Gambling.com Group (GAMB) Stock Crashes After Record Q3 2025 Earnings and Guidance Cut

Gambling.com Group Limited (GAMB) delivered record third‑quarter 2025 revenue and adjusted EBITDA before the U.S. market opened on Thursday — but a cautious outlook and ongoing search-traffic headwinds sent the affiliate marketing and sports data stock plunging more than 20% in early trading. ^[1]

By mid‑morning, GAMB was trading near $5.08, down roughly 25–26% on the day and more than 70% below its 52‑week high around $17, according to live quote data and analyst dashboards. ^[2]

Below is a full breakdown of everything investors need to know about Gambling.com’s Q3 2025 results, today’s guidance update, and what it could mean for GAMB stock.

Q3 2025: Record Revenue, Net Loss and Strong Cash Generation

Gambling.com Group reported results for the quarter ended September 30, 2025, highlighting both impressive growth and some mounting pressures. ^[3]

Headline numbers

Revenue:$38.98 million, up 21% year‑over‑year (Q3 2024: $32.12 million). ^[4]
IFRS Net income: Swung to a net loss of $3.86 million vs. net income of $8.51 million a year ago, driven largely by fair‑value movements on contingent consideration linked to prior acquisitions and higher operating costs. ^[5]
IFRS diluted EPS:–$0.11 vs. +$0.24 in Q3 2024. ^[6]
Adjusted net income:$9.3 million, down 16% from $11.1 million (adjusted EPS $0.26 vs. $0.31). ^[7]
Adjusted EBITDA:$13.0 million, a 3% increase year‑over‑year, with margin of 33% vs. 39% in the prior‑year quarter. ^[8]
Operating cash flow:$10.9 million (down from $14.9 million).
Adjusted free cash flow:$9.6 million, representing around 74% conversion from adjusted EBITDA, but down from $14.2 million in Q3 2024. ^[9]

On a year‑to‑date basis (nine months ended September 30, 2025), Gambling.com has generated $119.2 million in revenue (up 30% vs. 2024) and $42.6 million in adjusted EBITDA (up 25%), even as IFRS net income has turned into a modest loss due mainly to fair‑value and non‑cash items. ^[10]

Management emphasised that record revenue and EBITDA “show the power of our business” despite a tougher environment for search‑driven traffic, and highlighted the company’s ability to keep generating substantial free cash flow. ^[11]

Sports Data Services Surge While Marketing Feels Search Headwinds

Gambling.com Group now reports two major pillars of its business: marketing services (its legacy affiliate operations in iGaming and sports betting) and sports data services (OpticOdds, OddsJam, RotoWire and related B2B/data offerings). ^[12]

Sports data: the growth engine

Sports data services revenue jumped roughly 304% year‑over‑year to about $9.2 million in Q3 2025. ^[13]
This segment now accounts for 24% of total quarterly revenue, up from single digits just a year ago, driven largely by OpticOdds and OddsJam. ^[14]
A large portion of this revenue is recurring subscription income, giving the group higher visibility and stickier relationships with sportsbook operators and B2B partners. ^[15]

Executives repeatedly positioned sports data as the “fastest growing part of our business” and a multi‑billion‑dollar market where Gambling.com sees clear product‑market fit. ^[16]

Marketing: spammy search results bite into growth

By contrast, the marketing services business delivered relatively flat revenue year‑on‑year:

Marketing services revenue: approx. $29.8 million, roughly in line with Q3 2024.
New depositing customers (NDCs): Just over 101,000, down from 116,000 a year earlier. ^[17]

The key culprit, according to management, is a deterioration in organic search quality in several non‑U.S. markets, where the proliferation of low‑quality spam sites has crowded out higher‑quality affiliate content in search results. ^[18]

To respond, Gambling.com has:

Increased spending to diversify traffic sources beyond traditional SEO.
Absorbed higher cost of sales as it experiments with paid media and new acquisition channels. ^[19]

Those efforts support long‑term resilience but weighed on Q3 margins, contributing to the decline in adjusted EBITDA margin from 39% to 33%. ^[20]

Spotlight.Vegas and M&A: Building a Broader Betting & Entertainment Ecosystem

Q3 wasn’t just about organic growth. Gambling.com also closed its acquisition of Spotlight.Vegas, a Las Vegas‑focused ticketing and experiences platform, through its GDC America subsidiary. ^[21]

Key points on Spotlight.Vegas:

The deal structure includes $8 million in cash at closing plus up to $22 million in performance‑based earn‑outs through 2027. ^[22]
Spotlight.Vegas generated over $30 million in ticket sales in 2024 and is projected to contribute around $8 million in revenue in 2026 with at least $1.4 million in incremental adjusted EBITDA. ^[23]

Combined with earlier acquisitions like OddsJam and OpticOdds, management sees a flywheel where:

Content and comparison sites (Gambling.com, Casinos.com, Bookies.com) feed traffic and bettors;
Data products help both consumers and operators improve betting performance;
New verticals like live entertainment through Spotlight.Vegas expand the group’s addressable market beyond pure gambling. ^[24]

Full‑Year 2025 Guidance Cut to $165 Million: Why the Market Panicked

Alongside Q3 numbers, Gambling.com lowered its full‑year 2025 outlook, which appears to be the main trigger for today’s stock sell‑off.

New guidance (as of November 13, 2025)

Management now expects for FY 2025: ^[25]

Revenue: ~$165 million (previously higher, based on August guidance).
Adjusted EBITDA: ~$58 million.
Revenue growth of roughly 30% year‑over‑year, with adjusted EBITDA up about 19% vs. 2024.

The guidance revision is driven mainly by:

Persistent SEO headwinds from low‑quality search results and spammy websites, especially outside the U.S.;
Higher cost of sales tied to the accelerated push into alternative traffic channels;
A slower‑than‑expected normalization in organic search quality across major markets. ^[26]

MarketScreener and other data providers framed the change as a formal guidance cut, noting that the new revenue figure is below prior company commentary and below earlier analyst expectations. ^[27]

Earnings Beat on EPS, Miss on Revenue vs. Expectations

Heading into the print, Wall Street expected Gambling.com’s Q3 2025 results to be solid:

Consensus estimates (pre‑report): about $41.25 million in revenue and $0.17 in EPS. ^[28]

The actual results came in mixed:

EPS (non‑IFRS / adjusted):$0.26, roughly $0.09–0.10 above consensus, a beat of ~50%. ^[29]
Revenue:$38.98 million, about $2.3 million below market expectations, a miss of roughly 5–6%. ^[30]

Multiple outlets — including Investing.com, ChartMill, GuruFocus and TipRanks — described the quarter as a “mixed” result: record revenue and earnings strength offset by a revenue miss and a cut to full‑year guidance. ^[31]

GAMB Stock Reaction: From High‑Growth Darling to Oversold?

The market’s response to today’s news was swift and brutal:

Premarket: Shares fell roughly 18–20%, trading around $5.45 shortly after the release, according to earnings‑call transcript coverage. ^[32]
Early session (around 9:50 a.m. EST): GAMB traded near $5.08, down about 25–26% on the day. ^[33]
Intraday indications: Some data snapshots show the stock as low as about $5.05, implying a single‑day drop north of 25%. ^[34]

GuruFocus summarised the move as a 19%+ decline to roughly $5.50 immediately following the earnings and guidance revision, while also noting the company’s historically strong revenue growth, high gross margins and solid operating metrics. ^[35]

Despite today’s plunge, analyst dashboards still show:

A “Strong Buy” consensus rating across eight covering analysts, with an average price target around $15.13, implying nearly 200% upside from current levels — though most of these targets pre‑date today’s sell‑off. ^[36]
More recent rating updates skewing more cautious: TipRanks notes the latest published rating is a Hold with an $8.50 target, and several firms, including Truist, have already trimmed price targets in prior months. ^[37]

In short, the market appears to be rapidly repricing GAMB from a high‑growth affiliate/data compounder toward a “show me” story that must prove it can navigate changing search algorithms and maintain growth without sacrificing profitability.

Balance Sheet, Buybacks and Cash Flow: Some Offsetting Positives

Beneath the headline guidance cut, Gambling.com’s balance sheet and capital allocation tell a more constructive story:

The company ended Q3 with around $7.4 million in cash and $70.5 million of undrawn capacity on its credit facility, providing substantial financial flexibility. ^[38]
Year‑to‑date, Gambling.com generated about $29 million in adjusted free cash flow, essentially flat year‑over‑year despite the changing environment. ^[39]
The company repurchased 562,222 shares during the quarter for $4.7 million, bringing year‑to‑date buybacks to nearly 672,000 shares and leaving $14.4 million remaining under its existing authorization. ^[40]

GuruFocus’ quantitative metrics still show: ^[41]

Healthy gross margins north of 90%;
Double‑digit operating and net margins on a trailing basis;
A price‑to‑sales and price‑to‑book ratio that sit near multi‑year lows;
An Altman Z‑Score in the “grey zone” — indicating some risk but not a distressed balance sheet.

Those data points help explain why management felt comfortable both expanding its M&A activity (Spotlight.Vegas) and stepping up buybacks even as the share price weakened earlier in the year.

What Management Said About 2026 and Beyond

On the Q3 2025 earnings call, executives tried to reassure investors that the issues hitting the marketing segment are temporary rather than structural: ^[42]

They reiterated confidence that search‑quality problems and spammy results will eventually be cleaned up, which should benefit higher‑quality content platforms such as Gambling.com’s brands.
For 2026, management broadly guided to:
- Low‑teens growth in the marketing business once conditions normalize;
- High‑teens growth (or better) in sports data services;
- Mid‑30% adjusted EBITDA margins for the group.

The call also emphasised:

An ongoing push to diversify traffic sources (paid media, direct‑to‑consumer, partnerships).
Continued investment into product differentiation, particularly within sports data tools and betting‑adjacent services, with management likening their approach to building a “so‑good‑it‑sells‑itself” product suite. ^[43]

Key Risks and Opportunities for GAMB Investors

For investors trying to decide whether today’s sell‑off represents a bargain or a value trap, several themes stand out.

Bullish arguments

High‑growth, high‑margin sports data engine
The data segment is growing triple‑digits and is already nearly a quarter of revenue, with a heavy mix of recurring subscription income and strong margins. ^[44]
Diversified revenue base across 19+ national markets and multiple brands
From Gambling.com and Casinos.com to OddsJam and RotoWire, the group combines consumer brands with B2B services, reducing reliance on any single operator or geography. ^[45]
Robust cash generation and flexible balance sheet
High EBITDA margins, solid free‑cash‑flow conversion and available credit capacity give the company options to keep investing and buying back stock even in a tougher macro or regulatory environment. ^[46]

Bearish arguments

Reliance on search and evolving algorithms
A meaningful portion of marketing revenue still depends on organic search traffic, which can be impacted by spam, algorithm updates and changing user behavior — as Q3 clearly demonstrated. ^[47]
Volatile stock and sentiment
GAMB shares have shown high volatility in 2025, with sharp reactions to earnings and guidance changes. Recent downgrades — including a cut to “Hold” by several analysts and a D‑range rating from Weiss — show sentiment can turn quickly. ^[48]
Regulatory and tax risk
Changes in gambling regulation or taxation in key markets (e.g., the U.K. and North America) could alter player lifetime values and reduce operators’ marketing budgets, feeding through to affiliate partners like Gambling.com. ^[49]

Bottom Line: High‑Quality Growth Story, Now on the Defensive

As of November 13, 2025, Gambling.com Group looks like a paradox:

Operationally, it continues to grow revenue and adjusted EBITDA at healthy double‑digit rates, powered by a rapidly scaling sports data business and strong cash generation. ^[50]
Financially, the balance sheet and free cash flow provide real optionality — from M&A to buybacks.
But in the market, GAMB now trades like a company with a broken story, after yet another quarter where guidance came under pressure and search‑related headwinds overshadowed positive fundamentals.

For investors:

Short‑term traders may see continued volatility as the market digests the guidance cut and watches how organic traffic trends evolve into Q4.
Long‑term holders will likely focus on whether the sports data business can keep compounding and whether the marketing arm can return to sustainable growth once search dynamics normalize.

Either way, today’s Q3 2025 report and guidance revision mark a turning point: from here, Gambling.com must prove that its multi‑brand, multi‑segment model can thrive even when one of its biggest acquisition channels — search — stops playing nice.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Always do your own research or consult a licensed financial advisor.

CRAZY $7,190,000 GAIN OFF $50,000!!! | WallStreetBets trading Gamestop Stock