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Gambling.com (GAMB)
NASDAQ:GAMB
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Gambling.com
(NASDAQ:GAMB)
79Outperform
Positive Factors
Financial Performance
GAMB continues to prove that it is the exception to the weakness in affiliates more broadly, with strong recurring revenue in both the B2B and B2C segments.
Strategic Developments
The integration of Freebets and OddsHoldings is going very well, with the B2B opportunity of Optic Odds seeing strong success.
Negative Factors
Investor Concerns
The suspicion from investors that GAMB may be considering a secondary offering could be contributing to recent share weakness.
Operational Challenges
With AEBITDA likely trending toward the lower end of the $67M to $69M range, there may be a need for a modest restructuring, targeting a 5% to 10% reduction in headcount.
Gambling.com (GAMB) vs. S&P 500 (SPY)
Market Cap
$432.10M
Dividend YieldN/A
Average Volume (3M)351.95K
Price to Earnings (P/E)12.8
Beta (1Y)0.54
Revenue Growth24.67%
EPS Growth91.06%
CountryUS
Employees555
SectorConsumer Cyclical
Sector Strength73
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.46
Shares Outstanding34,762,897
10 Day Avg. Volume463,474
30 Day Avg. Volume351,948
Financial Highlights & Ratios
PEG Ratio1.91
Price to Book (P/B)3.57
Price to Sales (P/S)0.00
P/FCF Ratio115.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.57Price Target Upside49.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Gambling.com Business Overview & Revenue Model
Company DescriptionGambling.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 MoneyGambling.com makes money primarily through performance-based affiliate marketing agreements with online gambling operators. The company earns revenue by driving traffic and delivering potential customers to these operators' websites. Key revenue streams include cost-per-acquisition (CPA) agreements, where the company is paid a fee for each new customer referred, and revenue share agreements, where Gambling.com receives a percentage of the revenue generated from customers referred to the operators. Significant partnerships with prominent online gambling operators and a robust portfolio of high-ranking websites are critical factors that contribute to its earnings.
Gambling.com Financial Statement Overview
Summary
Gambling.com exhibits strong financial performance with significant revenue and profit growth, robust margins, and a solid equity position. Revenue growth is impressive, and the company maintains high profit margins. The balance sheet is stable with manageable leverage, though the increased debt-to-equity ratio warrants monitoring. Cash flow is strong, but attention to free cash flow management is advised to enhance liquidity.Income Statement
Gambling.com has demonstrated strong revenue growth with a substantial increase from $76.5M in 2022 to $127.2M in 2024, marking an impressive revenue growth trajectory. The gross profit margin remains high, consistently above 90% over the past years. Additionally, the net profit margin rose significantly from 23.8% in 2023 to 24.1% in 2024, indicating effective cost management and profitability improvement. Both EBIT and EBITDA margins are robust, with the EBIT margin improving from 20% in 2023 to 28% in 2024, showcasing operational efficiency. These factors combine to form a solid income statement performance.85
Very Positive
Balance Sheet
The balance sheet shows a healthy equity position with a rising stockholders' equity from $87.1M in 2022 to $123.2M in 2024. The debt-to-equity ratio has increased to 0.23 in 2024, up from 0.01 in 2023, which requires monitoring but remains manageable. The equity ratio is strong at 69%, indicating a stable financial structure. Return on equity improved from 15.4% in 2023 to 24.9% in 2024, reflecting effective utilization of equity in generating profits. Overall, the balance sheet reflects a solid financial footing with moderate leverage.78
Positive
Cash Flow
Operating cash flow has grown significantly, nearly doubling from $18.8M in 2022 to $37.6M in 2024, which supports the company's liquidity. However, free cash flow has decreased from $8.9M in 2023 to $3.8M in 2024, due to increased capital expenditures. The operating cash flow to net income ratio remains strong above 1, showing good cash generation relative to net income. The free cash flow to net income ratio has dropped, indicating lower conversion of net income into free cash flow. While cash flow generation is strong, careful management of capital expenditures is advised to enhance free cash flow.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 127.18M | 108.65M | 76.51M | 42.32M | 27.98M | Gross Profit |
| 119.65M | 99.54M | 73.55M | 42.32M | 27.98M | EBIT |
| 35.67M | 21.78M | 15.85M | 11.39M | 11.13M | EBITDA |
| 42.75M | 22.47M | 10.61M | 15.33M | 15.08M | Net Income Common Stockholders |
| 30.68M | 18.26M | 2.39M | 12.45M | 15.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.73M | 25.43M | 29.66M | 51.05M | 8.22M | Total Assets |
| 178.58M | 154.87M | 138.88M | 91.03M | 45.38M | Total Debt |
| 27.96M | 1.72M | 2.07M | 7.62M | 7.93M | Net Debt |
| 14.23M | -23.71M | -27.59M | -43.42M | -290.00K | Total Liabilities |
| 55.40M | 35.95M | 51.77M | 11.12M | 11.17M | Stockholders Equity |
| 123.19M | 118.92M | 87.11M | 79.91M | 34.21M |
| Cash Flow | Free Cash Flow | |||
| 3.81M | 8.93M | 9.47M | 8.42M | 10.80M | Operating Cash Flow |
| 37.64M | 17.91M | 18.75M | 14.00M | 10.89M | Investing Cash Flow |
| -43.84M | -19.47M | -32.70M | -5.57M | -90.00K | Financing Cash Flow |
| -5.24M | -3.14M | -7.31M | 34.99M | -10.20M |
Gambling.com Technical Analysis
Negative
12.43
Price Trends
12.67
Negative
13.62
Negative
12.19
Positive
Market Momentum
0.23
Positive
42.72
Neutral
38.30
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 12.43 is below the 20-day moving average (MA) of 13.06, below the 50-day MA of 12.67, and above the 200-day MA of 12.19, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 42.72 is Neutral, neither overbought nor oversold. The STOCH value of 38.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAMB.
Gambling.com Risk Analysis
Gambling.com disclosed 54 risk factors in its most recent earnings report. Gambling.com reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gambling.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $432.10M | 12.79 | 25.73% | ― | 24.67% | 91.06% | |
75 Outperform | $4.20B | 31.28 | 21.19% | 3.46% | 22.80% | 281.38% | |
73 Outperform | $505.54M | 10.59 | 49.64% | ― | 6.60% | 778.46% | |
63 Neutral | $32.82B | ― | -46.78% | ― | 22.86% | 30.40% | |
61 Neutral | $6.98B | 11.36 | 2.87% | 3.90% | 2.65% | -21.76% | |
46 Neutral | $86.42M | ― | 229.13% | ― | 7.02% | 74.19% |
* Consumer Cyclical Sector Average
Performance Comparison
GAMB
Gambling.com
12.43
4.18
50.67%
AGS
Playags
12.18
0.59
5.09%
DKNG
DraftKings
36.90
-7.82
-17.49%
GAN
GAN
1.86
0.48
34.78%
SGHC
Super Group (SGHC)
8.38
4.88
139.43%
CDRO
Codere Online
8.00
<0.01
0.13%
Gambling.com Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q1-2025)
| % Change Since: -15.56%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
Gambling.com Group reported a strong start to 2025 with record revenue and EBITDA growth, driven by successful acquisitions and strong subscription and iGaming revenue. However, increased operating expenses and concerns over potential tax increases present challenges.Q1-2025 Updates
Positive Updates
Record All-Time Quarterly Revenue
Revenue rose 39% year-over-year to $40.6 million, with adjusted EBITDA growing 56% to $15.9 million.
Successful Integration of Acquisitions
The acquisition of OddsJam and OpticOdds has significantly expanded the sports data services segment, with expectations of at least 20% growth in adjusted EBITDA from these businesses.
Strong Subscription Revenue Growth
24% of first-quarter revenue came from subscriptions, transforming the business model to include more predictable revenues.
Solid Performance in iGaming Revenue
iGaming revenues rose 24% year-over-year, reflecting solid organic growth.
Global Market Growth
Revenue grew in all geographic regions, with expectations of continued growth for the remainder of 2025.
Negative Updates
Higher Than Expected Operating Expenses
Total operating expenses increased 50% to $28.7 million, primarily due to amortization from acquired intangible assets and other acquisition-related costs.
Slightly Higher Partnership Fees
Partnership fees were higher than expected, affecting the gross profit margin slightly.
Potential Tax Increases in U.S. Markets
Concerns about potential tax increases affecting player lifetime value and overall market dynamics.
Company Guidance
In the first quarter of 2025, Gambling.com Group reported a strong financial performance with record quarterly revenue and adjusted EBITDA. Revenue increased by 39% year-over-year to $40.6 million, while adjusted EBITDA rose by 56% to $15.9 million. Subscription revenue accounted for 24% of the total revenue, marking a significant transformation into a marketing and sports data services company. The company reiterated its full-year guidance with expected revenue of $172 million and adjusted EBITDA of $68 million, reflecting growth rates of 35% and 40%, respectively. The integration of recent acquisitions, OddsJam and OpticOdds, contributed to the robust performance, with projected incremental adjusted EBITDA growth of at least 20% for these acquisitions in 2025. The marketing business also showed notable progress, particularly in the iGaming sector, with a 24% increase in iGaming revenues year-over-year. The company is confident in achieving its strategic objectives, including the goal of reaching $100 million in annual adjusted EBITDA.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.