Gentoo Media has revised its full-year 2026 guidance after second-quarter revenue fell below management expectations, despite improved profitability and record player deposits.
The iGaming affiliate generated Q2 revenue of €22.9m ($26.7m), down 9% from €25m during the corresponding period of 2025.
EBITDA before special items increased 5% to €8.9m from €8.4m. The associated margin expanded by five percentage points to 39%, supported by the structurally lower cost base established through the company’s restructuring programme.
Player intake reached 101,900 first-time depositors, improving from 81,400 during Q1. The value of player deposits increased 6% year-on-year to a quarterly record of €207m.
Operating cash flow amounted to €6.4m, including €2m of accelerated payments to suppliers.
Net interest-bearing debt declined to €112.2m from €122.8m, while the leverage ratio improved to 2.58x from 2.99x.
However, Gentoo lowered its 2026 revenue forecast to between €97m and €100m, compared with its previous range of €105m - €115m. Guidance for EBITDA before special items was reduced from €49m - €54m to €44m–€47m.
Expected operating cash flow was also revised to €32m - €36m from the earlier forecast of €37m - €41m. Gentoo's share prices have tumbled following these developments.
Gentoo Media full-year guidance
The Board and management are evaluating refinancing options, including a new bond and private debt structures. Gentoo said it would update the market no later than 1 October.
Commenting on the new results, CEO Jonas Warrer stated: “Q2 demonstrated continued operational progress despite revenue coming in below our expectations.
"Player intake increased quarterly, deposits reached a record level and our structurally lower cost base supported a 39% EBITDA margin. Our priority for the second half is clear: converting stronger player activity into revenue growth while continuing to deleverage and de-risk the business."
The Q2 result follows a first quarter in which Gentoo’s revenue declined 5% to €24m, but EBITDA before special items rose 19% to €10.5m. Quarterly costs were reduced by approximately €3m following restructuring and a decline in headcount from 404 to 292.
Gentoo had initially expected stronger second-half seasonality and the FIFA World Cup to support a return to growth.
Player deposits reached a record €207m during Q2, while first-time depositors increased sequentially to 101,900
