Jumbo Interactive Lifts FY26 Earnings Outlook on Strong US Performance

Jumbo Interactive (ASX: JIN) has upgraded its group earnings outlook for the 2026 financial year after stronger-than-expected performance from its recently acquired Dream Giveaway business in the US.

The digital lottery and prize draw operator now expects underlying EBITDA of between $82 million and $85m, representing growth of 20% to 24% on FY25.

Underlying NPAT before acquired intangible amortisation is forecast at between $48m and $50m, up 13% to 18% from the previous year.

The upgraded group outlook incorporates a substantial increase in guidance for Dream US, partly offset by reduced expectations for Dream Car Giveaways in the United Kingdom.

Jumbo’s broader model combines consumer brands such as Oz Lotteries, Dream Car Giveaways, and Dream Giveaway with business-to-business software and managed services supporting government and charity lottery programs.

US Business Outperforms

Jumbo expects Dream US to contribute underlying EBITDA of between US$5.2m and US$5.5m for the eight months following completion of the acquisition in October 2025.

The revised range is materially above the previous forecast of US$2.7m to US$3m and reflects strong growth compared with preceding reporting periods.

Performance benefited from an increase to 29 prize draws during FY26 from 16 in the prior corresponding period, together with changes to draw timing following Jumbo’s acquisition of the business.

Dream UK is now expected to generate underlying EBITDA of between £7m and £7.3m for the period included in Jumbo’s FY26 result, with the reduction from the previous guidance range of £8m to £8.3m reflecting increased investment during the transition from the founders, new market testing initiatives, and seasonal trading effects.

Despite the downgrade, Jumbo expects the annualised result to represent growth of approximately 20% to 25% on the £8.3m earned during the 12 months to April 2025, and a new Dream UK business head will commence during July to support an orderly leadership transition ahead of the founders’ planned departure by December 2026.

Managed Services Remain Positive

Jumbo’s Australian operations remain on track to achieve an EBITDA margin of between 46% and 50%, unchanged from its previous outlook.

The UK managed services division is expected to deliver EBITDA growth of approximately 10%, at the lower end of its previous 10% to 15% guidance range.

Higher-than-expected lottery jackpots affected the UK result, although cost discipline helped offset part of the impact.

Canadian managed services guidance has been lifted sharply to EBITDA growth of between 35% and 45%, compared with the earlier forecast of 20% to 25%.

This follows a series of new business wins, product investment, and favourable campaign timing.