Catena Media reported revenue from continuing operations of €9.6m in Q2 2025, a 25% year-on-year decline and 2% lower than the previous quarter.
Adjusted for currency effects from a weaker US dollar, however, revenue rose 6% compared to Q1. North America accounted for €8.7m, or 90% of total revenue, down 23% year-on-year. Meanwhile, the number of new depositing customers (NDCs) fell 36% to 20,229.
Despite the reductions in revenue and NDCs, adjusted EBITDA more than doubled to €1.4m, yielding a 14% margin, while EBITDA improved to €2.2m from a €0.6m loss in Q2 2024.
The company credited the performance to cost optimisation measures announced in May, including a 25% workforce reduction, projected to save €4.5m–€5m annually.
For the first half of the year, revenue from continuing operations fell 33% to €19.4m, with adjusted EBITDA down 9% to €2.3m.
The quarter also saw the completion of the sale of esports-related assets, generating a €1.4m gain and enabling greater focus on core operations.
Catena CEO Manuel Stan said the period marked the strongest quarter-on-quarter performance for a Q2 in several years, driven by underlying improvements rather than state launches or seasonal factors.
Stan said of the company’s performance: “As we move into the second half of the year, we will build on the progress made this quarter to improve profitability and build long-term resilience as we diversify the offering, optimise operations, further consolidate our tech stack and grow in areas where we know we can win.”
He noted that revenue had remained “broadly unchanged” for three consecutive quarters, showing resilience during a traditionally slow period.
Stan also stated that alongside Catena’s reduced headcount, optimisations of its operational structure are expected to reduce annual costs by a total of €5.3m–€5.8m, with full impact visible from Q3 as software licence consolidations and staffing reductions take effect.
Diversification, sports seasons to help counter slides
To offset ongoing volatility in search engine rankings, Catena has been diversifying revenue sources beyond SEO.
Paid media, subaffiliation, and CRM channels contributed a growing share of revenue, albeit with higher performance-related costs.
Operational restructuring also continued in Q2, with the company unifying its technology stack into a more scalable platform, streamlining team structures, and adjusting headcount to align with current business size.
Casino revenue rose slightly quarter-on-quarter despite seasonal weakness and legal constraints in social sweepstakes, while sports betting revenue declined around 10% due to a limited sporting calendar.
Stan added that the company expects a seasonal boost in sports betting during Q3 with the start of the football season.
The company’s restructured sports teams are now fully operational, and a flatter organisational model is delivering greater efficiency ahead of peak activity, he added.
June was the most profitable month of the quarter, providing impetus to carry earnings momentum into the second half.
Strategic priorities include adapting content and technology for generative AI search, enhancing CRM and loyalty tools, and strengthening core brands.
Outside North America, the sale of the esports vertical provided liquidity and freed resources for the main business.
In June, Catena also redeemed its senior bond, ending the quarter in a net cash position excluding hybrid capital securities. This strengthened balance sheet is expected to support future growth initiatives.
The news appeared to have had a positive impact on Catena’s stock performance. It was trading at SEK1.90 on Monday morning (11 August), but reached SEK3.04 at the time of reporting.
