Gambling.com Group Surpasses Q2 2025 Expectations with Strong Financial Growth

Impressive Financial Results in Q2 2025

Gambling.com Group Ltd, a recognized leader in global marketing and sports data services, exceeded market expectations for the second quarter of 2025. The NASDAQ-listed company reported earnings per share of $0.37, significantly higher than the projected $0.17.

Record Revenue and Gross Profit Growth

The company achieved a 30% increase in revenue year-over-year, reaching a record $39.6 million and slightly surpassing prior estimates of $38.92 million. Gross profit also rose 27% to $36.9 million, maintaining an excellent margin of 94.55%.

Adjusted EBITDA climbed 22% to $13.7 million, with recurring revenue representing just over half of total sales.

Chief Financial Officer Elias Mark highlighted a 3% growth in marketing efforts, bringing in more than 108,000 new depositing customers across various regions. Additionally, the revenue from sports data services surged fourfold to CHF 10 million (approximately $12.4 million), with subscriptions rising to account for 25% of overall revenue. Recurring revenue contributed 51% to the quarter’s total income.

The recent acquisition of Spotlight.vegas is projected to generate $8 million in revenue by 2026 and further enhance the company’s sports data services portfolio.

CEO Highlights Strategic Multi-Channel Approach

CEO and co-founder Charles Gillespie emphasized the company’s transformation from a traditional affiliate marketing business into a multi-platform integrated marketing, data, and soon-to-be ticketing enterprise.

He noted that building leading industry brands is key to their continued dominance in search marketing, alongside a comprehensive omnichannel strategy that connects with high-intent users via email, apps, social media, communities, paid media, and YouTube.

Gillespie also discussed the expanded monetization potential resulting from recent acquisitions such as RotoWire, OddsJam, and OpticAud, which complement the group’s online gambling operator clients. He affirmed that this approach will continue with the closing of the Spotlight.vegas deal on September 1.

Despite strong earnings, the company’s stock experienced a temporary decline of 3.98% during regular trading but rebounded 1.3% in after-hours to reach $10.95. The share price remains closer to its 52-week low of $9.22 than its peak at $17.14. Fair value analyses suggest the stock may be undervalued based on the company’s financial health and growth prospects.

Positive Outlook with Cautious Risk Management

Looking forward, Gambling.com Group expects revenues between $171 million and $175 million for the following year, representing an anticipated 36% annual growth. Adjusted EBITDA is forecasted to range from $62 million to $64 million.

With a moderate debt-to-equity ratio of 0.63, the company maintains sufficient cash flow to cover interest expenses while enabling further investments in diverse marketing channels beyond search engine optimization.

Managing Challenges and Market Dynamics

Management remains vigilant regarding potential challenges such as disruptions from AI-driven search technologies, difficulties in effectively monetizing engaged audiences, and heightened market volatility.

CEO Gillespie explained that while AI tools can provide recommendations, these are typically based on expert data sources similar to Gambling.com’s platforms, which link back to original content.

He emphasized that users seek entertainment and value the opportunity to try online slot demos before committing real money, maintaining a sense of control over their gambling choices.

During the earnings call, analysts inquired about the growth possibilities for sports data services and the strategic rationale behind the Spotlight.vegas acquisition. Gillespie stressed that reinforcing brand authority and diversifying offerings are vital for sustaining competitiveness in a rapidly evolving digital environment.

Earlier in May, the company reported strong first-quarter results, including a remarkable 405% increase in sports data services revenue, driven by the acquisition of Odds Holdings.