Codere Online Luxembourg (NASDAQ:CDRO) reported what management described as a strong finish to 2025, highlighted by record annual net gaming revenue (NGR) and improved profitability as growth in Mexico and Spain continued into the fourth quarter.
Fourth-quarter and full-year results
Chief Executive Officer Aviv Sher said the company ended 2025 “very pleased” with results despite what he characterized as a challenging year. For the full year, Codere Online posted record NGR of EUR 224 million and Adjusted EBITDA of EUR 13.8 million, which Sher said was more than double the prior year and within the guidance range previously provided.
- Mexico: Q4 NGR of EUR 32.8 million, up 31% year-over-year
- Spain: Q4 NGR of EUR 24.5 million, up 7% year-over-year
Other markets (Colombia, Panama, and the City of Buenos Aires) contributed EUR 3.5 million in Q4, down 25% from the prior-year quarter. Arildsson attributed the decline primarily to Colombia, where a 19% tax on deposits was in effect for most of 2025 but expired toward year-end.
Profitability, expenses, and operating leverage
Arildsson said top-line growth is “translating into profitability” as the company scales, pointing to operating leverage, improved marketing efficiency, and cost discipline. The company delivered Adjusted EBITDA of EUR 6.7 million in Q4, an improvement of EUR 4.8 million versus Q4 2024, with contributions of EUR 7.1 million from Spain and EUR 4 million from Mexico. He said Mexico has now “clearly inflected towards profitability.”
Marketing expense in Q4 was EUR 21.4 million, slightly below the prior year in absolute terms and lower as a percentage of NGR. Arildsson said other operating expenses—including platform and content costs, gaming taxes, and personnel—were “essentially in line” with NGR growth. Adjusted EBITDA margin was approximately 11% in Q4, compared to less than 4% in the prior-year quarter.
Customer metrics and market performance
Management highlighted continued customer growth. Sher said average monthly active customers reached about 177,000 in Q4, up 20% year-over-year, reflecting both acquisition and retention improvements. Average monthly spend per active customer was EUR 114, about 4% lower than Q4 2024, which Sher attributed to a larger and more diversified customer mix, including a higher proportion of Mexican players.
On acquisition, the company reported 89,000 first-time depositors (FTDs) in Q4 at an average consolidated cost per acquisition (CPA) of EUR 166. Sher said that was the lowest level since early 2023. In Mexico, Arildsson said active customers grew to around 99,000 in Q4 from 69,000 a year earlier, and the company exceeded 100,000 active customers in December for the first time. He also noted the Mexican peso was roughly flat in Q4 compared to the prior-year period.
In Spain, Arildsson said Q4 active customers increased 14% to 56,000, supporting NGR growth in what management described as a mature and tightly regulated market. In response to a question on promotional intensity, Sher said Spain remains competitive but appears to be “going into a plateau,” adding that the company has posted two consecutive quarters of growth after taking several quarters to stabilize its approach.
Balance sheet, cash flow, and capital return
Arildsson said Codere Online ended 2025 with EUR 50 million of total cash, with approximately EUR 45 million available. The company’s net working capital remained structurally negative, ending the year at negative EUR 22 million (around 10% of full-year NGR), which management said supports cash generation.
The company generated EUR 13.4 million of cash flow before share repurchases and foreign exchange impacts, and available cash increased by close to EUR 10 million from the start of the year, Arildsson said.
Sher also provided an update on the company’s share repurchase program, stating that through the prior day the company had bought approximately 391,000 shares for about $2.7 million. The program authorizes up to $7.5 million in repurchases through December 31, 2026.
2026 outlook: World Cup year and regulatory considerations
For 2026, management guided NGR to a range of EUR 235 million to EUR 245 million and Adjusted EBITDA to a range of EUR 15 million to EUR 20 million. Arildsson said the outlook assumes marketing investment broadly in line with 2025, reflecting the World Cup and Mexico’s competitive landscape, while also anticipating marketing as a percentage of NGR trends down over time as the brand matures.
During Q&A, management addressed Mexico’s tax increase, noting it is negative for the company and the sector but saying the business expects to mitigate much of the impact through marketing actions, supplier-related initiatives, and operational efficiencies. Sher said the company does not see a risk to revenue generation from the change, though it expects an EBITDA effect that management described as “not as big as we thought.”
On Mexico regulation, Sher said there was no update on federal regulatory framework discussions, describing the process as “stuck,” and noted two large competitors were shut down for what he described as regulatory or political problems. Executives said they had not seen changes in online activity from security-related headlines. In response to another question, Sher listed several names he said the company has heard may be considering entering Mexico, including Hard Rock, Versus (R. Franco), and Sportium/Ganabet, as well as local player BigBola, while adding he had not yet seen new large advertising budgets in the market.
Management also said the company has launched a poker app in Mexico and is preparing a “quiet launch” of bingo, describing both as supportive products intended to help retention rather than near-term standalone growth drivers.
About Codere Online Luxembourg (NASDAQ:CDRO)
Codere Online Luxembourg SA is a publicly traded company incorporated under the laws of Luxembourg and listed on the Nasdaq Stock Market under the ticker CDRO. Established in December 2020 as a spin-off of Grupo Codere’s digital operations, Codere Online leverages the heritage and infrastructure of its Spanish parent to deliver a dedicated online gaming and sports betting platform. Headquartered in Luxembourg City, the company operates through locally licensed subsidiaries in multiple jurisdictions.
The company’s core business revolves around an integrated online sportsbook and casino offering.
