Deezer (DEEZR) H1 2026 earnings summary

Executive summary

• Revenue reached €268.2 million in H1 2026, up 0.4% year-over-year, driven by strong direct business performance and subscriber growth in France (+8.4%) and Rest of World (+9.2%).

• Adjusted EBITDA improved to €8.5 million, up €6.3 million year-over-year, reflecting strict cost control and improved operating leverage.

• Net income turned positive at €6.7 million, compared to a €7.6 million loss in H1 2025.

• Free cash flow surged to €37.4 million, supported by a one-off advance payment and higher working capital generation.

• Strong cash position of €100 million at June-end and net cash of €95 million provide flexibility for future investments.

Financial highlights

• Direct revenue increased 6.7% year-over-year to €185.2 million, offsetting declines in Partnerships (–7.6%) and Other (–27.5%) revenue.

• Adjusted gross profit was stable at €65.8 million, with a margin of 24.5%.

• Operating profit (EBIT) improved to €6.5 million from a loss of €7.0 million year-over-year.

• Free cash flow improved to €37.4 million from €1.0 million year-over-year.

• Operating expenses reduced by €6 million year-over-year; marketing expense now 6.5% of revenue, staff and G&A at 14.9%.

Outlook and guidance

• Fiscal year 2026 revenue expected to remain stable compared to 2025, with continued focus on positive adjusted EBITDA and free cash flow.

• Selective, ROI-driven investments planned for H2, especially in France and Brazil, with minimal spend in mature markets.

• Positive adjusted EBITDA and free cash flow targeted for the third consecutive year.

• Capital allocation to remain disciplined, supporting profitable growth.