Key Moments:
- Gambling.com Group reported its highest-ever quarterly revenue of $39m for Q3 2025
- Data services revenue soared to $9.2m, a 304% year-over-year increase
- Company revised its full-year outlook to $165m in revenue and $58m in adjusted EBITDA
Organic Search Challenges Impact Core Business
Gambling.com Group experienced significant challenges in Q3 2025 as search engine disruptions led to a flood of low-quality spam sites, negatively affecting the rankings of established affiliate brands. Because the company’s business model heavily relies on discoverability, these changes immediately impacted performance in certain markets.
Data Services Drive Significant Revenue Growth
The company’s best performance came from its sports data services operations. Both OpticOdds and OddsJam attracted a growing customer base of enterprise clients and subscribers, contributing to a data revenue total of $9.2m – representing a 304% increase from the same period last year. Data services now account for nearly a quarter of Gambling.com Group’s total revenue. Additionally, recurring subscriptions rose, indicating strong engagement among operators and media groups.
| Segment | Q3 2025 Revenue | Year-over-Year Change |
|---|---|---|
| Sports Data Services | $9.2m | +304% |
| Marketing Services | $29.8m | — |
Marketing Services and Customer Acquisition Slow
While data services reported impressive gains, marketing services revenue remained flat at $29.8m. The company acquired over 101,000 new depositing customers during the quarter, down from 116,000 a year ago. Management attributed this decline primarily to reduced search visibility in several non-US markets.
Rising Costs and Shift in Profitability
Gross profit for the quarter increased by 17% to $35.6m. However, the cost of sales doubled to $3.4m as the company diversified traffic acquisition beyond search. Operating costs reached $37m, mainly due to staffing increases from recent acquisitions and expanded investment in the data segment.
The company posted a net loss of $3.9m, contrasting sharply with an $8.5m profit in Q3 of the previous year. The shift was partly driven by contingent consideration related to the performance of Odds Holdings. Adjusted EBITDA achieved a record $13m, equating to a 33% margin and highlighting strong operational performance amid market challenges.
Updated Financial Guidance and Cash Position
Cash flow declined compared to the previous year, with $7.4m in cash on hand at the end of Q3 and access to over $70m in credit. The company continued its share buyback program, repurchasing more than 560,000 shares during the quarter.
In revised guidance, Gambling.com Group now anticipates $165m in revenue and $58m in adjusted EBITDA for the full year. The company identified persistent volatility in search quality as its main risk and stated that diversifying its sources of traffic is a central objective going forward.
Management Perspective and Future Outlook
Despite ongoing market turbulence, management expects to close the year with 30% revenue growth and 19% growth in EBITDA. The company pointed to its progress in expanding into data and subscription-based offerings as essential to building a more stable, defensible revenue base, less vulnerable to fluctuations in search engine algorithms.
Q3 2025 exemplified the challenges of operating in a fast-moving affiliate landscape, prompting Gambling.com Group to accelerate realignment of its marketing activities. The future viability of its growth model will depend in part on the continued success of these efforts to offset risks tied to organic search.
- Author
Daniel Williams
