Gentoo Media has released its Q1 2025 results. The Gentoo Media Q1 results reflect a period of transition, regulatory challenges, and internal restructuring. The company aims for stronger margins and renewed growth in H2 2025.
Revenue for Q1 2025 was €24.8 million, a decline of 11% year-over-year. The drop was mainly caused by market regulation issues in Brazil. Gentoo Media’s recurring revenue base remains intact despite these challenges.
EBITDA before special items stood at €8.2 million, compared to €13.5 million last year. This brought the EBITDA margin down to 33% from 48%. Net cash flow was hit by €22.5 million in deferred and split-related payments from past acquisitions.
The company attributed Q1 softness to regulatory disruption in Brazil and an exit from low-margin business activities. The interim report highlights a resilient financial model based on recurring income and operational cash generation.
A strategic review was conducted after Gentoo Media’s demerger from its Platform & Sportsbook business. The company implemented changes to enhance its focus and operational agility. Leadership was reinforced with new senior hires, including a new CFO.
Cost-saving initiatives included downsizing the cost base and exiting lower-value segments. Annual run-rate savings are expected from these moves. The business structure has been streamlined to support scalability and reduce inefficiencies.
CEO Jonas Warrer stated, “Q1 was a quarter of change—and a necessary one. We faced external pressures and made deliberate decisions to position Gentoo Media for what’s ahead.”
Looking ahead, Gentoo Media expects to regain growth in H2 2025. Full-year revenue is projected to stay broadly flat compared to 2024. EBITDA margins are forecast to reach 40–45% for the full year.
