Shares of Gambling.com Group Limited (NASDAQ: GAMB) plunged 6.11% in pre-market trading on Thursday, despite the company reporting record revenue and adjusted EBITDA for the first quarter of 2025. The sharp decline suggests that investors may have concerns about certain aspects of the financial results or outlook, despite the seemingly positive headline numbers.

Gambling.com Group, a provider of marketing and sports data services for the online gambling industry, announced its Q1 2025 results early Thursday. The company reported record quarterly revenue of $40.6 million, up 39% year-over-year, and adjusted EBITDA of $15.9 million, representing a 56% increase from the same period last year. However, these strong figures were not enough to prevent the stock's significant drop.

While the company reiterated its full-year 2025 guidance, projecting revenue between $170 million and $174 million and adjusted EBITDA between $67 million and $69 million, investors appear to be focusing on other aspects of the report. Possible concerns could include the sustainability of growth rates, increased competition in the online gambling marketing space, or potential regulatory challenges. Additionally, the market may have been expecting even stronger results or guidance, leading to the sell-off despite the record numbers reported.