Gambling.com Group Ltd. (NASDAQ: GAMB) delivered a blockbuster Q2 2025, outperforming analyst forecasts across the board and reinforcing its position as a global leader in digital marketing and sports data services for the online gambling industry.
EPS Surges 118% Over Forecasts
The company reported earnings per share (EPS) of $0.37, shattering consensus estimates of $0.17—an upside surprise of nearly 118%. This marks one of the strongest quarterly performances in the group’s history.
Revenue, Gross Profit, and EBITDA Hit New Highs
- Revenue: $39.6 million, up 30% year-over-year, beating forecasts of $38.92 million
- Gross Profit: $36.9 million, up 27%, with a standout gross margin of 94.55%
- Adjusted EBITDA: $13.7 million, up 22%
- Recurring Revenue: Accounted for 51% of total sales
Marketing efforts delivered over 108,000 new depositing customers, while sports data services revenue quadrupled to CHF 10 million ($12.4 million). Subscriptions now represent 25% of total revenue, reflecting a shift toward predictable, high-margin income streams.
Strategic Acquisitions Fuel Expansion
The acquisition of Spotlight.vegas, set to close September 1, is projected to add $8 million in revenue by 2026 and further enhance Gambling.com’s sports data capabilities. This follows earlier acquisitions of RotoWire, OddsJam, and OpticAuds, which expanded the company’s reach into B2B services and new monetization models.
CEO Highlights Multichannel Strategy and Brand Dominance
CEO and co-founder Charles Gillespie emphasized the company’s transformation from a pure affiliate model to a multiplatform marketing and data powerhouse. He credited the group’s success to its “omnichannel approach,” which engages high-intent users across:
- Email marketing
- Mobile apps
- Social media
- Online communities
- Paid media
- YouTube
Gillespie also noted the company’s ability to monetize both end users and B2B clients through diversified offerings, positioning Gambling.com as a dominant force in search engine marketing, sports data services, and subscription-based content.
Stock Movement & Valuation Outlook
Despite the strong earnings, GAMB shares dipped 3.98% during regular trading before rebounding 1.3% in after-hours, closing at $10.95. The stock remains closer to its 52-week low of $9.22 than its high of $17.14.
According to InvestingPro’s fair value analysis, the stock may be undervalued, supported by strong fundamentals and a robust growth outlook.
Forward Guidance & Financial Strength
- 2026 Revenue Forecast: $171–$175 million (+36% YoY)
- Adjusted EBITDA Forecast: $62–$64 million
- Debt-to-Equity Ratio: 0.63 – indicating healthy leverage and strong cash flow coverage
Management plans to reinvest in non-SEO marketing channels, further diversifying its acquisition funnel and reducing reliance on traditional search traffic.
Risks & Market Volatility
Gillespie acknowledged potential headwinds, including:
- Disruption from AI-driven search algorithms
- Challenges in monetizing high-intent audiences
- Broader market volatility
He emphasized that AI tools still rely on specialist sites like Gambling.com for authoritative data and linkbacks, preserving the company’s relevance in the evolving digital ecosystem.
Sports Data Services & Spotlight.vegas Deal
Analysts on the earnings call focused on the growth trajectory of sports data services and the strategic rationale behind the Spotlight.vegas acquisition. Gillespie reiterated that brand authority, content diversification, and user engagement will keep Gambling.com ahead in a competitive landscape.
In Q1 2025, the company reported a 405% surge in sports data revenue, driven by the acquisition of Odds Holdings, setting the stage for continued momentum.
