ZEAL Network SE has reported a resilient financial performance for the Q1 of 2026, achieving revenue growth despite facing what the company described as a “weak jackpot environment”.
The lottery and gaming provider saw total revenue climb by 6% year-on-year, reaching €54.3 million, up from €51.1 million in the same period of 2025. While top-line growth remained healthy, profitability metrics softened slightly, with EBITDA falling to €15.5 million compared to €17.7 million in the previous year.
Investment in Sustainable Growth
ZEAL attributed the Q1 dip in EBITDA to a deliberate strategy of increased investment aimed at diversifying its business model and reducing reliance on the high-volatility jackpot cycles.
Andrea Behrendt, CFO of ZEAL, explained the rationale behind these results:
“The first quarter of 2026 shows that we are consistently executing our strategy even in a weak jackpot environment: our core business is growing, and we have continued to invest in diversifying our business model. Through targeted investments in new charity lotteries such as the Dream Car Raffle, we are laying the foundation for sustainable growth that is less dependent on jackpot cycles. The slightly lower EBITDA compared to the previous year is primarily a reflection of these measures.”
Segment Performance and New Initiatives
In its core lottery business, ZEAL reported a 5% increase in average monthly active users, reaching 1.575 million. New registrations also saw a significant boost, climbing 11% to 274,000. Revenue from the lottery segment alone rose 5% to €48.7 million, supported by an improved gross margin of 17.8%.
Beyond traditional lotteries, ZEAL expanded its “Games” portfolio to over 740 titles, driving a 14% revenue increase in that segment to €3.9 million. To further this momentum, the company launched the Dream Car Raffle (Traumautoverlosung) on April 14, 2026, marking its third major charity lottery product in Germany.
