Acroud Shares Q1 Financial Results, Shows Growth Despite Difficulties

The first quarter of 2025 saw Acroud make significant restructuring and complete large deals in order to stay ahead of the ever-changing trends in the iGaming sphere.

Acroud Delivers Mixed Q1 Results Amid Strategic Restructuring 

According to the company, its strategic initiatives undertaken during the first quarter of the year have strengthened its financial structure. The media company reported revenue of approximately $10.7 million for Q1, reflecting a 3.4% year-on-year increase. However, adjusted EBITDA fell sharply by 63.7% to just $487,000. The company also posted an after-tax loss of about $3.6 million, a reversal from a $3.1 million profit in Q1 2024.

Despite the decline in adjusted EBITDA and profitability, the company acquired 72,906 new depositing customers during the quarter, representing a 60% increase year-on-year and a 69% rise compared to the previous quarter. CEO Robert Andersson characterized the quarter as producing “mixed results,” highlighting both Acroud’s resilience and its ability to adapt amid challenging market conditions.

The company owes its success despite the problems to an initiative that involved approximately $6.76 million in Super Senior Bonds, providing crucial liquidity to strengthen Acroud’s balance sheet and support future growth initiatives. In addition, the company converted roughly $7.25 million of bond debt into equity, significantly reducing financial leverage and establishing a more sustainable capital structure.

As part of the restructuring, Acroud also acquired the remaining 49% stake in Acroud Media Ltd from RAIE Media for approximately $13.1 million, with the payment made through a combination of cash and newly issued shares. After this restructuring, RAIE Media now holds around 39% of Acroud shares.

Why Did Acroud See EBITDA Drop?

Acroud’s sharp decline in adjusted EBITDA was attributed to “significant pressures primarily driven by regulatory changes in Brazil.” The country has been moving closer to a major consolidation since the beginning of the year, which has impacted the player base.

According to Acroud, the launch of Brazil’s regulated betting market in January resulted in a marked reduction in player activity during January and February, while more stringent-than-anticipated tax conditions further impacted profitability in the iGaming Affiliation segment.

Despite these short-term challenges, the company stated that it remains confident in the long-term growth prospects of the Brazilian market. Anderson explained that this will streamline company operations, which will help Acroud prioritize strategic initiatives focused on innovation, market expansion, and maximizing long-term shareholder value.