Deezer (DEEZR) H1 2025 earnings summary

Executive summary

• Revenue reached €267.1 million in H1 2025, up 1.3% at constant currency, with strong direct subscriber growth in France (+8.2%) and improved fundamentals, while overall subscriber base declined due to partnership segment reductions.

• Achieved seventh consecutive semester and second consecutive half-year of positive adjusted EBITDA, marking a key financial milestone and confirming turnaround progress.

• Adjusted EBITDA was €2.1 million, a €7.1 million improvement year-over-year, with net loss narrowed to €7.6 million from €19.4 million.

• Strategic focus on enhancing fan experience, empowering artists, scaling with partners, and strict cost control, supported by innovation such as AI music tagging and artist-centric payment systems.

• Robust cash position of €59.8 million at end of June 2025, with net cash at €48.2 million.

Financial highlights

• Total revenue was €267.1 million, up 1.3% at constant currency, with direct revenue at €173.6 million (+1.2%) and partnerships revenue at €76.5 million (-11.9%).

• Adjusted EBITDA improved to €2.1 million from a loss of €5.0 million in H1 2024; adjusted EBITDA margin rose to 0.8% from -1.9%.

• Gross margin increased to 24.5% from 24.1% year-over-year; adjusted gross profit was €65.5 million.

• Free cash flow was €1.0 million, down from €7.3 million in H1 2024, with positive free cash flow for the second consecutive year.

• Net loss per share improved to €(0.06) from €(0.16) year-over-year.

Outlook and guidance

• FY25 guidance confirmed: revenue expected to be flat or slightly declining year-over-year, with positive adjusted EBITDA and free cash flow targeted for the full year.

• Continued focus on disciplined cost control, innovation, and product launches to drive long-term profitable growth.