Deezer (DEEZR) H2 2025 earnings summary

Executive summary

• Achieved all FY25 targets, including first-ever positive net income of €8.5M and free cash flow generation, marking a shift to sustainable profitability.

• Revenue stable year-over-year at €534M, with direct subscriber growth offsetting partnership declines.

• Adjusted EBITDA improved to €10M (up €14M YoY), a significant turnaround from negative €4M in FY24.

• Strategic focus on AI transparency, fair artist remuneration, and product innovation for Gen Z and younger audiences.

• Positive free cash flow generated for the seventh consecutive year; year-end cash position at €65M.

Financial highlights

• Revenue flat at €534M year-over-year at constant currency; direct revenue up 2.2%, partnership revenue declined 12.1% due to Meli+ phase-out.

• Adjusted gross profit margin improved to 25.4%; gross profit at €135.5M.

• Operating expenses reduced by over €12M YoY, reflecting strong cost discipline.

• Net income turned positive at €8.5M, compared to a €26M loss in FY24.

• Free cash flow increased to €10.1M, with cash and cash equivalents at €65M year-end.

Outlook and guidance

• FY26 revenue expected to remain in line with FY25, with continued positive adjusted EBITDA and free cash flow.

• Selective reinvestment planned in key markets and high-return growth drivers, especially France and developed markets.

• No price increases planned in 2026 forecast, but flexibility will be maintained depending on competition.