Catena Media's Adjusted EBITDA doubles in Q2 2025, despite a decline in revenue.
Catena Media, a leading affiliate marketing company, has reported a significant improvement in profitability for the second quarter of 2025, despite a decline in revenue. The company's net income turned positive, and adjusted EBITDA more than doubled, reflecting better cost management and efficiency gains.
The improved profitability is primarily attributed to effective business optimization measures that have begun to show positive impact on profitability while maintaining relatively stable revenue levels. Cost control and operational efficiencies have played a crucial role in reducing losses from prior years and improving earnings per share.
Despite a revenue decline of approximately 25% year-over-year to around €9.6 million, the company focused on stabilizing revenue streams and improving margins rather than growth alone. June was the most profitable month of the quarter.
One of the key cost optimization measures implemented by Catena Media was a 25% workforce reduction, projected to save €4.5m-€5m annually. The company also streamlined team structures and adjusted headcount to align with the current business size.
In addition, Catena Media unified its technology stack into a more scalable platform in Q2, and the sale of esports-related assets generated a €1.4m gain, enabling greater focus on core operations.
Stan, the CEO of Catena Media, expressed optimism about the company's future. He stated that they will diversify the offering, optimize operations, consolidate their tech stack, and grow in areas where they can win. The strengthened balance sheet is expected to support future growth initiatives.
The company's stock performance was positively impacted, with the stock trading at SEK3.04 at the time of reporting, up from SEK1.90 on Monday morning (11 August).
Stan also predicted that optimisations of Catena's operational structure would reduce annual costs by a total of €5.3m-€5.8m, with full impact visible from Q3. He expects a seasonal boost in sports betting during Q3 with the start of the football season.
Despite a decline in sports betting revenue due to a limited sporting calendar, casino revenue rose slightly quarter-on-quarter despite seasonal weakness and legal constraints in social sweepstakes. Paid media, subaffiliation, and CRM channels contributed a growing share of revenue, although with higher performance-related costs.
In conclusion, Catena Media’s Q2 2025 profitability boost stems largely from solid cost optimization and operational improvements offsetting revenue pressures. The company's resilience during a traditionally slow period is commendable, and investors look forward to future growth initiatives.
- Catena Media, a leading affiliate marketing company specializing in technology and business, has reported a significant improvement in profitability for the second quarter of 2025, despite a decline in revenue, primarily due to effective cost control and operational efficiencies.
- One of the key cost optimization measures implemented by Catena Media was a 25% workforce reduction, projected to save €4.5m-€5m annually, combined with streamlined team structures and adjusted headcount to align with the current business size.
- In Q2, Catena Media unified its technology stack into a more scalable platform, enabling greater focus on core operations, and the sale of esports-related assets generated a €1.4m gain.
- Despite a revenue decline in sports betting due to a limited sporting calendar, casino revenue rose slightly quarter-on-quarter, with paid media, subaffiliation, and CRM channels contributing a growing share of revenue, although with higher performance-related costs.
- Stan, the CEO of Catena Media, believes that the company will diversify its offering, optimize operations, consolidate their tech stack, and grow in areas where they can win, with the strengthened balance sheet expected to support future growth initiatives.
