Codere Online Reports Record Q4 Net Gaming Revenue, Positive EBITDA, and Strong 2026 Outlook Amidst Mexico Tax Hike

summarizeSummary

Codere Online reported record Q4 2025 Net Gaming Revenue of €60.7 million and positive Adjusted EBITDA, alongside a strong FY 2026 outlook. This positive operational news is tempered by a significant increase in Mexico's gaming excise tax, effective January 2026.

check_boxKey Events

• Record Q4 2025 Net Gaming Revenue

  The company achieved a record Net Gaming Revenue of €60.7 million in Q4 2025, a 15% increase over Q4 2024. Full-year 2025 Net Gaming Revenue reached €224.1 million, up 6% from 2024, primarily driven by a 31% growth in Mexico's Net Gaming Revenue to €32.8 million in Q4 2025.

• Achieved Positive Adjusted EBITDA

  Codere Online reported positive Adjusted EBITDA of €6.7 million in Q4 2025, a significant improvement of €4.8 million compared to Q4 2024. For the full year 2025, Adjusted EBITDA reached €13.8 million, meeting the upper part of its previous outlook range, despite a net loss of €1.8 million for the year.

• Issued Strong FY 2026 Financial Outlook

  The company provided an optimistic outlook for fiscal year 2026, projecting Net Gaming Revenue between €235 million and €245 million, and Adjusted EBITDA between €15 million and €20 million.

• Significant Mexico Gaming Tax Increase

  Effective January 1, 2026, the statutory excise tax rate (IEPS) applicable to gaming in Mexico was increased from 30% to 50%. This represents a material change for a market that contributed over 50% of the company's Net Gaming Revenue in 2025.

auto_awesomeAnalysis

Codere Online delivered robust operational performance in Q4 and full-year 2025, driven by strong growth in Mexico, which achieved record Net Gaming Revenue. The company also met the upper end of its Adjusted EBITDA outlook for 2025 and provided a positive outlook for 2026, signaling continued growth and profitability. However, a significant headwind emerges from the increase in Mexico's statutory excise tax rate (IEPS) from 30% to 50% effective January 1, 2026. Given Mexico's substantial contribution to the company's revenue, this tax hike is expected to materially impact future profitability in that key market. While the company reported a net loss for FY 2025, the positive EBITDA and ongoing share buyback program indicate management's confidence and focus on shareholder returns. Investors should monitor the impact of the Mexico tax changes on future margins and the company's ability to sustain growth.