDA margin of 34%, sports wages grew 6% year over year, while casino wages were up 21% over the same period. Sports results were uneven during the quarter. A customer friendly outcome in August and September outweighed solid margins in July. Despite this volatility, year to date sports margins remain within our expected range. Importantly, we believe that volatility is transient. A structural improvement driven by improved pricing and trading and a resilient parlay mix in June. Our African growth pipeline continues to develop. In Mozambique, we expect recent changes in online casino regulation to materially improve the commercial attractiveness of this market for us. Which will further support our future growth prospects. We have successfully secured new casino licenses in Nigeria, Tanzania, and Zambia. And both sports betting and casino licenses in Rwanda. We continue to actively pursue further opportunities. In Namibia, delayed upcoming changes to the local regulatory regime, meaning I expect to launch during 2027, contingent on local policy adoption. Supercoin establishment continues as we build a digital payment platform with utility extending beyond gaming. The foundations are in place. Customers have access to our wallet and the coin is now live on South Africa's 3 largest exchanges. The next phase is focused on payments and expanded utility with additional wallet functionality expected to roll out this quarter, and a full public launch planned for early 2027. We are also excited for the expansion of Supercoin beyond South Africa's borders. International revenue grew 5% year over year. ex-U.S., it grew 9% to $344 million. While adjusted EBITDA grew 24% to $93 million. Margin expanded more than 400 basis points. Despite higher taxes in the U.K. We believe this performance highlights our disciplined marketing and leaner cost base at work. In Europe, revenue grew 6% led by the U.K., up 13%. In North America, revenue grew 10% excluding the U.S., while Canada, ex Ontario, and Alberta delivered 15% revenue growth. Supported by strong casino performance. In Alberta, customers are adjusting to the newly regulated market. Our migration successfully completed in early October and we remain confident in the long term opportunity in Alberta. Rest of world revenue increased 5% with New Zealand resilient at 3%, during a mandatory marketing hiatus ahead of next year's regulation. During the recent casino license auction, we secured 3 of the 15 available licenses. This positions us favorably in advance of expected regulated market launch in 2027, when marketing efforts can resume. Supergroup's commitment to product advancements continues to set us apart. The advantages of owning or controlling our tech stack facilitate faster innovation and greater control over our road map. We continue to enhance our sports books, and casino offerings, adding new features and improvements that we believe raise the standard across our product suite. With that, I will turn it over to Alinda.

Thank you, Neal. Total revenue for the third quarter was up 10% year-over-year. reaching $611 million. Adjusted EBITDA grew 8% to $165 million. Ending the quarter with a margin of 27%. We grew average monthly active customers by 9% year-over-year, reaching 6 million this quarter. Wagering momentum remains strong with total wagering up 11% for casino and 4% for sports. Customer friendly sports results put our sports margin down to 12.1% this quarter, well below our trailing 24 month average of 13.7%. This impacted revenue by approximately $14 million and adjusted EBITDA by around $25 million. Importantly, our year to date sports margin stands at 13.8%, keeping us comfortably within our target structural range. Our financial performance is built on a disciplined approach. We concentrate marketing spend in our highest return markets, while continuously refining our trading payments, and technology operations. At the same time, we keep a firm grip on costs. Navigating higher gaming taxes without losing sight of our strategic investment priorities. Turning to guidance, we need to account for the impact of quarter 3 sports results. With that in mind, we are revising our full year 2026 guidance with total revenue between $2.525 and $2.575 billion. Adjusted EBITDA is revised to be between $707 million to $720 million. Assuming fourth quarter sports margins remain within our normal range. Sports results are outside of our control. But sports wagering remains robust, and our business remains strong. Quarter 4 is off to a great start. Casino continues to grow. And our sports margin for October was the highest it is been all year. Our balance sheet remains strong. We ended this quarter with $602 million in cash. up 30% year-over-year. With the year to date free cash flow conversion of 70%. Over the last 12 months, we have returned approximately $223 million to our shareholders. Including $25 million in dividends this quarter. Neal will further address our capital allocation priorities. With that, I will now hand back to Neal.

Thank you, Alinda. Just 9 months into the year, our EBITDA has already almost surpassed full year 2025, which itself was a record year for Super Group. We entered the fourth quarter with strong momentum. The football season is in full swing. Casino is performing. We maintain a robust product pipeline and our operating model is increasingly efficient. Our earnings convert to cash at a high rate we have a strong balance sheet. A combination that gives us real flexibility. Our framework is really straightforward. First, we invest in the business. and in organic growth, Including new markets, because that is where we see the best returns. Second, we pursue external growth selectively, and only where returns clear a high hurdle. Third, we return excess cash to shareholders. Our regular dividend remains a foundation of that and we intend to grow it over time. Today, we are taking the next step under this framework. Our board has authorized a $150 million share repurchase program. We will execute it with discipline. And while we are not committed to a pace or a price, we will keep a strong balance sheet throughout so we can move quickly when the right opportunity arises. We are really well positioned and confident in the direction of the business. And expect to finish 2026 strongly, carrying momentum into 2027. Operator, can you please open the call up for questions?

Thank you. We are now opening the floor for Q&A session. Again, that is star followed by 1 on your telephone keypad. Your first question comes from the line of Jordan Bender of Citizens. Your line is now open.

Hey, everyone. Good morning, and thanks for the question. Start on guidance, if I adjust for the sport outcomes in the quarter and where the midpoint went to, it still implies that there might be maybe a delta between that number and the midpoint of guidance. So can you maybe just talk about how you are getting to the revenue number that you guys laid out And as I look to iCasino growth, it did decelerate, you know, 11% in the third quarter from 15% in the 20% in the first. So are you seeing any softening around that iGaming customer?

Right. So. And thirdly, obviously, our new guide reflects the impact on the customer friendly sports outcomes in Q3. And obviously, preserve the EBITDA upside from the original guide. Right? What is key is our underlying business remains strong. Casino, customer engagement, year to date sports margin remains within our structural range. And 1 thing from my side, and then to add on after that, if you recall from our September 2025 Investor day, we are way ahead of our target.

Yes. And just to conclude that, we. We are definitely not seeing a slowdown in the iGaming business at all. it is just to allow for the Q3 sports margin that had an impact. And we are still within, you know, the guide midway through the guide that we previously communicated.

Perfect. Thank you. And then to follow-up, Neal, you touched on the share repurchase program there. For a minute, and you kind of made comments around you will be more opportunistic around using that. But as you kind of think about excess capital and returning capital to shareholders, can you just kind of talk through your rankings around utilizing cash through dividends, through buybacks, investing in the business, what is your new priority list With the repurchase program now out there?

Our priorities are unchanged as previously also communicated, discipline first as we remain flexible and with that amount of cash gives us that flexibility. First, we always invest in the business for organic growth with a clear path to return. Second, we consider external growth opportunities but really always at the right price that will really supplement our business. And thirdly, if we then have excess cash, we are really focused on giving back to our shareholders in the form of special dividend quarterly dividends, or buybacks. So it would be in that priority.

Great. Thank you very much.

Your next question comes from the line of Clark Lampen of BTIG. Your line is now open.

Thanks for taking the question. I have 2, if I may. The first is sort of a minor clarification. on Jordan's question around guidance. Neal and Alinda, I did not hear you guys call this out, but a few of your peers have mentioned unfavorable sports results. As part of their Q3 and sort of Q4 framework. Is there anything notable that you guys have seen thus far in the quarter that is sort of worth calling out? And then the second question that I have is related to 2027. Neal, in your prepared remarks, I think I counted at least 5 market launches. Where the operating backdrop, and I guess the sort of regulatory regime has been favorable and sort of opens the door to entry. Could you give us-- I think we have a decent handle on the organic growth trajectory. Could you give us a feel for the markets that are in focus near term for a 2027 launch, that could be contributors? Thanks very much.

Okay. Alright. So first of all, let's start with October. October was a great month for sports, so overall, the month saw, as Alinda mentioned, our highest margin this year. I think it is important to everyone to understand, we have got a large African parlay business. Right? Obviously, together with our more traditional international book, makes us quite unique when you compare us to our listed operators. In practice, that means we can see days when a loss in South Africa is also at our profit for international, and vice versa. Right? You cannot always extrapolate other operators' results on us. that is the first thing. Right? And when it then comes to market launches, obviously, I mentioned in Libya, we were hoping to do Q4, but, obviously, they are redoing the changing of it. So we are-- we are ready to go operationally. And now it is just about waiting for them to issue the new license. So as soon as we get the new license, we can go. So we are hoping in 2027, We mentioned other ones like, Rwanda where we managed to get casino and sports licenses. There, we have to work on the tax framework to see what is happening. They all have the market. If you go from the bottom of Africa up, Zimbabwe, etcetera, are all are all starting to come. And, also importantly, we have also got Mozambique, which I did mention that finally changed the casino tax regime there. Means that we can actually no longer have to withhold tax on casino winning. Which means we can now compare favorably with the other operators. And then finally, just on international side, it is just finally taken years and years. You know, For New Zealand, we finally have to get 3 of the 15 licenses there. So we are really excited about that, and that should be coming in probably mid-2027. Yeah. And lastly, just 1 more point. I thought there was 1 more point I will add: Germany. we finally have gotten these online slots. So hopefully, let's see. I mean, we should be going out there soon. that is been working itself, and then. And let's see how that market then performs.

Is Nigeria still part of your road map for 2027? Or has there been anything that sort of changed that maybe is has delayed you know, that as a priority or opportunity?

Yes. No. That will act as an existing market where we have been sitting in early innings. But obviously, we are happy with our progress. The team on the ground is doing well. We are just really happy where we are. Remember we online first, in that market, so we still got some more local products and payments to put in there. An improved technology product team and bench strength. We are geared up really well for that market. Thank you.

Your next question comes from the line of Mike Hickey of Benchmark. Your line is now open.

Hey, Neal, Alinda, and thanks for taking our questions, guys. Good morning or afternoon. Just on 2027, obviously, you have a lot of momentum here in your business. I am just curious if you could kind of rank maybe in terms of growth where you are most confident or Alinda? And then also curious how you think about, the World Cup as a growth comparable next year. I think most of the, upside was on, add. Adding new players, but sort of how you think about that. And then some of the events, Neal, I am less familiar with, Men's Cricket and, I think, rugby World Cups are next year. You got the Africa Cup again and then the Women's Soccer World Cup. Just curious if those would be big catalysts for you or not. Thanks, guys.

Thank you, Mike, for your question.

Keeping in mind that we do not want to share too much about 2027 yet, we remain within that strategy to be the best operating efficient machine we can be. To expand-- have that for the margin expansion. But our growth opportunities is very diversified. Mike, Neal just went through the Africa and the international strategy for organic growth. And then if we go back to our capital allocation, we really take a bit of that money that we have to reinvest back in our business. So our marketing ratios, we keep within the range of 21%-22% for 2027, also to show that the commitment to grow those markets But the real success is in the efficiencies of the business. And that is why we continuously on track to see this margin expansion.

Yeah. And, Mike. And, obviously, the World Cup did help us in June and July. But remember, it was the wrong time, though. So it did not have that effect on our international customers and our African customers because the times were wrong. But, yes, you have got all from the World Cup, rugby, etcetera, coming this year. They all just add extra content to our ecosystem. So we are excited about that. And then remember, we also about capital allocation. We took that inorganic growth. Obviously, we are always looking for inorganic growth. But the price has to be right. And when we find the right 1, we will definitely hit it. So for us, we have got all these levers to pull, but most importantly is again, what we have achieved is this year, especially is the cross pollination. Of international and Africa together. We are 1 business. So anything we see that works well, we can use that in each of the markets we have. And it is all about being local in each of the markets, and then with this overall tech stack that supports.

Is a quick follow-up, Neal. Thank you for that color. The, you know, friendly outcomes, not unusual. In your business. I think you had a big 1 last fourth quarter 2025, tied to the Africa Cup. And of course, post that, we saw really strong recycling activity from your players. It sounds like October has been strong. I am just curious, much of that you think is the recycling of the sports winnings from 3Q into your sports and casino businesses. And is that recycling activity been sort of normal or if you think maybe given the amount of parlay exposure and the size of the winnings that we could have more duration in that recycling cycle?

Yeah. So listen, we run different sports books. Right? Especially, international is very different to Africa. Right? So international looks obviously like other operators when you compare us. But obviously, Africa parlay is quite unique, right? Because what it does is parlay, there are sometimes 10 or more legs with small stakes but they can get large wins. Even when the big winners come, they keep placing small bets relative to what they won. The money comes back in Africa over much longer period. So that is why we occasionally see bigger swings than our peers. It will take us a little bit more time to get it. And, of course, they may go and recycle into casino, etcetera. So. But overall, it always. We always manage over time to claw back. It just takes slightly longer in Africa. Right? But I suppose that is the brilliance of the African model and why the structural hold retention and margins are so much higher than our international side. Nice. Perfect. Thank you, guys.

Your next question comes from the line of Bernard McTernan of Barclays. Your line is now open.

Hi, everybody. Thanks for taking the question. Sorry if I missed this topic earlier on. Can you guys just talk a little bit about some of the news over the quarter about proposed South African gambling tax? what is the latest there? How are you thinking about a potential earnings impact if something like that was to come to pass?

Okay. So as a reminder, this is a reminder, but it is currently at 6.5% provincial tax. In South Africa and a 15% VAT which goes to the state. So this probably comes in at just under 20% of GGR. Treasury had put some discussion paper out a while ago with an additional 20% tax on GGR on top of all of it. But remember, it is it is not a concrete proposal yet. there is currently lots more industry consultation Any update on this is obviously expected in the February 2027 budget. But importantly, a proposal is not law. And the new national tax would require legislative provincial and presidential approval. And the numbers are out there, so you will not struggle to work out what the impact will be from us. But this increase will not be material. It will not be immaterial, but our business obviously is strong. And we have been navigating this for 3 decades. But it is quite a long road to go on there. With. Between the provincial and the state. Thanks for that.

And then just a quick follow-up. In terms of Kenya in 2027, can you just give us an update on that market and your thoughts around a potential timing and any other developments in that for that market over the last few months?

So basically, Kenya. I mean, it is funny. Before we listed, we were in Kenya. And then they increased the taxes, and we actually end up giving our license back. But with now, what happened is become the cheapest regulatory regime in Africa tax wise. Now we have to go through all the process again and reapply. So we have reapplied, and we are hoping in 2027 to be able to turn it on again. So I suppose that is just the lesson in rather just keeping our keeping all the licenses we acquire over time. And also, you know, Supercoin is also going to be getting the ZAR-pegged stablecoin. We are happy to get there well on that. But really, when it comes to all of these markets, Kenya, Rwanda, etcetera, we are patient before we relaunch. We understand the regulatory and tax environment, capital controls, product finding the right local people, and everything must work together. And when it works together, that means we start executing our marketing machine. Great. Thanks, everyone.

Your next question comes from the line of Ryan Sigdahl of Craig Hallum. Your line is now open.

Hey. Good day, Neal, Alinda, and Nkem. Start with Alberta province, you guys. Province. Excuse me. You guys took a more phased regulated launch here in October. But can you talk through kind of key takeaways from that transition for you guys and then what you are seeing in that market?

Yeah. Sure. So obviously, we have done a good job for the team. We have done a good job transitioning our customers to the newly regulated market, which obviously happened in October. The customers are adjusting, obviously, to the new changes in the product environment, such as the removal of auto play features. We are keeping a close eye on it. We are making improvements every day, every week. The marketing machine is going to start resuming its rollout. We have moved all our customers across onto the new regulated platform. And overall, we expect it to be more rational competitive-- I mean, a less competitive environment than what we found in Ontario. So let's see how it goes, and we are well placed.

Understand. Do users, monthly active users, I appreciate slide 10 with the monthly cadence. I think that is helpful from a seasonality standpoint, 6.2 million in September. Are you willing to say what it was in October at directionally if it was higher? And then kind of break out. I know you had some tax changes in a couple smaller African countries. Malawi, etcetera. But just kind of piecemeal the low value customer churn with kind of some higher value additions, etcetera, the puts and takes within that MAU number. Thanks.

Alright. So first of all, what you are seeing is some seasonality. So remember the 6 million customers, it is almost up 9% on last year. We have got persistency of our cohorts continues to be as strong as ever. We keep layering the cake. I suppose the key driver for us has always been in this business for the last 2.5 decades is the super near to profitable revenue per customer. So we are not chasing these unprofitable customers simply to maximize our net. Yeah.

Sorry. Just to add a bit more color there, we closed September at 6.2 million customers. So remember, we report on the average for the quarter. And as we alluded to, October is off to a great start.

Thanks, guys. Good luck.

Your next question comes from the line of Jed Kelly of Oppenheimer. Your line is now open.

Hey, great. Thanks for taking my question. Just looking at your cost acquisition efficiency, if I kind of look at like where your guidance is going to shake out, how you are performing, it looks like marketing is going to be flat down this year. Just can you talk about how sustainable that is and what is driving that and how we should think about your customer acquisition? Thank you.

Okay. So I will start there. 1 of the important drivers of our business has been besides the operating efficiencies is our marketing efficiencies. So, you know, it is a big number we are spending every year. And we found some areas where we can be more efficient. And for us, it is do we have enough in our marketing budget in order to compete? And we absolutely do. There were 500 million or even more. We absolutely do. So now the question is finding even more homes for it. So, you know, I mean, some of our competitors are less than 15%, some are less than 18. So we. Around 2021%, 22%, we are more than happy with how those returns are coming. And how those cohorts are paying back over time. So. And our focus is always to optimize marketing spend and to move it to areas where we see the return.

I think as well that it cannot be just percentage all the time. You have to look at the monetary value. Because the revenue keeps on growing. But we have also. Always been a business about acquiring customers with organic approach and with the funds that we generate to invest it back in our business. Great.

And then just on the buyback, can you talk about sort of implementing a buyback versus measuring the float on your shares and how you kind of try to thread that needle with buyback and your current float? Thank you.

So let's just recap, the board has approved a $150 million share buyback. And they wanted the buyback to be meaningful. But still we need to remain disciplined. So this is the first drive for us, and we. With this, it gives us ability to still be opportunistic in other areas with using this cash, like Neal alluded to, organic investments and m and a. We can always revisit the size with the board at any point in time. And if these circumstances materially change, But keep in mind, our regular dividend remains the foundation of our shareholders' returns. In the last 12 months, we have more than $220 million to the shareholders, and that is quite impressive. Thank you.

Your next question comes from the line of Matthew Weber with Canaccord Genuity. Your line is now open.

Hi, all. Good morning, and thanks for taking the question. I just want to ask about New Zealand. I believe you previously said that you expected regulation to have little effect on profitability in that market. Now that you know the auction price and have the right to apply for the 3 licenses, does that assessment still hold? And then are you able to comment on how much of your current New Zealand casino revenue comes from brands that you expect to take forward?

Okay. So let's start here. We have already operated in New Zealand for over 2 decades. And within the last year or 2, we have not been able to market there. Because that is just marketing restriction. So when they came out with these 15 licenses, we decided to get 3. So our 3 top brands can now go live and continue there. And just to remind everyone there, it is an 8 year license. That costs about a million dollars a year. But all the other taxes of that market, we already pay. So for us, we transition into the new software. And we can go and start marketing as we used to. So actually, we are really excited about it because we have been in no man's land. Now we were not allowed to market. And, you know, and, yes, we still preserved our revenue there. Which is how strong our brand presence is. And now I think about it, there will only be 15 licenses. Which end of which we have 3 of the 15, so about 20%. So we think there is lots of opportunity here.

And maybe just to add there, keep in mind that we have already been paying taxes in New Zealand for the last couple of years, so we will not have that impact on EBITDA. But we can now also turn on marketing, which we have not been able to do. So which will have a favorable impact on the growth.

Got it. Thank you. that is helpful color. And then maybe if I can just on the United Kingdom, it seems like another quarter of solid growth and share gains there. Just how durable do you see those share gains over the course of 2027? And do you expect any material impact from the new duty on most for sports bets, most remote sports bets when it takes effect next April? Thanks.

Yeah. Yeah. So I. The U.K. has been good for us. Remember, I still think we are under-indexed there. All our competitors now that we also increased rates in the shops as well for the slot machines. So I think that everyone's reeling into how they can make this market work. For us, it is worked efficiently. We have combined our businesses there, so we really see this operating efficiency And over time, the marketing rates are coming down. So for us, with. And remember, a lot of our sponsorships comes from English Premier League. So we are very. We are really visible there, including our product there. So for us, we have navigated that really, really well. And we have got a disciplined marketing team and, obviously, leaner cost base. All of that leads to us being able to take those extra taxes into account. Alright. Thanks, guys.

Your next question comes from the line of Chad Beynon of Macquarie. Your line is now open.

Hi, good morning. Thanks for taking my question. Given that you are not as focused on the U.S. OSB/iCasino market, How are you thinking about potential prediction market opportunities here stateside or in other markets as well? Thanks.

Okay. Listen, when for us, it is already when we exited the U. S, we really focused on Canada and international markets and in Africa. And in most of our markets, in all of them, most of that they basically. Prediction markets are gambling. That will have to be regulated and pay the local taxes. So the 2 beds we. Not. We do not have a predictions product. We are focused clearly on our sports book and our online casinos, which is what we have built over the last year. And that is where we are able to literally compete head on with them or our competitors. Thanks, Chad.

And then, Alinda, you kind of touched on this in terms of sponsorship and marketing, but I just wanted to ask directly on the ManU sponsorship. You know, you talked about MAUs increasing, in the last couple of months. Against that average, but notwithstanding the current team's results, which will, you know, hopefully and most likely improve as we get through the season. How are you measuring success with that sponsorship at this point?

Yes. The partnership started with the new season in August in this quarter, and we are seeing positive engagement from our customers, particularly in Africa. We called out that in Africa alone, this morning, a quarter of 250 million fans in Africa alone. So the engagement is just big, for us in Africa. And importantly, is a long term investment in our brand and the strength supports the sustainable customer growth. So across all our key markets, this is exactly what this exclusivity brings us with these partnerships. Thank you very much.

And I will just add in here that-- obviously, the results on the pitch do not change the value of ManU, of ManU's value of this deal. Right? Probably, it is more favorable for us, of course, when Man United draws or loses, but otherwise, yeah, it can make the difference. Thanks, Chad.

Your next question comes from the line of Bernard McTernan of Needham. Your line is now open.

Great. Thanks for taking the question. Can you, Neal, can you. I do not think I have heard you mention Germany before. Can you just detail that opportunity and maybe what is changing there and why now?

So I mean, I have mentioned it probably over the last 4 years, kept bringing Germany in. Basically, Germany moved to regulated regime, and they forced us to have separate wallets for casino and sports. But when we built our software, it was always built with 1 wallet. So it is taken us about a time to eventually get there. We are able to separate the wallet and now finally, we can operate with 1 wallet, separately on a separate wallet. So let's see how it goes. The regulatory regime, they are still very tough. Because I have got deposit limits, etcetera. But because we had done the sportsbook and done all the work, we have now done the extra work to get to decouple the 2 wallets. So let's see how that goes.

Okay. Got it. And then just to follow-up on guidance philosophy. Now that there could be a couple potential new markets coming next year. Should we expect you to start the year with any of those launches in the guidance? Or is it just going to be kind of steady state and that would be incremental if they come to fruition?

I mean, we will communicate in detail the drivers of our guidance in 2027 when we come out with guidance. But the key drivers will remain the same as what we have you know, in 2026. What we know at that point in time, we will guide for. It will be strictly organic growth. There will be no aggressive persistency assumptions and we will remain. We talked a lot about this marketing discipline. So anything over about 19, 20%, we will see as investment back into the business. And then we will assume our sports margin will be within our expected range, which is always a tricky 1. We will include, however, anything that we already have launched in 2026 such as Alberta, which will have a new tax regime, etcetera, will be in the guide.

Understood. Thank you both.

Thank you. I would now like to hand the call back to Neal For closing remarks.

Okay. Thank you everyone for joining today's call. We are really proud of the team's execution, and we remain focused on delivering against our strategy. We look forward to speaking to you all again soon. Thanks.

Thank you for attending today's call. You may now disconnect. Goodbye.