Gambling.com Group (GAMB) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $39 million, up 21% year-over-year, and record adjusted EBITDA, up 3% year-over-year, driven by strong enterprise sales in sports data services, which grew over 300% year-over-year and now represent 24-25% of total revenue.

• Marketing business was flat year-over-year due to unfavorable search rankings and poor organic search quality, especially outside the U.S., impacting new depositing customer volumes.

• Continued investment in product expansion, traffic diversification, and non-SEO channels, with expectations for non-SEO revenue to surpass SEO in Q4.

• Company remains optimistic about both sports data services and marketing, expecting growth in both segments in 2026.

• Acquired Spotlight.Vegas and continued share repurchases as part of ongoing capital allocation strategy.

Financial highlights

• Gross profit increased 17% to $35.6 million; gross margin was 91.2% versus 94.7% a year ago, with cost of sales doubling due to traffic diversification and acquisitions.

• Adjusted EBITDA margin was 33%, down from 39% last year, reflecting higher costs from traffic diversification.

• Adjusted net income fell 16% to $9.3 million, with adjusted EPS at $0.26, mainly due to higher interest expense.

• Free cash flow was $9.6 million, down from $14.2 million last year due to timing differences; operating cash flow was $10.9 million.

• Net loss attributable to shareholders was $3.9 million, compared to net income of $8.5 million in Q3 2024, mainly due to fair value movement in contingent consideration.

Outlook and guidance

• Full-year 2025 guidance revised to revenue of ~$165 million and adjusted EBITDA of ~$58 million, reflecting ongoing search headwinds and higher costs from accelerated traffic diversification.

• Q4 revenue expected at $46 million, the largest quarter in company history.

• 2026 outlook: overall revenue growth in low teens, sports data services in high teens, marketing in low teens, and adjusted EBITDA margin in mid-30%.

• Management expects sports data services to remain the fastest-growing, high-margin segment, with recurring subscription revenue as a key driver.