Gentoo Media Inc.

Q2 2026 revenue was EUR 22.9 million, down 9% year over year. EBITDA before special items was EUR 8.9 million, up 5% year over year, and the margin expanded to 39% from 34% in Q2 last year. Marketing spend was EUR 6.8 million, down 19% year over year but up 25% quarter over quarter; personnel and other operating expenses were EUR 7.2 million, down 12% year over year. Operating cash flow was EUR 6.4 million. Value of deposits reached an all-time high of EUR 207 million, up 6% year over year. For 2026, management now guides revenue of EUR 97 million to EUR 100 million, adjusted EBITDA of EUR 44 million to EUR 47 million, and cash flow from operations of EUR 32 million to EUR 36 million.

Jonas Warrer said Gentoo Media is trying to become a leaner, more scalable, cash-generative affiliate business with more focus on flagship brands, local champion sites, multichannel acquisition, and AI-enabled operations. His tone was constructive but clearly disappointed on revenue, repeatedly stressing that player intake and activity improved but did not convert into revenue fast enough. He said commercial optimization in the second half of 2026 is now a key priority, especially improving partner terms and traffic allocation so rising player activity turns into revenue growth.

The CFO commentary focused on cost discipline, deleveraging, and refinancing flexibility. Management said combined marketing, personnel costs, and other OpEx fell EUR 2.6 million, or 16% year over year, while operating cash flow stayed resilient at EUR 6.4 million despite EUR 2 million of accelerated supplier payments. Net interest-bearing debt, including deferred payments, was reduced by EUR 10.6 million since Q2 last year, and leverage improved to 2.58 from 2.99. On refinancing, the company said it is evaluating new bond and private debt structures, with an update due no later than 1 October 2026.

Analysts pressed management on why revenue did not rise despite stronger FTD intake and deposits. Warrer said the shortfall reflected both external issues, such as weaker-than-expected World Cup monetization and some U.K. tax changes, and internal shortcomings, including slower-than-needed execution in higher-value markets and weaker commercial optimization. On Paid Media, he said the negative EBITDA was partly deliberate because the company invested heavily around the World Cup, while operator bonuses and incentives reduced near-term revenue share earnings. Management also said there was no deterioration in player quality, and that the revenue-share model remains the main income source, though the company may shift more toward CPA and listing fees where needed.