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Codere Online (CDRO)
NASDAQ:CDRO
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Codere Online
(NASDAQ:CDRO)
Rating:55Neutral
Price Target:
$8.50
▲(3.16% Upside)
Positive Factors
Customer Acquisition
The company saw strong customer acquisition momentum with a 21% increase in first-time deposits and a reduced cost per acquisition.
Earnings
Codere Online reported net gaming revenue of €57M, exceeding the consensus estimate of €52.8M, showcasing significant growth.
Negative Factors
Profitability
Higher marketing and platform investments led to AEBITDA being below the consensus forecast, impacting profitability.
Regulatory Challenges
Codere Online's operations in Colombia faced challenges due to regulatory disruption, affecting the company's performance in the region.
Codere Online (CDRO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$376.08M
Dividend YieldN/A
Average Volume (3M)22.27K
Price to Earnings (P/E)601.5
Beta (1Y)0.86
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees297
SectorConsumer Cyclical
Sector Strength83
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)-0.06
Shares Outstanding45,640,816
10 Day Avg. Volume21,622
30 Day Avg. Volume22,271
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.87
Enterprise Value/Revenue3.21
Enterprise Value/Gross Profit3.53
Enterprise Value/Ebitda192.65
Forecast
1Y Price Target
$11.25Price Target Upside36.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Codere Online Business Overview & Revenue Model
Company DescriptionCodere Online (CDRO) is a leading online gaming and sports betting company primarily operating in Latin America and Spain. The company offers a diverse range of products including sports betting, online casino games, and live casino experiences. Codere Online leverages its strong brand presence and expertise in the gaming industry to provide an engaging and secure platform for its users.
How the Company Makes MoneyCodere Online generates revenue through various streams primarily centered around its online gaming and sports betting services. The company earns money by taking a percentage of the bets placed on its platform, known as the 'house edge' in casino games, and through the 'vig' or 'juice' in sports betting, which is a commission charged on bets. Additionally, Codere Online benefits from partnerships with gaming content providers and payment processors, which enhance its offerings and operational efficiency. The company also invests in marketing and promotional activities to attract and retain users, contributing to its revenue growth.
Codere Online Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call indicates a stable financial performance with positive developments in customer acquisition and EBITDA growth. However, challenges such as currency devaluation and taxation in key markets like Mexico and Colombia present significant hurdles. While the company is optimistic about future growth, especially in Mexico, external factors continue to pose risks.Q2-2025 Updates
Positive Updates
Regained NASDAQ Compliance
Codere Online has regained compliance with all applicable NASDAQ listing requirements, reducing uncertainty about its continuity as a publicly traded company.
Stable Net Gaming Revenue
Net gaming revenue for Q2 2025 was EUR 55 million, roughly flat compared to the previous year. On a constant currency basis, this would equate to EUR 61 million, showing a 12% increase.
Strong Customer Acquisition
The company reported 78,000 first-time depositors, a 7% increase from the previous year, demonstrating successful customer acquisition strategies.
Positive Adjusted EBITDA
Adjusted EBITDA was positive EUR 2.3 million, marking a 5% increase in contribution from the Spanish business compared to the previous year.
Cash Flow and Financial Position
The company generated EUR 7.5 million of available cash in the first half of 2025, ending the quarter with EUR 45 million in total cash, maintaining a stable financial position.
Negative Updates
Impact of Mexican Peso Devaluation
The Mexican peso devalued by over 19%, resulting in a EUR 5.7 million negative impact on net gaming revenue.
Challenges in Colombia
Net gaming revenue in Colombia was EUR 1.6 million lower due to a new value-added tax on player deposits, representing a significant challenge for the market.
Increased Competition in Spain
The reintroduction of welcome bonuses in Spain created a more competitive landscape, affecting growth and customer retention.
Lower Spend Per Active Customer
There was a 5% decrease in average monthly spend per active customer, primarily due to the weaker Mexican peso.
Company Guidance
During Codere Online's second-quarter 2025 earnings call, the company provided guidance that included anticipations for net gaming revenue between EUR 220 million and EUR 230 million and adjusted EBITDA ranging from EUR 10 million to EUR 15 million for the full year. The company reported a net gaming revenue of EUR 55 million for the quarter, reflecting a 1% increase, despite significant challenges such as the Mexican peso devaluation and tax changes in Colombia. On a constant currency basis, net gaming revenue would have increased by 12%. The adjusted EBITDA for the quarter was positive EUR 2.3 million, with Spain contributing EUR 6.3 million, up 5% from the previous year. Codere Online achieved a 7% increase in average monthly active customers for the quarter but noted a 5% decrease in average monthly spend per active customer, mainly due to the weaker Mexican peso. Additionally, the company highlighted its strong acquisition performance, with 78,000 first-time depositors, a 7% increase from the prior year, and an average cost per acquisition (CPA) of EUR 218. The company's marketing strategy in Mexico focused on leveraging existing customers and optimizing acquisition costs, anticipating that these efforts would support further growth leading up to the 2026 World Cup.Codere Online Financial Statement Overview
Summary
Codere Online shows a positive trajectory with strong revenue growth and improved profitability metrics. The balance sheet is stable with low leverage and strong cash reserves, although profitability margins need improvement.Income Statement
Codere Online has shown a significant improvement in its income statement over the past year. The gross profit margin is strong at approximately 96.14%, and the net profit margin has turned positive to 1.95% from a previous negative position, highlighting improved operational efficiency. Revenue growth was robust, with a 24.1% increase from the previous year, indicating a successful expansion strategy. However, EBIT and EBITDA margins remain low at 2.16% and 2.35% respectively, suggesting room for improvement in operational leverage.60
Neutral
Balance Sheet
The balance sheet of Codere Online indicates a moderate financial position with a debt-to-equity ratio of 0.22, reflecting a relatively low level of leverage, which is positive. The equity ratio stands at 32.29%, showing a fair proportion of equity financing. Return on equity is healthy at 16.23%, but the overall equity base is small, which could limit growth opportunities. The company has improved its net debt position, with significant cash reserves, which enhances financial stability.55
Neutral
Cash Flow
Codere Online's cash flow statement reveals strong free cash flow growth from the previous year. The operating cash flow to net income ratio is 1.01, indicating that the company efficiently converts its net income into cash. Free cash flow to net income ratio is 0.94, showing strong cash generation relative to earnings. With positive free cash flow, the company is well-positioned to reinvest in its operations or reduce debt.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 102.11M | 200.70M | 161.65M | 115.75M | 80.25M | 70.50M |
| Gross Profit | 92.67M | 192.97M | 155.37M | 110.90M | 76.23M | 66.24M |
| EBITDA | 1.70M | 4.72M | -14.64M | -30.22M | -65.77M | -13.15M |
| Net Income | -252.00K | 3.91M | -2.42M | -46.38M | -68.01M | -16.28M |
Balance Sheet | ||||||
| Total Assets | 71.78M | 74.54M | 73.80M | 69.31M | 105.28M | 18.55M |
| Cash, Cash Equivalents and Short-Term Investments | 40.43M | 53.80M | 51.68M | 53.81M | 98.81M | 15.66M |
| Total Debt | 5.17M | 5.37M | 5.11M | 4.95M | 2.98M | 39.23M |
| Total Liabilities | 52.85M | 50.32M | 52.51M | 44.76M | 37.12M | 58.47M |
| Stockholders Equity | 18.78M | 24.07M | 21.14M | 24.40M | 68.01M | -40.02M |
Cash Flow | ||||||
| Free Cash Flow | -439.00K | 3.69M | -11.82M | -42.52M | -5.27M | 3.80M |
| Operating Cash Flow | -237.00K | 3.94M | -11.58M | -42.36M | -5.19M | 3.86M |
| Investing Cash Flow | -202.00K | -256.00K | -245.00K | -164.00K | -83.00K | -72.00K |
| Financing Cash Flow | -222.00K | -2.04M | 1.33M | 0.00 | 89.33M | -175.00K |
Codere Online Technical Analysis
Neutral
8.24
Price Trends
8.33
Negative
7.93
Positive
7.53
Positive
Market Momentum
>-0.01
Positive
48.29
Neutral
28.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDRO, the sentiment is Neutral. The current price of 8.24 is below the 20-day moving average (MA) of 8.29, below the 50-day MA of 8.33, and above the 200-day MA of 7.53, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 28.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CDRO.
Codere Online Risk Analysis
Codere Online disclosed 1 risk factors in its most recent earnings report. Codere Online reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Codere Online Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $6.34B | 47.90 | 21.44% | 1.82% | 26.85% | 1963.28% | |
75 Outperform | $4.84B | 105.11 | 27.07% | ― | 26.99% | ― | |
66 Neutral | $294.08M | 20.28 | 10.86% | ― | 27.57% | -40.98% | |
61 Neutral | $17.92B | 12.81 | -3.11% | 2.97% | 1.30% | -14.28% | |
61 Neutral | $41.41B | ― | -26.38% | ― | 25.80% | 27.64% | |
55 Neutral | $376.08M | 601.46 | 2.77% | ― | ― | ― | |
51 Neutral | ― | ― | 7.02% | 74.19% |
* Consumer Cyclical Sector Average
Performance Comparison
CDRO
Codere Online
8.24
0.44
5.64%
DKNG
DraftKings
46.56
10.45
28.94%
GAN
GAN
1.97
0.23
13.22%
RSI
Rush Street Interactive
21.19
11.80
125.67%
SGHC
Super Group (SGHC)
12.65
9.35
283.33%
GAMB
Gambling.com
8.26
-1.86
-18.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.