Codere Online Luxembourg (NasdaqCM:CDRO) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsArthur Roulac - Partner and Co-Chief Investment OfficerAviv Sher - CEOGuillermo Lancha - Director of Investor Relations and CommunicationsJeffrey Stantial - Managing Director, Equity ResearchMarcus Arildsson - CFOMichael Kupinski - Director of ResearchMoshe Edree - Executive Vice Chairman of the BoardConference Call ParticipantsRyan Sigdahl - Senior Research AnalystOperatorLadies and gentlemen, t ...

4Q 2025 Earnings Review February 23, 2026 DISCLAIMERS Forward-Looking Statements Certain statements made in this presentation are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, Super Group's intention to pay a dividend, including the expected timing of such dividend, expectations and projections of market opportunity, growth and profitabili ...

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1.13 billion, representing a 23% year-over-year growth, exceeding the high end of the raised guidance range [5][18] - Adjusted EBITDA grew by 66% year-over-year to a record of $153.7 million, also exceeding the high end of the raised guidance [6][20] - Net income increased significantly to $74 million in 2025, compared to $7.2 million in 2024 [6] Business Line Data and Key Metrics Changes - North American monthly active users (MAUs) grew 37% year-over-year in Q4 to over 278,000, with online casino MAUs increasing by 51% [6][22] - Latin American MAUs grew 47% year-over-year in Q4, reaching over 493,000 [7][22] - Online casino revenues grew 30% in Q4 and 28% for the full year, while online sports betting revenue grew 20% in Q4 and 7% for the full year [24] Market Data and Key Metrics Changes - North American revenue grew 29% in Q4 and 25% for the full year, while Latin American revenue grew 17% in Q4 and 12% for the full year [24] - North American ARPDAU declined 5% year-over-year, while Latin America ARPDAU was down 21% due to bonusing strategies in Colombia [22][23] Company Strategy and Development Direction - The company maintains a casino-first strategy, focusing on online casino markets which have shown exceptional growth [10][11] - Plans to increase investments in differentiated casino content and online casino legalization efforts in 2026 [12] - The company is optimistic about upcoming market expansions, particularly in Alberta, and continues to evaluate opportunities in North America and Latin America [15][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory and strategic positioning, highlighting the successful navigation of regulatory challenges in Colombia [12][15] - The company anticipates a strong performance in 2026, with revenue guidance of $1.375 billion to $1.425 billion, representing growth of 21%-26% year-over-year [28] - The new tax environment in Colombia is expected to have a less punitive impact on profitability compared to previous years [25][26] Other Important Information - The company ended 2025 with $336 million in cash and generated $142 million of cash during the year [26] - Marketing expenses were optimized, with a 2% year-over-year increase for the full year, reflecting a decrease in marketing spend as a percentage of revenue [19][20] Q&A Session Summary Question: Impact of Colombia's tax on revenue and EBITDA - Management indicated that the VAT tax on deposits in 2025 resulted in about $75 million of incremental bonusing, costing approximately $25 million-$30 million in EBITDA [33][35] Question: Timing of Alberta launch and market share in Ontario - The Alberta launch is expected around the end of Q2 or early Q3, with current casino share in Ontario being mid to low single digits [39][40] Question: ARPU trends and cohort analysis - Management noted that without the deposit tax bonusing, a rebound in ARPU is expected, particularly in Colombia, with Mexico becoming a more significant part of the business [45][47] Question: Investment in content and legalization efforts - The company is focused on enhancing its content library and increasing lobbying efforts for iCasino legalization [49][53] Question: Minimum bet strategy in Illinois - The minimum bet increase was not directly in response to the Chicago tax, and the company may consider similar strategies in other markets [55][56] Question: Prediction markets and potential cross-sell opportunities - Management is monitoring prediction markets closely, noting potential cross-sell opportunities between prediction markets and traditional gaming products [64][91]

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Rush Street Interactive (NYSE:RSI) FY Conference Summary Company Overview - **Company**: Rush Street Interactive (RSI) - **Industry**: Online Gaming and Sports Betting Key Points Business Performance and Growth - The company has experienced remarkable growth in customer acquisition and market share, particularly in the casino segment, due to a focus on delivering a premier customer experience and leveraging proprietary technology [3][4] - Monthly active users in North America grew by 34% in Q3, with online casino markets seeing a 46% year-over-year growth, marking the fastest growth in four years [8] - First-time depositor records were achieved in Q3, up 10% from the previous quarter, indicating effective marketing strategies [9] Competitive Environment - The competitive landscape has become more rational, with competitors increasing focus on online casino offerings [8] - The exit of ESPN BET from the market has not significantly impacted RSI's business, as it held a small market share [10] - The company is focusing on its strengths in the casino market while competitors are diverting resources to prediction markets, which are currently highly competitive [12][13] Market Trends and Predictions - The company anticipates continued growth in the casino segment, with a focus on international markets, including Latin America [4][13] - The upcoming World Cup is expected to drive significant customer acquisition, particularly in sports betting, which could also convert new users to online casino offerings [58][59] - Legislative changes are anticipated, with states like New York and Virginia showing interest in iGaming legalization, which could present new opportunities for RSI [32][37] Regulatory Environment - The company is monitoring the impact of prediction markets and potential regulatory changes, emphasizing that these markets are unlikely to affect their current operations significantly [18][26] - In Colombia, a new tax structure has been implemented, which is expected to improve profitability compared to the previous tax regime [45][48] Financial Outlook - EBITDA margins have shown significant improvement, moving from -16% in 2022 to 13.5% in 2025, with expectations for further growth in 2026 [69][70] - The company aims to achieve low to mid-20% EBITDA margins in the long term, contingent on the launch of new online casino markets [71] Technology and Product Development - RSI has optimized the user journey to reduce friction in the sign-up process, which is expected to lower customer acquisition costs [72] - The company continues to innovate with new features and products, enhancing the gaming experience and maintaining customer engagement [74][76] Strategic Focus - The company is committed to maintaining a strong ROI by focusing on casino growth and leveraging its unique product offerings to differentiate from competitors [13][64] - RSI is excited about its roadmap for 2026, which includes expanding into new markets and enhancing existing product features [78][79] Additional Insights - The company has successfully managed to grow its customer base while simultaneously reducing acquisition costs, a rare achievement in the industry [66] - The focus on localized marketing strategies has proven effective in reaching target demographics that are often overlooked by larger competitors [65] This summary encapsulates the key insights and strategic directions discussed during the Rush Street Interactive FY Conference, highlighting the company's growth trajectory, competitive positioning, and future opportunities in the online gaming industry.

Financial Performance - Total Group Revenue reached $557 million, a 26% year-over-year increase[12, 16] - Group Adjusted EBITDA was $152 million, reflecting a 65% year-over-year growth and a 27% margin[12, 16] - Ex-U S Adjusted EBITDA increased by 42% year-over-year to $149 million[16] - The company paid out $20 million in dividends during the quarter, with a last twelve months total of $136 million[14] Customer Engagement - Average Unique Monthly Active Customers reached a new all-time high of 55 million, an 18% year-over-year increase, peaking at approximately 6 million in September[14, 16] Revenue Diversification - Net Revenue by geography shows continued global diversification, with Americas contributing 33%, Africa 41%, Europe 20%, and RoW 6% of the $550 million total in 3Q 2025[22] - Online Casino accounted for 84% of Net Revenue, while Sports contributed 16%[27] Operational Expenses - Direct Expenses accounted for 37% of Total Revenue Ex-U S [63] - Marketing Costs represented 21% of Total Revenue Ex-U S [63] - G&A Expenses accounted for 15% of Total Revenue Ex-U S [63] Guidance - The company updated its 2025 guidance, projecting Total Revenue between $217 billion and $227 billion and Adjusted EBITDA between $555 million and $565 million[75]

Financial Data and Key Metrics Changes - Revenue reached a record $277.9 million, up 20% year over year, marking the 10th consecutive quarter of sequential revenue growth [6][14] - Adjusted EBITDA of $36 million increased 54% year over year, demonstrating significant operating leverage [6][16] - Gross margin was 34.0%, reflecting improvements in higher margin markets, offset by player-friendly sports outcomes impacting Colombia [15] Business Line Data and Key Metrics Changes - Online casino revenues grew 34% during the quarter, while online sports betting contracted 16% due to elevated bonusing in Colombia [14] - North American monthly active users (MAUs) increased 34% year over year to 225,000, the strongest quarterly growth in over four years [6][16] - In North American online casino markets, MAUs grew 46% year over year, indicating strong player retention and engagement [7] Market Data and Key Metrics Changes - Delaware saw 74% net revenue growth, Michigan 48%, New Jersey 37%, Ontario 24%, and Pennsylvania 15%, showcasing broad-based growth across various markets [8] - In Latin America, MAUs grew 30% year over year to 415,000, with Mexico revenue growing over 100% [9] - Colombia's net revenue was down 27% due to player bonusing related to a temporary VAT tax, despite GGR growth over 50% [9][14] Company Strategy and Development Direction - The company is focusing on innovation, online casino legalization, and strategic growth opportunities, with leadership changes to enhance operational excellence [5][12] - Planned expansion into Alberta is anticipated to leverage proven success in similar markets like Ontario [12] - The company is monitoring legislative developments across multiple U.S. states to capitalize on online casino legalization opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of growth in North American online casino markets, with acceleration observed every month since March [18] - The company raised its full-year revenue guidance to between $1.1 billion and $1.12 billion, representing a 20% year-over-year increase [20] - Management remains optimistic about the potential for growth in Latin America despite challenges in Colombia [99] Other Important Information - The company ended the quarter with $273 million in unrestricted cash and no debt, providing flexibility for growth investments [17] - The company is focused on maintaining marketing leverage, with marketing expenses expected to grow at a lower rate than revenue [18] Q&A Session Summary Question: Insights on updated guidance and fourth-quarter margins - Management indicated increased marketing spend and ongoing VAT tax in Colombia as factors impacting margins [23] Question: Potential increase in gaming tax rates in Mexico - Management acknowledged tracking the situation and indicated that a tax increase from 30% to 50% is likely, but they are exploring ways to mitigate the impact [25] Question: Next steps regarding VAT tax in Colombia - Management expressed confidence that the proposed tax reform will not pass, allowing normal tax conditions to resume [28] Question: Impact of sweepstakes operators on the business - Management noted that while some states have effectively regulated sweepstakes, others still face challenges, and the proliferation of unregulated products underscores the need for legalized online gaming [58] Question: Customer reactions to sports betting outcomes - Management confirmed that player-friendly outcomes in September impacted hold but noted improvements in the percentage of betting going to in-game and parlays [82]

Core Viewpoint - Codere Online's Chief Financial Officer, Oscar Iglesias, is stepping down for personal reasons, with his departure effective upon the completion of a transition to his successor or by December 31, 2025 [1][4] Company Transition - The Board of Directors plans to appoint Mr. Iglesias to the Board, where he previously served from 2021 to 2023, ensuring his continued involvement in the company's strategic direction [2] - The company has initiated a search for a new Chief Financial Officer to ensure a seamless transition [4] Contributions and Background - Mr. Iglesias has been with Codere Online since 2021 and has played a significant role in its growth, including leading the company through its successful public listing in 2021 via a merger with DD3 Acquisition Corp. II [3] - Prior to joining Codere Online, Mr. Iglesias spent six years at Codere Group, serving as Global Head of Corporate Development and Deputy CFO [3] Company Overview - Codere Online operates as a leading online gaming operator in Spain and Latin America, offering online sports betting and casino services through its website and mobile applications [5] - The company is part of Codere Group, a multinational group with a strong presence in the private gaming industry across seven countries in Europe and Latin America [6]

Financial Highlights - Super Group achieved a record Total Group Revenue of $579 million, a 30% year-over-year increase[13] - The Group's Adjusted EBITDA reached a record $157 million, representing a 78% year-over-year growth and a 27% margin[13] - The company has a debt-free balance sheet with $393 million in unrestricted cash as of June 30, 2025[13,15] - Dividends of $20 million were paid out during the quarter, with a total of $166 million in dividends paid on a trailing twelve-month basis[13] Business Performance - The average unique monthly active customers increased by 21% year-over-year[15] - Net Revenue increased by 30% year-over-year to $570 million[21] - Ex-U S Total Revenue increased 28% year-over-year to $563 million[15,35] - Sportsbook Gross Revenue increased 27% year-over-year, with a margin of 13 9% compared to 12 6% in the same quarter of the previous year[27] - Casino Gross Revenue increased 25% year-over-year, with a margin of 4 44% compared to 4 40% in the same quarter of the previous year[30] Strategic Decisions - Super Group announced a strategic exit from the U S iGaming business[13,49] - The exit from the U S iGaming business will incur one-off costs, including $63 9 million for goodwill and asset impairment, $22 6 million for onerous contracts, and approximately $6 million in cash closing costs[50] Guidance - Ex-U S Adjusted EBITDA guidance was raised from $480 million to a range of $500-$510 million[13] - The company projects total revenue to be greater than $2 04 billion and Adjusted EBITDA to be in the range of $470-$480 million[61]

Core Viewpoint - Rush Street Interactive Inc. has demonstrated significant growth in its second-quarter earnings, leading to a notable increase in its stock price, suggesting a positive outlook for the online gaming industry as a whole [1][4][13]. Company Performance - Rush Street's revenue grew by 22% year-over-year, reaching record levels, while EBITDA increased by 88% during the same period [4]. - The growth was driven by a 25% increase in revenue from the online casino segment and a 15% increase from sports betting [4]. - The company reported a year-over-year surge in monthly active users of 30% in North America and 40% in Latin America [6]. - Rush Street remains debt-free with cash reserves of $241 million and has raised its full-year revenue and EBITDA growth guidance to 16% and 51%, respectively [7]. Industry Context - The strong performance of Rush Street may indicate a broader trend of growth within the online gaming sector, particularly as competitors like PENN Entertainment prepare to report their earnings [2][3]. - Advances in AI, user experience, and data-driven personalization are contributing to a favorable environment for online gaming companies [2]. - The recent earnings miss by DraftKings raises questions about whether Rush Street's success is indicative of a broader industry trend or specific to the company itself [15]. Analyst Sentiment - Analysts are generally bullish on Rush Street, with eight out of ten rating it a Buy, despite the stock price exceeding the consensus price target of around $18 per share [7]. - The stock forecast suggests a potential downside of 8.61% from the current price of $19.58, with a 12-month price target of $17.89 [5][6].