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 and younger audiences.

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

Financial highlights

• Revenue: €534M, flat YoY at constant currency, down 1.4% reported.

• Adjusted EBITDA: €10M (up from -€4M in FY24).

• Net income: €8.5M (vs. -€26M in FY24).

• Free cash flow: €10.1M, confirming financial discipline and up from €6.6M in FY24.

• Cash position at year-end: €65M, net cash €57M after loan repayment.

Outlook and guidance

• FY26 revenue expected to remain in line with FY25, with continued positive adjusted EBITDA and free cash flow.

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

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

• No price increases planned in 2026 forecast, but under consideration depending on competition.