Gentoo Media reports EUR 98.6m revenue and outlines 2026 outlook

Gentoo Media has released its fourth quarter trading update for the 2025 financial year alongside preliminary guidance for 2026, providing a detailed view of its financial performance, balance sheet position and strategic priorities. The update confirms a year of solid operational delivery supported by disciplined cost control and stable cash generation, while also outlining plans to restructure the group’s financing arrangements to support future growth.

The company reported full year revenue of EUR 98.6 million for 2025, reflecting consistent performance across its portfolio of performance marketing and affiliate assets. Management also highlighted that trading at the start of 2026 has been in line with internal expectations, offering early reassurance regarding the sustainability of recent momentum.

Fourth quarter performance and operational highlights

For the final quarter of 2025, Gentoo Media generated revenue of EUR 25.5 million. Adjusted EBITDA for the quarter reached EUR 14.9 million, underlining the group’s ability to convert revenue into earnings through a streamlined operating model. Cash generated from operations during the quarter amounted to EUR 10.4 million, supporting liquidity and debt servicing requirements.

Management attributed this performance to steady activity levels at partner operators and continued optimisation of marketing channels. The group also reported record levels of end user deposits at partner platforms during the quarter, with volumes exceeding EUR 200 million. These deposits are a key driver of Gentoo Media’s performance linked revenue streams and provide a useful indicator of end market engagement.

Full year financial results for 2025

Across the full 2025 financial year, Gentoo Media delivered revenue of EUR 98.6 million and adjusted EBITDA of EUR 41.4 million. Operating cash flow for the year was reported at EUR 33.0 million, reflecting both earnings strength and careful working capital management.

At year end, net interest bearing debt compared to adjusted EBITDA stood at 2.82x. This leverage level remains within the company’s targeted range and provides context for the planned refinancing initiative announced alongside the trading update.

The company noted that 2025 included a number of exceptional cost items that are not expected to recur at similar levels. Around EUR 5 million was incurred in one off expenses related to restructuring initiatives and operational improvement programmes designed to strengthen the organisation following corporate changes in prior years.

In addition, cash outflows of approximately EUR 38 million during the year were associated with mergers acquisitions and corporate separation activities originating from earlier periods. These payments reflect legacy commitments rather than new strategic transactions undertaken during 2025.

Trading conditions entering 2026

Gentoo Media stated that trading during January 2026 was aligned with management forecasts and budget assumptions. While the company cautioned that this represents only an early indicator, it supports confidence in the initial outlook provided for the year ahead.

The group continues to operate with what it describes as a streamlined cost base, a factor that management believes will support further margin development and improved cash generation over time. Investment commitments for 2026 are expected to remain limited, reflecting a more conservative capital allocation approach focused on returns and balance sheet strength.

Planned refinancing and debt structure

As part of its forward planning, Gentoo Media has initiated preparations for a refinancing of its existing bonds and credit facility. The company has appointed ABG Sundal Collier and Pareto Securities to organise investor meetings scheduled to begin in February 2026. These discussions are intended to assess market appetite and support the execution of a new financing structure.

Subject to prevailing market conditions, Gentoo Media intends to issue a three year senior secured floating rate bond with a total nominal value of EUR 120 million. The proposed bond is expected to be split into tranches denominated in SEK and EUR. Proceeds from the issuance would be used to refinance the company’s existing EUR and SEK bonds as well as its current credit facility.

Following completion of the transaction, the new bond is expected to become Gentoo Media’s primary debt instrument. Management emphasised that the refinancing initiative is designed to simplify the capital structure and provide a stable platform for future operations rather than to fund aggressive expansion.

Outlook for the 2026 financial year

Alongside the refinancing plans, Gentoo Media provided initial guidance for the 2026 financial year. Revenue is projected to fall within a range of EUR 105 million to EUR 115 million, representing continued growth compared with 2025. Adjusted EBITDA is expected to be between EUR 49 million and EUR 54 million, indicating further margin expansion.

Operating cash flow for 2026 is forecast in the range of EUR 37 million to EUR 41 million. Deferred payment obligations related to earlier mergers and acquisitions are expected to result in cash outflows of approximately EUR 3.5 million during the year.

The company stressed that this guidance should be treated as indicative given the early timing of the outlook and the inherent uncertainties associated with market conditions and consumer behaviour.

Reduction in non recurring costs

A notable feature of the 2026 outlook is the expected decline in non recurring costs. Following the restructuring and operational improvement initiatives completed in 2025, Gentoo Media anticipates that exceptional expenses will fall significantly in the coming year.

Remaining deferred payments linked to historical M&A transactions are estimated at around EUR 3.5 million. Beyond these obligations, management does not expect material one off cash outflows, which should support stronger free cash flow generation.

Role of major sporting events

Gentoo Media also highlighted the influence of major international sporting events on its commercial performance. The 2026 calendar includes the FIFA World Cup, an event that has historically been associated with increased user engagement and higher activity levels across regulated betting markets.

By contrast, 2025 did not feature comparable global tournaments, limiting opportunities for seasonal uplift. Management indicated that the presence of the World Cup in 2026 could provide a favourable backdrop for performance marketing activity, although results will continue to depend on execution and regulatory conditions in key markets.

Strategic positioning and risk considerations

Throughout the update, Gentoo Media emphasised its focus on disciplined execution, regulatory compliance and prudent financial management. The company operates within a highly regulated environment and stated that it remains committed to maintaining strong relationships with partners and stakeholders.

Management’s cautious tone regarding guidance and capital allocation reflects an awareness of external risks including macroeconomic uncertainty and regulatory change. By maintaining a conservative approach to leverage and investment, Gentoo Media aims to limit downside risk while preserving flexibility to respond to opportunities as they arise.

Conclusion

Gentoo Media’s 2025 trading update presents a picture of stable performance supported by consistent cash generation and improving operational efficiency. The planned refinancing initiative and the initial outlook for 2026 signal confidence in the underlying business while maintaining a measured and legally prudent approach to growth.

With non recurring costs expected to decline and a favourable sporting calendar ahead, the company enters 2026 with a strengthened financial profile and a clearer strategic focus. Management’s emphasis on balance sheet discipline and conservative guidance suggests that risk management will remain central to Gentoo Media’s strategy in the year ahead.

FAQs

What revenue did Gentoo Media report for 2025?
Gentoo Media reported full year revenue of EUR 98.6 million for the 2025 financial year.

How did Gentoo Media perform in the fourth quarter of 2025?
The company generated EUR 25.5 million in revenue and EUR 14.9 million in adjusted EBITDA during the fourth quarter.

What is Gentoo Media planning regarding its debt?
Gentoo Media plans to refinance its existing bonds and credit facility through a new senior secured bond issuance.

What is the size of the proposed new bond?
The company is considering issuing a three year senior secured floating rate bond with a nominal value of EUR 120 million.

What revenue guidance has Gentoo Media given for 2026?
Revenue for 2026 is projected to be between EUR 105 million and EUR 115 million.

What adjusted EBITDA is expected in 2026?
Adjusted EBITDA is forecast to fall within a range of EUR 49 million to EUR 54 million.

How much operating cash flow is expected in 2026?
Operating cash flow is forecast at EUR 37 million to EUR 41 million.

Are non recurring costs expected to continue?
Non recurring costs are expected to decline significantly in 2026 following restructuring completed in 2025.

How do sporting events affect Gentoo Media’s performance?
Major sporting events such as the FIFA World Cup typically increase user engagement and activity levels at partner operators.

What is management’s approach to risk and investment?
Management has adopted a conservative approach focused on cost discipline, regulatory compliance and balance sheet strength.