Gambling.com Group Ltd (NASDAQ:GAMB) Posts Mixed Q3 2025 Results with Record Revenue but Stock Plunges on Guidance Cut
By Mill Chart
Last update: Nov 13, 2025
Gambling.com Group Ltd (NASDAQ:GAMB) reported financial results for the third quarter of 2025, delivering a mixed performance that featured record top-line revenue alongside earnings that fell short of analyst expectations, triggering a significant negative reaction in the stock during pre-market trading.
Earnings and Revenue Versus Estimates
The company's Q3 financials presented a clear divergence between its revenue achievement and its profitability relative to market forecasts.
- Revenue: The company posted record third-quarter revenue of $39.0 million. This represents a solid 21% increase year-over-year. However, it came in below the analyst consensus estimate of approximately $41.9 million.
- Earnings Per Share (EPS): On an adjusted basis, earnings per share were $0.26. While this demonstrates profitability, it failed to meet the analyst estimate of $0.16 per share.
Market Reaction
The market's immediate response to this earnings report was decisively negative. In pre-market trading, the stock experienced a sharp decline of over 16%. This sell-off suggests investor disappointment, likely stemming from the revenue miss against expectations and a lowered full-year outlook, despite the earnings beat.
Revised 2025 Outlook
A key factor influencing market sentiment was the company's decision to adjust its full-year guidance. Gambling.com Group now anticipates revenue of approximately $165 million and Adjusted EBITDA of about $58 million. This revised revenue outlook falls short of the analyst consensus estimate of $176.0 million for the full year. Management attributed this adjustment to persistent challenges from "poor organic search dynamics" affecting its marketing business, which have lasted longer than initially expected.
Quarterly Performance Highlights
Beyond the headline earnings figures, the press release detailed several important operational and financial developments.
- Dual Business Model Performance: The quarter highlighted a tale of two segments. The sports data services business, including OpticOdds and OddsJam, was a standout performer, with revenue surging 304% year-over-year to $9.2 million and now accounting for 24% of total revenue. In contrast, the core marketing services business faced headwinds from search engine spam issues, particularly in non-U.S. markets, leading to a decline in new depositing customers.
- Profitability and Cash Flow: Adjusted EBITDA reached a record $13.0 million for the quarter, though the margin compressed to 33% from 39% a year ago due to increased costs associated with diversifying traffic sources. The company continued to generate strong adjusted free cash flow of $9.6 million.
- Capital Allocation: Demonstrating confidence in its long-term value, the company repurchased 562,222 shares during the quarter for $4.7 million. It also ended the quarter with a solid liquidity position, holding $7.4 million in cash and $70.5 million in undrawn credit facility capacity.
For a detailed breakdown of future earnings estimates and historical performance, you can review the complete data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
