By Dean Seal

Shares of Gambling.com Group slumped after the company said it was cutting a quarter of its headcount and lowering full-year guidance.

The stock tumbled 27% to $3.05 after hours. It had already fallen 24% year-to-date when the market closed Thursday.

The provider of digital marketing for online gambling companies said it is shedding 25% of its workforce in an effort to save $13 million annually. Kevin McCrystle, the incoming chief executive, said the restructuring comes as the company works to integrate AI into its workflows.

The Charlotte, N.C.-based company also said that it is lowering its revenue guidance for the full year to between $165 million and $170 million. Earlier this year, it set the target at $170 million to $180 million.

The downshift comes after revenue in the first quarter came in at $40.4 million, about flat year over year, as gains in its sports data services business were offset by declines in its marketing services unit.

The company reported a first-quarter loss of $1.2 million, or 3 cents a share, compared with a profit of $11.2 million, or 31 cents a share, in the same period a year earlier.

Operating expenses meanwhile rose 12% to $28.2 million, which the company attributed to higher subscription costs from increased AI usage and higher external marketing expenses tied to its traffic diversification strategies.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

May 14, 2026 18:00 ET (22:00 GMT)

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