Shares of Gambling.com Group Limited (NASDAQ: GAMB) plunged 6.11% in pre-market trading on Thursday, despite the company reporting better-than-expected first-quarter 2025 results. The online gambling affiliate marketing company posted record revenue and adjusted EBITDA, but investors appeared to find reasons for concern in the report.

Gambling.com Group reported Q1 adjusted earnings per share of $0.46, significantly beating the analyst consensus estimate of $0.25. Revenue for the quarter came in at $40.63 million, surpassing expectations of $40.06 million and representing a 39% increase year-over-year. The company's adjusted EBITDA reached $15.9 million, up 56% from the same period last year.

Despite the strong financial performance, the stock's sharp decline suggests that investors may have been looking for even more robust growth or found concerning elements in the company's outlook. Gambling.com Group reiterated its full-year 2025 guidance, expecting revenue between $170 million and $174 million and adjusted EBITDA between $67 million and $69 million. The maintained guidance, rather than an increase, could have disappointed some investors who were hoping for an upward revision following the strong Q1 results. Additionally, the market may be reacting to broader concerns about the online gambling industry or potential regulatory challenges, despite the company's solid performance in the quarter.