Gentoo Media lowered its financial projections for 2026 after posting revenue of €22.9 million in the 2nd quarter, down 9% year over year. The revision was announced on Wednesday (26), along with the period’s results.
The company now expects annual revenue between €97 million and €100 million, below the previous range of €105 million to €115 million. Despite the revenue decline, profitability improved and the volume of player deposits reached a new record.
Revenue, EBITDA and cash projections are reduced
The revision was not limited to revenue. Gentoo Media now projects EBITDA before special items between €44 million and €47 million in 2026, compared with the previous estimate of €49 million to €54 million.
The expectation for operating cash flow also fell. The new range is €32 million to €36 million, versus €37 million to €41 million previously. The company said that 2nd-quarter revenue came in below its expectations.
Jonas Warrer, CEO of Gentoo Media, said the priority for the 2nd half will be to turn the increase in player activity into revenue growth, while the company continues to reduce its leverage and the financial risks of the business.
The revision comes after a 1st quarter in which revenue had already declined 5% year over year, to €24 million. At the time, the company attributed part of the performance to weaker sports betting margins and said its cost structure had become leaner.
Deposits reach record €207 million
Player activity indicators moved in the opposite direction from revenue. Gentoo Media recorded 101.9 thousand initial depositors in the 2nd quarter, while the total value of deposits reached a record of €207 million.
The amount deposited grew 6% from the year-ago period and 3% from the 1st quarter of 2026. The number of initial depositors rose 25% quarter over quarter.
The company highlighted that the increase in the player base and activity has not yet translated into equivalent revenue growth. In Gentoo Media’s affiliate model, a significant part of revenue is generated over the course of the relationship of players referred to operators.
In the quarter, approximately 60% of revenue came from revenue-sharing agreements with operators, while 12% originated from customer acquisition payments and 28% from listing fees and other sources.
Even with the drop in revenue, the EBITDA before special items rose 5% to €8.9 million. The margin rose from 34% to 39%, a result management attributed to the structural reduction of the cost base.
Operating cash flow was €6.4 million in the quarter, including €2 million in advance payments to suppliers. Net financial debt fell to €112.2 million, versus €122.8 million in the comparable period, while the leverage ratio declined from 2.99x to 2.58x.
Refinancing remains under evaluation
The capital structure continues to be another relevant front for the company. The board and management are evaluating refinancing alternatives, including a new bond issuance and private debt structures.
Gentoo Media said it intends to update the market on this process by October 1st, 2026. The company’s next quarterly report is scheduled for November 25.
Therefore, the company enters the 2nd half with a combination of higher margins and record player activity, but with revenue below expectations and lower annual projections. Management itself set the recovery of revenue growth as the main priority for the rest of the year.
