Why Gambling.com's Share Buybacks and Management's Aggressive Insider Purchases Signal a Compelling Value Opportunity

In the realm of deep value investing, few opportunities resonate as strongly as when a company's management actively repurchases its undervalued shares while insiders commit personal capital to the cause. Gambling.com Group (GAMB) has emerged as a standout case in 2025, with its aggressive share buyback program and CEO-led insider purchases aligning perfectly with principles of strategic capital allocation and intrinsic value creation.

Strategic Share Buybacks: A Capital Allocation Masterclass

Gambling.com Group's 2025 share repurchase program has been nothing short of robust. By November 13, 2025, the company had repurchased 671,998 shares for $5.6 million, representing 1.88% of its outstanding shares, with an average price of $8.33 per share in Q3 alone. This activity is part of a broader expansion of its buyback authorization in August 2025, leaving $14.4 million still available for future repurchases. Such disciplined execution underscores a commitment to deploying capital where it generates the highest returns-directly back into the hands of undervalued shareholders.

The rationale is mathematically compelling. According to Alpha Spread, Gambling.com's intrinsic value under the Base Case scenario is estimated at $16.50 per share, while the current market price of $5.39 implies a 67% undervaluation. Similarly, ValueInvesting.io calculates an intrinsic value of $11.82 per share as of November 2025, suggesting a 137.70% upside. These figures highlight a stark disconnect between market sentiment and the company's fundamentals, particularly given its record third-quarter revenue of $39.0 million-a 21% year-over-year increase.

Management's Skin in the Game: A Vote of Confidence

While share buybacks signal institutional confidence, insider purchases by management add a personal stake to the equation. Charles Gillespie, CEO and co-founder of Gambling.com Group, has taken this a step further. In Q4 2025, he acquired 351,000 additional shares, elevating his ownership stake from below 10% to over 11%. Gillespie publicly described the move as an opportunity to "secure undervalued shares," emphasizing a "disconnect between current market pricing and the company's perceived value" as noted in the earnings call transcript. His assertion that "share buybacks are the most effective use of cash at current levels" aligns with management's stated view and reinforces the idea that management views the stock as a compelling investment.

This confidence is not unfounded. Gambling.com has made significant strides in diversifying its revenue streams, reducing reliance on Google from a higher proportion two years ago to 35% of group revenue in Q4 2025. Such strategic pivots, coupled with strong adjusted free cash flow generation, position the company to sustain its buyback momentum while investing in high-growth areas like sports data services, which grew over 300% year-over-year.

The Deep Value Investing Case

For deep value investors, Gambling.com's trajectory embodies the ideal scenario: a company with a clear path to intrinsic value realization, a management team that acts as both steward and shareholder, and a market price that fails to reflect long-term potential. The intrinsic value estimates from Alpha Spread and ValueInvesting.io suggest that the stock is trading at a material discount to its fundamental worth, even after accounting for regulatory and competitive headwinds as reported in the analysis.

Moreover, the company's capital allocation strategy-prioritizing buybacks over dividends-resonates with value investors who favor share repurchases as a means of compounding returns. By retiring shares at prices significantly below intrinsic value (e.g., $8.33 in Q3 vs. $11.82–$16.50 intrinsic estimates), Gambling.com is effectively creating shareholder value with every dollar spent as detailed in the Q3 report.

Conclusion: A Confluence of Signals

The combination of aggressive share buybacks, insider purchases by top management, and a widening gap between market price and intrinsic value paints a compelling case for Gambling.com Group. As Gillespie aptly noted, the current pricing environment presents "unbelievably attractive" opportunities for capital deployment as highlighted in the insider purchase announcement. For investors with a long-term horizon and a tolerance for market mispricing, this is a rare alignment of strategic execution and valuation arbitrage.