Raketech Reshapes Its Model Amid Revenue Decline in Q1 2025
Raketech has reported a drop in revenue for the first quarter of 2025, but the company says it has made tangible progress in shifting its operational model. With AffiliationCloud now central to its structure and entrepreneurial partnerships playing a growing role, Raketech aims to build a scalable, sustainable foundation for long-term performance.
Revenue Falls, But Platform Focus Sharpens
Raketech brought in €9.8 million between January and March 2025, which is less than the €19 million reported in Q1 last year. A large part of that decline is due to the sale of one of its businesses in 2024. Some parts of the company – like Casumba and its Paid Publisher Network – also struggled during the quarter.
Still, the firm views this quarter as a period of consolidation. Johan Svensson, CEO of Raketech, said:
“Q1 2025 marked a period of strategic consolidation and operational focus for Raketech. Despite a year-on-year revenue decrease we have made good progress in aligning the business around our platform-first model and long-term growth priorities.”
Strategic Shifts Underway
Raketech is focused on transforming into a platform-first performance marketing company. The AffiliationCloud platform now integrates assets across Affiliation Marketing and SubAffiliation, aiming to streamline operations and improve data-driven decision-making.
A key pillar of this transformation is its entrepreneurial partnership model. Around 50% of Affiliation Marketing revenue now comes from these partnerships, where Raketech retains control over commercial and technical elements while relying on external teams for content, SEO, and product development.
Affiliation Marketing Stable, Partnerships Expand
Affiliation Marketing generated EUR 6.0 million in Q1 revenue. Excluding Casumba, performance across the rest of the portfolio remained relatively flat compared to Q4 2024, despite seasonal headwinds and a shorter February reporting window. Momentum grew in the latter part of the quarter, particularly for new entrepreneurial partners.
To diversify traffic sources beyond SEO, Raketech continues investing in CRM and products aimed at retaining users, including TV sport guides.
SubAffiliation Mixed: Paid Down, Organic Up
SubAffiliation delivered EUR 3.4 million in revenue, but performance varied sharply across its two components. The Paid Publisher Network suffered from traffic volatility due to external changes, including search algorithm updates. Recovery isn’t expected in the near term.
Conversely, the Organic Publisher Network showed positive growth. The number of revenue-generating publishers rose from 50 to over 80 year-on-year. Four exclusive network deals with operators are already active, and expanding this base remains a priority.
Raketech achieved a 34% reduction in operating costs in Q1 2025 (excluding publisher payments), contributing to a more resilient financial structure. Free cash flow before earnouts was EUR 1.7 million, and EUR 6.0 million of earnouts were settled. Following a new agreement with Casumba’s sellers, the remaining EUR 20.6 million earnout has been extended to March 2028.