This article first appeared on GuruFocus .
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Revenue:EUR24.0 million, down 5% year-on-year.
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EBITDA:EUR10.5 million, increased 19% year-on-year with margin expansion to 44% from 35% in Q1 2025.
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Operating Cash Flow:Improved 61% year-on-year to EUR7.4 million.
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Marketing Spend:EUR5.5 million, down 20% year-on-year.
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Personnel and Other Operating Expenses:EUR8.1 million, down 17% year-on-year.
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Net Interest Bearing Debt:Decreased by EUR3.6 million during the quarter.
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Value of Deposits:Remained strong, above EUR200 million throughout the quarter.
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Player Intake:81,400 FTDs, decreased 14% year-on-year.
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Headcount:Reduced from 404 to 292.
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Special Items:EUR1.6 million, related to UK office closure and operational simplification.
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Revenue Composition:60% from recurring revenue share, 26% from listing fees, 14% from CPA arrangements.
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Geographical Revenue Contribution:Europe 59%, Americas 18%, Rest of World 23%.
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Release Date: May 21, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Gentoo Media Inc ( OSTO:G2M ) demonstrated a more efficient operating model with a 19% year-on-year increase in EBITDA before special items, reaching EUR10.5 million.
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The company achieved significant cost reductions, with quarterly costs down approximately EUR3 million year-on-year, leading to EUR12 million in annualized run rate savings.
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Operating cash flow improved by 61% year-on-year, supported by stronger profitability and improved cash conversion.
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The strategic focus on higher-value players resulted in strong value of deposits, remaining above EUR200 million throughout the quarter.
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AI adoption and automation have progressed significantly, expected to further improve operational efficiency and execution quality going forward.
Negative Points
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Revenue for Q1 2026 was EUR24 million, down 5% year-on-year, impacted by softer sports margins in February.
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Player intake decreased by 14% compared to Q1 last year, driven by lower investments in Brazil and strategic realignment.
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The rollout of conversion rate optimization and A/B testing initiatives has been slower than anticipated.
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The migration to the next-generation WordPress platform has taken longer than expected, delaying potential benefits.
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Working capital adjustments negatively impacted cash flow, with specific challenges in PPC and social media channels affecting channel economics.
Q & A Highlights
Q: Can you comment on the guidance for 2026 regarding top line, EBITDA, and cash flow? A: Jonas Warrer, CEO: There are no changes to the guidance at this point. We are on track with cost savings and expect revenue growth, especially with the upcoming World Cup and the second half of 2026.
Q: How is the momentum in Q1, considering the negative sports win in February? A: Jonas Warrer, CEO: We saw positive developments in traffic and player sign-ups, particularly in higher-value markets. The Google Core update in March was beneficial, and we expect further positive developments in Q2.
Q: What is the expected impact of the FIFA World Cup on your business? A: Jonas Warrer, CEO: There is significant interest from operators, especially in major markets. We have invested in sports and have a strong team ready to capitalize on the World Cup, expecting it to boost player intake and activity.
Q: Will the World Cup benefit Paid Media or Publishing more? A: Jonas Warrer, CEO: We have invested heavily in both areas. Publishing has long-term investments, while Paid Media is ready with campaigns to capitalize on opportunities during the World Cup.
Q: Can you elaborate on the cash flow being lower than EBITDA in Q1? A: Mads Albrechtsen, CFO: The cash flow was impacted by extraordinary costs related to refinancing and the UK office closure. We expect similar cash conversion levels in Q2.
Q: Are there more cost-saving opportunities, particularly with AI? A: Jonas Warrer, CEO: We have made significant progress with AI, which could reduce costs further. However, our focus is on revenue growth and improving execution quality.
Q: How is the market development in Brazil and Latin America? A: Jonas Warrer, CEO: We expect an interesting summer with the World Cup. There were no notable developments in Q1, but we anticipate Brazil to be an attractive market during the World Cup.
Q: What are the benefits of migrating to the new WordPress platform? A: Jonas Warrer, CEO: The migration offers cost savings and improved site performance. It integrates AI for content and SEO, leading to better rankings and faster market actions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
