Gambling.com (GAMB) AI Stock Analysis

• Market Cap: $170.54M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 80.2
• Beta (1Y): 0.71
• Revenue Growth: 24.21%
• EPS Growth: -92.49%
• Country: US
• Employees: 555
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.26
• Shares Outstanding: 35,603,153
• 10 Day Avg. Volume: 1,664,396
• 30 Day Avg. Volume: 1,028,434
• PEG Ratio: 0.23
• Price to Book (P/B): 4.12
• Price to Sales (P/S): 3.99
• P/FCF Ratio: 133.06
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 2.41
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 14.58
• 1Y Price Target: $9.00
• Price Target Upside: 87.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.78
• Revenue Forecast (FY): $167.49M

• Rating: 60 Neutral
• Price Target: $5.50 ▲(14.82% Upside)

Gambling.com's overall stock score reflects a combination of strong revenue growth and high gross profit margins, offset by declining net profit margins and increased leverage. The technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. The earnings call highlighted growth in sports data services but also pointed out challenges in the marketing segment. These factors collectively contribute to a moderate stock score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Sports Data Services Expansion

Rapid growth in sports data services diversifies revenue streams and positions the company for future growth in a high-demand sector.

Strategic Acquisition

The acquisition of Spotlight.Vegas strengthens market position and expands offerings, enhancing competitive advantage in the online gambling industry.

Negative Factors

Declining Net Profit Margin

A declining net profit margin suggests rising costs or reduced profitability, which could impact long-term financial health and shareholder returns.

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Challenges in Marketing Business

Flat revenue in the marketing segment due to search ranking issues could hinder growth and necessitate strategic adjustments to regain momentum.

Gambling.com Business Overview & Revenue Model

Company Description

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. Gambling.com Group Limited was incorporated in 2006 and is based in St. Helier, Jersey.

How the Company Makes Money

Gambling.com primarily generates revenue through affiliate marketing, where it earns commissions for directing traffic to online gambling operators. When users click on links to gambling sites from Gambling.com's platform and subsequently create accounts or place bets, the company receives a percentage of the revenue generated by those users. Key revenue streams include CPA (Cost Per Acquisition) deals, where operators pay a fixed fee for each new customer referred, and revenue share agreements, where Gambling.com earns a percentage of the player's losses. The company also benefits from partnerships with various gambling operators, enhancing its offerings and reach in the market, which in turn contributes to its overall earnings.

Gambling.com Financial Statement Overview

Summary

Gambling.com shows strong revenue growth and high gross profit margins, indicating effective revenue generation and cost control. However, declining net profit margins and increased leverage pose potential risks. The cash flow situation reflects challenges in maintaining cash generation, though the company still manages to generate adequate cash relative to its net income.

Income Statement

Gambling.com has demonstrated strong revenue growth over the years, with a TTM revenue growth rate of 4.65%. The company maintains a high gross profit margin of 94.02% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 9.66% in the TTM from 24.12% in 2024, reflecting increased expenses or reduced profitability. The EBIT and EBITDA margins have also seen a decline, suggesting potential challenges in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.68 in the TTM, indicating higher leverage compared to previous years. Despite this, the return on equity remains reasonable at 10.65%, though it has decreased from 24.90% in 2024. The equity ratio is stable, suggesting a balanced approach to financing assets through equity.

Cash Flow

Gambling.com's free cash flow growth rate is negative at -9.21% in the TTM, indicating a decline in cash generation. The operating cash flow to net income ratio is 0.67, showing a decrease in cash flow efficiency. However, the free cash flow to net income ratio remains healthy at 0.71, suggesting that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	154.52M	127.18M	108.65M	76.51M	42.32M	27.98M
Gross Profit	143.97M	119.65M	99.54M	73.55M	42.32M	27.98M
EBITDA	25.51M	42.75M	23.13M	10.83M	15.23M	14.70M
Net Income	1.89M	30.68M	18.26M	2.39M	12.45M	15.15M
Balance Sheet
Total Assets	305.12M	178.58M	154.87M	138.88M	91.03M	45.38M
Cash, Cash Equivalents and Short-Term Investments	7.36M	13.73M	25.43M	29.66M	51.17M	8.22M
Total Debt	88.20M	27.96M	1.72M	2.07M	7.62M	7.93M
Total Liabilities	171.43M	55.40M	35.95M	51.77M	11.12M	11.17M
Stockholders Equity	133.68M	123.19M	118.92M	87.11M	79.91M	34.21M
Cash Flow
Free Cash Flow	30.15M	3.81M	8.67M	9.47M	8.42M	10.80M
Operating Cash Flow	42.75M	37.64M	17.91M	18.75M	14.00M	10.89M
Investing Cash Flow	-94.85M	-43.84M	-19.47M	-32.70M	-5.57M	-90.00K
Financing Cash Flow	42.83M	-5.24M	-3.14M	-7.31M	34.99M	-10.20M

Gambling.com Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAMB, the sentiment is Negative. The current price of 4.79 is below the 20-day moving average (MA) of 6.58, below the 50-day MA of 7.43, and below the 200-day MA of 10.86, indicating a bearish trend. The MACD of -0.73 indicates Positive momentum. The RSI at 15.96 is Positive, neither overbought nor oversold. The STOCH value of 7.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAMB.

Gambling.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSI	67 Neutral	$3.95B	68.78	29.67%	―	23.15%	―
INSE	65 Neutral	$209.49M	3.91	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GAMB	60 Neutral	$170.54M	80.23	1.46%	―	24.21%	-92.49%
GDEN	54 Neutral	$762.71M	159.72	1.15%	3.42%	-12.25%	-84.89%
BALY	54 Neutral	$823.96M	―	-114.88%	―	0.36%	47.55%
CDRO	49 Neutral	$259.70M	415.33	2.77%	―	―	―

Gambling.com Corporate Events

Gambling.com Reports Q3 2025 Financial Results with Increased Revenue but Net Loss

Gambling.com Group Limited reported its financial results for the third quarter and nine months ending September 30, 2025. The company experienced a revenue increase to $38.98 million for the quarter, up from $32.12 million the previous year. However, the company reported a net loss of $3.86 million for the quarter, compared to a net income of $8.51 million in the same period last year, due to increased sales, marketing, and technology expenses, as well as fair value movements on contingent consideration.

Gambling.com Group Reports Record Q3 2025 Financial Results

On November 13, 2025, Gambling.com Group Limited announced record financial results for the third quarter ending September 30, 2025, with a significant increase in revenue and Adjusted EBITDA. Despite challenges in the marketing business due to low-quality search results, the company saw over 300% year-over-year growth in its sports data services, which now accounts for 24% of total revenue. The company remains optimistic about future growth, particularly in its sports data services, and has undertaken share buybacks to reflect confidence in its business trajectory.

Gambling.com Completes Acquisition of Spotlight.Vegas

On September 1, 2025, Gambling.com Group Limited, through its subsidiary GDC America, Inc., completed the acquisition of BGMD Holdings LLC, known as Spotlight.Vegas. This strategic move is expected to enhance Gambling.com’s market presence by integrating Spotlight.Vegas’s online booking platform, which offers consumers access to live events and local attractions. The acquisition is anticipated to strengthen the company’s operations and expand its offerings, potentially benefiting stakeholders by increasing the company’s competitive edge in the online gambling and entertainment industry.