Catena Media returns to profit in Q1 as revenue jumps 26%

Catena Media reported a strong start to 2026, with revenue from continuing operations rising by 26 per cent year-on-year to €12.3 million during the first quarter, driven largely by growth in North America and a sharp increase in new depositing customers.

The Malta-headquartered affiliate marketing group also returned to profitability, posting a profit after tax from continuing operations of €1.3 million compared to a loss of €0.6 million in Q1 2025.

Adjusted EBITDA surged by 191 per cent to €2.7 million, while the adjusted EBITDA margin improved significantly to 22 per cent from 9 per cent a year earlier. EBITDA rose by 318 per cent to €2.6 million.

North America remained the group’s dominant market, accounting for 95 per cent of revenue from continuing operations. Revenue from the region climbed 34 per cent to €11.7 million.

New depositing customers (NDCs) increased by 58 per cent to 34,573 during the quarter.

CEO Manuel Stan described Q1 as “a more balanced quarter that sets a more representative baseline for future periods”, adding that the business has “returned to growth, diversified revenue sources, and moved from single-digit EBITDA margins to consistently exceeding 20 per cent.”

Casino continues to dominate

Casino remained Catena Media’s largest business segment, generating €10.9 million in revenue during the quarter – up 43 per cent year-on-year and representing 88 per cent of total group revenue. Casino NDCs nearly doubled to 28,256.

However, the company said quarter-on-quarter performance was affected by volatility stemming from a Google search algorithm update introduced in December 2025. According to Mr Stan, some of the company’s rankings “came under pressure” despite initially positive signals following the update.

Catena Media also highlighted continued growth in its customer relationship management (CRM) initiatives, including the launch of its PlayPerks loyalty product on PlayUSA.com in January.

Meanwhile, the Sports segment remained under pressure. Revenue declined by 34 per cent to €1.5 million, although adjusted EBITDA improved to €0.4 million from a negative €1.1 million a year earlier.

The company said it continues to invest in infrastructure improvements for its sports products but does not expect a material short-term financial impact from those investments.

Prediction markets eyed as growth opportunity

Catena Media identified prediction markets as “the most significant growth opportunity” within the sports vertical, noting that such products are generally accessible across the United States, unlike regulated sports betting which is only available to around 52 per cent of US adults.

The group also said it is positioning itself to benefit from the upcoming launch of Alberta’s regulated online gambling market on 13th July 2026.

At the balance sheet level, Catena Media ended the quarter with cash and cash equivalents of €13.7 million, up from €9.3 million at the end of 2025. Operating cash flow stood at €4.4 million.

The company also confirmed it is continuing to defer interest payments on its hybrid capital securities in order to preserve flexibility for investments and growth initiatives. Deferred interest on the instruments totalled €4 million by the end of March.

Catena Media currently employs 160 people globally, down from 213 employees a year earlier.