Gambling.com Group reported third‑quarter 2025 revenue of $38.98 million, a 21% year‑over‑year increase that still fell $2.27 million (5.5%) short of the $41.25 million consensus estimate. The company’s earnings per share of $0.26 beat the $0.17 estimate by $0.09, a 53% surprise, while the adjusted EBITDA of $13.0 million rose 3% from the same period last year and represented a margin of 33%, down from 39% in Q3 2024.
Marketing services generated $29.6 million, a modest 1% rise from $29.3 million in Q3 2024, while sports data services surged 304% to $9.2 million, accounting for 24% of total revenue. North America contributed $19.8 million, up 55% YoY, whereas UK and Ireland revenue slipped 2% to $9.6 million. The company’s recurring subscription revenue continued to grow, offsetting the flat marketing mix and supporting the higher adjusted EBITDA margin.
The revenue miss was driven by persistent search‑quality headwinds that flattened marketing revenue and reduced new depositing customers. Management noted that the “poor organic search dynamics” in the marketing business, especially outside the U.S., limited traffic acquisition and dampened revenue growth. In contrast, the sports data services segment delivered a quadruple‑digit expansion, reflecting strong demand for real‑time betting data and the recent acquisition of OddsJam and OpticOdds.
The EPS beat was largely a result of disciplined cost management and a favorable mix shift toward higher‑margin subscription and sports data services. Operating leverage improved as the company scaled its recurring revenue streams, and the share‑repurchase program of 562,222 shares (worth $4.7 million) helped lift earnings per share. The adjusted EBITDA margin contraction to 33% from 39% was attributed to higher cost of sales and marketing expenses incurred to diversify traffic sources.
Management revised its full‑year 2025 guidance to $165 million in revenue and $58 million in adjusted EBITDA, down from the prior outlook of $171‑$175 million revenue and $62‑$64 million EBITDA. The downgrade reflects the ongoing search‑channel headwinds and the company’s cautious view of near‑term demand. CEO Charles Gillespie emphasized that the company remains confident in its diversified model, while CFO Elias Mark highlighted that the guidance cut signals a realistic assessment of the marketing business’s short‑term challenges.
Investors reacted negatively to the earnings release, with the primary drivers being the revenue miss and the downward revision of full‑year guidance. The EPS beat, while significant, was insufficient to offset concerns about the company’s ability to sustain growth in its core marketing segment amid persistent search‑quality issues. The market’s response underscores the importance of revenue growth and guidance in evaluating the company’s future prospects.
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