Gambling.com: Strategic Growth, Diversification, and Record Revenue Drive Buy Rating

Gambling.com maintains a Buy rating due to its impressive financial performance, strategic positioning, and diversification into non-search digital marketing channels. The company reported record revenue and AEBITDA for Q2, surpassing market expectations. Additionally, it has shifted towards building high-authority gambling brands and adapting to AI-powered search disruptions, positioning it for sustained growth. The potential growth in the U.S. predictions market is also seen as an opportunity.

Title: Gambling.com Group Reports Record Q2 Revenue and Adjusted EBITDA

Gambling.com Group Limited (Nasdaq: GAMB), a leading provider of marketing and sports data services for the global gambling industry, reported impressive financial results for the second quarter (Q2) 2025. The company reported a record revenue of $39.6 million, representing a 30% year-over-year (YoY) increase. Adjusted EBITDA also reached $13.7 million, up 22% YoY, further demonstrating the company's attractive growth platform [2].

The strong performance was driven by two key factors. First, Gambling.com Group continued to diversify its revenue streams, with a significant acceleration in its sports data services business. This business segment contributed over 25% of the total revenue, all of which is high-margin, high-visibility, recurring subscription revenue. Second, the company's marketing business delivered market share gains and substantial cash flow, with more and growing contributions from channels other than search [2].

Gambling.com Group also announced a definitive agreement to acquire Spotlight.Vegas, a custom-built booking platform that helps consumers access experiences such as live events and local attractions. The proposed transaction is expected to close at the beginning of September, subject to customary closing conditions. The acquisition is expected to generate net revenue of at least $8 million and incremental Adjusted EBITDA of at least $1.4 million for the 2026 full-year period [2].

The acquisition of Spotlight.Vegas complements Gambling.com Group's existing portfolio and expands its client base to include land-based operators. The company expects to deploy the technology on its owned and operated sites like Casinos.com and take it beyond Las Vegas. This strategic move aligns with Gambling.com Group's goal of achieving $100 million in Adjusted EBITDA [2].

Gambling.com Group's financial highlights for the three months ended June 30, 2025, compared to the same period in 2024, include:
- Revenue: $39.6 million (up 30% YoY)
- Net income for the period: $(13,415) (down 294% YoY)
- Net income per share: $(0.38) (down 295% YoY)
- Adjusted net income: $13,369 (up 37% YoY)
- Adjusted net income per share: $0.37 (up 42% YoY)
- Adjusted EBITDA: $13,678 (up 22% YoY)
- Cash flows generated by operating activities: $9,355 (up 4747% YoY)
- Free Cash Flow: $8,165 (up 36% YoY) [2]

Gambling.com Group's strategic positioning, diversification into non-search digital marketing channels, and the potential growth in the U.S. predictions market position the company for sustained growth. The company's impressive financial performance and strategic initiatives have led to a Buy rating from analysts [1].

References
[1] https://www.ainvest.com/news/actelis-networks-q2-2025-financial-results-31-sequential-growth-72-yoy-decline-restructuring-plan-cryptocurrency-strategy-2508/
[2] https://www.businesswire.com/news/home/20250814914972/en/Gambling.com-Group-Reports-Record-Second-Quarter-Revenue-and-Adjusted-EBITDA