Catena Media has released its financial update for the first quarter of 2025. The company reported lower revenue and profits across the board, particularly in North America. Leadership acknowledged the poor results but pointed to signs that previous steep declines may be leveling out.
Good to know
- North American revenue fell 39% year-over-year to $9.9M.
- Total Q1 revenue from continuing operations was $11M.
- Adjusted EBITDA margin dropped to 9%, with EBITDA down 51% year-over-year.
Catena Media reported $11M in total revenue from continuing operations for Q1 2025, a 39% drop compared to the same period last year. North America accounted for nearly $9.9M of that figure.
The company’s adjusted EBITDA also dropped by 51% year-over-year, landing just above $1M. The EBITDA margin for the quarter slipped to 9%, reflecting ongoing pressure on the business.
Chairman Erik Flinck described the quarter as “disappointing” and acknowledged that the company is still working to stabilize its performance.
“Q1 was a disappointing quarter that showed we still have substantial work ahead to fully stabilize the business and rebuild profitability,” he said. “The 3% decrease in revenue from Q4 2024 was the smallest quarterly drop in recent periods, signaling that the steep declines of past quarters may now be behind us.”
Despite the modest quarter-over-quarter improvement in revenue trend, Flinck pointed out that adjusted EBITDA had declined by about 60% from Q4, pushing the margin below 10%.
Algorithm Changes and Operational Gaps Continue to Affect Results
Flinck also discussed broader issues affecting Catena Media’s performance. He highlighted the negative impact of recent changes to Google’s search algorithm, something that the firm has brought up in the past, which continue to hurt organic traffic and, in turn, revenue.
In addition, Flinck said the company is still not fully effective in its operations across key markets, which added to the financial strain.
“While we’ve made progress, we still face challenges. Our Q1 results reflect the ongoing impact of Catena Media still not being operationally effective in the market, combined with the significant impact of Google’s algorithm changes,” he explained.
Finding a Turnaround
Despite the difficult start to the year, Catena Media remains committed to its recovery plan. Flinck expressed confidence in the path ahead.
“We are confident that our turnaround plan is working, and while we are still far from where we want to be operationally, we have stabilized the decline,” he said. “We are committed to delivering long-term value to our shareholders. As we look to the future, we remain laser-focused on executing our turnaround plan.”
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