Gambling.com Reports Strong Q3 Growth Despite Rising Losses
URGENT UPDATE: Gambling.com Group has just announced its financial results for Q3, revealing a significant revenue surge of $39 million, a 21% increase year-on-year. However, this positive growth is overshadowed by a troubling rise in losses, now totaling $3.9 million for the quarter.
The latest figures, reported today, indicate that while Gambling.com’s revenue for the year-to-date has reached $119.2 million—an impressive 30% increase—shareholders faced a stark contrast with a net income decline of 145% from $8.5 million during the same period last year.
Gambling.com blames this decline primarily on “the fair value movement in contingent consideration related to the outperformance of Odds Holdings,” as stated in their financial release. Adjusted net income also fell by 16% to $9.3 million, as rising interest expenses associated with their credit facility took a toll.
Despite these setbacks, the company managed to achieve an adjusted EBITDA of $13 million, a modest 3% increase from last year, although the adjusted EBITDA margin decreased to 33%. Year-to-date adjusted EBITDA totals $42.6 million, reflecting a 25% growth.
The cash flow generated from operating activities saw a 27% drop to $10.9 million for the quarter but increased by 21% to $29.1 million year-to-date. Adjusted free cash flow for Q3 stood at $9.6 million and $28.8 million year-to-date.
In a show of confidence, Gambling.com has made considerable progress in its share-buyback program, repurchasing 562,222 shares for $4.7 million this year alone. In total, 671,998 shares have been repurchased for $5.6 million in 2025, with the potential for an additional $14.4 million under the current buyback plan.
The company also celebrated the acquisition of Spotlight.Vegas and the achievement of the EGR Affiliate of the Year award for the third consecutive time in October.
Looking ahead, Gambling.com has adjusted its FY 2025 guidance, now projecting revenue of $165 million and adjusted EBITDA of $58 million. While this reflects a reduction in expectations, the figures still represent healthy growth of 30% and 19%, respectively.
CEO Charles Gillespie expressed optimism despite the challenges, stating, “The record-breaking revenue demonstrates the resilience of the business despite the persisting headwinds.” He reassured stakeholders that ongoing efforts to diversify traffic sources are expected to bolster growth significantly by 2026.
CFO Elias Mark echoed Gillespie’s sentiment, highlighting the company’s strong adjusted free cash flow generation as a pathway for future investments.
As the gaming industry continues to evolve, Gambling.com remains committed to navigating these challenges while delivering value to its shareholders and customers. Stay tuned for further updates as the company progresses through the financial year.
