Codere Online Posts Record NGR, Lifts 2026 Outlook

Codere Online ((CDRO)) has held its Q4 earnings call. Read on for the main highlights of the call.

Codere Online’s latest earnings call carried a broadly upbeat tone, as management highlighted record net gaming revenue, sharply improved profitability, and solid customer growth. While regulatory and tax uncertainty in key Latin American markets remains a concern, executives stressed cost discipline, a stronger balance sheet and conservative guidance as reasons for cautious optimism.

Record Revenue Marks a Breakout Year

Full-year 2025 net gaming revenue reached EUR 224 million, the highest in Codere Online’s history and a key proof point of its growth strategy. Fourth-quarter NGR rose 15% year over year to EUR 60.7 million, setting a new quarterly record and providing strong momentum heading into 2026.

Profitability Surges as EBITDA More Than Doubles

Adjusted EBITDA for 2025 climbed to EUR 13.8 million, more than double the EUR 6.4 million generated in 2024, underscoring improving operating leverage. In Q4, adjusted EBITDA jumped to EUR 6.7 million, lifting the margin to roughly 11% from less than 4% a year earlier and marking a clear step change in profitability.

Mexico Emerges as the Core Growth Engine

Mexico continued to power the group’s expansion, with Q4 NGR up 31% year on year to EUR 32.8 million, making it the largest contributor. Active customers in the country surged to about 99,000 in the quarter, up from 69,000 a year earlier, and briefly surpassed 100,000 in December, highlighting the market’s growing scale.

Spain Delivers Steady Gains with Solid Margins

In Spain, a more mature and regulated market, Codere Online still managed to grow Q4 NGR by 7% to EUR 24.5 million. The company increased active customers by 14% to roughly 56,000 while preserving strong profitability, demonstrating its ability to expand without sacrificing margins in a competitive environment.

Customer Metrics Point to Healthy Underlying Demand

Average monthly active players reached around 177,000 in Q4, a 20% increase versus the prior year and a key signal of deeper market penetration. First-time depositors totaled 89,000 in the quarter, up 22% year on year, indicating that Codere Online continues to successfully attract new users to its platform.

Marketing Spend Becomes More Efficient

Marketing expenses for the full year came in at EUR 21.4 million, slightly below the prior year in absolute terms despite higher revenue. As a share of NGR, marketing declined meaningfully, reflecting better targeting, cost control and a more efficient return on advertising dollars even as competition stayed intense.

Cash Position Strengthens as Buybacks Begin

Codere Online ended 2025 with EUR 50 million in total cash, of which roughly EUR 45 million was available, underlining a solid liquidity buffer. The company generated EUR 13.4 million of cash before buybacks and FX effects, increasing available cash by about EUR 10 million while also repurchasing around 391,000 shares for approximately $2.7 million.

Other Latin American Markets Face Headwinds

Outside its core geographies, performance was softer, with Colombia, Panama and the City of Buenos Aires contributing EUR 3.5 million of NGR in Q4, down 25% year over year. Management linked much of the decline to Colombia, where a 19% tax on deposits that applied for most of 2025 weighed on customer activity and profitability.

Mexico’s Regulatory and Tax Landscape Adds Risk

The company acknowledged that recent tax increases in Mexico present an EBITDA headwind for the sector and complicate planning. Uncertainty around the federal regulatory framework and the recent shutdown of two large competitors have created short-term disruption and political risk, even as Codere Online seeks to capture dislocated demand.

Customer Spend Per Head Moderates

Average monthly spend per active customer in Q4 was EUR 114, around 4% lower than in the same period of 2024, suggesting a slight dilution in per-user monetization. Management framed this as the consequence of a larger, more diversified base with a higher proportion of Mexican players, rather than a sign of weakening engagement.

Colombia’s Policy Volatility Clouds Visibility

In Colombia, the regulatory outlook remains fluid, with uncertainty over whether the removal of VAT on gaming will be permanent and discussion of a new minor tax. Codere Online is taking a conservative budgeting approach by assuming VAT remains, which could prove prudent if the policy environment tightens again.

Competitive and FX Pressures Remain in Focus

The Mexican market remains crowded, with heavy promotional activity and advertising intensity likely to persist as operators fight for share, which could pressure margins until Codere Online achieves greater scale. The company’s outlook also remains sensitive to MXN/EUR currency movements and assumes marketing investment broadly in line with 2025, a year boosted by the World Cup.

Guidance Signals Cautious Confidence for 2026

For 2026, management guided net gaming revenue to EUR 235–245 million, implying roughly 7% growth at the midpoint versus 2025, and adjusted EBITDA of EUR 15–20 million, more than 25% growth at the midpoint. The forecast assumes marketing intensity similar to 2025 but expects marketing as a percentage of NGR to trend down over time as the business scales and profitability improves.

Codere Online’s earnings call painted the picture of a company turning scale into profitability while navigating a complex regulatory map. Record revenue, sharp EBITDA gains and a stronger cash position support a constructive view, though investors will watch Mexico and Colombia closely as important, yet volatile, drivers of both growth and risk.