Hacksaw Group's Strategic Expansion and IPO Timing: Assessing Long-Term Growth in the iGaming B2B Sector

The iGaming B2B sector is undergoing a seismic shift, driven by the rapid legalization of online gambling in the U.S. and a global surge in mobile-first gaming. Against this backdrop, Hacksaw Group has emerged as a standout player, leveraging its IPO in June 2025 to accelerate expansion and solidify its position in a market projected to grow at a 10.5% CAGR, reaching $257 billion by 2034. This analysis examines Hacksaw's strategic moves, financial performance, and the broader industry dynamics to assess its long-term growth potential and margin sustainability.

A High-Performance Engine: Financials and Margin Resilience

Hacksaw's financials in 2025 underscore its operational prowess. In Q3 2025, the company reported revenue of EUR 52 million, a 39% year-over-year increase, with adjusted operating profit (EBIT) surging to EUR 42.1 million-81% of revenue. Over the first nine months of 2025, total revenue grew 52% to EUR 142.4 million, while adjusted EBIT rose 44% to EUR 116.5 million, maintaining an 82% margin. These figures highlight a business model that balances aggressive growth with exceptional margin discipline, a rarity in the iGaming sector.

The company's free cash flow has also soared, jumping 139% year-on-year to EUR 35 million in Q3 2025. This liquidity, coupled with a debt-free balance sheet, positions Hacksaw to fund expansion without overleveraging-a critical advantage in a capital-intensive industry.

Strategic Expansion: Geography and Product Diversification

Hacksaw's IPO in June 2025 was not merely a fundraising exercise but a strategic catalyst for geographic and product diversification. By year-end 2025, the company had entered Pennsylvania's iGaming market and secured a license in Alberta, Canada. These moves align with the sector's "domino effect" of U.S. state-level legalization, where new entrants like New York and Louisiana are expected to drive further market fragmentation and opportunity.

Product-wise, Hacksaw has doubled down on in-house game development, launching 12 new titles in Q3 2025 alone. Simultaneously, it has expanded its third-party partnerships, integrating 15 third-party games into its platform. This hybrid approach-combining proprietary content with external offerings-ensures a scalable, diversified portfolio that appeals to operators seeking both uniqueness and variety.

Navigating the Competitive Landscape

The iGaming B2B sector is highly competitive, with major operators like DraftKings and FanDuel dominating the U.S. market. However, Hacksaw's focus on margin efficiency and technological innovation sets it apart. For instance, the company's use of AI-driven personalization and blockchain for secure transactions mirrors industry trends but is executed with a level of operational efficiency that few peers match.

While direct competitors like NetEnt and Yggdrasil remain opaque in their financial disclosures, Hacksaw's 81% EBIT margin in Q3 2025 far exceeds typical industry benchmarks, suggesting superior cost management and pricing power. This margin resilience is further bolstered by Hacksaw's commitment to returning 75% of net income to shareholders, a policy that reinforces investor confidence while maintaining reinvestment flexibility.

Risks and Challenges: Regulatory and Payment Hurdles

Despite its strengths, Hacksaw faces headwinds. The U.S. iGaming market's patchwork regulatory environment-where rules vary by state-requires continuous compliance investments. Additionally, the reluctance of major banks to process gambling transactions forces operators to rely on alternative payment methods, often at higher costs. Hacksaw's ability to navigate these challenges will be critical to sustaining its margins.

Long-Term Outlook: A Scalable Play on a Booming Sector

Hacksaw's strategic alignment with the iGaming sector's growth trajectory is evident. The U.S. market alone is projected to reach $26.8 billion in 2025, with online casinos expected to grow at a 12.4% CAGR to $38.66 billion by 2030. Hacksaw's expansion into 35 locally licensed markets and its focus on mobile-first platforms position it to capitalize on these trends.

Moreover, the company's long-term target of 30%+ revenue growth and its disciplined approach to shareholder returns suggest a management team focused on both top-line expansion and capital efficiency. As the sector matures, Hacksaw's ability to maintain its 80%+ EBIT margins will depend on its agility in adopting emerging technologies and its success in penetrating new markets.

Conclusion

Hacksaw Group's IPO in June 2025 was a masterstroke, timed to the sector's inflection point. With robust financials, a diversified product strategy, and a clear path to geographic expansion, the company is well-positioned to outperform in a market poised for decades of growth. However, investors must remain vigilant about regulatory and payment challenges. For those willing to navigate these risks, Hacksaw offers a compelling case of margin resilience and scalable growth in the iGaming B2B sector.