Deezer (DEEZR) H2 2025 earnings summary

Executive summary

• Achieved all FY25 targets, including first-ever positive net income (€8.5M) and free cash flow, marking a shift to sustainable profitability.

• Revenue stable year-over-year at €534M, with direct subscriber growth offsetting partnership declines.

• Direct subscriber base grew strongly, especially in France (+8.6% YoY to 3.8M); rest of world returned to growth (+7.7%).

• Strategic focus on AI transparency, fair artist remuneration, and product innovation for Gen Z drove user and subscriber growth.

• Renewed and expanded major partnerships, launched new B2B models, and began monetizing proprietary AI detection technology.

Financial highlights

• Adjusted EBITDA improved to €10M (from -€4M in FY24), exceeding expectations.

• Adjusted gross profit rose to €135.5M (+1.3% YoY), with gross margin at 25.4%.

• Net income turned positive at €8.5M, compared to a €(26.0)M loss in FY24.

• Free cash flow increased to €10.1M from €6.6M, confirming financial discipline.

• Cash and cash equivalents at year-end reached €65M, up from €62M in FY24.

Outlook and guidance

• FY26 revenue expected to remain in line with FY25, reflecting headwinds in partnership segment.

• Continued focus on sustainable profitability, positive adjusted EBITDA, and free cash flow.

• Strategic focus on accelerating direct subscriber growth, scaling B2B partnerships, and monetizing AI detection technology.

• Selective reinvestment in high-return growth drivers while maintaining financial discipline.