The case for & against
Bull & Bear analysis
Bearish
Codere Online (NASDAQ: CDRO) operates in the online gaming and sports betting industry, primarily focusing on key markets in Mexico and Spain. The company aims to deliver a diverse array of gaming options while navigating a complex regulatory environment and a competitive landscape. It is noted for its innovative partnerships and robust market positioning, particularly gaining traction in the online casino and sports betting segments. The firm is part of the broader trend of digitalization in the gaming sector, leveraging technology to enhance user experience and market reach.
Bull says
- ↑Net gaming revenue €64.4M in Q1 2026, +13% YoY reflecting momentum.
- ↑Average monthly users 183k, +14% YoY; CAC down to €212 per FTD.
- ↑Adjusted EBITDA €6M in Q1 vs €1.8M YoY, driving margin expansion.
- ↑€7.5M share buyback authorized, signaling management confidence.
- ↑Mexico NGR +13.4% YoY with reduced competition boosting share.
- ↑Full-year guidance: NGR €235–245M, EBITDA €15–20M; World Cup catalyst.
Bear says
- ↓Mexico gaming tax hikes from 30% to 50% in 2026 hits margins.
- ↓Peso volatility caused €5M net gaming revenue loss, ongoing risk.
- ↓Profitability under pressure: rising marketing spend keeps yields low.
- ↓Negative earnings yield and high leverage indicate stretched valuation.
- ↓Limited recovery in Colombia amid VAT introduction and regulatory shifts.
- ↓High short interest and weak liquidity reflect market skepticism.
Investment themes with CDRO
Online Gaming & Sports Betting↑ +0.75%
EVO.ST · RSI · TLC.AX
Earnings Call · Q1 2025 · Mgmt. Guidance
Updated 05-22-2026neutral
Transcript signals
Bull points
- we filed our 2023 annual report on Form 20F on May 1st, that is, within the extended deadline granted to us by NASDAQ, and thereby regain compliance with applicable listing requirements.
- we expect to file our 2024 annual report by the end of May, so would expect to regain compliance with NASDAQ listing requirements ahead of any hearing actually taking place.
- we delivered 57 million in net gaming revenue, 8% above Q1 2024.
Bear points
- we are not able to file our 2024 annual report by May 15, that is, within the 15-day grace period provided.
- we understand that NASDAQ will be sending us a new delisting notice over the coming days, shortly following receipt of the total delisting notice.
- So we had to stop our efforts over there.
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