Gambling.com Group Q4 2025: Record $46.2m Revenue as Sports Data Hits 26% of Mix

Gambling.com Group posted record Q4 2025 revenue of $46.2m, up 31% year-on-year, as its sports data services segment surged and non-SEO revenue sources exceeded half of total quarterly income for the first time in the company’s history.

Adjusted EBITDA for the quarter rose 5% to $15.5m, though the margin compressed to 33% from 42% in the same period of 2024, reflecting higher traffic acquisition costs and increased investment in channel diversification. Gross profit reached $39.3m, a 19% year-on-year increase, at an 85% gross margin versus 94% a year earlier.

Sports Data Services Drive the Quarter

The standout result was sports data services, where revenue climbed 440% year-on-year and 29% sequentially to $11.8m in Q4. The segment — which includes OpticOdds, OddsJam, and RotoWire, all acquired through the Odds Holdings deal — represented 26% of total quarterly revenue, its highest share to date. Marketing services revenue reached $34.4m, up 4% year-on-year and 15% sequentially.

Recurring revenue, comprising subscription income and marketing revenue-share arrangements, accounted for 47% of Q4 revenue. Non-SEO sources exceeded SEO-related revenue for the first time, a milestone CEO Charles Gillespie described as central to the company’s long-term positioning.

Our sports data services business is now high-margin, high-visibility, and powered by recurring subscription revenue. By reaching 26% of total revenue from this segment in Q4, we have fundamentally reduced our reliance on organic search and created a more predictable growth engine.

Cost of sales rose sharply to $6.9m from $2.2m in the prior-year quarter, driven by the traffic diversification strategy. Adjusted operating expenses increased 32% to $26.9m, primarily due to headcount added through 2025 acquisitions and higher marketing costs. Headcount outside acquired businesses was flat year-on-year, according to CFO Elias Mark.

Full-Year 2025 Performance

For the full year, revenue came in at $165.4m, up 30% from $127.2m in 2024. Full-year adjusted EBITDA rose 19% to $58m. Adjusted net income grew 23% to $51.8m, or $1.41 per share. Adjusted free cash flow for 2025 was $36.3m, against $7.5m in Q4 alone — the quarterly figure reflecting adverse working capital timing, Mark noted.

The company delivered 98,000 new depositing customers in Q4. As of 31 December 2025, Gambling.com Group held $15.8m in cash and $123.6m in outstanding borrowings under its Wells Fargo credit facility. During Q4, the company drew $38m from the facility and settled $33.6m in deferred consideration related to the Odds Holdings acquisition.

The company had reported Q3 revenue of $39m, up 21% year-on-year, noting search quality challenges that carried through into the second half of the year.

Search Headwinds and UK Pressure

Management flagged two structural headwinds for 2026. A series of Google core algorithm updates in late 2025 negatively affected organic search rankings for high-authority affiliate sites, reducing traffic to legacy SEO-driven assets. Gillespie noted search quality for gambling-related terms has deteriorated as spammers exploit AI tools, compounding the volatility.

The UK market presented a separate challenge. The UK Remote Gaming Duty increase — online casino duty moving from 21% to 40% in April 2026 — is forcing operator consolidation and pricing pressure in one of the group’s key markets. Operator market exits and reduced player values are squeezing marketing revenues from UK-facing partners.

Share Buybacks and Balance Sheet

Gambling.com Group repurchased 109,776 shares in Q4 at an average price of $8.17. Full-year buybacks totalled 671,998 shares for $5.6m, with $14.4m remaining under the existing authorisation. Gillespie said the near-term priority is deleveraging but added that buybacks remain attractive at current price levels and could become a greater focus if margins recover toward historical levels.

2026 Guidance

The company guided 2026 revenue in the range of $170m to $180m. Adjusted EBITDA is expected to come in between $50m and $58m. Management said “continued poor search dynamics and regulatory headwinds in the UK” would impact both top- and bottom-line performance in the year ahead, with the EBITDA guidance range reflecting uncertainty around the pace of margin recovery in the marketing services segment.

Gillespie also flagged prediction markets as an expanding opportunity for both the marketing and data businesses, positioning the group to benefit from the rapid growth in regulated US prediction markets activity.

Source: Gambling.com Group