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Company Finalizes Casumba Divestment, Posts 42% Revenue Decline
Raketech reported third-quarter 2025 revenue from continuing operations of €6.2 million, representing an organic decrease of 42.2% year-over-year and a 9.6% decline compared to Q2 2025. Adjusted EBITDA for the period reached €1.2 million, maintaining a 20% margin, while reported EBITDA totaled €1.1 million with free cash flow of €1.1 million.
The company completed the sale of its Casumba assets on September 24 for €12 million plus an interest component, with payments structured over four years beginning in Q4 2025. The assets were fair-valued at approximately €7 million at closing, reflecting both the time value of money and underlying credit risk. Raketech recorded a non-cash loss of approximately €11.4 million from the disposal, citing increased regulatory risk in the local region as the primary driver for the divestment.
The revenue decline was primarily attributed to continued contraction in the paid publisher network within sub-affiliation, where operational challenges have resulted in minimal new traffic from paid publishers. The company also noted the absence of major football championships during the summer, which impacted sports-related revenue.
Organic Publisher Network Shows Strong Growth
Despite overall revenue pressures, Raketech’s Organic Publisher Network demonstrated significant momentum, generating €0.9 million in revenue during Q3 2025, up 80% from €0.5 million in Q2 2025. This growth was supported by a newly signed exclusive U.S. publisher partnership announced during the quarter, linked to a €750,000 minority equity investment.
The company secured its first large-share exclusive publisher agreement for AffiliationCloud during the period, marking what management described as a strategic milestone. Under these arrangements, Raketech handles all inventory sales and manages commercial deals on behalf of publishers, allowing partners to focus on product development and traffic maximization while Raketech manages sales, deal optimization, administration, invoicing, and publisher payments.
“Our goal is simple: to deliver outstanding commercial service to every publisher and operator we work with. We remain confident in our strategic direction, focusing on scalable technology, exclusive partnerships, and a balanced mix between Raketech’s own and external publishers to drive long-term growth.” – CEO Johan Svensson
Business Segment Performance
The Affiliation Marketing portfolio, excluding Casumba assets, generated €4.3 million in revenue during the quarter, remaining relatively stable despite the 7% year-over-year decline partly attributed to the absence of major football tournaments. This segment, representing approximately 69% of total revenues, is supported by a strong foundation in Nordic assets across both sports and casino products. During the quarter, Raketech launched a new app for its TV Sport Guide, which has been well received by users with high engagement levels.
Sub-affiliation revenue remained unchanged quarter-over-quarter at €2.06 million, though the revenue mix shifted significantly toward the strategically important organic network from the declining paid publisher segment. The company stated it does not anticipate a turnaround within the paid segment, as full focus remains on expanding the organic publisher base, primarily in the U.S. market and Sweden.
Platform-First Strategy and Cost Management
Management emphasized the company’s transformation toward a platform-first business model, with AffiliationCloud serving as the central technology connecting Raketech’s own publishers, external publishers, and operators. During the quarter, the company automated key processes including commission handling, deal requests, and compliance checks, while improving data tools and advertiser information to support faster decision-making.
Raketech achieved cost reductions of approximately 27% year-over-year, excluding publisher costs. CFO Måns Svalborn indicated that transitional costs related to disposed U.S. assets in Q3 are expected to decline further in Q4, with the company maintaining strict cost discipline moving forward.
“We definitely expect to operate more leanly, and that’s an effect of the work we’ve done throughout this year.” – CFO Måns Svalborn
Outlook and Strategic Focus
Preliminary October data showed revenues from Raketech’s own publishers slightly below Q3 levels, while external publishers on AffiliationCloud continue to gain momentum with additional exclusive partnerships in the pipeline. The company noted that December historically performs stronger than the early part of Q4.
CEO Svensson stated that with the Casumba divestment completed, management can now focus efforts on expanding AffiliationCloud and developing new exclusive partnerships, particularly in high-value markets including the U.S. and Sweden. The company’s strategic priorities include strengthening the balance sheet and paying down earnout liabilities as early as possible.
Raketech currently has several exclusive commercial operator agreements live in both the U.S. and Swedish markets. Under these arrangements, the company serves as the only affiliate network able to offer deals with specific operators, requiring most publishers to work through AffiliationCloud unless they are major Tier 1 publishers.
Cash conversion remained stable during the quarter, broadly in line with EBITDA but somewhat impacted by tax settlements. The company continues to settle earnout obligations, paying approximately €800,000 during Q3, with remaining earnout balances scheduled for payment in installments through March 2028.
Source: Raketech
