Gambling.com (GAMB) AI Stock Analysis

• Market Cap: $268.45M
• Dividend Yield: N/A
• Average Volume (3M): 655.14K
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.72
• Revenue Growth: 27.57%
• EPS Growth: -40.98%
• Country: US
• Employees: 555
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.37
• Shares Outstanding: 35,603,153
• 10 Day Avg. Volume: 775,482
• 30 Day Avg. Volume: 655,138
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.87
• Enterprise Value/Revenue: 3.39
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 14.96
• 1Y Price Target: $13.00
• Price Target Upside: 69.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 69 Neutral
• Price Target: $8.50 ▲(10.82% Upside)

Gambling.com shows strong financial performance with robust revenue growth and cash flow generation. The positive earnings call, highlighting record revenue and strategic growth initiatives, further supports the stock's potential. However, technical indicators suggest a bearish trend, and valuation metrics indicate moderate attractiveness. These factors combined result in an overall balanced outlook for the stock.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion.

Strategic Acquisitions

Strategic acquisitions like Spotlight.Vegas enhance market presence and diversify revenue streams, strengthening competitive advantage.

Cash Flow Generation

Strong cash flow generation provides financial flexibility for reinvestment and strategic initiatives, supporting sustainable growth.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or inefficiencies, which could pressure long-term profitability if not addressed.

Impact of Google Algorithm Update

Algorithm changes affecting search rankings can reduce traffic and revenue, posing a risk to the affiliate marketing model.

Higher Operating Expenses

Rising operating expenses can erode profitability and require careful management to maintain financial health and growth potential.

Gambling.com Business Overview & Revenue Model

Company Description

Gambling.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 Money

Gambling.com primarily generates revenue through affiliate marketing, where it earns commissions for directing traffic to online gambling operators. When users click on links to gambling sites from Gambling.com's platform and subsequently create accounts or place bets, the company receives a percentage of the revenue generated by those users. Key revenue streams include CPA (Cost Per Acquisition) deals, where operators pay a fixed fee for each new customer referred, and revenue share agreements, where Gambling.com earns a percentage of the player's losses. The company also benefits from partnerships with various gambling operators, enhancing its offerings and reach in the market, which in turn contributes to its overall earnings.

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 7.67 is below the 20-day moving average (MA) of 7.88, below the 50-day MA of 8.20, and below the 200-day MA of 11.59, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 41.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAMB.

Gambling.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMB	69 Neutral	$268.45M	18.81	10.86%	―	27.57%	-40.98%
RSI	65 Neutral	$4.29B	92.51	27.07%	―	26.99%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
INSE	61 Neutral	$215.09M	3.67	―	―	-4.95%	―
CDRO	55 Neutral	$304.42M	481.02	2.77%	―	―	―
BALY	54 Neutral	$740.77M	―	-113.09%	―	-1.10%	-1.69%
GDEN	48 Neutral	$589.61M	41.36	3.11%	4.44%	-21.68%	-94.08%

Gambling.com Corporate Events

Gambling.com Completes Acquisition of Spotlight.Vegas

On September 1, 2025, Gambling.com Group Limited, through its subsidiary GDC America, Inc., completed the acquisition of BGMD Holdings LLC, known as Spotlight.Vegas. This strategic move is expected to enhance Gambling.com’s market presence by integrating Spotlight.Vegas’s online booking platform, which offers consumers access to live events and local attractions. The acquisition is anticipated to strengthen the company’s operations and expand its offerings, potentially benefiting stakeholders by increasing the company’s competitive edge in the online gambling and entertainment industry.

Gambling.com Completes Acquisition of Odds Holdings

On January 1, 2025, Gambling.com Group Limited completed the acquisition of Odds Holdings, Inc., which has since been renamed GDC Odds Holdings, Inc. This strategic acquisition is expected to enhance Gambling.com’s market positioning by integrating Odds Holdings’ operations and financials. The report includes audited financial statements for the year ending December 31, 2024, and unaudited pro forma financial information, reflecting the combined company’s financial status and future potential.

Gambling.com Reports Strong Revenue Growth in Q2 2025

In its recent financial disclosure for the period ending June 30, 2025, Gambling.com Group Limited reported a significant increase in revenue, reaching $39.6 million for the quarter, up from $30.5 million in the same period last year. The company’s gross profit also rose, reflecting its strong market position and effective cost management. However, the increase in sales and marketing expenses, as well as technology expenses, indicates ongoing investments in growth and infrastructure. These financial results highlight Gambling.com’s robust performance and strategic focus on expanding its market presence.

Gambling.com Group Reports Record Q2 Results and Acquires Spotlight.Vegas

On August 14, 2025, Gambling.com Group Limited announced record financial results for the second quarter of 2025, with a 30% increase in revenue and a 22% rise in Adjusted EBITDA compared to the previous year. The company also revealed a definitive agreement to acquire Spotlight.Vegas, a Las Vegas-focused booking platform, which is expected to enhance its financial performance in 2026. Additionally, the company expanded its share buyback authorization from $10 million to $20 million, reflecting confidence in its growth trajectory and strategic initiatives.