Gentoo Media Lowers Expected Revenue for 2026

Malta-based iGaming affiliate marketing company Gentoo Media has revealed a more pessimistic financial outlook for 2026, resulting in its shares dropping a whopping 26% in a day. Gentoo Media Lowers Earnings Expectations for 2026 Partly reflecting its second-quarter results and the impact of lower first-quarter revenue, Gentoo reduced its full-year revenue guidance to $113 – $117 million, which is down from its previous forecast of $117 – $135 million. The company also lowered its forecast for EBITDA before special items to between $51 and $55 million, compared with its earlier guidance of $57 to $63 million. According to Gentoo management, the revisions are due to weaker-than-expected first-half revenue, current trading conditions, and delays to commercial initiatives. It also pointed to lower-than-expected World Cup earnings, although Gentoo has not disclosed specific figures for that revenue. Here Are Some Numbers For the three months that ended on June 30, revenue declined 9% to $26.8 million, compared with $29.3m in the restated prior-year quarter. Despite the decline in revenue, EBITDA before special items increased 5% to $10.4 million, with the margin expanding to 39% from 34%. The affiliate marketing group also swung to a $3.2 million profit for the quarter, compared with a $0.6 million loss a year earlier. Operating profit increased to $6.8 million, from $1.4 million. This was helped by lower depreciation and amortization charges. Interestingly, Gentoo also saw a decline in spending, paralleling the decrease in revenue. For example, marketing spending fell to $8 million, from $9.8 million a year earlier. However, it was still 25% higher than in the first quarter, as Gentoo sought to capitalize on demand generated by the World Cup. Personnel and other operating costs declined 12% to $8.4 million, while total operating expenses dropped by $3 million to $16.4 million. The company said it had achieved its previously announced target of $9.4 to $11.7 million in annualized savings, set early last year, and expects to make further operational cost reductions going forward. Gentoo’s CEO Jonas Warrer said the company’s clearest priority for the remainder of the year was to return the business to top-line growth. He added that the operational and organizational changes implemented over the past year had created a leaner business with a structurally stronger margin profile. Warrer also said the company was entering the second half with a larger and more active player base, a more scalable Paid channel and a Publishing organization increasingly focused on its highest-potential brands. In other news about Gentoo, a couple of months ago, the company parted ways with CFO Mads Haugegaard Albrechtsen after he decided to step down from the position.