Gambling.com Group’s Sports Data Services Fuel Record Revenue, Offsetting Search Headwinds
Record Revenue Achieved as Sports Data Segment Surges Over 300%
Gambling.com Group (NASDAQ:GAMB) has reported its highest-ever third quarter revenue, marking a significant milestone driven by a more than 300% year-over-year jump in sports data services revenue. This arm, which includes the fast-expanding OpticOdds and OddsJam products, now accounts for 24% of the group’s total revenue, highlighting a strategic shift towards high-margin, recurring subscription models that are expected to propel growth in the years ahead.
Resilient Cash Flow and Adjusted EBITDA Amid Shifting Industry Dynamics
Despite persisting challenges in organic search due to the proliferation of spam sites—particularly outside the U.S.—Gambling.com Group posted $13 million in adjusted EBITDA for Q3, a 3% increase year-over-year and a record for the company. Adjusted free cash flow conversion remains robust at 74% of adjusted EBITDA for the quarter, with $9.6 million in adjusted free cash flow generated. Management emphasized the flexibility this provides for continued investment and shareholder returns, including a nearly 2% reduction in outstanding shares since July through share repurchases.
Sports Data Outpaces Flat Marketing Results, with Strategic Traffic Diversification Underway
While overall third quarter revenue grew 21% to $39 million, marketing services revenue was flat at $29.8 million, as search algorithm issues dampened new customer signups (NDCs dropped from 116,000 to 101,000 year-over-year). Meanwhile, sports data services soared to $9.2 million—over triple last year’s result. The company has responded to search volatility by diversifying traffic sources and making key acquisitions like Spotlight.Vegas, supporting the outlook for renewed marketing segment growth in 2026.
| Segment | Q3 2025 Revenue ($K) | Q3 2024 Revenue ($K) | % Change | As % of Total Revenue (2025) |
|---|---|---|---|---|
| Marketing | 29,796 | 29,846 | 0% | 76% |
| Sports Data Services | 9,186 | 2,272 | 304% | 24% |
| Total | 38,982 | 32,118 | 21% | 100% |
Financial Highlights Show Operational Strength and Growing Subscription Revenues
The third quarter saw gross profit rise 17% to $35.6 million, but was partially offset by a higher cost of sales—reflecting both new investments in traffic channels and the acquisition-driven expansion of the data segment. The net loss of $3.9 million in Q3 (compared to net income of $8.5 million in the same period last year) was mainly driven by fair value adjustments related to prior acquisitions, not core operational weakness. Adjusted net income remained solid at $9.3 million, albeit 16% below last year, reflecting increased interest expenses.
| Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Gross Profit ($K) | 35,572 | 30,435 | 17% |
| Adjusted EBITDA ($K) | 13,010 | 12,584 | 3% |
| Adjusted EBITDA Margin | 33% | 39% | -6pp |
| Adjusted Net Income ($K) | 9,345 | 11,064 | -16% |
| Adjusted Free Cash Flow ($K) | 9,632 | 14,240 | -32% |
Full-Year Outlook Raised as Sports Data Drives Double-Digit Growth Expectations
For full-year 2025, Gambling.com Group expects approximately $165 million in revenue—representing 30% growth—and $58 million in adjusted EBITDA (up 19%). This upward revision incorporates continued momentum in the sports data services business and the successful push for more stable, recurring revenue streams, though acknowledges ongoing search challenges that may persist through year-end.
Key Takeaways: Adaptation, Growth, and an Expanding Sports Data Footprint
- Sports data services now comprise a quarter of all revenue and are the fastest-growing part of the business.
- Marketing headwinds remain, but diversification strategies are well underway—with both M&A activity and increased marketing investment outside of search channels.
- Cash generation remains strong, with the balance sheet supporting further buybacks and investment in high-return growth initiatives.
- Outlook is bullish for continued subscription revenue growth as the Group’s products gain market fit in the multi-billion-dollar global sports data market.
Investors will want to monitor GAMB’s progress on resolving marketing headwinds and watch for continued evidence that high-margin sports data services can support even greater profitability and stability going forward. With an industry-leading recurring revenue base and flexible capital deployment, the company’s adaptation amid disruption appears well-timed for the sector’s next phase of growth.
Upcoming: Q3 2025 Results Conference Call
- Date/Time: Thursday, November 13, 2025, at 8:00 a.m. ET
- Webcast: Register here
- Full replay will be available in the News & Events section of the company's website.
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