Raketech Group (RAKE) investor relations material

Executive summary

• Q3 continuing-operations revenue fell 18.6% YoY to EUR 5.0m; adjusted EBITDA was EUR 1.2m, with margin up to 23.0% from 19.6%.

• Lower revenue reflected the Paid Publisher Network phase-out and softer non-core Affiliation Marketing markets; restructuring and cost control supported profitability.

• An October agreement to settle the Casumba earnout for EUR 8.2m versus ~EUR 20.3m outstanding is expected to lower leverage and free future cash flow for debt reduction and core-market investment.

Financial highlights

• Q3 revenue was EUR 5.038m, down 18.6% YoY; reported EBITDA was EUR 1.067m, down 4.8%, and adjusted EBITDA was EUR 1.157m, down 4.5%.

• Q3 operating profit was EUR 0.154m versus EUR 0.903m; net loss from continuing operations was EUR 0.271m versus EUR 0.050m profit.

• 9M revenue declined 25.0% to EUR 15.949m; reported EBITDA rose 2.2% to EUR 3.533m, while adjusted EBITDA fell 6.2% to EUR 3.717m.

• 9M continuing-operations net loss was EUR 0.576m versus EUR 0.693m profit; adjusted loss was EUR 0.392m versus adjusted profit of EUR 1.017m.

• Q3 free cash flow before earnouts was EUR 1.281m, up 15.4% YoY; EUR 0.938m of earnouts was paid during the quarter.

Outlook and guidance

• October preliminary Affiliation Marketing revenue was above September but below the Q3 average; Organic Publisher Network revenue grew while Paid Publisher Network revenue declined as expected.

• Organic Publisher Network growth is expected to continue in Q4; two additional local media launches were planned for the remainder of Q4, including Finland ahead of its expected 2027 licensing regime.

• Priorities are to align costs with business scale, amortise bank debt with free cash flow, and invest in Sweden, Denmark and Italy; gradual improvement is anticipated entering 2027.