Decline in Raketech's Q2 2025 Revenue: A 54% Drop Attributable to Troubles in Paid Network
In the second quarter of 2025, Raketech, a leading affiliate marketing company, reported revenues of €7.8 million, marking a 54% decline from the same period the previous year. However, this dip can be attributed to a deliberate strategic move, as the company divested its non-core US tipster and subscription assets.
The sale of these assets, which had been generating negative profitability, allowed Raketech to reduce operating expenses by 35%, excluding publisher costs, and improve financial clarity. Although the overall group revenue declined due to this strategic exit, the core Affiliation Marketing business showed modest growth.
Raketech's core business strategy remains centred around its Affiliation Marketing segment, with a focus on a platform-first and partnership-driven model. The company is now concentrating on scaling operations through sustainable, scalable, and profitable channels, emphasising efficiency, automation, and expanding its organic publisher network and exclusive commercial operator agreements within its core European markets.
The sale of the US tipster and subscription assets was a turning point in Raketech’s strategic repositioning. While it yielded a net gain of €200,000, it also carried a €500,000 operational loss in Q2. However, the company incurred a €0.5 million loss from the divested assets in June.
The divestment of the US assets has enabled Raketech to streamline its focus on its high-performing core affiliation business in Europe. The company is also investing in automation, data infrastructure, and expanded affiliate partnerships via its AffiliationCloud platform. Moreover, Raketech is emphasising organic growth through its publisher network and new entrepreneurial partnerships.
Diversifying revenues beyond volatile paid traffic channels towards more stable, partnership-driven income streams is another key focus for Raketech. The company has signed a new agreement with a large Nordic TV and streaming operator to supply traffic through its TV sport guides.
Looking ahead, Raketech remains focused on advancing its AffiliationCloud initiative and reinforcing its platform-first strategy, prioritising scalable partnerships and high-margin organic traffic channels. The company is currently evaluating the future role of paid media within its overall model, suggesting a possible pivot towards organic growth and direct commercial relationships.
Despite softer summer activity, July 2025 data suggests that Affiliation Marketing revenues are following typical seasonal trends. Adjusted EBITDA for Q2 2025 stood at €2.6 million, while reported EBITDA was €2.0 million. Free cash flow before earnouts was €1.8 million in Q2 2025, largely tracking with EBITDA levels.
In conclusion, Raketech's strategic move to exit non-core, loss-making operations has positioned the company for sustainable growth in the mid to long term. The company is now more focused, financially disciplined, and well-positioned to scale its operations and capitalise on opportunities within its core European markets.
- Raketech, and affiliate marketing company, sold its non-core US tipster and subscription assets in Q2 of 2025, which had been generating negative profitability, to streamline its focus on its high-performing core affiliation business in Europe.
- In its core strategy, Raketech is emphasizing a platform-first and partnership-driven model, focusing on scaling operations through sustainable, scalable, and profitable channels, such as automation, data infrastructure, and expanded affiliate partnerships via its AffiliationCloud platform.
- The company is also diversifying its revenues beyond volatile paid traffic channels towards more stable, partnership-driven income streams, as shown by its new agreement with a large Nordic TV and streaming operator to supply traffic through its TV sport guides.
- Looking ahead, Raketech is prioritizing the advancement of its AffiliationCloud initiative, reinforcing its platform-first strategy, and evaluating the future role of paid media within its overall model, suggesting a possible pivot towards organic growth and direct commercial relationships.
