Gaming affiliate group Gentoo Media is continuing to adapt to the challenge posed by artificial intelligence and the impact this is having on search engines, leadership states.

The group’s financials for Q1 2026 showed a 5% year-over-year decline in revenue from €25.4m (£22m)to €24m, citing a range of challenges holding back its early year performance.

Search engine volatility, partially due to the impact of AI content and Google’s AI overviews alongside core updates in March, had an impact on customer engagement. 

It’s noteworthy that the number of first-time depositing customers dropped from 91,100 in Q1 2025 to 81,400 this year, though the firm has not directly attributed this to AI and search engine difficulties.

“The role of AI in search and user behaviour continues to evolve, and we are actively adapting our content, product and technical approach to ensure Gentoo Media remains visible, relevant and competitive across both traditional and emerging discovery channels.” said Jonas Warrer, Gentoo Chief Executive Officer, in a letter to stakeholders.

Aside from AI and search engines, Gentoo also cited ‘favourable sports outcomes’ as putting pressure on returns from its revenue-share agreements with betting operators.

AI impact can’t shake Gentoo profit

Despite the decline in revenue, Gentoo remains a profitable business, with Q1 net profit coming in at €219,000 – a huge turnaround from a loss of €2.9m the year prior. EBITDA also rose from €8.8m to €10.5m.

Gentoo Media came into being in June 2024, initially as the standalone entity of GiG Media – formerly the media and affiliation arm of gaming tech and solutions firm Gaming Innovation Group (GiG) which was divested from the company and subsequently rebranded as Gentoo.

The firm’s Q4 2024 accounts saw an impressive start to activity, with revenue reaching €36m. Trouble began in 2025, however, with the aforementioned changes to Google search and the proliferation of AI content taking a toll.

While still contending with these challenges, company leadership is confident that restructuring efforts are beginning to have a positive impact on the Nasdaq Stockholm-listed firm’s performance. Q4 2025 in particular was cited as a ‘turning point’ for the company.

These restructuring and cost cutting efforts have unfortunately seen some job losses, however, with headcount reduced from 404 to 292 employees. The closure of its offices in Norwich, England, also led to a non-cash asset impairment charge of €2.6m in Q1 2026.

Warrer concluded: “We remain focused on our 2026 priorities: driving higher-quality revenue, strengthening flagship brands and integrating AI-driven capabilities across content, product and acquisition channels.

“Combined with a leaner organisation and improved financial flexibility, this positions Gentoo Media well for long-term value creation.”