Catena Media plc

Q2 revenue was EUR 9.5 million, down 1% versus Q2 2025 and down 23% versus Q1 2026; on a constant-currency basis, revenue increased 4% year on year. Adjusted EBITDA was EUR 1.2 million, down 11% year on year and down 54% sequentially, with margin at 13% versus 14% last year and 22% in Q1 2026. New depositing customers increased 23% year on year to 24,781. North America contributed 97% of revenue. Casino revenue was EUR 8.5 million, up 8% year on year, while Sports revenue was EUR 1.0 million, down 43% year on year. The total cost base was flat year on year at EUR 8.2 million; operating cash flow was EUR 0.03 million in the quarter, and cash and cash equivalents were EUR 13 million at the end of June. Management did not provide formal next-quarter or full-year financial guidance; instead, it reiterated that the new platform is expected to approach full commercial launch in the first half of 2027, that interest on the hybrid capital securities is expected to remain deferred, and that a voluntary buyback offer at 20% of nominal value will be launched alongside a limited share buyback program up to 5.98% for employee long-term incentive plans.

Manuel Stan framed Q2 as a difficult quarter and a pause from recent solid growth, citing structural challenges in traditional affiliation due to shifting organic-search behavior. His tone was cautious but proactive: SEO remains important, but the company must reduce dependence on it and build toward a broader technical infrastructure and intelligence platform. He emphasized automation, efficiency, and the next-generation marketplace as the path to a more sustainable future, with more detail promised over the coming quarters.

Mike Gerrow focused on the quarter’s weaker operating performance and the company’s cost discipline. He said revenue was broadly flat year on year, adjusted EBITDA was EUR 1.2 million, operating cash flow was negligible in the quarter, and the cash balance was EUR 13 million, with no remaining debt after the senior bond repayment in Q2 2025. He also highlighted flat year-on-year total costs at EUR 8.2 million, direct costs of EUR 3.0 million, personnel expense of EUR 3.6 million, and a capital expenditure increase of more than 100% versus Q2 2025 to support the new platform investment. On capital allocation, he said hybrid interest will continue to be deferred, the securities are perpetual equity-like instruments, and the company intends to offer a voluntary buyback at 20% of nominal value due to limited liquidity.

Analysts asked whether the recovery was over and whether the traditional SEO affiliation model was broken. Management said the business is not broken, but the market is changing and organic-search revenue has become more volatile, so Catena must adapt and reduce SEO dependence while continuing to invest in core brands. Questions also focused on the new platform, with management describing it as a next-generation automated marketplace connecting publishers and advertisers across more verticals, but withholding detailed operational information for competitive reasons until closer to the first-half-2027 launch. On the hybrid securities, management said the offer is voluntary, liquidity is limited, and if holders do nothing, their position is unchanged; the separate share buyback is only to support employee long-term incentive plans.