Q2 2025: Stable Core, Strategic Divestment, and Strengthened SubAffiliation Pipeline
TRIQ I-IMSIDA IL-GZIRA, MT / ACCESS Newswire / July 23, 2025 /Raketech (STO:RAKE) - Quote from Johan Svensson, CEO "Focus remains on delivering on AffiliationCloud and our platform-first strategy, anchored in Affiliation and SubAffiliation. We will continue to explore new entrepreneurial partnerships in key markets and additional assets. By deepening our exclusive commercial operator agreements, diversifying beyond traditional SEO channels, and expanding our publisher network, we are well-positioned to drive efficiency, reach, and long-term value."
Q2 2025 FINANCIAL HIGHLIGHTS
Raketech recorded revenues of EUR 7.8 million in Q2 2025 (EUR 17.0 million in Q2 2024, which included EUR 0.8 million from the divested advisory business). Revenues were primarily affected by continuing challenges in the Paid Publisher Network (SubAffiliation). Our core Affiliation Marketing portfolio, excluding the Casumba assets, showed positive momentum, delivering a 5% revenue increase quarter-over-quarter.
Adjusted EBITDA amounted to EUR 2.1 million, while reported EBITDA was EUR 2.0 million. During the quarter, we divested our non-core US tipster and subscription assets, with the transaction closing at the end of June. These assets, along with the related US operations, had a negative EBITDA impact of EUR 0.5 million in Q2. Adjusted EBITDA excluding US tipster assets was EUR 2.6 million in the quarter.
Free cash flow before earnouts totalled EUR 1.8 million in Q2 2025, largely in line with EBITDA.
OPERATIONAL HIGHLIGHTS
We achieved cost savings of 35% in Q2 2025 (excluding publisher costs) compared to Q1 of last year, which marked the initiation of a review of our operating model.
We successfully divested our non-core US Tipster and Subscription assets, which is expected to result in improved profitability going forward, with additional monthly cost savings of approximately EUR 150k.
SUBSEQUENT EVENTS AFTER THE END OF THE PERIOD
Preliminary data on July 2025 revenues for our Affiliation Marketing assets indicate performance in line with typical seasonal trends as expected, reflecting a somewhat softer activity during the early summer period and the absence of major sport events. Activity is anticipated to pick up toward the end of summer. The lower margin Paid Network (SubAffiliation) continues to face headwinds, consistent with Q2 and previous quarters while the organic Network is performing as expected.
CEO COMMENT
In Q2, we continued to make progress on both our platform-first strategy and efforts to streamline our organization.
While revenues declined year-on-year, this was primarily driven by two specific areas: the Casumba assets and the Paid Publisher segment within SubAffiliation, which together accounted for a vast majority of the drop combined with the divested US Advisory business. Overall market conditions for Casumba continued to be challenging during the quarter, and recent structural changes in Google 's advertising ecosystem, as highlighted in Q1, have further increased the difficulty of scaling paid traffic across the industry.
Our core strategy however is delivering results, driven by our entrepreneurial partnership model, Affiliation Marketing, excluding Casumba, grew 5% quarter-over-quarter. SubAffiliation, excluding Paid, remained stable, with growing momentum in exclusive commercial operator agreements and a promising pipeline of revenue-generating Organic Publishers.
Furthermore, we successfully divested our non-core US Tipster and Subscription assets, which is expected to result in improved profitability going forward.
Financial Overview
Raketech recorded revenues of EUR 7.8 million in Q2 2025 (EUR 17.0 million in Q2 2024, which included EUR 0.8 million from the divested advisory business). EBITDA amounted to EUR 2.0 million (EUR 4.4 million), while Adjusted EBITDA amounted to EUR 2.1 million (EUR 4.4 million), including a EUR 0.5 million operational loss in our divested US Tipster assets. Adjusted EBITDA excluding US tipster assets was EUR 2.6 million in the quarter.
Business Area Updates
Affiliation Marketing
During the second quarter of 2025, our core Affiliation Marketing portfolio, excluding the underperforming Casumba assets, demonstrated continued strength, delivering 5% revenue growth quarter-over-quarter.
A key driver of this performance is our entrepreneurial partnership model, which now accounts for approximately 63% of revenues in this business area. The model allows Raketech to retain full ownership of assets while leveraging its centralized strengths in commercial agreements, finance, reporting, data, and technology. Our partners contribute deep domain expertise in areas such as SEO, content, and product development, creating a highly scalable and operationally efficient structure.
As part of our ongoing efforts to diversify our sources of revenue beyond SEO, we have signed a new commercial agreement with a large Nordic TV and streaming operator to provide them with valuable traffic from our TV sport guides. This strengthens our position within the Affiliation Marketing business area and broadens our distribution network.
Casumba performance was impacted by worsened market conditions. These headwinds have affected the entire affiliate industry. As previously announced, we extended the earn-out agreement and continue working closely with the founders on operational improvements. Affiliation Marketing remains a core component of our platform, and the quarter 's results highlight the strength and consistency of our partnership-driven model.
SubAffiliation - Organic Publisher Network and Paid Publisher Network
Our Organic Network performed in line with the previous quarter, supported by our broad and robust pipeline of publishers. The number of revenue-generating publishers is in line with the previous quarter.
We have strengthened our exclusive commercial operator agreements in the US, one of our target markets and a key focus of our SubAffiliation offering. The US business grew strongly during the quarter, reflecting our strategic emphasis on exclusive, high-quality partnerships in key markets.
In contrast, the Paid Publisher Network experienced a quarter-over-quarter decline, primarily due to structural changes in Google 's ad ecosystem. This is a broad industry challenge, and we are reviewing the role of Paid within our model.
In response, we have continued to focus on organic network publishers and exclusive commercial operator agreements, supporting both operators and publishers who want to consolidate their commercial operations through Raketech.
US Tipster & Subscription
The divestment of our US tipster assets was a key strategic milestone this quarter, allowing us to further sharpen our focus on our core skills. The transaction delivered a realized net gain of EUR 200k, offset by an operating loss of EUR 500k. Importantly, this strategic exit eliminates ongoing operational losses and cost exposure tied to this business area as of July 1st. This will have a positive impact on EBITDA and overall cash flow going forward.
Conclusion & Next Steps
Focus remains on delivering on AffiliationCloud and our platform-first strategy, anchored in Affiliation and SubAffiliation.
We will continue to explore new entrepreneurial partnerships in key markets and additional assets. By deepening our exclusive commercial operator agreements, diversifying beyond traditional SEO channels, and expanding our publisher network, we are well-positioned to drive efficiency, reach, and long-term value.
Johan Svensson, CEO
LINK TO REPORT
The full Interim Report is available on https://raketech.com/investors/
REPORT PRESENTATION
CEO Johan Svensson and CFO Måns Svalborn will present the report in a conference call on Wednesday, July 23, 2025, at 09:00 CEST.
The presentation can be followed via both a conference call and an online audio cast, including a Q&A session open to all listeners at the end of the presentation.
If you wish to participate via webcast, please use the link below. Via the webcast you are able to ask written questions.
https://raketech.events.inderes.com/q2-report-2025
If you wish to participate via teleconference, please register on the link below. After registration, you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via teleconference.
https://conference.inderes.com/teleconference/?id=5007062
For more information, please contact:
About Raketech Group
Raketech is a leading online affiliate and content marketing company, with expertise in delivering comparison services for sports and gaming, online guides, communities, and social media products. Raketech guides sports and gaming enthusiasts to the best possible services, while also delivering high-quality traffic and leads to its partners. Raketech grows both organically and via acquisitions and operates its business in accordance with a clear framework for responsible affiliate marketing services. The company 's shares are listed in Nasdaq First North Premier Growth Market with ticker RAKE. DNB Carnegie Investment Bank AB (publ) is the company 's Certified Adviser. For more information, visit www.raketech.com.
This information is information that Raketech is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-07-23 08:00 CEST.
Attachments
Q2 2025 Stable Core, Strategic Divestment, And Strengthened SubAffiliation Pipeline
SOURCE: Raketech
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