Gentoo Media (G2M) Q4 2025 earnings summary

Executive summary

• Q4 2025 was the strongest quarter for revenue, profitability, and cash flow, with margin expansion from disciplined execution and cost measures, despite revenue coming in slightly below expectations due to softer December sports margins.

• Record end-user deposits and strong cash conversion reinforced financial strength entering 2026, with operational resilience despite Brazil regulation and market volatility.

• Improved visibility across search, AI-powered platforms, and paid campaigns, aided by product enhancements and a positive December Google Core Update.

• Entering 2026 with a structurally stronger, leaner business, clear growth opportunities, and continued focus on cash generation.

Financial highlights

• Q4 revenue was €25.6m, down 16% year-over-year but up 13% quarter-over-quarter, impacted by softer December sports margins and sunset of low-margin activities.

• EBITDA before special items reached €14.9m, up from €10.1m in Q4 2024 and up 60% quarter-over-quarter.

• Cash flow from operations was €11.5m, up 56% year-over-year and a material improvement over previous quarters.

• Personnel and other OPEX were €7.3m, down 33% year-over-year, reflecting cost right-sizing and restructuring.

• Marketing spend was €5.7m, down 38% year-over-year, with marketing ratio improving to 22% in Q4.

Outlook and guidance

• Entering 2026 with improved visibility, a stronger underlying business, and a scalable platform for sustainable, cash-generative growth.

• 2026 guidance: revenue of €105–115m, EBITDA before special items of €49–54m, and cash flow from operations of €37–41m.

• Non-recurring costs are expected to decline significantly in 2026, with deferred M&A outflows limited to €3.5m.

• The 2026 financial year is expected to benefit from a favorable sporting calendar, including the Football World Cup.

• Focus remains on core markets and cash generation, with growth opportunities identified.