(PRESS RELEASE) -- Gambling.com Group Limited, a fast-growing technology company providing marketing and sports data services for the gambling industry, reported financial results for the first quarter ended 31 March 2026. The company also adjusted its full year guidance and highlighted a proposed strategic restructure expected to reduce its workforce by 25% and deliver annualized savings of $13 million.
Kevin McCrystle, Incoming Chief Executive Officer and Co-Founder of Gambling.com Group, commented, "First quarter revenue of $40.4 million was in line with our expectations as well as the prior-year period, and reflects a 13% year-over-year increase in sports data services revenue offset by a 5% decline in marketing revenue. The growth in sports data services revenue was driven by strong enterprise sales led by OpticOdds with active partners up 24% quarter-on-quarter. While our marketing operations continue to be impacted by previously disclosed poor organic search dynamics and more recent regulatory headwinds, we continue to deliver on our strategy to diversify traffic sources.
“We continue to integrate AI into our workflows and are moving quickly to adopt AI as the foundational layer of how the entire organization operates. This shift to AI-first working principles enables a proposed restructure of teams that is expected to drive substantial annualized cost savings. We are confident this transformation positions us to adapt faster to changing market needs by delivering more product and marketing innovation at a faster velocity with smaller, more flexible teams. These initiatives, and the continued transition in our business to benefit from a higher mix of high-margin sports data services contributions and our more diversified marketing business, will help ensure we can build on our foundation to return to delivering consistent high margin growth going forward.”
Elias Mark, Chief Financial Officer of Gambling.com Group, added, “The strategic shift in how we operate internally to have AI be the foundation of our team structures and processes across the organization, allows us to initiate a proposed restructure of teams expected to deliver annualized cost savings of $13 million. We expect to realize about half of the $13 million in annualized savings in the second half of 2026 which will help drive margin expansion in this period and beyond. As our business continues to evolve, we remain well-positioned to continue delivering substantial free cash flow that allows us to both to de-lever and further invest in new products.”
Three Months Ended March 31, 2026 Results Compared to Three Months Ended 31 March 2025Revenue of $40.4 million was in line with the prior-year period. Revenue from sports data services grew 13% year-over-year to $11.2 million, primarily driven by growth in enterprise revenue. Revenue from marketing services decreased 5% year-over-year to $29.2 million, primarily due to the previously disclosed impacts of poor organic search dynamics and regulatory headwinds in the UK and Finland, partly offset by growth from sources not dependent on organic search referrals. The Company delivered 140,000 new depositing customers in the three months ended March 31, 2026, as compared to 138,000 in the three months ended March 31, 2025.
Gross profit decreased 11% year-over-year to $34.4 million. Cost of sales increased 171% year-over-year to $6.1 million primarily reflecting costs associated with the Company’s ongoing strategy to diversify traffic sources in the marketing business.
Total operating expenses exclusive of non-cash amortization of acquired intangible assets of $2.6 million, employees' bonuses related to the OddsJam acquisition of $0.3 million and other non-recurring costs of $0.1 million, grew 12% to $28.2 million, primarily due to higher subscription cost from increased AI usage and higher external marketing expenses as a result of traffic diversification strategies. Inclusive of the above-mentioned expenses, total operating expenses were $31.1 million compared to $28.4 million in the year-ago period.
Net loss attributable to shareholders of $1.2 million, or 0.03 per share, compares to net income attributable to shareholders of $11.2 million, or $0.31 per share, in the year-ago period. Adjusted net income decreased to $3.8 million, or $0.09 per share, compared to adjusted net income of $16.5 million, or $0.46 per share, in the year-ago-period primarily driven by lower Adjusted EBITDA and higher interest and tax expenses in the current period and $3.9 million in finance income related to foreign exchange movements in the year-ago period.
Adjusted EBITDA of $9.0 million reflects an Adjusted EBITDA margin of 22% as compared to Adjusted EBITDA of $15.9 million and an Adjusted EBITDA margin of 39% in the prior-year period. The Adjusted EBITDA margin for the first quarter of 2026 reflects the impact of higher cost of sales and operating expenses related to traffic diversification strategies in the marketing business.
Cash flow from operations was $0.9 million compared to $8.1 million in the year-ago period and included deferred consideration payments of $2.2 million, transaction bonus payments of $2.4 million, and tax payments of $1.6 million. Adjusted free cash flow was $3.9 million compared to $10.3 million in the year-ago period, driven by lower operating cash flows resulting primarily from a decline in operating profit, and higher capitalization of development costs.
As of 31 March 2026, the Company had total cash of $8.4 million and had borrowings of $121.3 million under the Wells Fargo Credit Facility. The Company repaid $2.8 million on its outstanding term loan during the first quarter.
The Company did not repurchase any shares in the first quarter and continues to have $14.4 million remaining on the current share buyback authorization.
2026 OutlookGambling.com Group today adjusted its full year guidance and now expects 2026 full-year revenue of $165 million to $170 million and Adjusted EBITDA of $45 million to $50 million. The guidance assumes:
- Year-over-year revenue growth driven by data services with enterprise sports data services continuing to see the fastest growth.
- Revenue and Adjusted EBITDA will be negatively impacted by continued poor search dynamics and regulatory headwinds in the UK, where a higher-than-expected increase in gaming duty is impacting player values and volume, as well as in Europe, where new regulations in Finland is curtailing performance marketing.
- Continued investments to diversify the marketing business, investments in sports data services new product enhancements and investments for the development and rollout of a new product the Company plans to launch later this year for which only marginal revenue contributions are expected this year.
- Significant margin expansion in the second half of the year from cost savings and revenue growth.
- An average Euro to USD exchange rate of 1.17 for the year.