Grandstand data growth fails to offset Q2 marketing decline
14 AUG 2026
The affiliate reported Q2 revenue of $37.8 million (£27.9 million/€32.7 million), down 5% year-on-year, as continued expansion in its data business was outweighed by weakness in marketing operations.
Adjusted EBITDA fell 44% to $7.7 million, while the adjusted EBITDA margin contracted to 20% from 35% a year earlier, reflecting higher operating costs and continued investment in traffic diversification.
Formerly known as Gambling.com Group, the company posted a net loss of $4.6 million, compared with a net loss of $13.4 million a year earlier. Adjusted free cash flow increased 18% to $9.6 million, reflecting positive working capital movements.
Commenting on the results, CEO and co-founder Kevin McCrystle said the performance was “in line with” the company’s expectations and highlighted that the business “is significantly more diversified than at any other time” in its history.
“Grandstand today is established as the intelligence layer at the heart of the sports and gaming ecosystem,” McCrystle said.
“This is exemplified by the recent launch of Rollcard, which provides us with another product to directly engage with consumers, further deepening our relationship with our audience. Our AI transformation, consistent strong enterprise data growth, audience engagement initiatives, and diversified marketing business position Grandstand to return to top-line growth and increase cash flow in the second half of 2026 and into next year.”
Cost savings yet to fully materialise
The quarter also reflected the early impact of the restructuring programme announced in May, when the company said it would cut approximately 25% of its workforce as part of a broader pivot towards AI, with expected annualised savings of around $13 million.
The latest results included $3.2 million in restructuring costs. Operating expenses, excluding restructuring costs, were $29.8 million, broadly unchanged from the prior-year period. While management expects the initiative to deliver approximately $6.5 million in fixed-cost savings during the second half of 2026, those benefits were not yet evident in Q2 profitability, with lower people costs offset by higher external marketing and technology expenses.
The company also reported a 119% increase in cost of sales to $5.9 million, primarily reflecting spending associated with diversifying traffic sources within the marketing business. Technology expenses increased 29%, while sales and marketing expenses rose 5%.
Stronger H2 on the horizon
Data services remained the strongest-performing segment during the quarter, with revenue increasing 12% to $11.2 million, driven by enterprise demand and continued growth in OpticOdds. Enterprise revenue represented the majority of sports data revenue during the period.
By contrast, marketing services revenue fell 10% to $26.5 million, as lower revenue from organic search channels continued to weigh on performance, as reported in previous quarters. Management noted that non-SEO revenue now accounts for roughly two-thirds of marketing revenue, reflecting ongoing efforts to diversify traffic sources.
Across product categories, casino revenue fell 22% to $18.4 million, while sports revenue rose 17% to $17.7 million, narrowing the gap between the two verticals. Revenue from North America increased 38% to $26.3 million, accounting for 70% of total revenue. However, revenue from the UK and Ireland declined 42% to $6.4 million, while revenue from other European markets fell 46% to $3.6 million.
The company reiterated its full-year guidance for revenue of $165 million to $170 million and adjusted EBITDA of $45 million to $50 million, although the outlook assumes stronger trading in the second half of the year alongside benefits from recent cost-cutting measures.
Elias Mark, Grandstand CFO, added: “Our operating results in the second half of 2026 will benefit from fixed cost savings related to the restructuring announced in May and the seasonally stronger sports calendar.
“As a result, and as reflected in our reiterated full-year guidance, we expect to drive quarterly sequential revenue growth and significantly improved adjusted EBITDA with expanded margins in the second half of the year. We expect the higher adjusted EBITDA and free cash flow in the second half of the year will carry forward into 2027.”