Equity research Angler Gaming, Q4 2025: A year defined by margin improvement

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Angler Gaming delivered another strong quarter from a profitability and margin perspective. Q4 2025 EBIT of EUR 1.9m, up 58% YoY, despite a 17% revenue decline to EUR 7.8m. Gross margin expanded to 49%. However, the persistent top-line contraction remains the principal risk. We see the revenue inflection point as the key catalyst for a re-rating.

Again, profitability trumps volume

Net sales of EUR 7.8m came in 4% below our estimate and fell 17% YoY, marking the fourth consecutive quarter of revenue declines. Revenues were held back by a Hold of 45.5%, compared to an average Hold of 51.0% during the three previous quarters. The gross margin of 49.0%, however, was one of the strongest prints of Q4 2025, up 17.1 percentage points YoY and 4.3 percentage points above our forecast. EBIT margin reached 23.8%, up 11.3 percentage points YoY and 1.8 percentage points above our estimate. EPS of EUR 0.02 was in line. For FY2025, net sales totalled EUR 30.6m, down 24% YoY, yet EBIT rose 21% YoY to EUR 6.2m, underscoring the company’s successful cost and margin management.

Focus och margins and growth going forward

Revenue growth appears within reach. In addition to the comparables being softer, the quarterly YoY revenue decline has narrowed from 25% in Q1 2025 to 17% in Q4 2025, suggesting the company may be approaching a floor for its revenue decline, post-renegotiation with partners and the elimination of unprofitable affiliate partners. If revenues begin to grow while the current margin profile is maintained, the earnings growth story becomes self-sustaining. We expect this revenue inflection around Q2 2026.

The decision to suspend the dividend underscores a shift in priorities away from cost and margin management towards profitable long-term growth. Three potential growth drivers are already visible: (i) the iGaming platform software has been upgraded, creating scope for expansion among both existing and new partners; (ii) in B2C, marketing investment in Sweden has delivered a strong return on investment, suggesting room to increase marketing spend to drive growth; and (iii) the AI-powered casino search tool marvn.ai. The latter represents a potential new traffic channel, although its revenue contribution remains close to immaterial at this stage.

Minor adjustments to estimates and fair value per share

Following the Q4 report, we have slightly reduced our revenue estimates. This is in large offset by a somewhat higher gross margin assumption. The net effect is a marginally lower fair value per share of SEK 5.0 (5.1), corresponding to an EV/EBIT NTM of 6.1x and a P/E NTM of 6.3x. The key catalyst remains the expected revenue inflection around Q2 2026E at the latest.

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