€60.7M Revenue, €50M Cash, Zero Debt: Codere Online Enters Its Next Growth Phase Under Aviv Sher
Codere Online closed 2025 with its strongest financial performance on record, posting net gaming revenue of €224.1 million, up 6% year-on-year, while Adjusted EBITDA more than doubled to €13.8 million from €6.4 million in 2024. The fourth quarter was particularly strong, with record quarterly NGR of €60.7 million, up 15%, alongside €6.7 million in Adjusted EBITDA.
On the surface, those numbers suggest a business building momentum. But the more important operational signal is beneath the headline figures: Codere is becoming increasingly concentrated around one core growth engine – Mexico – at precisely the moment that operating costs in that market are set to rise materially.
Mexico Has Become Codere’s Primary Commercial Engine
The clearest takeaway from Codere’s 2025 results is that Mexico is no longer simply a strong-performing regional market – it is now the company’s central growth pillar.
Mexico generated €32.8 million in fourth-quarter NGR, up 31% year-on-year, while full-year NGR reached €119.1 million, a 12% increase. Customer growth was equally notable, with monthly active players in Mexico rising 43% in Q4 to 98,800, while December marked a record peak of 100,000 active customers.
That gives Mexico more than half of the total group NGR, firmly overtaking Spain as Codere’s largest market and its primary acquisition engine.
From an industry standpoint, this shifts commercial gravity. CRM investment is likely to become increasingly Mexico-focused, sportsbook localisation becomes more strategically valuable, and infrastructure around payments, casino aggregation, fraud prevention, and retention tooling becomes a higher procurement priority.
With FIFA World Cup 2026 approaching – a major acquisition catalyst across Latin America – Codere’s activation strategy is also likely to be heavily weighted toward Mexico, reinforcing the market’s strategic importance even further.
EBITDA Growth Is Improving – But Earnings Quality Remains Mixed
Codere’s profitability profile improved significantly in 2025, with Adjusted EBITDA rising to €13.8 million from €6.4 million a year earlier. That reflects better operating leverage and stronger scale economics as revenue expands.
However, the underlying earnings picture is less straightforward.
Despite EBITDA growth, Codere reported a net loss of €1.8 million for the year, compared with net income of €3.9 million in 2024. Reconciliation figures also show €6.0 million in employee LTIP expense adjustments, alongside continued fair value and accounting-related adjustments that materially influence statutory earnings.
The operational business is clearly improving, but reported profitability remains adjustment-heavy.
For investors and counterparties, that means Codere is scaling – but it has not yet reached the point where earnings quality looks simple, clean, and consistently cash-generative on a statutory basis.
Mexico’s Tax Shift Changes the 2026 Operating Equation
Management’s 2026 guidance remains constructive, with NGR projected at €235 – 245 million and Adjusted EBITDA expected between €15 million and €20 million.
The complication is regulation.
Effective January 2026, Mexico’s statutory IEPS gaming excise tax increased sharply from 30% to 50%. That is one of the most commercially important developments in Codere’s operating outlook because it directly affects its largest and fastest-growing market.
That creates immediate operational pressure around promotional efficiency, bonus economics, and customer acquisition cost discipline. Retention is likely to become more valuable than aggressive front-end acquisition, while supplier economics – particularly revenue-share agreements – may come under renewed negotiation.
The expiration of Colombia’s temporary VAT burden provides some regional relief, but that is unlikely to offset the structural importance of Mexico’s tax increase.
Strong Balance Sheet Preserves Strategic Flexibility
The positive offset is capital strength.
Codere exited 2025 with €50 million in cash, zero financial debt, and an active $7.5 million share buyback programme, of which $2.7 million had already been deployed by late February 2026.
That gives management room to absorb tax pressure while continuing to invest in product, marketing, partnerships, and market share expansion.
Financially, Codere is not constrained.
Operationally, however, it is becoming increasingly concentrated.
The broader industry read is clear: Codere is evolving into a two-market operator – Spain for stability, Mexico for growth. For B2B suppliers across payments, CRM, content, trading technology, and localisation, the most commercially important Codere opportunity is increasingly where Mexico goes next.
Source: Codere Online
