Codere Bounces Back with Profit, Growth, and a $2B Surprise

Key Points

• With €7.0 million net profit in Q1 2026, Codere Online ended its loss streak and achieved an all-time high of €64.4 million net gambling income after previously losing €0.7 million.
• Spain and Mexico led the increase in revenue, players, and engagement, especially in Mexico in preparation for the 2026 FIFA World Cup.
• It is reported that the parent company Codere seeks to sell for up to €2 billion, which would include Codere Online and define its entire strategy.

Most people assume a company doesn’t bounce back this fast after losses. Codere Online just proved that assumption wrong, and then complicated the story further. A return to profit, record revenue, surging players, the numbers read well on the surface. But a second layer sits beneath all of it. One that could reshape the company in ways the Q1 figures alone do not prepare you for. Because while the numbers rise, something bigger unfolds behind the scenes without much fanfare.

The Numbers Turn and the Whole Narrative Shifts

The move from loss to profit did not happen by chance or in isolation. Total revenue reached €60.3 million in Q1 2026, up 16% from €57 million in the same period last year, and that increase fed directly into earnings. Net income moved to €7.0 million, which reversed the €700,000 loss that Q1 2025 had produced.

Operational performance pointed in the same direction. Adjusted EBITDA rose to €6.0 million from €1.8 million, and that movement reflected improvement across the business rather than a single factor carrying the rest. The balance sheet added further weight to the picture.

As of the close of Q1, there were €56.2 million worth of cash reserves in the business without any financial debts. This provides some space to do something more without having the stress of debt hanging over every decision.

The CFO of the business, Marcus Arildsson, explained, “Q1 2026 has clearly been a move toward profits.” The numbers prove this claim, reflecting not just growth but a better profit margin than the previous period.

Spain and Mexico Do the Work That Drives the Whole Quarter

Spain and Mexico are really where it’s at though, when it comes to driving the overall quarter growth. The momentum isn’t quite as strong elsewhere. Spain is the first place to take a look, they saw their revenue and Net Gaming Revenue (N.G.R) both grow by 16% year on year, reaching €25.5 million a very healthy return. The number of Spanish players rose by 13% to 59,000, showing that the growth in revenue was actually well matched by the growth in user engagement.

Mexico is the faster of the two though. Total revenue generated up 30.4 million euros and the N.G.R was up 13% to €34,6 million, making Mexico the fastest growing region overall in the quarter. The number of players grew by a healthy 20% to 98,200. 

The 2026 FIFA World Cup hosted by Mexico alongside the United States and Canada already impacts user behaviour in the region. As the tournament gets closer, more users are likely to start placing bets, and this is one of the reasons for the recent growth in the number of players.

Growth also faces pressure. Mexico introduced a gambling sin tax last year that added costs the business now carries. Spain continues to manage marketing restrictions and discussions about reintroducing a ban on bonuses. The results arrive alongside these regulatory challenges, which make the performance more meaningful rather than less.

User Numbers Tell the Story That Revenue Alone Cannot

Average monthly active players just kept on growing 14% year on year to 183.5k , and it’s been consistent for two whole years now . The main movers were Mexico with a 20% swing and then Spain, at 13%.

Back in December 2025, the company had crossed 100k active players and connected that milestone to future opportunities tied to major sporting events. The progression builds on itself in a pattern that compounds over time. More users produce higher engagement. Higher engagement drives revenue. Revenue then supports profitability, and the cycle reinforces itself with each quarter that holds the trend.

Casino operations contributed 63% of total revenue, with sportsbook accounting for 37%. Casino income provides a base of stability, while sportsbook activity rises during events like the World Cup and adds revenue on top of that foundation.

The Momentum Came Before Q1 and It Has Not Stopped

The trend is clear, Q1 2026 is continuing in the same vein as it did even before the quarter really got underway. Back in 2024 Codere Online showed some impressive figures, their net gaming revenue was up by 23% to €211.6 million, and adjusted EBITDA rose 18.1% to a healthy €6.4 million. Spain was the main driver of that with €87.7 million and a jump of 17% in the number of active players.

Q4 2025 pushed further. Net gaming revenue hit €60.7 million, the highest quarterly figure at that point, with Mexico driving most of the movement through a 31% revenue increase and a 43% rise in active customers.

The latest quarter just keeps up that steady trend. CEO Aviv Sher said – “We delivered a very strong start to 2026, achieving record quarterly net gaming revenue of €64.4 million, up 13% year on year.” And he pointed out that Spain’s performance was just “a clear continuation and acceleration of the positive trends we began to see in the second half of 2025.”

A Potential $2 Billion Deal Raises the Stakes for Everyone

Financial performance improves on one track. There is a parallel development on an independent trajectory, but one that is coexisting with the other. Reports say that the parent company, Codere, is looking into selling itself, and such a deal could be worth about $2 billion. It was also reported that Jefferies and Macquarie Capital have been hired as advisers, with initial bids due by May 15th and final bids in July.

The agreement, of course, would involve Codere Online, the online division of the company listed on the Nasdaq. Business operations and strategic moves now occur simultaneously, and thus, the next several months will be far from trivial for the company.

Codere has a wide reach across Spain, Mexico, Argentina, Italy and Uruguay. They’ve been through some tough times in recent years though and have had to get back on track. Included in those efforts was a recapitalisation back in 2023 to get their debt down and get things running smoothly again. Profitability now returning changes what the business looks like to potential buyers and what valuation the sale process might achieve.

Investors Respond and the Share Price Reflects It

The market did not wait to form a view. Shares in Codere Online rose by over 7% within the first half hour of trading after the results, reaching $9.72. Over the past 12 months, the stock gained nearly 20%. The movement captures more than one quarter of earnings. It reflects expectations around continued growth, World Cup engagement, and the prospect of a transaction that could value the business at a level the prior years had not suggested possible.

Full-Year Targets Hold Even as Expectations Climb

The strong quarter hasn’t prompted a change in their thinking on full-year forecasts. Net gaming revenue for the full year in FY 2026 is expected to fall between €235 million & €245 million, with a slimmed down EBITDA profit range of €15 million to €20 million. That puts them in line for steady growth rather than some wild new jump in numbers. To keep expectations in check, they’re factoring in regulatory uncertainty and market ups & downs, & these numbers reflect that cautious approach.

Expert Insight: What This Quarter Really Points to Across the Industry?

The Q1 results point beyond a single recovery. They demonstrate how mid-tier operators compete in regulated markets by combining growth with financial discipline, without debt forcing every decision in a direction the numbers alone would not choose.

A debt-free balance sheet reduces risk. It also creates space for marketing and user acquisition around major events, which is precisely the kind of spending that drives the player growth Codere Online now records.

The concentration of growth in Spain and Mexico underlines something the broader industry now faces. Scale alone does not produce sustainable results. Local market strength determines who holds a position when regulatory pressure and competition both increase at the same time.

The reported €2 billion sale adds a dimension that changes how the rest of the industry reads this story. The completion will spur consolidation within the industry, encourage competitors to either grow or face takeover, and send the message that buyers value users, revenues, and event-related potential.

There are possibilities for success through the World Cup, Latin American growth, and technological development from a stable financial standpoint. Risks sit alongside them: tighter regulation, higher taxation, and the revenue reliance that major events produce when they end.

The next signals will come from the sale process, user retention after the World Cup, and regulatory changes in the markets where Codere Online has built its strongest positions.