Playtech Plc said on Thursday that full-year profit was set to be "significantly" above consensus expectations following a strong second half.
The gambling software development company hailed "strong" trading in the second half of 2025, driven by its performance in the US and Mexico in Q4.
As a result, adjusted earnings before interest, tax, depreciation and amortisation for the year ended 31 December 2025 will be at least €195m. Consensus expectations were for €177m.
As far as 2026 is concerned, Playtech said it remains mindful of ongoing sector headwinds including the scheduled increase to gambling taxes in certain markets such as the UK.
"However, the Q4 revenue trends seen in the Americas mean that Playtech enters 2026 with good momentum, as returns on the company's investments in recent years accelerate," it said.
Playtech also said that given the strong performance and prospects in regulated markets, notably the Americas, it is confident of achieving its medium-term targets of €250m to €300m of adjusted EBITDA and €70m to €100m of free cash flow.
Chief executive Mor Weizer said: "I'm delighted with the strong performance we saw at the end of 2025. We have been steadily investing across our business in the Americas for a number of years, and I'm particularly pleased with our recent progress in the US, as the benefits of our hard work start to accelerate and flow through to profitability.
"We continue to invest selectively into the US and elsewhere in the Americas, where we see additional growth opportunities. While we remain mindful of wider sector headwinds, I am excited by the momentum we are building and the significant growth opportunity ahead."
At 0818 GMT, the shares were up 5.9% at 297p.