Racing and Sports Technology's Customer Loss Meets a Growth Rebound

Losing a tier-one wagering customer broke a key claim, but new contract wins and a strong-performing Asian subsidiary have restored confidence in the growth story.

31 Aug 2026 · 3 min read

Racing and Sports Technology lost a major wagering technology customer to a key competitor, breaking its previous claim of never losing a tier-one customer, before management's detailed explanation of near-term profitability investment and a run of new contract wins, including strong performance from its new Asian subsidiary, restored Merewether Capital's confidence in the growth story.

A tier-one customer loss breaks a key claim

Merewether Capital said it was otherwise a quiet month for news except for its larger holding, Racing and Sports Technology, and unfortunately the news wasn't good, as the company announced it had lost a large wagering technology customer, Stake, to key peer Betmakers Technology, after helping launch Stake's complete horse racing solution back in 2024. Best estimates put the impact at $500,000 to $750,000 to net revenue, material for a business hovering around its profit inflection point, and beyond the financial impact, it ruined the company's previous claim of never losing a tier-one customer, though this was more than offset by the recent win of LeoVegas's UK horse racing product.

Beyond the financial impact it ruins RTH's previous claim of never losing a tier one customer... though this will be more than offset by the recent win of LeoVegas' UK horse racing product.

— Merewether Capital, Investor Update, December 2025

A near-term profitability dip masks investment for growth

Merewether Capital said Racing and Sports Technology reported revenue up 38 percent alongside a net loss of $400,000, compared with a $400,000 net profit the prior year, disappointing for profitability at a core fund holding, but management provided great detail into the key areas of the business it has been investing in over the past year that are now leading to direct revenue growth and profitability in the future, having previously outsourced a managed horse racing feed service.

RTH reported revenue up 38% and a net loss of $400k compared to a $400k net profit last year. While it's disappointing to see profitability decline for a core holding in the Fund, RTH management provided great detail into the key areas of the business they have been investing in that are now leading to direct revenue growth and profitability in the future.

— Merewether Capital, Monthly Report, February 2026

New contract wins confirm the growth trajectory

Merewether Capital said Racing and Sports Technology announced new customer contracts worth at least $2 million in annualised recurring revenue, with ARR at $24.6 million at the first-half report, and the additional $2 million representing strong incremental growth while maintaining the company's roughly 30 percent organic growth rate, with management highlighting momentum and expecting further contracts to be won before the end of the financial year, alongside the new Racing and Sports Asia subsidiary outperforming expectations.

RTH announced new customer contracts worth at least $2m in annualised recurring revenue (ARR)... representing strong incremental growth and maintaining RTH's ~30% organic growth rate, with the new Racing and Sports Asia subsidiary outperforming expectations.

— Merewether Capital, Investor Update, May 2026

What fund managers say they are watching next is continued conversion of new contract wins toward and beyond the $24.6 million-plus ARR base, delivery on the roughly 30 percent organic growth rate, further outperformance from the Racing and Sports Asia subsidiary, and whether the LeoVegas UK horse racing win and other new contracts continue offsetting the Stake customer loss.