Raketech reports Q3 revenue decline amid restructuring

Raketech has released its financial results for the third quarter of 2025, presenting a period marked by strategic restructuring, ongoing portfolio adjustments, and continued reorientation toward proprietary publishing and exclusive partnerships. The company reported a significant revenue decline compared with the same period last year, but leadership maintains that the reshaped operating model is positioning the group for more stable and sustainable performance going forward.

The organisation emphasised that its focus has shifted toward a platform-first operating structure and a more disciplined capital allocation approach. Although profitability remained under pressure, Raketech stated that its adjusted EBITDA from continuing operations held steady, supported by internally driven efficiency measures and a recalibration of resourcing following the divestment of non-core assets.

This financial reporting period also coincided with the completion of the Casumba divestment—a development that materially reshaped both Raketech’s asset base and its future commercial roadmap. Despite the accounting implications of the transaction, the company described its portfolio as “cleaner” and more aligned with its long-term strategic aims.

Below is a detailed analysis of Raketech’s performance, strategic decisions, and operational priorities for the remainder of 2025 and into 2026.

Revenue performance and year-on-year comparison

Raketech reported revenue of €6.2m from continued operations for Q3 2025. This represents a 42% decline year-on-year, a trend that the company attributed to a combination of factors including the intentional exit of non-core assets and sustained challenges in paid traffic channels across the wider online marketing sector.

The company noted that the comparative period from 2024 included contributions from assets and revenue streams that have since been divested or deprioritised. As a result, management issued reminders that headline declines should be interpreted with consideration for the evolving composition of the group’s revenue base.

The organisation further explained that competitive pressures and elevated acquisition costs have continued to affect the market for paid traffic, one of the core drivers of Raketech’s prior growth trajectory. As the company moves away from some of these historical activities, it expects its financial results to better reflect the performance of its retained core assets.

Adjusted EBITDA remains stable despite revenue decline

A central element of the quarterly update was the stabilisation of adjusted EBITDA from continuing operations, which reached €1.2m for Q3 2025. Management described this performance as broadly unchanged from the prior year, despite materially lower revenue.

The company said this outcome reflects ongoing cost control initiatives and organisational refocusing intended to strengthen operating efficiency. With the business now centred on owned publishing, performance marketing through AffiliationCloud, and carefully selected exclusive partnerships, Raketech believes it has established a more streamlined structure capable of withstanding volatility in broader market conditions.

Executives emphasised that although adjusted EBITDA stability does not fully offset revenue declines, it demonstrates early progress in establishing a more resilient business model that places reduced reliance on historically variable paid acquisition techniques.

Growth within the Organic Publisher Network

One of the most notable developments in Q3 was the improved performance of Raketech’s Organic Publisher Network. This segment, which includes traffic and engagement driven through owned and organically optimised affiliate sites, demonstrated significant quarter-on-quarter growth.

Revenue in the Organic Publisher Network reached €0.9m for Q3, up from €0.5m in Q2—an 80% increase. Management attributed this performance to several factors, including improved organic visibility, ongoing optimisation of owned media properties, and the signing of a new exclusive US-based publisher partnership.

Raketech described the new US partnership as a strategically important development that aligns with its shift toward deeper and more stable long-term collaborations. The partnership includes a minority investment of $750,000, which the company views as part of its broader strategy to secure exclusive and differentiated positions in key regulated markets.

According to the company, the improvement in organic publishing demonstrates potential for growth within channels that offer higher predictability and lower exposure to the volatility associated with paid acquisition.

Subaffiliation and paid publisher performance

Raketech’s SubAffiliation segment generated €1.9m in revenue during Q3, broadly in line with Q2 performance. This stability was interpreted by management as an encouraging sign given the uncertain market landscape in several of the company’s operating jurisdictions.

The Paid Publisher Network, however, continued to contract as the company further reduced exposure to higher-risk and higher-cost channels. Raketech explained that the entire industry has been experiencing headwinds related to increased marketing costs, greater regulatory oversight, and more competitive bidding environments. As a result, the organisation has been intentionally scaling down activity in paid channels that do not meet its revised return-on-investment criteria.

Management again underscored that the overall strategic direction aims to rebalance the company toward organic and exclusive publishing networks, which they believe offer more durable and compliant long-term value.

Cash flow and financial position

Free cash flow before earnouts and including discontinued operations amounted to €1.1m for the quarter. This figure represents a modest decrease from previous periods, largely driven by tax settlement payments recognised during Q3.

Raketech explained that while the group’s cash flow generation was slightly reduced, it remained positive and consistent with the company’s ongoing efforts to align its cash profile with its streamlined operational scope.

The leadership team also noted that preliminary October data indicated somewhat lower revenue levels within the Affiliation Marketing portfolio compared with Q3. Despite this, momentum within the external Organic Publisher Network remained positive, signalling continued potential for uplift in the segment as optimisation efforts mature.

Casumba divestment and financial impact

One of the most consequential events of the quarter was the completion of the Casumba asset sale. Raketech confirmed that the total consideration for Casumba amounts to €12m, though the fair value of the consideration was assessed at €7.2m. Payment will be made over a four-year period.

Due to accounting treatment, the company recorded a non-cash loss on disposal of approximately €10m. Raketech clarified that this loss is of a technical nature related to valuation principles and does not reflect ongoing operational cash outflows.

The company stressed that the divestment was a deliberate strategic decision intended to reduce exposure to business areas that did not align with its long-term objectives. With the transaction now completed, Raketech views its portfolio as both more focused and more aligned with a platform-led, partnership-driven future.

Strategic direction and platform-first focus

Leadership reiterated that Raketech remains committed to its “platform-first” strategy. This approach prioritises:

• Exclusive partnerships across regulated markets
• Continued development of the AffiliationCloud platform
• Disciplined and conservative capital allocation
• A reshaped cost base aligned with the core operating model

AffiliationCloud continues to serve as a central element of the company’s growth strategy. Raketech reported continued progress on product development and integration capabilities, with aims to position the platform as a scalable, technology-led foundation for existing and future partners.

The company also reaffirmed its intention to expand its network of exclusive publisher relationships, which it believes will provide stronger revenue visibility and improved compliance adaptability.

Statements from leadership

CEO Johan Svensson commented on the company’s operational status moving into the final quarter of the year. He stated that Raketech now enters Q4 with a “cleaner structure” and “growing momentum” across its organic publishing activities. He also expressed confidence in the company’s ability to grow its footprint through further exclusive partnerships while maintaining strict financial discipline.

Svensson emphasised that the reconfigured business model is designed to provide long-term stability and to mitigate the risks previously associated with more volatile channels. The company believes that this refined focus will support both operational resilience and more predictable financial outcomes.

Contextual comparison to Q2 2025

In Q2 2025, Raketech reported a 54% decline in revenue and a 52.3% decrease in adjusted EBITDA, which was largely attributed to the divestment of certain US subscription and tipster assets as well as continued pressure on paid traffic channels. Despite these declines, the company recorded a 5% quarter-on-quarter increase in Core Affiliation Marketing (excluding Casumba).

That performance was viewed internally as an early indicator of stabilisation, a trend the company aimed to carry into Q3 with its continued operational restructuring.

The Q3 results now offer a more detailed picture of that stabilisation process, though the company acknowledges that market volatility and evolving regulatory landscapes remain important factors influencing performance.

Outlook heading into Q4 and 2026

Raketech’s forward guidance reflects cautious optimism. The company has signalled that its financial results for Q4 are expected to benefit from increased focus within the Organic Publisher Network, improved efficiency measures, and further traction from exclusive partnerships.

Management indicated that while some variability may persist, especially in markets with shifting regulatory frameworks, the company believes that its streamlined structure and strategic clarity will support more balanced and compliant growth.

Raketech also anticipates continuing to invest in technology, data capabilities, and content optimisation within AffiliationCloud. These investments are expected to enhance the scalability of partner onboarding and reporting functions, thereby supporting both revenue growth and operational efficiency over time.

Conclusion

Raketech’s third-quarter 2025 performance underscores a company in the midst of disciplined transformation rather than short-term expansion. While revenue declines of over 40% may appear severe on the surface, the figures must be viewed within the context of deliberate divestments, operational streamlining, and the strategic shift toward sustainable, organic growth. The group’s ability to maintain stable adjusted EBITDA despite a significantly smaller revenue base highlights both the effectiveness of its cost controls and its commitment to preserving financial resilience during transition.

The completion of the Casumba divestment marks an important milestone in Raketech’s evolution, allowing management to redirect resources toward its AffiliationCloud platform, proprietary media assets, and exclusive partnerships. This platform-first approach is designed to ensure scalability, compliance readiness, and operational transparency—three pillars essential to navigating the increasingly complex regulatory and commercial realities of the global iGaming and affiliate marketing landscape.

CEO Johan Svensson’s remarks about entering the next quarter with a “cleaner structure” and “growing momentum” signal cautious optimism. While external market challenges—particularly in paid traffic acquisition—continue to exert pressure across the industry, Raketech’s emphasis on organic publishing and strategic partnerships offers a path toward stability and renewed growth.

Looking ahead, the company’s performance in late 2025 and into 2026 will likely hinge on how effectively it can capitalise on its refined portfolio, strengthen recurring revenue streams, and continue leveraging technology through AffiliationCloud. If Raketech maintains its current trajectory of disciplined execution and measured investment, it may emerge from this period of restructuring as a more focused, efficient, and resilient organisation well-positioned to deliver sustainable long-term value.

FAQs

What is Raketech’s main focus going forward?
Raketech is prioritising a platform-first strategy, concentrating on exclusive partnerships, organic publishing, and the continued evolution of AffiliationCloud.

Why did Raketech’s Q3 revenue decline?
Revenue declined largely due to divestments of non-core assets and reduced activity in paid traffic channels, which have faced industry-wide challenges.

How did adjusted EBITDA remain stable?
Adjusted EBITDA stability was achieved through cost management, operational restructuring, and reduced exposure to less efficient acquisition models.

What drove growth in the Organic Publisher Network?
Growth was supported by improved organic visibility, optimised content, and a new exclusive US publisher partnership.

What happened with the Casumba divestment?
Raketech completed the sale of Casumba for €12m, though the fair value recognition resulted in a non-cash accounting loss of around €10m.

How did the SubAffiliation segment perform?
SubAffiliation revenue was steady quarter-on-quarter at €1.9m, reflecting resilience despite market uncertainties.

Why is the company moving away from paid traffic?
Paid traffic has become less predictable due to increased costs and regulatory pressures, prompting Raketech to shift toward more stable channels.

Is Raketech still generating positive cash flow?
Yes, free cash flow remained positive at €1.1m despite certain tax settlement impacts during the quarter.

What is the significance of exclusive partnerships?
Exclusive partnerships provide more predictable revenue streams and strengthen Raketech’s strategic positioning in regulated markets.

How does management view the outlook for Q4?
Management expects continued momentum in organic publishing, strengthened portfolio focus, and disciplined capital deployment entering Q4 2025.