Huuuge (HUG) Q4 2025 earnings summary

Executive summary

• Full year 2025 revenue was $236 million, down 6.1% year-over-year, with trends stabilizing and D2C expansion driving profitability.

• Adjusted EBITDA rose 10.3% year-over-year to $96 million, with a record 41% margin, driven by cost discipline and D2C expansion.

• Free cash flow reached $73.3 million in 2025, supporting a policy to return 50%-100% of annual free cash flow to shareholders.

• D2C channel accounted for 37% of Q4 2025 sales and reached 41% in February 2026.

• Strategic priorities for 2026 include reinforcing the core business, expanding D2C, and entering the iGaming market via M&A.

Financial highlights

• Gross profit for 2025 was $179.9 million, nearly flat year-over-year (-1.1%).

• Q4 2025 revenue was nearly $59 million, down 5% year-over-year but up 5% sequentially.

• Adjusted EBITDA for Q4 exceeded $25 million, up 2% year-over-year and 14% sequentially.

• R&D costs decreased 28% year-over-year in Q4 and 20% for the full year, reflecting restructuring.

• Ended 2025 with $100.6 million in cash.

Outlook and guidance

• 2026 revenue expected to decline slightly year-over-year, in line with social casino market trends.

• Marketing spend to remain in the mid-teens as a percentage of revenue, with strict payback discipline.

• Operating expenses (excluding UA) to slightly decline year-over-year.

• Adjusted EBITDA margin expected to remain flat, sustaining strong profitability.