Betsson (OM:BETS B) just reported record Q3 revenue and a sharp drop in earnings, with management tying the mix to heavier gaming taxes, softer B2B licensing, and higher operating costs in more tightly regulated markets.
At a share price of SEK99.05, Betsson has seen a 1-day share price return of 4.87% and a 7-day share price return of 7.14% following the record Q3 revenue and dividend affirmation. However, the year-to-date share price return is down 26.63%, while the 5-year total shareholder return of 107.80% points to a much stronger long-run payoff profile.
Scan beyond Betsson and evaluate other gaming and consumer services stocks that are reacting to fresh earnings and tax pressures in our curated list of 196 high quality undervalued stocks.
The recent bounce in Betsson looks like a tug of war between record customer activity and pressure on profits. Is this move pricing a stronger business, or just a swing in mood around gaming taxes and costs?
Most Popular Narrative: 41% Undervalued
On the most followed view of Betsson, a fair value of SEK167 sits well above the last close at SEK99.05, which frames the recent share move as a modest shift inside a much wider valuation gap.
Betsson is a quality compounder suffering a cyclical shock, not a structurally impaired business. The Q1 2026 EBIT margin of 11.9% , down from 21.8% in Q1 2025 , is driven almost entirely by two factors: (1) a single B2B client reducing activity, costing ~€39M in quarterly revenue vs. prior year, and (2) higher betting duties as the proportion of locally regulated revenue rises to 73%, a strategic deliberate shift that trades short term margin for long term regulatory durability.
See why 6 investors see Betsson as 41% undervalued.
Result: Fair Value of SEK167 (UNDERVALUED)
Still, the Betsson narrative can break if B2B activity fails to recover and if higher gaming taxes keep compressing margins longer than investors currently expect.
Find out about the key risks to this Betsson narrative.
Next Steps
If this combination of record revenue and margin pressure leaves you uncertain, consider acting while the data is fresh and test the thesis yourself with the 3 key rewards and 2 important warning signs.
Looking for more Betsson-sized opportunities?
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