Gentoo Media (G2M) Q2 2025 earnings summary

Executive summary

• Strategic realignment and cost base reduction advanced in Q2 2025, creating a leaner, more agile organization positioned for future growth.

• Decisive actions post-demerger from GIG Software and Platform & Sportsbook led to a streamlined portfolio and healthier cost structure.

• Short-term revenue and EBITDA were impacted by market headwinds in Brazil and the absence of major sports events, but underlying business drivers like player intake and deposit value improved.

• Management expresses confidence in margin recovery and sustainable, profitable growth for H2 2025.

• Focus shifted to scalable growth and core technology investment.

Financial highlights

• Q2 2025 revenue was €24.4m, down 19% year-over-year from €30.2m, but stable sequentially.

• EBITDA before special items was €7.5m (31% margin), down from €14.8m (49% margin) in Q2 2024.

• Special items totaled €1.8m, mainly due to restructuring and non-recurring costs.

• Cash flow from operations was €7.7m, with €5.9m in cash at banks at quarter end, down from €25.8m YoY.

• Net result for Q2 2025 was negative €1.0m, compared to €3.3m profit in Q2 2024.

Outlook and guidance

• Full-year 2025 guidance: revenue €100–105m, EBITDA before special items €40–43m, EBITDA margin 40–41%, free cash flow €27–30m.

• H2 2025 expected to show growth over H1, but at a slower rate than previously anticipated.

• Google Core update post-quarter is expected to boost Publishing revenue in H2 2025.

• Brazil player deposits now exceed pre-regulation levels; investment levels to be adjusted as needed.

• Delays in two key tech projects have deferred expected revenue contributions.