Gambling.com Group Limited Q4 FY2025 earnings call

Charles mentioned the thriving sports data services business with high growth, marketing business reinventing due to SEO pressure, scaling CRM, offering interactive content, expanding social media audience. Elias reviewed fourth quarter and full year financial details, including revenue growth, cost of sales, adjusted EBITDA, and guidance for 2026. Also discussed product enhancements for sports data services on consumer and enterprise sides, and restructuring related to acquisition contingent consideration.

Fourth quarter revenue reached a record $46.2 million, up 31% year-over-year. Adjusted EBITDA rose 5% year-over-year to $15.5 million. Sports Data Services business grew 29% sequentially and 440% year-on-year in Q4 to $11.8 million, accounting for 26% of total revenue, the highest percentage yet. Full year revenue and adjusted EBITDA were up 30% and 19% respectively, and adjusted free cash flow was $36.3 million. For 2026, revenue is expected to be in the range of $170 million to $180 million and adjusted EBITDA in the range of $50 million to $58 million.

2026 revenue expected to be $170 million to $180 million. Adjusted EBITDA expected to be $50 million to $58 million. Affected by poor organic search dynamics and regulatory headwinds. Adjusted EBITDA margin lower in first half and higher in second half due to investments in marketing business diversification.

Challenges with search rankings, impact of artificial intelligence on media and digital landscape, regulatory changes in U.K. and Finland affecting marketing business, Google search quality issues like offshore spam and negative SEO attacks.

Q: Sticking on kind of the guidance to end Elias, it's U.K. tax increases going to effect in April. Thoughts on the market on what you're seeing.

A: Kevin said some brands may leave the market but it's still robust, strategies will persist.

Q: Curious to get your thoughts on the [Genius Legends] deal and if you see any implications for, I guess, how you think about your strategy?

A: Charles said Legend is a great affiliate business, highlights synergies between sports data and marketing assets.

Q: Charles, you mentioned earlier the version of a new product for marketing that is not discussable for competitive reasons, which is completely understandable. But maybe just talking around it a little bit on the degree to which you're rolling that out is impacting the EBITDA guidance for this year?

A: Elias said included CapEx and OpEx related to new product with limited revenue assumptions.