Record Q4 Signals LatAm Expansion Gains
Codere Online Luxembourg, S.A. posted €60.7 million in net gaming revenue for the fourth quarter of 2025, the strongest quarter in the companys history. The lift was driven by Mexico, where net gaming revenue rose 31% as the active customer base grew 43% year over year and hit 100,000 in December.
For the full year, adjusted EBITDA climbed to €13.8 million, more than doubling the €6.4 million posted in 2024. Management offered a confident 2026 outlook, with net gaming revenue seen at €235-245 million and adjusted EBITDA in the €15-20 million range, underscoring ongoing margin recovery alongside top-line growth.
Regulatory headwinds loom in Mexico, where a gaming excise tax increase from 30% to 50% takes effect in January 2026. Codere Online says it can cushion the EBITDA impact through sharper marketing efficiency and renegotiated supplier terms, while leaning into the World Cup season as a catalyst for user engagement and loyalty.
Mexico And LATAM Drive The Story
The quarter underscores LATAM as the primary engine for Codere Online. The companys Mexico operation delivered a 31% NGR gain, with the active customers tally rising 43% to 100,000 in December. That milestone positions the company well for summer promotions and the global attention surrounding the World Cup.
Market observers are watching codere online ceo: online as a leadership signal for the LATAM push, noting that execution in a tightening regulatory environment will be key to sustaining growth. The pace of new customer acquisition and the depth of engagement in core markets will help determine how quickly the company can translate user growth into durable profitability.
Key Numbers at a Glance
- Q4 2025 net gaming revenue: €60.7 million
- Mexico NGR growth: 31%
- Active customers in Mexico (Dec 2025): 100,000
- Active player CAC (Q4 2025): €166 (lowest since early 2023)
- Full-year 2025 adjusted EBITDA: €13.8 million
- 2026 guidance: NGR €235-245 million; EBITDA €15-20 million
- Mexico gaming excise tax increase: 30% to 50% effective Jan 2026
Strategic Implications For Investors
Investors are treating Codere Online as a key proxy for the online gaming opportunity in Latin America. The strong Q4 outturn shows the company can scale in large, regulated markets where online gambling is gaining traction amid mobile adoption and digital payments uptake. The 100,000 active players in December cements Mexico as a core market with a large addressable base for growth through promotions, data-driven marketing, and localized product features.
Looking ahead, the 2026 guidance signals sustained momentum, even as regulatory changes press margins. The companys focus on marketing efficiency, supplier renegotiations, and disciplined cost control will be tested against the Mexico tax regime. The World Cup season in 2026 adds a potential uplift tailwind, provided the marketing mix resonates with a broad audience across the region.
Regulatory And Competitive Landscape
The Mexico tax increase represents a meaningful near-term hurdle for EBITDA. Codere Online has framed the change as manageable through cost discipline and revenue growth, but the scenario reinforces a key risk for LATAM online operators: regulatory costs rising faster than revenue opportunities in some segments. Competition remains intense in several markets, yet Codere Online points to its ability to tailor promotions and product offerings to local tastes as a differentiator that can help defend share amid a crowded field.
In the broader LATAM context, the company remains focused on expanding beyond Mexico into adjacent markets where mobile penetration and online betting penetration are climbing. The balance of growth initiatives with profitability will be the likely focal point for investors as the company advances its 2026 plan and navigates shifting tax rules across the region.
Final Take For The Market
Codere Online has delivered a standout Q4 that reinforces the LATAM online gaming thesis. With Mexico delivering one of the strongest quarterly performances and a clear path to 2026 revenue and EBITDA targets, the stock remains a compelling proxy for investors seeking exposure to online gaming growth in Latin America. The focus on cost efficiency, strategic partnerships, and a keen eye on regulatory costs will determine whether the company can translate the extended growth runway into durable earnings power in a region still defining its online gambling landscape.
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