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Gambling.com (GAMB)
NASDAQ:GAMB
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Gambling.com
(NASDAQ:GAMB)
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Rating:66Neutral
Price Target:
$9.50
▲(18.90% 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
Revenue Growth
The company's strong revenue growth reflects its effective market strategies and expanding customer base, supporting long-term business sustainability.
Cash Generation
Robust cash generation enhances financial flexibility, enabling the company to invest in growth opportunities and weather economic fluctuations.
Strategic Acquisitions
Strategic acquisitions broaden the company's market reach and diversify its revenue streams, fostering long-term growth potential.
Negative Factors
Declining Profit Margins
Decreasing profit margins indicate rising costs or pricing pressures, which could challenge the company's ability to maintain profitability over time.
Impact of Google Algorithm Update
Changes in Google's algorithm can affect traffic and revenue, posing a risk to the company's core business model reliant on search visibility.
Higher Operating Expenses
Rising operating expenses may pressure margins and reduce profitability, potentially limiting the company's ability to invest in future growth.
Gambling.com (GAMB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$281.62M
Dividend YieldN/A
Average Volume (3M)606.18K
Price to Earnings (P/E)19.6
Beta (1Y)0.67
Revenue Growth27.57%
EPS Growth-40.98%
CountryUS
Employees555
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.37
Shares Outstanding35,603,153
10 Day Avg. Volume568,311
30 Day Avg. Volume606,180
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 Cap1.78
Enterprise Value/Revenue3.39
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda14.96
Forecast
1Y Price Target
$13.67Price Target Upside71.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Gambling.com Business Overview & Revenue Model
Company DescriptionGambling.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 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 robust revenue growth and strong cash flow generation, which are positive indicators for future expansion. However, declining profit margins and return on equity suggest potential challenges in maintaining profitability. The company's balanced leverage and strong equity position provide a stable financial foundation.Income Statement
Gambling.com shows strong revenue growth with a TTM increase of 6.53%, supported by a high gross profit margin of 94.02%. However, the net profit margin has decreased to 9.66% from 24.12% in the previous year, indicating pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or other expenses impacting earnings.75
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.68, indicating a balanced approach to leveraging. The return on equity has decreased to 10.65% from 24.90%, reflecting reduced profitability. The equity ratio remains strong at 45.21%, showcasing a solid capital structure.70
Positive
Cash Flow
Gambling.com has demonstrated impressive free cash flow growth of 463.09% TTM, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 0.67, although it has decreased from previous levels, indicating a need to monitor cash conversion efficiency.80
Positive
| 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
Negative
7.99
Price Trends
8.77
Negative
10.27
Negative
11.95
Negative
Market Momentum
-0.19
Negative
40.63
Neutral
16.43
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 7.99 is below the 20-day moving average (MA) of 8.17, below the 50-day MA of 8.77, and below the 200-day MA of 11.95, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 16.43 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $4.11B | 90.48 | 27.07% | ― | 26.99% | ― | |
69 Neutral | $244.17M | 4.17 | -12.77% | ― | -4.95% | ― | |
66 Neutral | $281.62M | 19.62 | 10.86% | ― | 27.57% | -40.98% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $310.36M | 497.08 | 2.77% | ― | ― | ― | |
54 Neutral | $663.16M | ― | -113.09% | ― | 2.80% | -108.61% | |
48 Neutral | $571.56M | 40.43 | 3.11% | 4.58% | -21.68% | -94.08% |
* Consumer Cyclical Sector Average
GAMB
Gambling.com
7.99
-1.71
-17.63%
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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.