ZEAL Reports Strong 2025 Growth Despite Weaker Jackpot Trends

ZEAL Network SE reported a year of solid financial performance in 2025, delivering double-digit growth in both revenue and earnings despite a comparatively weaker jackpot environment than the previous year. The company’s results reflect a combination of strong execution in its core lottery brokerage operations, continued customer expansion and increasing contributions from newer product verticals such as raffles and online games.

The group’s financial figures indicate that strategic diversification efforts are beginning to yield measurable results. While jackpot cycles remain an important external factor influencing lottery demand, ZEAL’s broader product offering and expanding customer base helped mitigate the impact of less favorable jackpot conditions.

Core lottery business remains central to performance

The company reported total group revenue of €218.5 million for 2025, representing a 16 percent increase compared to the previous year. Earnings before interest, taxes, depreciation and amortisation reached €68.8 million, up 11 percent year on year, while EBIT rose by 12 percent to €60.1 million.

These results were achieved despite a softer jackpot environment than in 2024, a factor that typically influences customer engagement in lottery products. The performance underscores the resilience of ZEAL’s core business model and its ability to sustain growth even under less supportive market conditions.

A key driver behind this resilience was the continued expansion of the company’s active customer base. The average number of active lottery customers per month reached a record 1.558 million, marking an 8 percent increase from 1.436 million in the prior year. This growth reflects both successful customer acquisition strategies and sustained engagement among existing users.

Lottery billings rose modestly by 2 percent to €1.1005 billion. More notably, the gross margin from lotteries increased significantly to 17.7 percent from 15.6 percent. This improvement in margin contributed to a 16 percent increase in lottery-related revenue, which reached €195.3 million.

The data suggests that ZEAL has been able to optimise its monetisation strategy while maintaining steady demand, thereby enhancing profitability even in a less dynamic jackpot cycle.

Customer acquisition and marketing investment increase

ZEAL continued to invest heavily in customer acquisition during 2025, aligning with its long-term growth strategy. The company reported the addition of 1.171 million new registered customers over the course of the year.

This expansion came at a higher cost, with customer acquisition expenses rising to €46.47 per user. Overall marketing expenditure increased by 20 percent to €68.6 million. Management indicated that these investments are intended to support future growth by scaling the user base and strengthening brand visibility in a competitive market.

The company appears to be prioritising long-term value creation over short-term cost efficiency. By expanding its customer base and improving engagement metrics, ZEAL aims to enhance lifetime value per user and create a more stable revenue foundation.

Leadership highlights diversification strategy

Stefan Tweraser, Chief Executive Officer of ZEAL Network SE, emphasised the importance of diversification in sustaining growth and reducing reliance on external factors such as jackpot cycles.

“The strong results in the 2025 financial year show that our strategy is working: we are successfully developing our core business while simultaneously building new growth pillars with scalable products. This diversification makes ZEAL more resilient and gives us the freedom to continue growing ambitiously in the future.”

This statement reflects the company’s broader strategic direction, which focuses on balancing its established lottery brokerage operations with newer, proprietary offerings that can generate additional revenue streams.

Raffle products emerge as a growth driver

One of the most notable developments in ZEAL’s diversification strategy is the expansion of its raffle segment, particularly through the charity lottery Traumhausverlosung. Launched in 2024, the product gained significant traction in 2025.

Traumhausverlosung generated billings of €38.9 million across four draws during the year. The company described the raffle as appealing to both new and existing customers, supported by the concept of offering high-value prizes such as houses alongside a guaranteed winner structure.

The success of this initiative highlights ZEAL’s ability to innovate within the broader lottery space. By developing proprietary products, the company can exercise greater control over margins and customer experience while reducing dependence on third-party lottery offerings.

Games segment records strong expansion

In addition to raffles, ZEAL’s online games segment delivered substantial growth in 2025. Revenue from games increased by 46 percent, rising from €9.9 million in 2024 to €14.4 million.

The company expanded its games portfolio significantly, adding approximately 400 titles to reach a total of more than 650 games. Collaborations with established game developers contributed to improving the quality and diversity of the offering, making it more attractive to a broader audience.

The number of active users within the games segment also increased considerably, supporting overall revenue growth. This suggests that ZEAL’s strategy of enhancing its digital entertainment portfolio is resonating with customers.

Importantly, the company reiterated its commitment to responsible gaming practices. ZEAL stated that it employs AI-based technologies to monitor player behaviour and promote safer gaming environments. This approach aligns with regulatory expectations and helps maintain trust among users.

Financial outlook for 2026 reflects continued confidence

Looking ahead, ZEAL Network SE has provided guidance for the 2026 financial year that reflects cautious optimism. The company expects revenue to range between €250 million and €260 million, with EBITDA projected to fall between €70 million and €75 million.

These forecasts are based on assumptions of average jackpot development and include continued investment in diversification initiatives. The guidance indicates that management remains confident in the company’s growth trajectory while acknowledging the ongoing influence of external factors.

Andrea Behrendt, Chief Financial Officer of ZEAL Network SE, highlighted the strategic importance of these investments:

“We are consistently investing in the further development of our offerings, reducing our dependence on external factors such as jackpot cycles and thereby creating the foundation for sustainable, profitable growth.”

Strategic positioning in a competitive market

ZEAL operates in a highly regulated and competitive online lottery market, particularly within Germany. The company’s ability to achieve growth in such an environment underscores the effectiveness of its strategy and operational execution.

By focusing on customer acquisition, product diversification and technological innovation, ZEAL is positioning itself to remain competitive over the long term. The integration of proprietary products such as raffles and the expansion of its games portfolio are particularly important in differentiating its offering from competitors.

At the same time, the company’s emphasis on responsible gaming and compliance supports its reputation and reduces regulatory risk, which is a critical consideration in the gambling sector.

Conclusion

ZEAL Network SE’s 2025 performance demonstrates a well-executed strategy that balances stability with innovation. Despite facing a weaker jackpot environment, the company achieved strong growth in revenue and earnings, supported by a growing customer base, improved margins and expanding product offerings.

The continued strength of the core lottery business provides a reliable foundation, while newer segments such as raffles and online games are emerging as meaningful contributors to overall performance. This diversification reduces reliance on external variables and enhances the company’s resilience.

Looking forward, ZEAL’s investment in customer acquisition, technology and product development positions it for sustained growth. While external factors such as jackpot cycles will remain relevant, the company’s evolving business model suggests it is increasingly capable of navigating these challenges.

Overall, ZEAL Network SE appears to be building a more balanced and scalable operation, with a clear focus on long-term value creation and responsible growth in a regulated market environment.

FAQs

What were ZEAL Network’s main financial results for 2025?
ZEAL reported revenue of €218.5 million and EBITDA of €68.8 million, reflecting double-digit growth year on year.

How did the jackpot environment affect ZEAL’s performance?
The jackpot environment was weaker than in 2024, but ZEAL offset this through customer growth and improved margins.

What role did the core lottery business play?
The core lottery segment remained the primary revenue driver and delivered strong growth supported by higher margins.

How many active customers did ZEAL have in 2025?
The company reached an average of 1.558 million active lottery customers per month.

What is Traumhausverlosung?
It is a charity raffle product offering houses as prizes, which generated significant revenue in 2025.

How did the games segment perform?
The games segment grew by 46 percent in revenue and expanded its portfolio to over 650 titles.

Why did marketing expenses increase?
Marketing costs rose as ZEAL invested in customer acquisition and long-term growth.

What is ZEAL’s outlook for 2026?
The company expects revenue between €250 million and €260 million and EBITDA between €70 million and €75 million.

How is ZEAL addressing responsible gaming?
ZEAL uses AI-based technologies to monitor player activity and promote responsible gaming practices.

What is ZEAL’s long-term strategy?
The company aims to diversify its product offerings while strengthening its core business to achieve sustainable growth.