This article first appeared on GuruFocus .
-
Revenue:EUR9.5 million, a 1% decrease year-over-year and a 23% decline from Q1 2026.
-
Constant Currency Revenue:Increased 4% year-on-year.
-
Adjusted EBITDA:EUR1.2 million, down 11% from EUR1.4 million in Q2 2025.
-
Adjusted EBITDA Margin:13%, compared to 14% in the same quarter last year.
-
Total Cost Base:Flat year-on-year at EUR8.2 million, down 15% from Q1 2026.
-
New Depositing Players (NDCs):Increased 23% year-on-year to 24,781.
-
Casino Segment Revenue:Grew 8% versus Q2 2025 to EUR8.5 million, contributing 90% of group revenue.
-
Sports Segment Revenue:Decreased 43% versus last year to EUR1.0 million, contributing 10% of group revenue.
-
Casino Segment Adjusted EBITDA:Decreased 18% versus Q2 2025 to EUR1.1 million, with a margin of 13%.
-
Sports Segment Adjusted EBITDA:Increased to EUR100,000 from EUR200,000 last year, with a margin of 11%.
-
Direct Costs:Increased 25% versus Q2 2025 to EUR3.0 million.
-
Personnel Expenses:Decreased 9% versus Q2 2025 to EUR3.6 million.
-
Other Operating Expenses:Decreased 14% versus Q2 2025 to EUR1.6 million.
-
Operating Cash Flow:Negligible at EUR0.03 million during the quarter.
-
Capital Expenditure:Increased by over 100% versus Q2 2025.
-
Cash and Cash Equivalents:EUR13 million at the end of June.
-
Warning! GuruFocus has detected 8 Warning Signs with LTS:0RUE.
-
Is LTS:0RUE fairly valued? Test your thesis with our free DCF calculator.
Release Date: August 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Revenue increased 4% year-on-year when adjusted for currency rate changes, showing resilience despite a challenging quarter.
-
New depositing players increased 23% year-on-year, reaching 24,781, indicating continued customer acquisition strength.
-
The marketplace program now contributes more than a third of group revenue, validating the strategic pivot beyond traditional SEO.
-
Disciplined cost management continued, with total cost base flat year-on-year at EUR8.2 million and down 15% from Q1 2026.
-
The company has a strong cash position of EUR13 million with no remaining debt instruments after repaying its senior bond in Q2 2025.
Negative Points
-
Q2 revenue decreased 23% quarter-on-quarter to EUR9.5 million, marking a pause from recent quarters of solid growth.
-
Adjusted EBITDA fell 11% year-on-year to EUR1.2 million, the lowest level since Q1 2025, with margin down to 13%.
-
The sports segment revenue declined 43% year-on-year to EUR1.0 million, reflecting continued underperformance.
-
Operating cash flow was negligible at EUR0.03 million during the quarter, a significant drop from EUR1 million in Q2 2025.
-
The company plans to offer to buy back hybrid capital securities at only 20% of nominal value, indicating financial distress and potential shareholder dilution concerns.
Q & A Highlights
Q: Revenue fell 1% and adjusted EBITDA declined. How would you characterize Q2? Is the recovery over? A: Manuel Stan (CEO): Q2 was a softer quarter after several strong ones and below the standard we have set for ourselves. While revenue was broadly in line with last year, the main cause of the decline is the headwind in organic search. We are making shifts to address this and position the business for a more sustainable future, including the new infrastructure and intelligence platform.
Q: What exactly is the new platform that you are building and is there more information about it? A: Manuel Stan (CEO): For competitive reasons, we are disclosing few operational details at this stage. We are developing a next-generation, fully automated marketplace that connects publishers and advertisers across a wider set of verticals with analytics and intelligence at its core. We will share more details as we approach the full commercial launch in the first half of 2027.
Q: Are you saying that the traditional SEO affiliation model is broken? A: Manuel Stan (CEO): No, we are saying that the industry is changing and user behavior is shifting, making revenue from organic search more volatile. We remain committed to our organic brands and continue to invest in them, but we need to reduce our dependency on SEO. Our marketplace already contributes more than a third of group revenues, showing we can provide the connected infrastructure between publishers and operators.
Q: Why are you continuing to defer the interest payments on the hybrid capital securities? A: Michael Gerrow (CFO): The timing of any resumption is fully at the company's discretion. We do not intend to initiate interest payments anytime for the foreseeable future. The purpose is to maximize flexibility for capital allocation, including creating scope for investments that support strategic opportunities and can deliver revenue growth.
Q: Why are you offering to buy back the hybrid and how is the price set? A: Michael Gerrow (CFO): We have had numerous inquiries from holders looking for a way to exit, and there is very little liquidity in the instrument. The offer opens a window for those who prefer cash today. The price reflects the instrument's characteristics: it is perpetual, has no maturity date, and no fixed payment obligation. The offer is completely voluntary, and full terms will be on our website.
Q: Why are you doing the capital securities tender offer and the share buyback at the same time? A: Michael Gerrow (CFO): These are separate initiatives. After the past year's operational and strategic turnaround, we have generated a decent amount of cash. The board has finalized an updated long-term capital allocation plan reflecting our dual focus on growth and shareholder value. The share buyback supports our long-term incentive plans, while the tender offer addresses the capital securities. They are not conditional on each other.
Q: What happens if I do not accept the hybrid offer? A: Michael Gerrow (CFO): Nothing changes. You keep the securities and the nominal amount, and you keep your claim to accrued and unpaid interest, which ranks ahead of ordinary shareholders.
Q: Is it really a good idea to budget for hybrid offers at 20% when it seems unlikely that anyone would accept that amount? Where did the 20% come from? A: Michael Gerrow (CFO): The 20% came from the fact that we are offering a significant amount of liquidity versus the very small amount available presently on the exchanges. We feel it is a fair offer for something that has a very undetermined future for certainty now.
Q: Can you confirm that Play Canada was divested and there is no meaningful impact from that? A: Manuel Stan (CEO): We can confirm that we have divested Play Canada to one of our strategic partners in that market. There is no meaningful impact in terms of the divestment, but there will be a future positive impact from generating revenues from that market.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
