Shares of Gambling.com Group Limited (GAMB) surged 7.43% in after-hours trading on Thursday, following the release of the company's strong first-quarter 2025 financial results. The online gambling affiliate reported record quarterly revenue and earnings that exceeded analyst expectations.

For Q1 2025, Gambling.com Group reported revenue of $40.6 million, marking a 39% increase from $29.2 million in the same period last year. This surpassed the analyst consensus estimate of $40.06 million. Adjusted earnings per share came in at $0.46, significantly beating the analyst estimate of $0.25 and showing a 130% increase from $0.20 in Q1 2024. The company's Adjusted EBITDA also saw impressive growth, reaching $15.9 million, up 56% year-over-year.

The strong performance was attributed to the company's expanded suite of sports data services following the acquisition of OddsJam and OpticOdds. Gambling.com Group's CEO, Charles Gillespie, highlighted the increased revenue visibility and high-margin growth potential from these new offerings. Despite the positive results, Macquarie lowered its price target on Gambling.com to $18 from $19, while maintaining an Outperform rating on the shares. The company reiterated its full-year 2025 guidance, expecting revenue between $170 million and $174 million and Adjusted EBITDA between $67 million and $69 million.