Raketech Shifts to Platform-First Strategy Despite 42% Revenue Drop in Q3
Raketech Group Holding Plc reported a challenging financial performance in the third quarter (Q3) of 2025 from continuing operations, even as the company intensified its strategic shift toward a “Platform-first” business model. Revenue from continuing operations totaled €6.2 million, representing a significant organic decline of 42.2% year-over-year.
Despite the revenue reduction, the company showed resilience in profitability metrics, largely due to cost controls. Adjusted EBITDA from continuing operations reached €1.2 million, a slight drop of 4.2% year-over-year, leading to an Adjusted EBITDA margin of 19.6%. The company generated Free Cash Flow of €1.1 million. The modest Profit for the period from continuing operations was €50 thousand.
Organic Network Growth Driven by US Partnership
The sharp decline in overall revenue was due to poor performance in the Paid Publisher Network segment, which the company is now de-emphasizing. However, Raketech recorded strong growth in its preferred segment, the Organic Publisher Network, which is managed through the AffiliationCloud platform.
This organic growth was largely fueled by an exclusive partnership with a U.S. sporting betting and casino publisher. CEO Johan Svensson confirmed the importance of this development, stating, “Our full focus remains on expanding organic publisher base, primarily in the US market and Sweden.”
Raketech made a $750,000 minority investment in the U.S. publisher to secure this exclusive long-term commercial agreement. This single partnership, active for only about 50 days in the quarter, caused the organic network to grow sequentially to approximately €0.9 million in Q3 2025, up from €0.5 million in Q2 2025.
Sharpening Focus Through Divestment
Raketech actively streamlined its business profile in Q3. The company finalized the sale of its Casumba assets on September 24, 2025. The divestment, which valued the assets at €12 million (measured at a fair value of approximately €7.2 million at closing), was driven by rising regulatory and legal risk in that region.
The sale allows the Group to “sharpen the Group’s focus” and direct resources toward accelerating the development of the high-margin AffiliationCloud platform. Svensson noted, “The third quarter marked another step forward in the execution of our platform-first strategy.”
Operational Efficiency and Cost Control
The improved profitability relative to revenue was a direct result of effective cost control measures and restructuring. CFO Måns Svalborn highlighted that the company’s costs, excluding publisher costs, were down approximately 27%compared to Q3 2024.
This efficiency was achieved through organizational restructuring and automation. The company significantly reduced its workforce, with full-time employees (FTE) dropping to 75 (from 116 year-over-year) and contractors decreasing to 27(from 63). Automation within AffiliationCloud, covering commission handling and compliance checks, is expected to reduce manual labor further.
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