Huuuge (HUG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $62.4M, up 1% QoQ but down 6.8% YoY, with core franchises Huuuge Casino and Billionaire Casino generating 98% of total revenue and stabilizing after Q4.

• Adjusted EBITDA hit $25.3M, up 15.2% YoY and 1.8% QoQ, with a margin of 40.5%–41%, marking the second consecutive quarter above 40%.

• Net profit rose 19.8% YoY to $19.8M, driven by cost reductions and improved operational efficiency.

• D2C channel delivered record results, accounting for 20% of Q1 sales and 21.5% in April, with a target of mid-to-high 20% share by year-end.

• Strategic focus remains on core business stability, iGaming market research, disciplined M&A, and potential share buybacks.

Financial highlights

• Revenue: $62.4M, +1% QoQ, -6.8% YoY; core franchises down 5.8%.

• Adjusted EBITDA: $25.3M, +15.2% YoY, +1.8% QoQ; margin at 40.5%.

• Net income: $19.8M, +19.9% YoY, +7.2% QoQ; EPS $0.35 (up from $0.26).

• Operating income: $22.4M, +23.8% YoY, +20% QoQ.

• Net operating cash flow: $22.3M; cash balance at $165M.

Outlook and guidance

• Guidance reiterated for a slight YoY revenue decline in 2025, with sequential top-line recovery continuing.

• Adjusted EBITDA and margin expected to increase YoY; high confidence in higher profitability for 2025.

• Marketing expenses to decline significantly YoY; operating expenses (ex-marketing) to decrease after Q1 one-offs and restructuring, with ~$12M annualized savings.

• D2C share of revenue targeted at mid-to-high 20% by year-end.

• Market expected to remain challenging, with social casino market forecasted to decline at a 2.9% CAGR through 2027.