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Kambi Group plc Class B (SE:KAMBI)
:KAMBI
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Kambi Group
(KAMBI)
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Rating:58Neutral
Price Target:
kr111.00
▼(-1.94% Downside)
Kambi Group's overall stock score reflects a mixed financial performance with strong gross margins but declining profitability and revenue. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock is overvalued given current financial challenges. The earnings call provided some positive strategic developments, but these are tempered by significant revenue and market challenges.
Positive Factors
Strong Gross Margins
High gross margins reflect effective cost control and pricing power, which can sustain profitability even amid revenue challenges.
New Commercial Agreements
New partnerships expand market reach and potential revenue streams, enhancing long-term growth prospects and competitive positioning.
Cost Efficiency Achieved
Cost reductions improve operational efficiency, allowing the company to maintain profitability and reinvest in strategic initiatives.
Negative Factors
Revenue Decline
Declining revenue signals potential market share loss and challenges in maintaining growth, impacting long-term financial health.
Adjusted EBITDA Guidance
Lower EBITDA guidance reflects operational challenges and may limit strategic investments, affecting future growth potential.
Regulatory Challenges
Regulatory hurdles can hinder market expansion and revenue generation, posing long-term risks to business operations.
Kambi Group (KAMBI) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
$3.06B
Dividend YieldN/A
Average Volume (3M)68.23K
Price to Earnings (P/E)32.5
Beta (1Y)0.37
Revenue Growth-5.16%
EPS Growth-48.79%
CountrySE
Employees1,043
SectorConsumer Cyclical
Sector Strength84
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.10
Shares Outstanding29,903,620
10 Day Avg. Volume74,319
30 Day Avg. Volume68,235
Financial Highlights & Ratios
PEG Ratio2.78
Price to Book (P/B)1.46
Price to Sales (P/S)1.49
P/FCF Ratio10.84
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue20.07
Enterprise Value/Gross Profit22.30
Enterprise Value/Ebitda65.22
Forecast
1Y Price Target
$155.02Price Target Upside36.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kambi Group Business Overview & Revenue Model
Company DescriptionKambi Group plc operates as a business-to-business supplier of managed sports betting services to business-to-consumer gaming operators in Europe, the Americas, and internationally. The company's services include compliance, odds-compiling, customer intelligence, and risk management services built on an in-house developed software platform. Kambi Group plc was founded in 2010 and is headquartered in Ta' Xbiex, Malta.
How the Company Makes MoneyKambi generates revenue primarily through a business-to-business (B2B) model, partnering with sportsbook operators to provide its technology and services. The company earns money by charging its partners a percentage of the stakes wagered on betting events, known as a revenue share model. Additionally, Kambi can also offer fixed fees for its services depending on the agreements made with its partners. Key revenue streams include the provision of managed services, proprietary technology solutions, and consulting services to enhance operators' betting offerings. Significant partnerships with various sports betting operators around the world bolster Kambi's earnings, as they expand its reach into new markets and increase overall betting activity through its platforms.
Kambi Group Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Neutral
The call highlighted significant achievements such as new partnerships and cost efficiencies, but these were tempered by revenue declines, adjusted EBITDA guidance, and delays in key projects. While there are positive developments and strategic initiatives, challenges in revenue and market dynamics weigh on the overall outlook.Q3-2025 Updates
Positive Updates
New Commercial Agreements
Since the start of the third quarter, Kambi has signed 12 new commercial agreements, including a notable partnership with Tier 1 operator, Superbet Group.
Acquisition of PAM Source Code
Kambi announced the acquisition of the source code of a player account management platform, which is expected to open new opportunities, particularly in markets like Nevada.
Cost Efficiency Achieved
Kambi's ongoing efficiency program led to a significant cost reduction, with expenses approximately EUR 4 million lower than the same quarter last year.
Strong Operator Trading Margin
The operator trading margin for the quarter was 10.3%, driven by strong margins in July and August.
Positive Cash Flow and Share Buybacks
The underlying cash flow was positive, and despite EUR 8.1 million spent on share repurchases, Kambi ended the period with a cash balance of EUR 45.4 million.
Negative Updates
Revenue Decline
Revenue for Q3 was EUR 37.4 million, representing an 8.1% decrease compared to the previous year, excluding nonrecurring transition fees.
Adjustments to EBITDA Guidance
Due to macroeconomic pressures and delays, full-year EBITDA guidance for 2025 has been adjusted to around EUR 17 million, down from the original guidance of EUR 20 million to EUR 25 million.
Impact of FX and Regulatory Challenges
FX headwinds and stringent regulatory requirements in Brazil have negatively impacted performance, with the weaker U.S. dollar and Colombian peso contributing to a EUR 1.8 million negative impact so far.
Delay in Ontario Lottery Launch
The planned launch with Ontario Lottery has been delayed to early Q1 2026, impacting expected revenue.
Challenges in Brazilian Market
The regulated Brazilian market has developed more slowly than expected, with ongoing issues related to converting players from the pre-regulated market.
Company Guidance
During Kambi's Q3 2025 earnings call, key financial and operational metrics were highlighted. The company adjusted its full-year 2025 EBITDA guidance to approximately EUR 17 million, down from the previous range of EUR 20-25 million, due to macroeconomic pressures, FX headwinds, and delayed launches, notably with Ontario Lottery moved to early Q1 2026. Despite these challenges, Kambi showed robust underlying performance with a positive cash flow and a Q3 revenue of EUR 37.4 million, albeit an 8.1% decrease excluding nonrecurring fees from last year. The adjusted EBITA (acq) was EUR 3.4 million, with a cash balance of EUR 45.4 million post-share buybacks of EUR 8.1 million. The company signed 12 new commercial agreements, including a notable partnership with Superbet Group for its Odds Feed+ product. The operator trading margin stood at 10.3% for the quarter, with turnover down 6% year-over-year due to factors such as FX impacts and regulatory challenges in various markets. Kambi also announced the acquisition of a player account management platform source code, targeting new opportunities in Nevada, and emphasized its ongoing efficiency program, which significantly reduced costs by lowering staff count and relocating roles.Kambi Group Financial Statement Overview
Summary
Kambi Group's financial performance shows strong gross margins and a solid balance sheet with low leverage. However, declining profitability, negative revenue growth, and cash flow challenges highlight potential liquidity issues. The company needs to address revenue growth and profitability to improve its financial health.Income Statement
Kambi Group's income statement shows a mixed performance. The TTM gross profit margin is strong at 90%, indicating efficient cost management. However, the net profit margin has declined to 5.07% from 8.75% in the previous year, reflecting reduced profitability. The revenue growth rate is negative at -3.02% TTM, suggesting a contraction in sales. EBIT and EBITDA margins have also decreased, indicating pressure on operational efficiency.65
Positive
Balance Sheet
The balance sheet is relatively strong with a low debt-to-equity ratio of 0.046, indicating conservative leverage. Return on equity has decreased to 4.87% TTM from 8.57% in the previous year, showing reduced efficiency in generating returns for shareholders. The equity ratio remains stable, reflecting a solid capital structure.72
Positive
Cash Flow
Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -33.59% TTM. The operating cash flow to net income ratio is healthy at 2.03, indicating good cash generation relative to net income. However, the free cash flow to net income ratio has decreased, suggesting less cash available for reinvestment or distribution.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 169.39M | 176.41M | 173.30M | 166.01M | 162.42M | 117.69M |
| Gross Profit | 152.47M | 176.41M | 173.30M | 166.01M | 162.42M | 117.69M |
| EBITDA | 52.14M | 59.47M | 57.51M | 63.51M | 79.21M | 49.13M |
| Net Income | 8.59M | 15.45M | 14.90M | 26.45M | 46.43M | 24.06M |
Balance Sheet | ||||||
| Total Assets | 204.55M | 220.13M | 214.89M | 242.89M | 196.86M | 136.56M |
| Cash, Cash Equivalents and Short-Term Investments | 53.14M | 66.22M | 55.05M | 60.70M | 79.66M | 60.83M |
| Total Debt | 8.00M | 9.49M | 12.99M | 20.68M | 24.77M | 13.21M |
| Total Liabilities | 33.48M | 39.80M | 42.74M | 79.50M | 61.48M | 38.55M |
| Stockholders Equity | 171.07M | 180.32M | 172.15M | 163.39M | 135.38M | 98.02M |
Cash Flow | ||||||
| Free Cash Flow | 18.87M | 24.24M | 18.67M | 20.58M | 47.46M | 19.55M |
| Operating Cash Flow | 47.30M | 53.70M | 49.84M | 49.00M | 72.33M | 38.59M |
| Investing Cash Flow | -29.07M | -29.66M | -42.73M | -64.78M | -39.62M | -19.03M |
| Financing Cash Flow | -17.43M | -13.07M | -17.35M | -1.86M | -14.25M | -3.18M |
Kambi Group Technical Analysis
Positive
113.20
Price Trends
116.73
Negative
126.90
Negative
120.13
Negative
Market Momentum
-1.15
Negative
49.31
Neutral
60.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:KAMBI, the sentiment is Positive. The current price of 113.2 is above the 20-day moving average (MA) of 111.86, below the 50-day MA of 116.73, and below the 200-day MA of 120.13, indicating a neutral trend. The MACD of -1.15 indicates Negative momentum. The RSI at 49.31 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:KAMBI.
Kambi Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | kr128.89B | 10.14 | ― | 4.93% | 2.04% | -0.10% | |
69 Neutral | kr20.07B | 9.00 | 23.20% | 5.08% | 11.84% | 12.09% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | kr6.43B | 76.51 | 2.04% | 2.54% | -2.98% | -30.48% | |
58 Neutral | $3.06B | 32.46 | 4.76% | ― | -5.16% | -48.79% | |
54 Neutral | $196.23M | -0.39 | -19.82% | ― | -25.10% | 82.01% | |
45 Neutral | kr166.38M | ― | -71.93% | ― | 1.98% | 37.81% |
* Consumer Cyclical Sector Average
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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.