Gambling.com (GAMB) AI Stock Analysis

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Gambling.com

(NASDAQ:GAMB)

Rating:66Neutral

Price Target:

$9.50

▲(10.98% Upside)

Gambling.com's strong financial performance and positive earnings call sentiment are key strengths, supported by robust revenue growth and strategic diversification. However, the bearish technical indicators and moderate valuation suggest caution. The stock's oversold condition may present a potential buying opportunity if fundamentals remain strong.

Positive Factors

Financial Performance

Gambling.com Group delivered record revenue and AEBITDA, surpassing consensus estimates, highlighting robust financial performance.

Regulatory Opportunities

Gambling.com is poised to benefit from the rollout of federally regulated prediction markets, potentially driving legislative momentum in U.S. gaming policy.

Strategic Growth

GAMB's strategic shift toward diversified revenue streams, including high-margin sports data services and targeted acquisitions, sets the stage for sustained growth.

Negative Factors

Guidance Adjustment

Google algorithm changes and AI SEO impacts have resulted in a -7% adjustment in 2025 EBITDA guidance.

Search Revenue Challenges

The recent Google algorithm update has reduced search rankings, putting pressure on traditional search revenue.

Gambling.com (GAMB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$301.91M

Dividend YieldN/A

Average Volume (3M)714.86K

Price to Earnings (P/E)20.8

Beta (1Y)0.67

Revenue Growth27.57%

EPS Growth-40.98%

CountryUS

Employees555

SectorConsumer Cyclical

Sector Strength81

IndustryGambling, Resorts & Casinos

Share Statistics

EPS (TTM)0.37

Shares Outstanding35,603,153

10 Day Avg. Volume1,324,501

30 Day Avg. Volume714,857

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.66

Enterprise Value/Revenue3.39

Enterprise Value/Gross Profit3.61

Enterprise Value/Ebitda14.96

Forecast

1Y Price Target

$14.14

Price Target Upside65.19% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

Gambling.com Business Overview & Revenue Model

Company DescriptionGambling.com (GAMB) is a leading provider of digital marketing services in the global online gambling industry. The company operates through its flagship website, Gambling.com, along with a network of other premium domains and platforms designed to connect gambling operators with potential customers. Its core services include performance marketing, lead generation, and content creation tailored to the sports betting and online casino sectors.

How the Company Makes MoneyGambling.com makes money primarily through affiliate marketing partnerships with online gambling operators. The company earns revenue by referring potential customers to these operators and receiving a commission based on the traffic and conversions generated through its platforms. Key revenue streams include cost-per-acquisition deals and revenue-sharing agreements, where it earns a percentage of the net gaming revenue from the players referred. Additionally, Gambling.com benefits from search engine optimization and content marketing strategies that drive organic traffic to its websites, enhancing its value proposition to advertising partners. Significant partnerships with major online gambling operators and a robust online presence are critical factors contributing to its earnings.

Gambling.com Earnings Call Summary

Earnings Call Date:Aug 14, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 13, 2025

Earnings Call Sentiment Neutral

The earnings call presented a strong performance with record revenue and growth in sports data services, driven by strategic acquisitions and diversification. However, challenges such as the impact of Google's algorithm update and increased operating expenses were noted. While there are significant achievements, certain challenges suggest a balanced outlook.

Q2-2025 Updates

Positive Updates

Record Second Quarter Revenue and Adjusted EBITDA

Gambling.com Group reported record second-quarter revenue of $39.6 million, a 30% increase year-over-year, and adjusted EBITDA of $13.7 million, an increase of 22% year-over-year.

Growth in Sports Data Services

The company's sports data services revenue quadrupled to $10 million, with OpticOdds leading with 120% year-on-year growth, contributing to high-margin recurring subscription revenue.

Strategic Acquisitions and Diversification

The acquisition of Spotlight.Vegas is expected to expand the client base to include land-based operators, providing a strategic lever for growth. Additionally, the company successfully integrated and scaled acquisitions like OddsJam and OpticOdds.

Increased Subscription Revenue

Subscription revenue accounted for 25% of total revenue, with recurring revenue making up 51% of total second-quarter revenue, indicating a successful diversification strategy.

Negative Updates

Impact of Google Algorithm Update

The latest Google algorithm update negatively impacted search rankings, leading to a downward revision of traditional search revenue expectations.

Higher Operating Expenses

Operating expenses increased to $51.3 million, including charges related to acquisitions and amortization of intangible assets.

North America Marketing Challenges

The marketing business experienced challenges in North America due to tough comparables, affecting overall growth in this region.

Company Guidance

During the second quarter of 2025, Gambling.com Group reported record revenue of $39.6 million, marking a 30% year-over-year increase, and achieved an adjusted EBITDA of $13.7 million, which is a 22% rise from the previous year. The company's sports data services saw substantial growth, with OpticOdds leading the way with a 120% increase in revenue, while subscription revenue made up 25% of total revenue. Despite diversification efforts resulting in higher costs, the adjusted EBITDA margin stood at 35%. The company adjusted its full-year guidance to a revenue range of $171 million to $175 million and an adjusted EBITDA range of $62 million to $64 million. The acquisition of Spotlight.Vegas is expected to contribute to revenue and adjusted EBITDA in 2026, with anticipated net revenue of at least $8 million and incremental adjusted EBITDA of at least $1.4 million. The company maintained a strong balance sheet with total cash of $18.7 million and an undrawn credit facility of $70.5 million as of June 30.

Gambling.com Financial Statement Overview

Summary

Gambling.com exhibits strong financial health with consistent revenue growth, high profitability margins, and a solid balance sheet. While debt levels have increased, the company's ability to generate cash flow remains robust. Continued focus on improving operating efficiency and managing leverage will support sustained financial performance.

Income Statement

Very Positive

Gambling.com has demonstrated strong revenue growth, with a TTM (Trailing-Twelve-Months) revenue of $138.6 million, showing consistent increases from $76.5 million in 2022. Gross profit margins have remained robust at over 93% in the TTM period, indicating efficient cost management. Additionally, net profit margins have improved, reaching 24.97% in the TTM period. While EBIT and EBITDA margins are healthy, there is room for improvement in operating efficiency.

Balance Sheet

Positive

The company maintains a solid balance sheet with a debt-to-equity ratio of 0.63 in the TTM period, indicating moderate leverage. Return on equity is strong at 23.47%, reflecting effective use of equity to generate profits. The equity ratio is 48.20%, showing a balanced capital structure. However, increasing total debt over the period requires monitoring to prevent potential risks.

Cash Flow

Positive

Gambling.com has shown positive cash flow dynamics, with a significant increase in free cash flow from $3.8 million in 2024 to $5.9 million in the TTM period. The operating cash flow to net income ratio of 1.16 in the TTM period indicates good cash generation relative to profits. The company has effectively managed capital expenditures, but further improvements in free cash flow growth can enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	147.66M	127.18M	108.65M	76.51M	42.32M	27.98M
Gross Profit	138.83M	119.65M	99.54M	73.55M	42.32M	27.98M
EBITDA	33.49M	42.75M	22.47M	10.61M	15.33M	15.08M
Net Income	14.26M	30.68M	18.26M	2.39M	12.45M	15.15M
Balance Sheet
Total Assets	308.96M	178.58M	154.87M	138.88M	91.03M	45.38M
Cash, Cash Equivalents and Short-Term Investments	18.67M	13.73M	25.43M	29.66M	51.05M	8.22M
Total Debt	95.57M	27.96M	1.72M	2.07M	7.62M	7.93M
Total Liabilities	169.28M	55.40M	35.95M	51.77M	11.12M	11.17M
Stockholders Equity	139.68M	123.19M	118.92M	87.11M	79.91M	34.21M
Cash Flow
Free Cash Flow	33.21M	3.81M	8.93M	9.47M	8.42M	10.80M
Operating Cash Flow	46.78M	37.64M	17.91M	18.75M	14.00M	10.89M
Investing Cash Flow	-87.99M	-43.84M	-19.47M	-32.70M	-5.57M	-90.00K
Financing Cash Flow	51.56M	-5.24M	-3.14M	-7.31M	34.99M	-10.20M

Gambling.com Technical Analysis

Technical Analysis Sentiment

Negative

Last Price8.56

Price Trends

50DMA

10.65

Negative

100DMA

11.53

Negative

200DMA

12.63

Negative

Market Momentum

MACD

-0.67

Positive

RSI

32.47

Neutral

STOCH

28.80

Neutral

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 8.56 is below the 20-day moving average (MA) of 9.40, below the 50-day MA of 10.65, and below the 200-day MA of 12.63, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 32.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAMB.

Gambling.com Risk Analysis

Gambling.com disclosed 54 risk factors in its most recent earnings report. Gambling.com reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Gambling.com Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGHC	77 Outperform	$6.17B	45.49	21.57%	1.92%	21.11%	272.97%
AGS	68 Neutral		―		―	6.60%	778.46%
GAMB	66 Neutral	$301.91M	20.83	10.86%	―	27.57%	-40.98%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
DKNG	61 Neutral	$42.44B	―	-26.38%	―	25.80%	27.64%
CDRO	56 Neutral	$385.66M	605.11	2.77%	―	―	―
GAN	51 Neutral		―		―	7.02%	74.19%

* Consumer Cyclical Sector Average

Performance Comparison

GAMB

Gambling.com

8.58

-1.50

-14.88%

AGS

Playags

12.49

1.19

10.53%

DKNG

DraftKings

48.23

14.34

42.31%

GAN

1.97

0.24

13.87%

SGHC

Super Group (SGHC)

11.95

8.66

263.22%

CDRO

Codere Online

8.35

0.67

8.72%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 26, 2025