Gambling.com Group Posts Record Q1 Results with 39% Revenue Surge

A Stellar Q1 Sets the Tone

Gambling.com Group came out swinging in Q1 2025, posting record quarterly revenue of $40.6 million, up 39% year-over-year, and adjusted EBITDA of $15.9 million, a 56% leap.

“The year is off to a strong start,” said CEO Charles Gillespie, crediting the January 1 acquisition of Odds Holdings and organic growth in the market.

With 138,000 new depositing customers and a 405% surge in sports data revenue, the company’s eyeing another record year, sticking to its 2025 forecast of $172 million in revenue and $68 million in EBITDA.

Financial Highlights: Breaking Records

The numbers tell a big story. Revenue hit $40.6 million, a 39% jump from Q1 2024, or 43% in constant currency. Adjusted EBITDA soared 56% to $15.9 million, with a 39% margin, up from 35%.

“We’re in our strongest competitive position ever,” Gillespie said, pointing to a 42% gross profit increase to $38.4 million and a 94.5% gross margin.

Net income climbed 54% to $11.236 million, with earnings per share at $0.32 basic, $0.31 diluted. Cash flow from operations rose 30% to $11.4 million, and free cash flow hit $10.3 million, up 25%.

With $21.5 million in cash and $70.5 million in undrawn credit, the company’s got solid financial muscle, even after a $11.2 million payment for Freebets.com in April.

Acquisitions and Segments

The Odds Holdings acquisition, snagging OddsJam and OpticOdds for $70 million plus up to $80 million in earnouts, was a game-changer.

“OpticOdds is flying,” Gillespie noted, with sports data revenue skyrocketing 405% to $9.9 million. Marketing services, the company’s bread-and-butter, grew 13% to $30.7 million, delivering 138,000 new depositing customers, up 29%.

Casino products rose 24% to $24.6 million, while sports products jumped 68% to $15.4 million. Recurring subscription revenue, now 24% of total revenue, hit 50% when including revenue-share deals.

“We’ve transformed into a marketing and sports data services company,” Gillespie said, with high-margin subscriptions fueling predictable cash flow in the $2.4 billion state betting markets.

Regional Performance: North America Shines

North America led the charge, accounting for 52% of revenue at $20.979 million, a 42% year-over-year increase. “The growth opportunity for OddsJam and OpticOdds is robust,” Gillespie said, with the acquisition quadrupling sports data revenue.

Organic growth in casino marketing offset a dip in sports marketing, as Q1 2024 included North Carolina’s betting launch. Other regions sparkled too: UK and Ireland grew 24%, Other Europe 54%, and Rest of World 63%.

The company’s leaning on AI, with “hockey stick” traffic from ChatGPT and Perplexity boosting high-intent users. “It’s incremental to Google search,” Gillespie added, noting record organic search revenue.

North America’s vibe remains strong, with online sports betting up 15% and iGaming growing faster.

Strategic Moves and Industry Outlook

Gambling.com’s not just resting on its laurels. The company’s full tilt into AI, optimizing tech and marketing, is paying off with organic growth.

Casinos.com, a global brand, is carving a unique voice with comedian-penned content and declared May 15 as International Casino Day with Las Vegas’s mayor.

“The numbers are trending up nicely,” Gillespie said. The OddsJam integration is smooth, with OpticOdds hiring in London to push B2B subscriptions in Europe. The company’s also eyeing prediction markets, a “zero-tax” opportunity, as courts favor firms like Kalshi.

“This could be very substantial,” Gillespie noted, planning content expansion without big costs. A new New York office lease starts in July, and board changes welcomed Fenton Costello and Jamie Mendal, signaling fresh leadership for growth.

Challenges and Risks on the Horizon

It’s not all smooth sailing. Operating costs jumped 49% to $28.4 million, driven by headcount and amortization from Freebets.com and Odds Holdings.

Financial expenses spiked 555%, tied to acquisition-related deferred payments and loan interest. “We’re managing significant commitments,” CFO Elias Mark said, noting a currency swap that cut debt costs by 200 basis points.

Currency swings, especially EUR/USD, pose risks, though the swap mitigates some exposure. Regulatory uncertainty looms, with iGaming legalization stalling and prediction market disputes potentially heading to the Supreme Court.

Reliance on Google search, despite AI traffic gains, and potential tax hikes in states like New Jersey could complicate partner talks. Still, Mark’s confident: “Our liquidity is sufficient for at least 12 months.”

Full-Year Guidance

Gambling.com’s sticking to its 2025 playbook, forecasting $172 million in revenue, up 35%, and $68 million in adjusted EBITDA, up 40%.

“We’re 68% of the way to our $100 million EBITDA goal,” Gillespie said, banking on organic growth and selective M&A. Over 20% of revenue will come from subscriptions, with recurring revenue topping 50%.

The guidance assumes no new acquisitions or market launches, and Missouri’s betting rollout isn’t factored in until confirmed. “The industry’s resilient to economic swings,” Gillespie said, citing past cycles.

With a 110 EUR/USD exchange rate assumption, the company’s poised for another record year, leveraging its $305.9 million in assets and $147.4 million in equity.

“Our sustainable growth opportunities have never been stronger,” Gillespie said, eyeing prediction markets and global expansion. But with costs rising and regulatory fog, the road to $100 million EBITDA won’t be a cakewalk. For now, Gambling.com is riding high, setting the pace in a tough industry.