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 ...

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 ...

Codere Online Luxembourg (NasdaqCM:CDRO) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker7Ladies and gentlemen, thank you for joining us, and welcome to the Codere Online fourth quarter 2025 financial results. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Guillermo Lancha ...

Codere Online Q4 2025 Earnings February 26, 2026 INFORMACION COLOR: R169 G103 B 171 R121 G192 B 0 R51 G63 B 72 Disclaimer This presentation (this "Presentation"), its contents and any information provided during the meeting to present this document are for discussion purposes only, and must not be relied upon for any purpose. This Presentation is not for release, publication or distribution, in whole or in part, in or into any jurisdiction where such distribution would be unlawful. Certain terms used throug ...

Core Insights - Codere Online reported record net gaming revenue of €224.1 million and Adjusted EBITDA of €13.8 million for FY 2025, indicating strong financial performance [1][4]. Financial Performance - For Q4 2025, net gaming revenue reached €60.7 million, a 15% increase compared to Q4 2024, with significant contributions from Mexico, where revenue grew by 31% [3][6]. - The average monthly active players increased to 177.2 thousand in Q4 2025, a 20% rise from the previous year, driven by a 43% increase in Mexico [3][4]. - Total revenue for Q4 2025 was €57.1 million, with a notable Adj. EBITDA of €6.7 million, up €4.8 million from Q4 2024 [6][11]. Regional Performance - In Spain, net gaming revenue for Q4 2025 was €24.5 million, a 7% increase year-over-year, while Mexico's net gaming revenue reached €32.8 million, marking a 31% increase [3][10]. - The "Other" category saw a decline in net gaming revenue, dropping 26% in Q4 2025 compared to the previous year [3][10]. Future Outlook - The company anticipates net gaming revenue for FY 2026 to be in the range of €235-245 million and Adjusted EBITDA between €15 million and €20 million [4][6]. - The management expressed optimism regarding growth trends in both Mexico and Spain, positioning the company well for future performance [4][6]. Recent Developments - Codere Online renewed its online gaming license in Colombia for five years, expiring in November 2030 [9]. - The company has repurchased 391 thousand shares for a total of $2.7 million under its share buyback plan [9].

Core Insights - Codere Online has launched a new iOS Poker application in Mexico, aiming to enhance its online gaming product offerings and meet customer demand [1][5] - The iOS Poker app is developed in partnership with Playtech, integrating with their player-vs-player (P2P) Poker network, which enhances user experience through real-time competition and increased liquidity [2][6] - The company has observed strong demand for Poker in Mexico, with over 1,300 unique active users per month, indicating the product's relevance and growth potential [4] Product Development - The new iOS Poker app features a stable interface, cash tables, multi-table tournaments, Sit & Go formats, and fast-paced modes, while also incorporating responsible gaming tools [5][6] - The launch of the Poker app is part of Codere Online's strategy to broaden its product offerings and improve user experience across key gaming verticals [6] Market Position - Codere Online operates in several core markets including Spain, Mexico, Colombia, Panama, and Argentina, leveraging its physical presence in Latin America to support its online business [8] - The partnership with Playtech allows Codere Online to provide access to one of the most competitive poker networks in the industry, enhancing its market position [6]

Core Viewpoint - Codere Online, a leading online gaming operator in Spain and Latin America, is set to release its fourth quarter 2025 results on February 26, 2026, at 8:30 AM US Eastern Time, followed by a conference call for discussion and business updates [1]. Company Overview - Codere Online Luxembourg, S.A. and its subsidiaries collectively operate as Codere Online, which was launched in 2014 as part of the Codere Group, a renowned casino operator [3]. - The company provides online sports betting and online casino services through its advanced website and mobile applications, operating primarily in Spain, Mexico, Colombia, Panama, and Argentina [3]. - Codere Group, the parent company, is a multinational entity focused on entertainment and leisure, with a significant presence in the private gaming industry across seven countries in Europe and Latin America [4].

Upgrades - BMO Capital upgraded Southwest (LUV) to Outperform from Market Perform with a price target of $57.50, up from $43, citing significant momentum and earnings upside to at least $4.00 per share in 2026 from 93 cents in 2025 [2] - Barclays upgraded Quest Diagnostics (DGX) to Overweight from Equal Weight with a price target of $210, up from $195, noting sustainable organic growth of 4% from fiscal 2024 to 2025 [3] - Guggenheim upgraded GE Vernova (GEV) to Buy from Neutral with a price target of $910, believing the market may underestimate cash generation potential and margin improvement in the electrification segment [4] - Wolfe Research upgraded Broadcom (AVGO) to Outperform from Peer Perform with a price target of $400, based on channel checks indicating the company will ship 7 million tensor processing units by 2028 [5] - Citi upgraded Spotify (SPOT) to Buy from Neutral with an unchanged price target of $650, stating the stock's valuation is now attractive and consensus estimates are beatable [5] Downgrades - HSBC downgraded Pinterest (PINS) to Hold from Buy with a price target of $24.90, down from $34.50, due to an abrupt jobs cut announcement indicating a softer near-term outlook [6] - Jefferies downgraded Kenvue (KVUE) to Hold from Buy with a price target of $18, down from $23, following shareholder approval for a merger with Kimberly-Clark [6] - Citizens downgraded SAP (SAP) to Market Perform from Outperform without a price target, citing disappointing Q4 sales results and a current cloud backlog growth of 25% versus the expected 26% [6] - D. Boral Capital downgraded Quince Therapeutics (QNCX) to Hold from Buy without a price target after negative results from a pivotal Phase 3 clinical trial [6] - Stifel downgraded Codere Online (CDRO) to Hold from Buy with a price target of $8.50, down from $9, believing the company's estimates need to reset due to a recently announced tax hike in Mexico [6]

Core Viewpoint - The sports betting industry, particularly companies like Codere Online Luxembourg, is facing challenges but also has potential for growth, especially with upcoming events like the World Cup driving increased betting activity. Group 1: Company Overview - Codere Online Luxembourg is the online sports betting and casino arm of Spanish gambling conglomerate Grupo Codere, publicly listed since 2021 through a SPAC merger [5]. - The company has a market capitalization of $364 million and its stock price has fluctuated between $5.18 and $8.75 over the past year [4][5]. Group 2: Financial Performance - Codere's shares fell significantly in 2022 due to concerns about profitability, but rebounded to $8 per share in 2024, driven by improved fiscal results [6][7]. - The company has experienced a revenue increase and a move towards consistently positive adjusted EBITDA by focusing on its home market of Spain and expanding into Latin America [7]. Group 3: Stock Performance and Market Sentiment - Codere's stock has shown mixed performance, with a notable drop earlier this year due to a Nasdaq compliance issue and the exit of its CFO [8]. - Since hitting a 52-week low in mid-November, the stock has rebounded by approximately 45%, attributed to the latest earnings release [9]. Group 4: Future Outlook - Analysts estimate Codere to earn $0.43 per share in 2026 and $0.68 per share in 2027, with the stock currently trading at around 17.5 times forward earnings [10]. - The upcoming World Cup is expected to boost betting activity, potentially increasing site traffic and user retention [11]. - The company has high fixed compliance and technological costs, but decreasing customer acquisition costs may lead to significant earnings growth with moderate revenue increases [12].

Core Insights - Codere Online Luxembourg is an overlooked sports betting stock with a market capitalization of $353 million, currently priced at $7.70 per share [2][7] - The company does not operate in the U.S. market, which is beneficial as competitors with significant U.S. exposure are facing challenges [5][8] - Codere's shares have increased nearly 20% year to date, indicating strong performance despite its lack of U.S. operations [4][5] Company Overview - Codere Online went public through a reverse merger with a SPAC about four years ago [7] - The company has exposure to key markets such as Italy, South Africa, and the U.K., with its most lucrative operations in Spanish-speaking countries like Argentina, Colombia, Mexico, and Spain [8] - Codere is positioned to benefit from the upcoming 2026 World Cup betting trends, potentially offering a better investment opportunity compared to U.S.-focused rivals [8][9] Market Position - The absence of U.S. operations allows Codere to avoid regulatory risks associated with prediction markets, which are becoming a competitive threat to U.S. sportsbook operators [5][7] - Investors view Codere stock as inexpensive, providing exposure to the high-growth Latin American internet wagering market [9] - As the growth story in Latin America gains traction, Codere may attract takeover offers from companies looking to enter the region [9]