Raketech Group (RAKE) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was EUR 7.8 million, down 53.8% year-over-year, mainly due to declines in Casumba, SubAffiliation, and the divestment of US tipster assets.

• Adjusted EBITDA was EUR 2.1 million, reported EBITDA EUR 2.0 million; excluding divested US tipster assets, adjusted EBITDA was EUR 2.6 million.

• Cost base reduced by 35% year-over-year (excluding publisher costs) due to restructuring and divestments.

• Divestment of non-core US tipster and subscription assets completed, removing a negative EBITDA impact of EUR 0.5 million and saving EUR 150,000 per month from July.

• Free cash flow for Q2 was EUR 1.8 million.

Financial highlights

• Revenue fell 53.8% year-over-year to EUR 7.8 million, with the largest impact from Casumba and paid sub-affiliation.

• Adjusted EBITDA margin was 27% in Q2 2025.

• Free cash flow: EUR 1.8 million in Q2.

• Earnout payment of EUR 2 million made in Q2; final earnout payment period extended to March 2028.

• Cost savings of 35% (excluding publisher costs) achieved in Q2 compared to Q1 last year.

Outlook and guidance

• No costs from divested US tipster assets from July, expected to improve profitability by EUR 150,000 per month.

• Focus remains on developing Affiliation Cloud, expanding exclusive operator agreements, and preparing for the FIFA World Cup.

• July revenues for affiliation marketing assets in line with seasonal trends; activity expected to pick up later in summer.

• Paid Network (SubAffiliation) continues to face headwinds, while the organic network performs as expected.