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Gentoo Media entered the second half of 2026 with a contradiction running through its numbers: players are depositing more money, profitability has improved and debt is coming down, yet revenue is moving in the wrong direction.
That disconnect was difficult to miss in the company’s second-quarter report. Gentoo generated €22.9 million in revenue during the three months, down 9% from €25 million a year earlier and below management’s expectations.
The weaker performance has now forced the Malta-based online gambling affiliate group to substantially lower its outlook for the full year.
Full-year forecasts lowered
Gentoo now expects 2026 revenue of between €97 million and €100 million. Its previous forecast was €105 million to €115 million, meaning even the top of the new range falls €5 million short of the bottom of its earlier guidance.
Profit and cash expectations have been reduced as well.
EBITDA before special items is now forecast at €44 million to €47 million, down from €49 million to €54 million. Expected operating cash flow has been lowered to €32 million to €36 million from €37 million to €41 million.
The scale of the revision suggests Gentoo does not expect the revenue weakness seen during the first half to be recovered during the remaining months of the year.
Player deposits hit a record
The underlying customer figures tell a less straightforward story.
Gentoo recorded approximately 101,900 first-time depositors during the second quarter, while the value of player deposits reached a record €207 million. Deposits were 6% higher than a year earlier, and player intake also improved sequentially.
Yet that stronger activity has not translated into the revenue growth management had anticipated.
Chief executive Jonas Warrer presented converting increased player activity into revenue as a central priority for the second half. The company is effectively heading into the remainder of 2026 with more activity flowing through its network but less revenue than it had planned for.
Higher margins soften the decline
Profitability held up considerably better than sales.
EBITDA before special items increased 5% year on year to €8.9 million, compared with €8.4 million in the same quarter of 2025. The EBITDA margin rose sharply to 39% from 34%.
Gentoo attributes the improvement to its lower cost base, which has allowed earnings to increase even while revenue contracts.
Operating cash flow reached €6.4 million during the quarter. That figure included €2 million in accelerated payments to suppliers, making the cash performance somewhat stronger than the headline number alone suggests.
The improvement provides Gentoo with some breathing room, but cost reductions can only partly offset continued pressure on the top line.
Debt falls as refinancing approaches
The balance sheet is also moving in a more favorable direction.
Net interest-bearing debt declined to €112.2 million from €122.8 million, while Gentoo’s leverage ratio improved to 2.58 times from 2.99 times.
Debt nevertheless remains one of the company’s most immediate financial issues.
Gentoo’s board and management are evaluating several refinancing routes, including a new bond and private debt structures. The company has committed to updating the market on that process no later than October 1.
That puts the refinancing decision alongside revenue recovery as a key test for the second half of the year. Gentoo is attempting to lower leverage at the same time as it negotiates new financing and works to turn rising player activity into stronger earnings.
Its improved margins give management more room to maneuver than the revenue decline might suggest. But the revised guidance also makes clear that efficiency gains have not solved the underlying growth problem.
Gentoo’s next quarterly report is scheduled for November 25. By then, the refinancing strategy should be known, leaving investors with a clearer measure of whether record player deposits are finally translating into the revenue recovery management is targeting.
