Gambling.com Group continues revenue streak despite search struggle

Gross profit increased 17% during the period to $35.6 million, while adjusted EBITDA stood at $35.6 million, indicating 3% growth with a margin of 33%. Operating cash flow was $10.9 million, decreasing $4 million year-on-year. Adjusted free cash flow was $9.6 million compared to $14.2 million in the year-ago period, reflecting strong cash conversion of 74% from adjusted EBITDA.

Sports data powers growth

Revenue from the affiliate’s data services division rose 304% to $9.19 million, now representing around 24% of group revenue, driven by the contribution from OpticOdds and OddsJam. According to Gambling.com Group CEO Charles Gillespie, the company will “continue to expand the OpticOdds product and data portfolio to deliver more value” to existing customers while onboarding new ones.

“It is increasingly clear to us that OpticOdds has a product market fit in a multi-billion-dollar sports data services market,” Gillespie said. “The high-margin, high-visibility, recurring subscription revenue associated with our sports data services business is the fastest growing part of our business, and we expect this trend will continue long into the future.”

The business also saw continued growth in its North America market, with revenue up 55% year-on-year from $12.8 million to $19.8 million, representing 51% of its total income. Sports revenue increased 116% to $15 million in the quarter.

Loss underscores search headwinds

During Q3, the affiliate’s marketing services division generated $29.80 million in revenue, broadly flat year-on-year. Within this segment, performance marketing revenue dropped 4% to $24.0 million. Casino revenue also fell 7% to $23.17 million.

The company delivered 101,000 new depositing customers during Q3, a decline from the 116,000 it achieved in the same period last year. Gillespie blamed the underperformance on “low-quality results related to the proliferation of spam websites particularly in non-US markets”, which began in July and has persisted into Q4 longer than the company initially expected.

Despite contributing to growth, the company’s recent acquisitions also pushed up total operating expenses, which rose to $37.0 million year-on-year from $20.8 million. Cost of sales reached $3.4 million, rising from $1.7 million in the same period last year.

Total operating expenses, excluding fair value movements related to the outperformance of Odds Holdings of $7.5 million, non-cash amortisation of acquired intangible assets of $2.5 million, acquisition related costs of $0.5 million, acquisition related bonuses of $0.3 million and restructuring charges of $0.5 million, grew 30% to $25.7 million. The company said this increase was mainly due to added headcount from the acquisitions of Odds Holdings and the booking platform Spotlight.Vegas, higher marketing costs linked to traffic source diversification in the marketing business and an increase in share based payment expenses.

Lowered full-year guidance

The group revised its full-year 2025 guidance, now expecting around $165 million in revenue, down from the range of $171 to 175 million given in Q2. Adjusted EBITDA is now anticipated at $58 million, falling from the previous estimate of $62 to 64 million. The updated guidance represents 30% growth in revenue and a 19% increase in adjusted EBITDA.

The reduction reflects continued softness in the company's search-driven traffic which, although it has partially recovered, is still affecting Q4 performance. The new guidance also includes approximately $1.0 million in higher cost of sales than previously anticipated, related to the acceleration of the company’s traffic diversification strategy.

Commenting on the outlook, Gillespie added: “Despite this near-term challenge, we remain confident that these poor search quality issues will be addressed which when combined with our accelerated initiatives to diversify traffic sources, positions the marketing business to grow in 2026.”