GAMB — Gambling.com Group Limited

Summary of Gambling.com Group Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Q4 Revenue: $46.2 million, a 31% increase year-over-year.
• Adjusted EBITDA: $15.5 million, up 5% year-over-year; adjusted EBITDA margin at 33%.
• Full Year Revenue: $165 million, a 30% increase.
• Data Revenue Growth: 440% year-over-year to $11.8 million, accounting for 26% of total revenue.
• Adjusted Free Cash Flow: $36.3 million for the full year.
• NDCs (New Depositing Customers): 98,000, down 32% year-over-year.
• Gross Profit: Increased 19% year-over-year to $39.3 million; gross profit margin decreased to 85% from 94%.

2. Strategic Updates and Business Highlights:

• The company is shifting focus towards diversifying revenue streams, particularly in non-SEO marketing channels, which have started to contribute more significantly to revenue.
• The Sports Data Services business is highlighted as a key growth driver, with expectations for continued high teens revenue growth and margin expansion.
• The company is investing in CRM and new product development, including a new product set to launch in spring 2026, aimed at enhancing user engagement and marketing effectiveness.
• The firm is leveraging AI tools to improve operational efficiency and execution speed across teams.

3. Forward Guidance and Outlook:

• 2026 Revenue Guidance: Expected to be between $170 million and $180 million.
• Adjusted EBITDA Guidance: Projected to be between $50 million and $58 million, indicating a year-over-year decrease in adjusted EBITDA despite revenue growth.
• The guidance reflects anticipated challenges in the marketing business due to ongoing SEO pressures and regulatory headwinds, particularly in the U.K. and Finland.

4. Bad News, Challenges, or Points of Concern:

• Continued pressure on SEO revenue due to changes in search rankings and increased competition from spam and negative SEO attacks.
• Regulatory headwinds in the U.K. and Finland are expected to impact performance marketing and player values.
• A significant decline in NDCs raises concerns about customer acquisition and retention.
• Adjusted EBITDA margin is expected to be lower in the first half of 2026 due to ongoing investments in diversification strategies.

5. Notable Q&A Insights:

• Management acknowledged the potential for increased opportunities in the U.K. market as some competitors may exit due to regulatory pressures.
• There is optimism regarding the Sports Data Services business, with a strong pipeline of new clients and a focus on upselling existing customers.
• The company is cautious about its SEO outlook, indicating that improvements have not been as sustained as previously hoped.
• Discussions around the impact of AI on the business highlighted both opportunities and challenges, with management noting that while LLM referrals are increasing, traditional SEO issues persist.
• Management expressed a commitment to deleveraging before focusing on share buybacks, emphasizing the importance of stabilizing the business amidst market volatility.

Overall, Gambling.com Group is navigating a complex landscape with strategic shifts towards data services and marketing diversification while facing significant regulatory and competitive challenges.