Gambling.com Reports Strong Q3 Performance Amid Challenges
Robust Revenue Growth Despite Rising Losses
Gambling.com Group, a prominent gaming and betting affiliate, released its financial report for the third quarter, showcasing solid revenue growth. However, this positive development was accompanied by an increase in net losses, slightly dampening overall results.
Significant Financial Highlights for Q3 and Year-to-Date
The company recorded $39 million in revenue for Q3, representing a 21% increase compared to the same period last year. On a year-to-date basis, revenue climbed to $119.2 million, an impressive 30% growth from the previous year.
Despite this revenue surge, net losses attributed to shareholders rose to $3.9 million (equivalent to $0.11 per share), a stark contrast to the $8.5 million net income reported in the prior year. This 145% reduction in net income was primarily influenced by adjustments related to the performance of Odds Holdings.
Adjusted net income also fell by 16% to $9.3 million ($0.26 per share), affected by higher interest expenses linked to the company’s credit facility.
For the year-to-date period, Gambling.com experienced a net loss of $6 million, compared to a net income of $22.7 million in the previous year.
On a positive note, adjusted EBITDA for the quarter rose slightly by 3% to $13 million. Nevertheless, the adjusted EBITDA margin declined to 33%, reflecting increased costs associated with marketing and sales efforts aimed at diversifying traffic sources.
The year-to-date adjusted EBITDA showed a healthy 25% rise, reaching $42.6 million.
Operating cash flow for Q3 decreased by 27% to $10.9 million, whereas it increased by 21% to $29.1 million over the year-to-date period. Adjusted free cash flow was reported at $9.6 million for the quarter and $28.8 million for the year to date.
Share Buybacks and Strategic Milestones Signal Confidence
The quarter saw several notable achievements, including the onboarding of over 101,000 new depositing customers and the strategic acquisition of Spotlight.Vegas. Additionally, the company made substantial progress in its share buyback program.
During this period, Gambling.com repurchased 562,222 shares for $4.7 million. Year-to-date, the company has bought back a total of 671,998 shares, spending $5.6 million. The current buyback plan permits an additional share repurchase valued at up to $14.4 million.
Gambling.com also earned the prestigious EGR Affiliate of the Year award for the third consecutive time in October, underscoring its industry leadership.
Amid ongoing challenges, the company revised its forecast for 2025, adjusting expected revenue down to $165 million and projected adjusted EBITDA to $58 million. Despite these lowered targets, the growth projections remain robust, representing a 30% increase in revenue and a 19% growth in EBITDA for 2025.
Leadership Expresses Optimism for Future Growth
Co-founder and CEO Charles Gillespie acknowledged the strong revenue performance as a testament to the company’s resilience amid market difficulties, including issues with spam websites affecting non-US regions.
“Although short-term challenges persist, we are confident that the poor search quality problems will be resolved. Combined with our efforts to diversify traffic sources, this positions our marketing business for growth in 2026,” Gillespie stated.
Charles Gillespie, Co-founder & CEO, Gambling.com
He also reaffirmed confidence in both the company’s sports data services and the sustained cash flow from marketing operations.
CFO Elias Mark echoed this positive outlook, highlighting the company’s strong adjusted free cash flow generation that enhances its capacity for strategic investments while maintaining financial flexibility.
