Raketech Group (RAKE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was EUR 9.8 million, down 48.8% year-on-year, mainly due to divestments and underperformance in SubAffiliation and Casumba assets.

• Adjusted EBITDA was EUR 2.4 million, a 52.6% decrease year-on-year, with a margin of 24.5%.

• Free cash flow reached EUR 1.7 million, supporting EUR 8 million in H1 earn-out payments, with EUR 6 million settled in Q1.

• Strategic shift to a platform-first approach and entrepreneurial partnerships, now generating about 50% of Affiliation Marketing revenue.

• Cost savings initiatives led to a 34% reduction in expenses (excluding publisher costs) and a 41% headcount reduction compared to Q1 2024.

Financial highlights

• Revenue fell 48.8% year-on-year to EUR 9.8 million, with a 46.6% decrease attributed to divestments.

• Adjusted EBITDA dropped 52.6% year-on-year to EUR 2.4 million; EBITDA was EUR 2.1 million.

• Free cash flow was EUR 1.7 million, in line with EBITDA after CapEx, interest, and lease payments.

• Operating loss was EUR 0.2 million, compared to a profit of EUR 1.3 million in Q1 2024.

• Loss for the period was EUR 0.8 million; adjusted loss was EUR 0.5 million.

Outlook and guidance

• Focus remains on developing AffiliationCloud as a leading commercial platform.

• Entrepreneurial partnerships are expected to drive long-term value and increased activity.

• Revenues for affiliation marketing assets in April were consistent with Q1; Paid Publisher Network faces ongoing challenges.

• Revised Casumba earnout terms extend payment to March 2028, improving financial flexibility.