Gambling.com Group achieves record revenue despite SEO issues

Gambling.com Group, a leading global online gambling affiliate and sports data provider, reported a record revenue performance for the third quarter of 2025. Despite this notable financial milestone, the company adjusted its full-year guidance downward, citing persistent disruptions in organic search rankings that have affected its marketing operations.

The results illustrate a dichotomy in the company’s business segments: while its sports data services continue to expand rapidly, marketing revenues face pressure from structural changes in online search environments.

Third-quarter performance highlights

For the three months ending September 30, 2025, Gambling.com Group posted revenue of $39 million, representing a 21% increase compared with the same period last year.

The marketing services division generated $29.8 million in revenue, broadly flat relative to Q3 2024. During this period, the business delivered 101,000 new depositing customers, a decline from 116,000 in the third quarter of 2024. The company attributed this decrease to low-quality organic search results stemming from a proliferation of spam sites in certain non-US markets.

In contrast, the sports data services segment experienced robust growth. Revenue from this unit reached $9.2 million, up an extraordinary 304% year-on-year. This growth was fueled by enterprise sales and an expanded subscription model, including offerings from OpticOdds and OddsJam. Recurring subscription revenue now represents 24% of total revenue, underscoring the segment’s strategic importance to the group.

Profitability and cost dynamics

Gross profit for the quarter increased 17% to $35.6 million. However, the cost of sales rose sharply to $3.4 million, more than double the figure from the prior year. The company attributed this increase to expenses associated with diversifying traffic sources for the marketing business, as well as costs tied to its growing sports data operations, including OpticOdds and OddsJam.

Operating expenses, excluding fair value adjustments, non-cash amortization, acquisition-related charges, bonuses, and restructuring costs, rose 30% to $25.7 million. This increase primarily reflects the onboarding of additional staff following recent acquisitions and higher marketing spend aimed at strengthening traffic sources. Including these excluded items, total operating expenses reached $37 million, up from $20.8 million a year earlier.

Net income and adjusted results

Gambling.com Group reported a net loss attributable to shareholders of $3.9 million, or $0.11 per share, compared with net income of $8.5 million, or $0.24 per share, in Q3 2024. The decline was largely influenced by contingent consideration related to the outperformance of Odds Holdings.

On an adjusted basis, net income fell 16% to $9.3 million, equivalent to $0.26 per share. The decrease was primarily due to higher interest expenses, which offset operational gains across both marketing and sports data services. Adjusted EBITDA, however, reached a quarterly record of $13 million, reflecting a margin of 33%—a modest 3% increase compared with the previous year.

Cash flow and liquidity

Operating cash flow for the quarter stood at $10.9 million, down from $14.9 million in Q3 2024. Adjusted free cash flow amounted to $9.6 million, compared with $14.2 million in the prior-year period. The company attributed the reduction to timing effects following an unusually strong third quarter in 2024.

At the end of September 2025, Gambling.com Group reported $7.4 million in cash, with access to $70.5 million in undrawn credit facilities. These resources provide financial flexibility for strategic investments and operational growth.

Strategic acquisitions and share buybacks

During the quarter, Gambling.com Group acquired Spotlight.Vegas for $8 million, prior to working-capital adjustments. In addition, the company repaid $5.6 million on its term loan and repurchased 562,222 shares for $4.7 million. Year-to-date, total buybacks amount to 671,998 shares, reflecting management’s commitment to returning value to shareholders while maintaining liquidity for strategic initiatives.

Revised full-year guidance

The company revised its full-year 2025 revenue guidance to approximately $165 million, with adjusted EBITDA projected at $58 million. This revision reflects ongoing headwinds in organic search quality and higher-than-anticipated costs associated with accelerating traffic-diversification initiatives.

The updated outlook implies year-over-year growth of 30% in revenue and 19% in adjusted EBITDA, signaling that despite challenges, the company anticipates meaningful expansion across its core operations.

Gambling.com Group emphasized that search disruption remains a persistent challenge for the marketing business, even as modest improvements have been observed in recent months. The company continues to implement measures to mitigate the impact, including diversifying marketing channels and investing in enterprise-grade sports data solutions.

Challenges in organic search and marketing operations

Organic search continues to represent a vital source of customer acquisition for Gambling.com Group. However, the increasing prevalence of low-quality and spam-related websites in key non-US markets has diluted the effectiveness of traditional SEO strategies.

This trend has impacted the company’s ability to attract high-quality leads, reflected in the decrease in new depositing customers in Q3 2025. In response, management has accelerated its investments in traffic diversification, including partnerships, direct marketing campaigns, and technological enhancements designed to improve data quality and targeting efficiency.

Growth of sports data services

The sports data services segment has emerged as a significant growth driver. Revenue from this unit grew more than threefold compared with the prior year, demonstrating the scalability and increasing relevance of the company’s offerings.

OpticOdds and OddsJam have contributed to this expansion, providing comprehensive betting data and analytics tools for operators, media companies, and sports enthusiasts. The subscription model adopted for these services ensures recurring revenue and strengthens the company’s financial resilience amid volatility in other segments.

Management highlighted that this segment not only diversifies revenue streams but also enhances the overall strategic positioning of Gambling.com Group within the global online gambling ecosystem.

Operational efficiency and cost management

While revenue growth has been strong, the company has experienced rising operating expenses. The increase in costs reflects both strategic investments in staff and marketing and expenditures related to recent acquisitions.

The firm continues to focus on operational efficiency, balancing investment in growth initiatives with prudent cost management. Adjusted EBITDA margins of 33% in Q3 2025 demonstrate effective control over core operations despite elevated expenses.

Management maintains that ongoing investments in traffic diversification and enterprise data solutions will enhance long-term profitability and mitigate risks associated with search engine volatility.

Outlook and strategic priorities

Looking ahead, Gambling.com Group intends to strengthen its competitive position through a combination of marketing diversification and expansion of its sports data services.

Key priorities include:

• Enhancing traffic acquisition strategies across both organic and paid channels.
• Expanding enterprise subscription offerings in sports data services.
• Integrating recent acquisitions, such as Spotlight.Vegas, to generate synergies.
• Maintaining prudent financial management, including share buybacks and debt repayment.

The company emphasized that its strategic focus is on sustainable growth, maintaining financial discipline, and protecting shareholder value amid an evolving regulatory and digital landscape.

Conclusion

Gambling.com Group’s Q3 2025 results reflect both the opportunities and challenges of operating in the highly competitive online gambling market. While record revenue and sports data growth demonstrate the company’s potential, ongoing disruptions in organic search rankings highlight vulnerabilities in its marketing segment.

The revised full-year guidance underscores management’s cautious optimism, acknowledging headwinds while leveraging growth opportunities in data services and traffic diversification. As the company navigates these complexities, its strategic initiatives aim to secure long-term revenue stability, profitability, and shareholder value.

FAQs

What drove the record Q3 revenue for Gambling.com Group?
The strong growth in the sports data services segment, particularly through OpticOdds and OddsJam, was the primary driver of record revenue.

Why did marketing services revenue decline in Q3 2025?
The decline was attributed to low-quality organic search results caused by a proliferation of spam sites in certain non-US markets.

How much did sports data services revenue increase year-on-year?
Revenue in this segment rose 304% compared with Q3 2024.

What is the company’s adjusted EBITDA for Q3 2025?
Adjusted EBITDA reached $13 million, reflecting a 33% margin.

What were the net income results for the quarter?
Gambling.com Group reported a net loss of $3.9 million, compared with net income of $8.5 million in Q3 2024.

What steps is the company taking to address SEO challenges?
The company is diversifying traffic sources, investing in marketing campaigns, and enhancing data quality to mitigate SEO disruptions.

How much cash did the company hold at the end of the quarter?
Gambling.com Group held $7.4 million in cash with access to $70.5 million in undrawn credit.

What recent acquisitions has the company completed?
The company acquired Spotlight.Vegas for $8 million before working-capital adjustments.

What is the revised full-year revenue guidance for 2025?
Full-year revenue is projected at approximately $165 million, with adjusted EBITDA of $58 million.

How significant is the sports data segment to total revenue?
Sports data services now account for nearly a quarter of total revenue, demonstrating its growing strategic importance.