Gambling.com Group Smashes Q2 Earnings Forecasts

Multiple award-winning and provider of global marketing and sports data services, Gambling.com Group Ltd, had an impressive Q2 2025. The NASDAQ-listed group recently published earnings per share of $0.37, which is more than double the expected $0.17. 

Revenue and Gross Profit, Up

Revenue climbed 30% on a year-over-year basis, reaching $39.6 million, a company record, and edging previous forecasts of $38.92 million. At the same time, gross profit hit $36.9 million, signaling a 27% rise, with margins holding at a standout 94.55%. 

Adjusted EBITDA went up 22% to $13.7 million, while recurring revenue accounted for just over half of total sales.

Chief Financial Officer Elias Mark reported marketing grew 3%, delivering over 108,000 new depositing customers across all regions, while sports data services revenue quadrupled to CHF 10 million ($12.4 million). Subscriptions rose to 25% of total revenue. Recurring revenue accounted for 51% of the quarter’s total.

Plus, the recent acquisition of Spotlight.vegas is expected to generate $8 million in revenue by 2026, and further develop the group’s sports data services.

CEO Praises Multiple Channel Strategy

Chief executive officer and co-founder Charles Gillespie spoke about the major shift that turned the company “from an affiliate marketing business into a multiplatform integrated marketing, data, and soon-to-be ticketing services business.” 

He added that their strategy to create big, industry-leading brands was “fundamental” to their “dominance of traditional search” while praising their “omnichannel approach” that engages high-intent users online via email, apps, social media, communities, paid media, and YouTube. 

The CEO also took the opportunity to talk about their enhanced ability to monetize end users and business-to-business online gambling operator clients by adding new business models via RotoWire, OddsJam, and OpticAuds acquisitions. 

“We’ll continue to do so when we close on spotlight.vegas on September 1.”, Gillespie went on.

Despite the strong earnings, GAMB’s share price slipped 3.98% during regular trading before bouncing back 1.3% in after-hours to $10.95. 

Nonetheless, the stock remains nearer to its 52-week low of $9.22 than its high of $17.14. InvestingPro’s fair value analysis suggests the shares may be undervalued, given the company’s financial strength and growth outlook.

Looking ahead, Gambling.com expects next year’s revenue to be somewhere between $171 million and $175 million, projecting a 36% annual growth. Adjusted EBITDA is estimated to reach $62–$64 million. 

With a moderate 0.63 debt-to-equity ratio, Gambling.com’s cash flow can easily cover interest obligations while offering more room for ongoing investments in marketing channels that are not related to search engine optimization.

Expected Bumps in the Road Ahead

However, management will keep a close eye on specific risks, ranging from AI-driven search changes disrupting traditional traffic, problems in monetizing high-intent audiences, and higher market volatility.

“While AI tools are capable of making recommendations, they base those recommendations off of data from specialist websites such as our own and link back to their sources,” explained Gillespie.

When players decide on the next online gambling site to visit, it is a matter of “entertainment”. The CEO explained users enjoy using demos for online slots before making a deposit and engaging in real money play, and also retaining “a sense of agency” that allows them to control their impactful decisions on their own. 

During the earnings call, analysts also probed the growth potential of sports data services and the reasoning behind the Spotlight.vegas deal. Gillespie maintained that brand authority and diversification will keep the company ahead in a shifting digital landscape.In May, the group posted a similarly good report for Q1, with revenue from sports data services surging 405% in the first quarter, courtesy of the acquisition of Odds Holdings.