Catena Media cut staff by 25% after revenue dropped 39% in Q1 2025
Catena Media published its results for the first quarter of 2025. Amid a decline in all key metrics, management announced major changes, including the elimination of more than 50 positions.
Sharp decline in key financial metrics
Revenue for January–March 2025 fell by 39% to €9.8 million compared to €16 million a year earlier.
The decline was particularly notable in North America — also 39%, down to €8.8 million, accounting for 89% of total continuing operations revenue.
Other Q1 metrics:
- Conversions (NDC): 21,918 vs. 44,077 in Q1 2024 (-50%)
- Revenue by vertical: Casino — €7.6 million (-23%), Sportsbook — €2.2 million (-64%)
- Revenue by deal type: CPA — €8.4 million (86%), Revenue Share — €1.2 million (12%), Fixed Fees — €0.2 million (2%)
- Adjusted EBITDA: €0.9 million (-51%), margin — 9%
- EBITDA: €0.6 million, margin — 6%
- Net cash position: €3.2 million (vs. net debt of €10.1 million a year ago)
Layoffs, savings, and restructuring
In April, the company cut over 50 positions, including management roles. This resulted in a 25% staff reduction and an expected annual saving of €4.5–5 million.
At the same time, Catena Media migrated to the Microsoft tech stack and phased out legacy software, which will bring an additional annual saving of €0.8 million.
CEO comments: “A disappointing quarter”
Catena Media CEO Michael Stan noted that despite a minor revenue drop compared to Q4 2024 (3%), the company’s profitability declined sharply.
Adjusted EBITDA fell by 60% quarter-over-quarter, attributed to a change in revenue structure and increased personnel costs.
Among the reasons for declining profitability, he cited:
- Growth in sub-affiliate traffic share, which carries lower margins
- Slight increase in personnel expenses
The CEO also emphasized that the restructuring aims to make the internal structure more “flat,” improving agility and accelerating processes.
Operational performance: growth in new areas, decline in core traffic
The company continues to focus on the North American market. In Q1, search traffic was unstable due to algorithm updates. However, new areas showed growth: sub-affiliation and customer lifecycle marketing, both reaching record quarterly levels.
However, replacing own-brand revenue with sub-affiliation negatively impacted margins. Nevertheless, demand for these solutions from operators and partners continues to grow.
Stock status and corporate changes
Following the report’s publication, Catena Media shares fell by 6.2% to $0.17. Over the past year, the company’s market capitalization has decreased by 72%.
Also in April, Dan Castillo stepped down as non-executive director. The board will continue with five members until the annual general meeting on May 21, 2025.
Summary and plans for 2025
Q1 2025 was a weak quarter, but the company has already taken tough measures to stabilize the situation. Going forward, Catena Media plans to:
- Increase profitability by growing revenue while reducing costs
- Develop automation and tech platforms for scalability
- Continue focusing on North American markets
According to management, implementing these measures lays the foundation for stable growth and profitability in the second half of 2025.