Core Viewpoint - Super Group (SGHC) Limited is identified as one of the most undervalued stocks on the NYSE, with analysts recommending it as a buy following a positive earnings report and promising future guidance [1][3]. Financial Performance - Super Group reported an 11% year-over-year growth in adjusted EBITDA for Q4 2025, driven by revenue growth and margin expansion [1]. - Revenue for Q4 2025 reached $578 million, an 8% increase year-over-year, surpassing street consensus expectations of $485 million [1]. - The company experienced double-digit growth in monthly active customers, contributing to the revenue increase [1]. Future Guidance - Management provided optimistic guidance for 2026, projecting full-year revenue of $2.55 billion, exceeding analyst expectations of $2.09 billion [3]. - Expected adjusted EBITDA for 2026 is $680 million, with further margin improvements anticipated [3]. Company Overview - Super Group (SGHC) Limited is a global digital gaming company engaged in online sports betting and gaming through its brands, Betway and Spin [4].

Core Viewpoint - Super Group (SGHC) Limited is recognized as one of the 10 Best Magic Formula Stocks for 2026, showcasing strong financial performance and growth potential [1]. Financial Performance - Quarterly revenue for Q4 2025 increased by 8% year-over-year to $578.3 million, with growth driven by regions including Europe, Asia-Pacific, Africa, and North America [2]. - Adjusted EBITDA for Q4 2025 was reported at $139 million, an increase from $125.9 million in the previous year [2]. - The number of unique monthly active customers reached 6.1 million, reflecting a 16% improvement from the prior year [2]. Annual Results - Annual revenue rose from $1.8 billion in 2024 to $2.2 billion in 2025, primarily due to strong growth in Africa and successful market entries in Botswana and the United Kingdom [3]. - Adjusted EBITDA for the full year grew by 57% year-over-year to nearly $560 million [3]. - Looking forward, SGHC anticipates double-digit growth in both revenue and adjusted EBITDA, projecting revenue to exceed $2.55 billion and adjusted EBITDA to surpass $680 million [3]. Dividend Announcement - SGHC announced an increase in its annual dividend target to a minimum of 20 cents per share from the previous 16 cents, with quarterly payments starting March 31 for shareholders on record as of March 16 [4].

Core Viewpoint - Super Group (SGHC) Limited has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system useful for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on their buying or selling actions [5]. Business Outlook for Super Group - The rising earnings estimates and the Zacks rating upgrade indicate an improvement in Super Group's underlying business, which is expected to drive the stock price higher [6]. Importance of Earnings Estimate Revisions - Empirical research shows a strong correlation between earnings estimate revisions and stock movements, highlighting the importance of tracking these revisions for investment decisions [7]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Super Group to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for near-term price increases [11]. Recent Earnings Estimate Changes - Over the past three months, the Zacks Consensus Estimate for Super Group has increased by 5.3% [9].

Core Insights - Super Group (SGHC) reported a strong performance in 2025, with record customer activity and profitability gains, following its strategic exit from U.S. iGaming [2][5] - The company anticipates continued organic growth in 2026, projecting revenue of at least $2.55 billion and Adjusted EBITDA exceeding $680 million, supported by operating leverage and the FIFA World Cup [3][16] Financial Performance - For 2025, Super Group achieved revenue of $2.2 billion, a 22% increase year-over-year, and Adjusted EBITDA of $560 million, up 57% with a margin of approximately 25% [5][8] - In Q4 2025, total revenue rose 8% year-over-year to $578 million, while Adjusted EBITDA increased 11% to $139 million, driven by strong casino momentum and an active sports calendar [9][10] Strategic Initiatives - The company completed the Apricot transaction, bringing sportsbook technology in-house, which is expected to yield annualized savings of around $35 million [4][13] - The launch of the ZAR Supercoin in South Africa marks an early step in developing a broader digital payments infrastructure [1][14] Regional Performance - In Europe, Q4 revenue increased by 23% year-over-year, with the U.K. leading at a 37% growth rate [6] - Africa saw a 27% revenue growth for the full year, with Botswana outperforming and South Africa achieving strong wagering growth [6] - North America, excluding the U.S., grew by 10%, with Canada ex-Ontario increasing by 15% [7] Capital Returns and Shareholder Value - The company returned $156 million to shareholders in 2025, including a special dividend exceeding $125 million [11][12] - The minimum quarterly dividend target was raised from $0.04 to $0.05 per share, with the first payment expected at the end of March [12] Future Outlook - Management expects 2026 to start strongly, with active customer numbers higher than the previous quarter, and anticipates continued engagement and benefits from the FIFA World Cup [15][16] - The company is exploring expansion opportunities in Africa, with Namibia included in the 2026 guidance [18]

Core Viewpoint - The article discusses investment strategies focusing on a long-term horizon, emphasizing a balanced portfolio of growth, value, and dividend-paying stocks, with a particular inclination towards value investing [1]. Group 1: Investment Strategy - The company adopts a long-term investment approach, typically with a 5-10 year horizon [1]. - The investment philosophy prioritizes simplicity in portfolio construction [1]. - The portfolio is generally composed of a mix of growth, value, and dividend-paying stocks, with a stronger focus on value [1]. Group 2: Options Trading - The company occasionally engages in options trading as part of its investment strategy [1].

Core Viewpoint - SGHC Ltd reported better-than-expected fourth-quarter sales results and provided strong revenue guidance for FY26, indicating positive growth prospects for the company [1]. Group 1: Financial Performance - Super Group reported quarterly sales of $578.300 million, surpassing the analyst consensus estimate of $518.328 million [1]. - SGHC anticipates FY2026 revenue to exceed $2.550 billion, compared to market estimates of $2.219 billion [1]. Group 2: Stock Performance - Following the earnings announcement, Super Group shares increased by 11.5%, trading at $10.84 [1]. Group 3: Analyst Ratings and Price Targets - Benchmark analyst Mike Hickey maintained a Buy rating on SGHC and raised the price target from $17 to $18 [3]. - BTIG analyst Clark Lampen also maintained a Buy rating but lowered the price target from $19 to $16 [3].

Financial Data and Key Metrics Changes - Total revenue for 2025 reached $2.2 billion, reflecting a 22% increase compared to the previous year [10] - Adjusted EBITDA increased by 57% year-over-year to $560 million, representing a margin of around 25% [10] - Q4 total revenue grew 8% to $578 million, with Adjusted EBITDA up 11% to $139 million [10] - Average monthly active customers reached an all-time high of 6.1 million for the quarter, a 16% increase from the same period in 2024 [11] - Cash at year-end was $513 million, up 32% year-over-year [11] Business Line Data and Key Metrics Changes - Sports wagers grew by 20% year-over-year, while casino wagers increased by 17% [10] - Africa's revenue grew 27% for the full year against 2024, with Botswana outperforming since launch and South Africa showing strong wagering growth [6] - North America, excluding the U.S., grew 10%, with Canada ex Ontario increasing by 15% [7] - APAC revenue rose 6% year-over-year, despite a 5% dip in New Zealand [8] Market Data and Key Metrics Changes - Europe saw strong revenue growth of 23% year-over-year, led by a 37% increase in the U.K. [6] - In Spain, revenue grew 5% due to strong retention and product improvements [6] - Africa's growth was supported by a 31% increase in sports wagers and a 32% increase in casino wagers year-over-year [7] Company Strategy and Development Direction - The company refined its portfolio by exiting USi Gaming to focus on markets with clear advantages [5] - Plans to expand into new African territories and enhance sportsbook technology through the Apricot transaction [6][34] - The launch of ZAR Supercoin in South Africa is part of a broader digital payments infrastructure strategy [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong start to 2026, with guidance for total revenue of at least $2.55 billion and Adjusted EBITDA of more than $680 million [12] - The company is preparing for regulatory changes in Alberta and expects to leverage lessons learned from Ontario [43] - Management highlighted the importance of customer engagement and operational efficiency in navigating market challenges [27][80] Other Important Information - The board approved an increase in the minimum quarterly dividend target from $0.04 to $0.05 per share [13] - The company returned $156 million to shareholders in 2025, including a special dividend of over $125 million [12] Q&A Session Summary Question: Impact of customer-friendly outcomes in December - Management estimated a $20 million EBITDA impact from favorable sports outcomes in December, which flowed into January results [17] Question: Charitable initiatives with Betway Cares - Betway Cares focuses on community initiatives in South Africa, including clean drinking water and sports development [21] Question: Tax changes in South Africa - No new updates; operators are expected to submit responses to the government paper by the end of February [27] Question: M&A considerations - The company is selective with M&A, focusing on opportunities that improve technology or market position without overpaying [40] Question: Strategy in Alberta - The company is ready for Alberta's regulation in Q2 2026, applying lessons learned from Ontario to enhance customer migration [43] Question: Risks associated with guidance - Risks include regulatory shifts and sports margin normalization, but management remains confident in achieving guidance [78][80]

Financial Data and Key Metrics Changes - Total revenue for 2025 reached $2.2 billion, reflecting a 22% increase compared to the previous year [10] - Adjusted EBITDA increased by 57% year-over-year to $560 million, representing a margin of around 25% [10] - Q4 total revenue grew 8% to $578 million, with Adjusted EBITDA up 11% to $139 million [10] - Average monthly active customers reached an all-time high of 6.1 million for the quarter, a 16% increase from the same period in 2024 [11] - Cash at year-end was $513 million, up 32% year-over-year [11] Business Line Data and Key Metrics Changes - Africa's revenue grew 27% for the full year against 2024, with Botswana outperforming since launch and South Africa showing strong wagering growth [6] - Monthly active customers exceeded 6 million, with significant growth in sports wagers (31%) and casino wagers (32%) year-over-year in Africa [7] - North America, excluding the U.S., grew 10%, with Canada ex-Ontario increasing 15% [7] - APAC revenue rose 6% year-over-year, despite a 5% dip in New Zealand [8] Market Data and Key Metrics Changes - Europe saw strong revenue growth of 23% year-over-year, led by a 37% increase in the U.K. [6] - In Spain, revenue grew 5% due to strong retention and product improvements [6] - North America, excluding the U.S., showed a 10% growth, with Ontario experiencing record engagement and deposits [7] Company Strategy and Development Direction - The company refined its portfolio by exiting U.S. iGaming to focus on markets with clear advantages [5] - Plans to expand into new African territories and leverage the upcoming FIFA World Cup for global engagement [15] - The launch of ZAR Supercoin in South Africa is part of a broader digital payments infrastructure strategy [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing customer momentum and operational efficiencies [11] - Guidance for 2026 includes total revenue of at least $2.55 billion and Adjusted EBITDA of more than $680 million, reflecting organic growth and customer engagement [12] - Management acknowledged potential risks from regulatory changes and emphasized a conservative approach to guidance [81] Other Important Information - The company returned $156 million to shareholders in 2025, including a special dividend of over $125 million [12] - The board approved an increase in the minimum quarterly dividend target from $0.04 to $0.05 per share [13] Q&A Session Summary Question: Impact of customer-friendly outcomes in December - Management estimated a $20 million EBITDA impact from favorable sports outcomes in December, which flowed into January [17] Question: Charitable initiatives with Betway Cares - Betway Cares focuses on community initiatives in South Africa, including clean drinking water and sports development [21] Question: Tax changes in South Africa - No new updates; operators are expected to submit responses to the government paper by the end of February [27] Question: M&A considerations - The company is selective with M&A, focusing on opportunities that improve technology or market position without overpaying [40] Question: Strategy in Alberta - Alberta is expected to regulate in Q2 2026, with lessons learned from Ontario being applied to improve performance [44] Question: Risks associated with guidance - Risks include regulatory shifts and sports results normalizing, which have been factored into the guidance [81]

Financial Data and Key Metrics Changes - Total revenue for 2025 reached $2.2 billion, reflecting a 22% increase year-over-year [10] - Adjusted EBITDA increased by 57% year-over-year to $560 million, representing a margin of approximately 25% compared to 9%-19% in the prior year [10] - Q4 total revenue grew 8% to $578 million, with Adjusted EBITDA up 11% to $139 million [10] - Average monthly active customers reached an all-time high of 6.1 million for the quarter, a 16% increase from the same period in 2024 [11] - Cash at year-end was $513 million, up 32% year-over-year [11] Business Line Data and Key Metrics Changes - Africa's revenue grew 27% for the full year against 2024, with Botswana outperforming since launch and South Africa showing strong wagering growth [5] - Sports wagers in Africa grew by 31% and casino wagers by 32% year-over-year [6] - North America, excluding the U.S., grew 10%, with Canada ex Ontario increasing by 15% [6] - APAC revenue rose 6% year-over-year, despite a 5% dip in New Zealand [7] Market Data and Key Metrics Changes - Europe saw strong revenue growth of 23% year-over-year, led by a 37% increase in the U.K. [5] - In Spain, revenue grew 5% due to strong retention and product improvements [5] - North America, excluding the U.S., grew 10% [6] - Africa's growth was supported by high brand loyalty and customer momentum [6] Company Strategy and Development Direction - The company refined its portfolio by exiting USi Gaming to focus on markets with clear advantages [4] - Plans to explore expansion into new African territories and capitalize on the upcoming FIFA World Cup [14] - The launch of ZAR Supercoin in South Africa is part of a broader digital payments infrastructure strategy [4][9] - The company aims to maintain operational efficiencies and marketing discipline while preparing for regulatory changes in various markets [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate regulatory changes and maintain growth momentum [27][79] - The guidance for 2026 includes total revenue of at least $2.55 billion and Adjusted EBITDA of more than $680 million, reflecting organic growth and customer engagement [12] - Management highlighted the importance of customer engagement and the potential impact of the World Cup on business performance [56][68] Other Important Information - The company returned $156 million to shareholders in 2025, including a special dividend of over $125 million [11] - The board approved an increase in the minimum quarterly dividend target from $0.04 to $0.05 per share [13] - The company is focused on improving customer engagement through AI-driven enhancements and promotional mechanics [8] Q&A Session Summary Question: Impact of customer-friendly outcomes in December - Management estimated a $20 million EBITDA impact from favorable sports outcomes in December, which flowed into January [16] Question: Charitable initiatives with Betway Cares - Betway Cares focuses on community initiatives in South Africa, including clean drinking water and sports development [20] Question: Tax changes in South Africa - No new updates; operators are expected to submit responses to the government paper by the end of February [27] Question: Expansion plans in Nigeria - The company is assessing its strategy in Nigeria and expects low single-digit World Cup tailwinds [34] Question: M&A considerations - The company is selective with M&A, focusing on opportunities that improve technology or market position without overpaying [40] Question: Strategy in Alberta - Alberta is expected to regulate in Q2 2026, with lessons learned from Ontario being applied to improve performance [42] Question: Risks associated with guidance - Risks include regulatory shifts and sports margin normalization, but management remains confident in achieving guidance [78]

4Q 2025 Earnings Review February 23, 2026 DISCLAIMERS Forward-Looking Statements Certain statements made in this presentation are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, Super Group's intention to pay a dividend, including the expected timing of such dividend, expectations and projections of market opportunity, growth and profitabili ...