Gambling.com Group Limited (Nasdaq: GAMB) (“Gambling.com Group” or the “Company”), a fast-growing provider of marketing and sports data services for the global online gambling industry, today reported financial results for the first quarter ended March 31, 2025.

Charles Gillespie, Chief Executive Officer and Co-Founder of Gambling.com Group, commented, “We entered 2025 with our marketing business at all-time highs and with an expanded suite of sports data services having closed the acquisition of OddsJam and OpticOdds on January 1. Since the closing, we have made substantial progress on integrating these offerings into our overall business and the products are performing strongly as expected. With an enhanced sports data services platform, we now have meaningful recurring subscription revenue, which we expect to account for well over 20% of our 2025 revenue, bringing increased revenue visibility and a complimentary, high margin and high growth source of profit and cash flow.

“We are reiterating our full year 2025 guidance despite the unpredictable macro environment, as our services address critical problems for all our customers and our industry is typically insulated from the gyrations of the global economy. We continue to expect 2025 to be another year of record revenue, Adjusted EBITDA and Free Cash Flow as we leverage the skills and expertise of our talented team with a larger product offering to drive growth across all our reporting regions. Each day we are moving closer to our goal of generating $100 million in annual Adjusted EBITDA.”

Elias Mark, Chief Financial Officer of Gambling.com Group, added, “Our first quarter results include record quarterly revenue of $40.6 million and Adjusted EBITDA of $15.9 million, reflecting year-over-year growth of 39% and 56%, respectively. With the solid start to the year, we remain confident in our full year outlook with the midpoints of our guidance for revenue of $172 million and $68 million in Adjusted EBITDA, representing year on year growth of 35% and 40%, respectively.”

Financial Highlights Three Months Ended March 31, 2025 vs. Three Months Ended March 31, 2024
(USD in thousands, except per share data, unaudited)

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(1) Represents a non-IFRS measure. See “Supplemental Information – Non-IFRS Financial Measures” and the tables at the end of this release for reconciliations to the comparable IFRS numbers.

First Quarter 2024 and Recent Business Highlights

• Delivered more than 138,000 new depositing customers (“NDCs”)
• Completed accretive acquisition of Odds Holdings, Inc. on January 1, 2025 for initial consideration of $70 million in cash and $10 million in ordinary shares
• Expanded credit facility to $165 million with a new syndicate

Three Months Ended March 31, 2025 Results Compared to Three Months Ended March 31, 2024

Revenue rose 39% year-over-year to a record $40.6 million. Revenue from marketing services increased 13% year over year to $30.7 million as the Company delivered more than 138,000 NDCs to clients, a 29% increase over the prior-year period. Revenue from sports data services increased 405% year-over-year to $9.9 million, primarily due to the contribution of OddsJam and OpticOdds following the acquisition on January 1. Recurring subscription revenue represented 24% of total 2025 first quarter revenue.

Gross profit increased 42% to $38.4 million, due to strong revenue growth while cost of sales was in line with the prior-year period reflecting lower cost of sales for media partnerships offset by the addition of cost of sales related to OddsJam and OpticOdds.

Total operating expenses increased 49% to $28.4 million, primarily as a result of increased people costs and higher amortization related to the acquisition of Freebets.com and related assets on April 1, 2024 and the acquisition of Odds Holdings on January 1, 2025.

Net income attributable to shareholders increased $3.9 million to $11.2 million and net income per share was $0.31 compared to $0.19 in the prior-year period. Adjusted net income rose 78% to $16.5 million and Adjusted net income per share increased 92% to $0.46.

Adjusted EBITDA increased 56% to a record $15.9 million, reflecting an Adjusted EBITDA margin of 39% as compared to Adjusted EBITDA of $10.2 million and an Adjusted EBITDA margin of 35% in the prior-year period.

Operating cash flow grew 30% to $11.4 million. Free cash flow increased 25% to $10.3 million, reflecting growth in Adjusted EBITDA partly offset by working capital movements.

2025 Outlook

Gambling.com Group today reiterated the 2025 full-year revenue and Adjusted EBITDA guidance originally provided on February 19, 2025. The Company expects full year revenue of $170 million to $174 million and Adjusted EBITDA of $67 million to $69 million. The midpoints of the new full year revenue and Adjusted EBITDA guidance ranges represent year-over-year growth of 35% and 40%, respectively, and an Adjusted EBITDA margin of 39.5%.

The Company’s guidance assumes:

• Incremental Adjusted EBITDA contributions of approximately $14.5 million related to the acquisition of Odds Holdings, Inc. that was completed on January 1, 2025.
• No additional North American markets coming online over the balance of 2025. While online sports betting is expected to begin in Missouri in the second half of 2025, the Company’s guidance policy excludes any benefits from new state launches until such time as a definitive start date is announced by the appropriate regulatory body.
• An average EUR/USD exchange rate of 1.10 throughout 2025.

Conference Call Details

The Brazilian Ministry of Sports and the International Betting Integrity Association (IBIA) have signed a sports betting integrity cooperation agreement. This partnership will enable the sharing of information concerning suspicious betting activity connected to Brazilian sports and support collaboration on integrity-related investigations.

The agreement brings together the governmental body tasked with safeguarding the integrity and development of Brazilian sport, and the largest international betting integrity monitor for private operators in the world. Leading industry data and intelligence company H2 Gambling Capital has forecast that IBIA covers more than 70% of Brazil’s licensed remote gambling market.

According to ‘The Availability of Sports Betting Products: An Economic and Integrity Analysis’ study published last year, the sports betting regulatory regime in Brazil is projected to create $34bn (R$191.7bn) in sports betting turnover by 2028. With this increased growth comes a greater responsibility to protect customers, sports and betting operators from match-fixing.

A key element of the new Brazilian regulatory framework is the requirement that operators seeking a licence must join an independent sports integrity monitoring body. This licensing requirement is helping to strengthen IBIA’s capacity to monitor, assess and protect betting transactions in Brazil’s regulated sports betting market and maintain the integrity of Brazilian sporting events.

Minister of Sport, André Fufuca, said: “Today we are signing a milestone in the fight against match-fixing in Brazilian sport. Integrity must be a constant principle when it comes to transparency, ethics and, above all, the correctness of sports results. With these agreements, we will have more than enough instruments to curb this practice and guarantee greater transparency in competitions. Thus, athletes, clubs, organizations, fans and the entire population will be able to fully trust in the fairness of the results and, with this, will have peace of mind to develop the full potential of Brazilian sport.”

Khalid Ali, IBIA CEO, said: “IBIA welcomes this important partnership with the Brazilian Ministry of Sports. As the market grows, so too does the responsibility to ensure that robust integrity safeguards are in place. This agreement will ensure that information on suspicious betting is swiftly shared with the Ministry to support effective integrity actions. This includes access to detailed, account-level data available only through IBIA’s unique network.”

IBIA is a globally recognised non-profit organization that seeks to safeguard the integrity of the sports and betting sectors by fighting betting related match-fixing and fraud. It provides a free integrity monitoring service to sports governing bodies, regulatory authorities, government ministries, and law enforcement agencies that, importantly, has no potential conflicts created by the provision of competing commercial services, enabling all parties to efficiently and effectively cooperate in investigating, prosecuting and deterring sports betting related match-fixing.

IBIA monitors over $300bn per annum in betting turnover across more than 140 sports betting brands globally, making IBIA the largest betting integrity monitor of its type for private operators in the world. The association’s unrivalled access to detailed global customer transactional data has, and will continue, to play a pivotal role in protecting the Brazilian sports betting market and sporting events from corrupt activity. IBIA recently released its global alert data for the first quarter of 2025, detailing that 63 cases of suspicious betting were reported to the relevant authorities.