Gambling.com Group (GAMB) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 revenue of $40.6 million, up 39% year-over-year, and record adjusted EBITDA of $15.9 million, up 56% year-over-year.

• Integration of OddsJam and OpticOdds completed, boosting recurring subscription revenue to 24% of Q1 total and contributing to robust growth in sports data services.

• Delivered over 138,000 new depositing customers, a 29% increase year-over-year.

• Marketing business continues to perform at all-time highs, with iGaming revenues up 24% year-over-year.

• Reiterated 2025 guidance, targeting $172 million in revenue and $68 million in adjusted EBITDA, expecting another year of record revenue, adjusted EBITDA, and free cash flow.

Financial highlights

• Gross profit increased 42% year-over-year to $38.4 million, with gross margin up 200 basis points to 94.5%.

• Adjusted EBITDA margin rose to 39%, up 400 basis points from the prior year.

• Adjusted net income grew 78% to $16.5 million; adjusted diluted EPS up 92% to $0.46.

• Free cash flow was $10.3 million, up 25% year-over-year.

• Net income: $11.2 million (+54% YoY); net income margin: 28% (up from 25%).

Outlook and guidance

• Full-year 2025 guidance maintained: revenue midpoint $172 million (35% growth), adjusted EBITDA midpoint $68 million (40% growth).

• Guidance assumes $14.5 million incremental adjusted EBITDA from Odds Holdings acquisition and no new North American market launches in 2025.

• Recurring subscription revenue expected to exceed 20% of 2025 revenue.

• Missouri and other new markets not included in guidance until launch dates are confirmed.