GICS Sector : Consumer Cyclical
Gambling.com Group Limited operates as a performance marketing company for the online gambling industry worldwide.The company provides digital marketing services for the iGaming and sports betting.It publishes various branded websites, including Gambling.com and Bookies.com.
The Gambling.com Group reported a record $39 million in revenue for the third quarter of 2025, representing a 21% year-over-year increase. The growth was primarily driven by the sports data services segment, which saw a 300% increase, generating $9.2 million in revenue. Adjusted EBITDA grew 3% to $13 million, and adjusted net income was $9.3 million. Earnings per share (EPS) came in at $0.26, beating estimates of $0.2022. The company's financial performance was highlighted by the strong growth in sports data services, including OpticOdds, which doubled its revenue year-over-year.
Publication Date: Nov -29
The marketing business was flat year-over-year due to unfavorable search rankings. However, the company expects this segment to grow in 2026, driven by diversification efforts, including non-SEO channels. The sports data services business is expected to continue growing organically at a healthy pace, with a large addressable market and a growing client base. The company's diversification efforts and growth in sports data services are expected to drive future growth.
The company revised its full-year guidance to $165 million in revenue and $58 million in adjusted EBITDA. For 2026, it expects low-teens revenue growth, with sports data services growing in the high-teens, B2C in the high-single digits, and B2B above 20%. Adjusted EBITDA margins are expected to be in the mid-30s. The company's guidance suggests a continued focus on growth in its sports data services segment.
The company's valuation metrics indicate a relatively high P/E Ratio of 105.05 and an EV/EBITDA of 11.0. The Free Cash Flow Yield is 15.1%, indicating a strong ability to generate cash. The company's net debt to EBITDA ratio is 3.17, suggesting a moderate level of leverage. With $7.4 million in cash and $70.5 million in undrawn credit facility capacity, the company is well-positioned to invest in growth initiatives or return capital to shareholders.
The company is focused on maximizing shareholder value through optimizing capital allocation. It has repurchased approximately 562,000 shares for $4.7 million and is cautious about leveraging beyond its existing credit facility. The company is exploring ways to make strategic investments while preserving capital efficiency, including both internal development and M&A. However, at the current share price, virtually nothing is accretive, making M&A challenging to justify.
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Dec -30
Gambling.com Group Limited (NASDAQ:GAMB) Given Average Recommendation of “Hold” by Brokerages
Dec -23
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Dec -16
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Dec -10
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Dec -05
Gambling.com Group Ready for Launch of Online Sports Betting in Missouri
Dec -01
Casino segment's 10% growth driven by increasing online penetration, rising demand for mobile gaming, and strategic partnerships. Additionally, expanding product offerings, such as live dealer games and esports betting, attract new customers. Effective marketing campaigns and loyalty programs also contribute to the growth.
The 12% growth in Sports from Gambling.com Group Limited is driven by increasing online sports betting adoption, rising popularity of in-play wagering, and growing demand for sports content. Additionally, strategic partnerships, geographic expansion, and investments in technology and marketing are contributing to the segment's growth.
Strong online presence, strategic partnerships, and expansion into new markets drive growth. Increasing demand for online gambling, favorable regulatory environment, and effective marketing strategies contribute to the 9% growth. Additionally, the company's diversified revenue streams, including affiliate marketing and B2B services, provide a solid foundation for sustained growth.
Gambling.com Group Limited offers affiliate marketing services, connecting online gambling operators with affiliates who promote their brands and products.
The company creates and publishes high-quality content, including reviews, guides, and news, to attract and engage online gamblers.
Gambling.com Group Limited provides digital marketing services, including SEO, PPC, and social media marketing, to online gambling operators.
The company develops and operates comparison tools, allowing users to compare and choose online gambling operators and games.
Gambling.com Group Limited provides data and analytics services, helping online gambling operators to gain insights and optimize their operations.
Gambling.com Group Limited has a low threat of substitutes due to the unique nature of its online gambling services, making it difficult for customers to find alternative products or services.
Gambling.com Group Limited has a medium bargaining power of customers, as customers have some flexibility to choose from various online gambling platforms, but the company's strong brand reputation and loyalty programs help to retain customers.
Gambling.com Group Limited has a low bargaining power of suppliers, as the company has a diverse range of suppliers and can easily switch to alternative suppliers if needed.
Gambling.com Group Limited has a high threat of new entrants, as the online gambling industry is attractive and has low barriers to entry, making it easy for new companies to enter the market.
Gambling.com Group Limited operates in a highly competitive online gambling industry, with many established players and new entrants, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 1.43% |
| Debt Cost | 8.57% |
| Equity Weight | 98.57% |
| Equity Cost | 8.57% |
| WACC | 8.57% |
| Leverage | 1.45% |
Value: 2.7
Growth: 4.6
Quality: 8.2
Yield: 4.4
Momentum: 9.5
Volatility: 1.0
1-Year Total Return ->
Value: 3.1
Growth: 5.7
Quality: 5.3
Yield: 3.1
Momentum: 4.0
Volatility: 8.3
1-Year Total Return ->
Value: 8.6
Growth: 4.7
Quality: 2.4
Yield: 1.9
Momentum: 2.0
Volatility: 9.3
1-Year Total Return ->
Value: 4.4
Growth: 7.1
Quality: 5.4
Yield: 0.0
Momentum: 4.0
Volatility: 3.0
1-Year Total Return ->
Value: 7.9
Growth: 2.8
Quality: 6.2
Yield: 5.0
Momentum: 0.0
Volatility: 1.0
1-Year Total Return ->
Value: 5.1
Growth: 9.7
Quality: 4.4
Yield: 0.0
Momentum: 0.0
Volatility: 1.0
1-Year Total Return ->