Codere Online Luxembourg, S.A. (NASDAQ:CDRO) Faces Challenges Despite Revenue Growth

• Codere Online Luxembourg, S.A. (NASDAQ:CDRO) reported a Q1 earnings per share (EPS) of -$0.0216, missing the estimated EPS of $0.02, indicating negative earnings.
• The company's Q1 revenue reached approximately $59.6 million, surpassing the estimated $53.6 million, reflecting strong revenue performance.
• Despite revenue growth, CDRO experienced a net loss of €0.7 million in Q1 2025, with a significant enterprise value to operating cash flow ratio of -1,234.35.

Codere Online Luxembourg, S.A. (NASDAQ:CDRO) is a prominent figure in the online gaming sector, with operations mainly in Spain and Latin America. The company provides a variety of online gaming services and has carved out a significant market presence. However, it faces stiff competition from other operators in the industry, impacting its financial outcomes and strategic choices.

On May 16, 2025, CDRO unveiled its Q1 earnings, showing an EPS of -$0.0216, which did not meet the anticipated EPS of $0.02. This result underscores the company's current negative earnings, as evidenced by its P/E ratio of -1,197.05. Such a negative P/E ratio indicates that CDRO is not currently profitable.

Despite this, CDRO's revenue figures were impressive, with actual revenue hitting around $59.6 million, exceeding the forecast of $53.6 million. This is in line with the company's reported total revenue of €54.3 million for Q1 2025, an 8% increase from the same quarter in 2024. The price-to-sales ratio of 3.21 suggests that investors are optimistic about the company's ability to generate sales, willing to pay $3.21 for every dollar of sales.

In Mexico, CDRO's revenue stood at €27.6 million, with net gaming revenue reaching €30.5 million, marking a 15% increase from the previous year. This growth is even more pronounced when adjusted for constant currency, at 34%. Nevertheless, the company reported a net loss of €0.7 million in Q1 2025, a downturn from a net income of €3.4 million in Q1 2024. The enterprise value to sales ratio of 2.87 offers insight into the company's valuation in relation to its revenue.

As of March 31, 2025, CDRO's financial standing included a total cash position of €41.8 million. With a debt-to-equity ratio of 0.28, the company demonstrates a relatively low debt level compared to its equity. The current ratio of 1.33 indicates that CDRO maintains an adequate liquidity level to meet its short-term obligations. Despite facing hurdles in generating positive cash flow, as shown by an enterprise value to operating cash flow ratio of -1,234.35, CDRO is steadfast in pursuing its strategic objectives, including a plan for share buybacks.