Gentoo Media Cuts 2026 Outlook After Q2 Revenue Falls 9%

Gentoo Media has reduced its full-year forecasts after second-quarter revenue declined to €22.9 million. The company’s shares fell 26% as investors reacted to the weaker outlook.

The iGaming affiliate recorded a 9% year-on-year revenue decline in the three months to June 30, down from €25 million a year earlier. The result came despite a sharp increase in new players and a record amount deposited through Gentoo’s partner operators.

Gentoo revised several full-year targets after the quarter:

Revenue guidance: €97 million-€100 million, down from €105 million-€115 million;
EBITDA before special items: €44 million-€47 million, down from €49 million-€54 million;
Operating cash flow: €32 million-€36 million, down from €37 million-€41 million.

First-half revenue stood at €46.9 million.

Record Deposits Fail to Lift Q2 Revenue

Player activity moved in the opposite direction to revenue during the quarter. Gentoo recorded 101,900 first-time depositors, up 25% from Q1. Total player deposits reached a quarterly record of €207 million. Paid Media first-time depositors increased 46% quarter-on-quarter.

The FIFA World Cup helped attract new players, but their activity produced less immediate revenue than Gentoo had expected. Softer sports margins also affected the quarter.

Revenue-share agreements accounted for 60% of Q2 revenue. Under this model, Gentoo receives income from a player over time rather than earning the full amount when the customer is acquired. CPA deals generated another 12%, with listings and other sources making up the remaining 28%.

Marketing costs reached €6.8 million. Spending was 25% higher than in Q1 as the company invested around World Cup traffic.

Lower Costs Protect Profitability

The revenue decline did not carry over to Gentoo’s main profit measures. The quarter showed stronger profitability and lower costs:

EBITDA before special items rose 5% to €8.9 million, with the margin increasing from 34% to 39%;
Operating profit increased to €5.8 million from €1.2 million;
Quarterly profit reached €2.7 million, compared with a €0.5 million loss a year earlier;
Personnel and other operating costs fell 12% year-on-year to €7.2 million;
Total operating expenses declined by €2.6 million to €14 million.

Gentoo said it has now reached the €8 million-€10 million annualised savings target introduced during its restructuring.

Refinancing Adds Another H2 Deadline

Net interest-bearing debt stood at €112.2 million at the end of Q2, down from €122.8 million a year earlier. The leverage ratio improved from 2.99x to 2.58x.

Gentoo still has €91.5 million of bonds due in December. Management is considering a replacement bond and private debt options as part of the refinancing process.

The Q2 figures leave Gentoo with a clear second-half task. Player acquisition is growing, but the revenue generated from those players is arriving more slowly than expected. Cost cuts are keeping margins stronger for now. The bigger test is whether the World Cup cohort starts contributing enough revenue while the company also completes its refinancing.