Revenue growth has normalized to 13.3% as of 2024Q4, while the company finally achieved a positive operating margin of 2.7% after years of significant losses.
| Sales/Revenue | 200.7M | 210.41M | 200.7M | 161.65M | 115.75M | 80.25M | 70.5M | 61.58M |
| Revenue Growth % | 33.46% | 4.83% | 24.16% | 39.66% | 44.23% | 13.84% | 14.47% | - |
| Cost of Goods Sold | 18.78M | 8.32M | 7.73M | 6.28M | 4.84M | 7.08M | 5.16M | 32.52M |
| COGS % of Revenue | - | 3.96% | 3.85% | 3.88% | 4.18% | 8.82% | 7.32% | 52.81% |
| Gross Profit | 181.92M | 202.08M | 192.97M | 155.37M | 110.9M | 73.17M | 65.34M | 29.06M |
| Gross Margin % | 90.64% | 96.04% | 96.15% | 96.12% | 95.82% | 91.18% | 92.68% | 47.19% |
| Gross Profit Growth % | - | 4.72% | 24.2% | 40.09% | 51.56% | 11.99% | 124.83% | - |
| Operating Expenses | 177.59M | 196.34M | 188.64M | 170.12M | 166.78M | 144.2M | 79.59M | 77.46M |
| OpEx % of Revenue | - | 93.32% | 93.99% | 105.24% | 144.09% | 179.68% | 112.9% | 125.78% |
| Selling, General & Admin | 85.59M | 173.24M | 167.33M | 152.29M | 153.63M | 91.8M | 69.43M | 66.34M |
| SG&A % of Revenue | - | 82.34% | 83.37% | 94.21% | 132.73% | 114.38% | 98.49% | 107.72% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 23.1M | 21.31M | 17.83M | 13.14M | 52.41M | 10.15M | 11.12M |
| Operating Income | 4.33M | 5.74M | 4.33M | -14.75M | -55.88M | -71.03M | -14.25M | -15.88M |
| Operating Margin % | 2.16% | 2.73% | 2.16% | -9.13% | -48.27% | -88.51% | -20.21% | -25.78% |
| Operating Income Growth % | - | 32.49% | 129.35% | 73.59% | 21.33% | -398.48% | 10.25% | - |
| EBITDA | 4.47M | 6.38M | 4.72M | -14.64M | -55.32M | -70.31M | -13.38M | -14.69M |
| EBITDA Margin % | 2.23% | 3.03% | 2.35% | -9.06% | -47.79% | -87.61% | -18.98% | -23.85% |
| EBITDA Growth % | 116.05% | 35.26% | 132.23% | 73.54% | 21.32% | -425.44% | 8.9% | - |
| D&A (Non-Cash Add-back) | 136K | 645K | 388K | 114K | 556K | 721K | 868.34K | 1.19M |
| EBIT | 4.33M | 5.74M | 4.33M | -14.75M | -30.77M | -25.63M | -14.25M | -15.88M |
| Net Interest Income | 498K | 342K | 603K | 1.81M | 12.46M | 3.98M | -520K | -269K |
| Interest Income | 498K | 342K | 603K | 1.81M | 25.1M | 4.54M | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 12.64M | 561K | 520K | 269K |
| Other Income/Expense | 1.04M | -2.43M | 1.04M | 5.83M | 12.46M | 3.98M | -520K | -269K |
| Pretax Income | 5.37M | 3.31M | 5.37M | -8.93M | -43.41M | -67.05M | -14.77M | -16.15M |
| Pretax Margin % | 2.68% | 1.57% | 2.68% | -5.52% | -37.51% | -83.54% | -20.95% | -26.22% |
| Income Tax | 1.46M | 2.02M | 1.46M | -6.51M | 2.97M | 966K | 1.51M | -53K |
| Effective Tax Rate % | 27.22% | 60.9% | 27.22% | 72.95% | -6.84% | -1.44% | -10.22% | 0.33% |
| Net Income | 3.91M | 1.29M | 3.91M | -2.42M | -46.38M | -68.01M | -16.28M | -16.09M |
| Net Margin % | 1.95% | 0.61% | 1.95% | -1.5% | -40.07% | -84.75% | -23.09% | -26.13% |
| Net Income Growth % | 124.17% | -66.94% | 261.69% | 94.79% | 31.8% | -317.8% | -1.16% | - |
| Net Income (Continuing) | 3.91M | 1.29M | 3.91M | -2.42M | -46.38M | -68.01M | -16.28M | -16.09M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 149K | 152K | 149K | 147K | 145K | 146K | 92K | 96K |
| EPS (Diluted) | 0.08 | 0.03 | 0.08 | -0.05 | -1.03 | -1.51 | -1.84 | -268.22 |
| EPS Growth % | 122.43% | -62.5% | 249.81% | 94.82% | 31.79% | 17.93% | 99.31% | - |
| EPS (Basic) | - | 0.03 | 0.09 | -0.05 | -1.03 | -1.51 | -1.84 | -268.27 |
| Diluted Shares Outstanding | 46.67M | 45.89M | 46.07M | 45.27M | 45.12M | 45.19M | 8.87M | 60K |
| Basic Shares Outstanding | 49.05M | 45.5M | 45.48M | 45.27M | 45.03M | 45.19M | 8.85M | 59.99K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Regulatory and geographic concentration
As reported in financial statements, CDRO's revenue growth has decelerated from the 60% levels observed in 2022 to 13.3% by 2024Q4, suggesting that the initial aggressive market penetration phase in Latin America is transitioning toward a more mature, albeit slower, growth trajectory within its core operating regions.
The shift from high-double-digit growth to more moderate levels indicates that the company is reaching a saturation point in its primary markets. Investors should monitor whether this deceleration reflects a lack of new customer acquisition or a strategic pivot toward prioritizing unit economics over raw top-line expansion.
Based on reported figures, the company maintains a gross margin exceeding 90%, which appears significantly higher than industry peers like DraftKings or Flutter, suggesting that the current accounting treatment of gaming taxes and platform fees may be masking the true underlying cost of service delivery.
This elevated gross margin profile is likely an artifact of excluding mandatory gaming taxes from cost of goods sold. If these taxes were properly reclassified, the company's profitability would appear substantially more constrained, highlighting the fragility of its current 2.7% operating margin.
According to recent SEC filings, CDRO's operating income has only recently turned positive at $1.4M in 2024Q4, demonstrating that despite significant revenue scaling, the company has struggled to achieve meaningful operating leverage due to persistent, high-level SG&A expenses required to maintain its competitive market position.
The inability to scale operating income faster than revenue suggests that the business model remains heavily dependent on continuous marketing and customer acquisition spending. Without a clear path to decoupling revenue growth from these fixed overheads, the company may remain perpetually vulnerable to minor fluctuations in top-line performance.
As indicated by the historical data, the company's net margin has fluctuated between deep losses and a razor-thin 4.2% in 2024Q4, raising concerns that the current profitability is highly sensitive to sporting outcomes and marketing efficiency rather than a sustainable, long-term competitive advantage.
Short-sellers would likely focus on the fact that the company's recent profitability is barely above break-even, leaving almost no buffer for regulatory shocks or increased competition. Any adverse change in the tax environment or a spike in customer acquisition costs could quickly revert the company to a loss-making position.
Quick answers to the most common questions about buying CDRO stock.
For fiscal year 2025, Codere Online Luxembourg, S.A. (CDRO) reported total revenue of $210.4M. This represents a 241.7% increase compared to $61.6M in 2019.
Codere Online Luxembourg, S.A. (CDRO) is profitable, generating $1.3M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Codere Online Luxembourg, S.A. (CDRO) reported an operating income of $5.7M, resulting in an operating profit margin of 2.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Codere Online Luxembourg, S.A. (CDRO) generated $202.1M in gross profit for the year, representing a gross profit margin of 96.0%. This demonstrates the company's core pricing power and production efficiency.