Gentoo Media reported Q3 2025 revenue of €22.7m, a 23% decline year-on-year, but highlighted that the period demonstrated clear improvements in profitability driven by structural optimisation and tighter cost control.
The company noted that although September saw weaker sports margins, the impact was more than offset by efficiency gains resulting from its right-sizing programme completed in Q2.
Leadership described the quarter as confirmation that Gentoo has now shifted to a more stable and disciplined operating model.
EBITDA before special items increased to €9.3m, up from €8.4m in Q2. The EBITDA margin rose to 41%, which the company attributes to a leaner organisation and more consistent execution.
Management said the simplified operating framework is now delivering steady benefits, with better accountability and stronger delivery discipline creating a more predictable and efficient cost base.
CEO Jonas Warrer emphasised that earlier efforts to streamline and realign the company were intentional, and that these actions are now reflected in stronger margins and renewed operational momentum.
According to Gentoo, Q3 marked the first period where the results of its strategic realignment—initiated in the first half of 2025—were clearly visible, with measurable efficiency gains across several business units. The company cited continued margin expansion supported by organisational simplification and a stabilised cost structure.
Looking ahead, Gentoo said it enters Q4 with a more efficient organisation capable of capturing peak-season demand and sustaining momentum into 2026.
Initial post-quarter indicators were described as positive: October revenue was 15% higher than September, and early November results were performing even better. Management said these trends reinforce confidence in the outlook for the rest of the year.
Gentoo reiterated its full-year 2025 guidance for revenue and EBITDA but raised its free cash flow forecast due to improved cash conversion. The new range is €31m–€34m, up from €27m–€30m. Full-year revenue is still expected at €100m–€105m, with EBITDA before special items guided at €40m–€43m.
The company continues to project an EBITDA margin of 40%–41%, reflecting the long-term benefits of its restructuring efforts and enhanced operational efficiency.
