Shares of Gambling.com Group Limited (GAMB) are surging 5.30% in pre-market trading on Thursday following the company's announcement of record-breaking first-quarter results that exceeded analyst expectations. The online gambling affiliate marketing company reported strong financial performance and reiterated its positive outlook for the full year 2025.
Key highlights from Gambling.com Group's Q1 2025 earnings report include: - Record quarterly revenue of $40.6 million, up 39% year-over-year - Adjusted EBITDA of $15.9 million, increasing 56% compared to Q1 2024 - Adjusted earnings per share (EPS) of $0.32, beating analyst estimates of $0.25 - Sales of $40.63 million, surpassing expectations of $40.06 million
Elias Mark, Chief Financial Officer of Gambling.com Group, expressed confidence in the company's performance, stating, "Our first quarter results include record quarterly revenue of $40.6 million and Adjusted EBITDA of $15.9 million, reflecting year-over-year growth of 39% and 56%, respectively. With the solid start to the year, we remain confident in our full year outlook."
The company has reiterated its guidance for the full year 2025, projecting revenue between $170 million and $174 million, and Adjusted EBITDA between $67 million and $69 million. These figures represent expected year-over-year growth of 35% and 40%, respectively, further fueling investor optimism.
Additionally, Gambling.com Group highlighted its enhanced sports data services platform following the recent acquisitions of OddsJam and OpticOdds. These additions are expected to contribute significantly to recurring subscription revenue, which the company anticipates will account for over 20% of its 2025 revenue. This development is seen as a strategic move to increase revenue visibility and establish a high-margin growth source.
The strong financial results, coupled with the company's positive outlook and strategic acquisitions, appear to be the primary drivers behind the pre-market stock surge. Investors are likely responding favorably to Gambling.com Group's demonstrated ability to exceed expectations and its potential for continued growth in the expanding online gambling market.