Codere Online: 3 Key Takeaways for Long-Term Investors

On its third quarter of 2026 earnings call, held on Nov. 12, 2026, Codere Online (NASDAQ:CDRO) announced revenue grew 31% year over year to 62.6 million euros, driven by expanding player spend. Online gaming operators depend on converting user volume into profitable retention rather than burning capital on low-value users. Managing player value determines whether top-line expansion generates durable earnings. Three things management said stand out.

1. Higher Customer Quality Drives Revenue Expansion

Management prioritized player quality over mass volume, lifting average monthly spend per active user 24% to 134 euros. Higher spend per user translates directly into improved profitability without forcing the business to overspend on customer acquisition.

Most of our growth this quarter came from higher player value, which reflects the work we have been done on improving the quality of our customer base.
-- Aviv Sher, Chief Executive Officer

2. Regulatory Shifts in Spain Introduce Short-Term Friction

Spain introduced new identification and deposit rules that apply across operators, creating temporary operational hurdles. Established companies with proper infrastructure can adapt while smaller competitors struggle to comply.

We are expecting some slowdown. But as long as all the competitors and all the market will have the same limits, our best guess is that either player will move between operators or it will remove or change the default deposit limits.
-- Aviv Sher, Chief Executive Officer

3. Disciplined Marketing Keeps Customer Acquisition Costs Stable

Management kept cost per acquisition, or CPA, which measures the marketing expense required to sign up a new paying player, steady at 196 euros over the last 12 months. Maintaining stable acquisition costs lets the business protect adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, a measure of core operating profitability, even as total marketing spend expands.

... I think that it's good that we are able to maintain this level of marketing, although it's an expense of the EBITDA because our CPA is still within the range that we see good returns...
-- Aviv Sher, Chief Executive Officer

Looking Ahead

Revenue momentum continues across key markets like Mexico, and leadership remains comfortable aiming for the upper end of its full-year targets. The business holds structural advantages in its debt-free balance sheet and negative working capital model, while management closely watches regulatory developments, and foreign currency fluctuations.

In any event, the fundamentals of the business remain strong. We have a growing customer base, healthy player values and increasing profitability and a strong debt-free balance sheet.
-- Marcus Arildsson, Chief Financial Officer

Looking beyond near-term regulatory adjustments in Europe, leadership intends to keep its capital allocation framework grounded in measured spending and disciplined underwriting.

I think we will continue to be conservative in our approach to the numbers and try to beat them or to get closer to the higher end.
-- Aviv Sher, Chief Executive Officer

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.