The super affiliate posted a record Q1 with revenue hitting $40.6 million, reflecting a 39% year-on-year increase from $29.2 million.
Its gross profit increased by 42% to $38.4 million from $27.0 million. Adjusted EBITDA for the quarter rose by 56% to $15.9 million, reflecting a margin of 39% compared to the $10.2 million and 35% margin achieved in Q1 2024. Operating cash flow grew by 30% to $11.4 million from $8.8 million, while free cash flow increased by 25% to $10.3 million, indicating growth in adjusted EBITDA partly offset by movements in working capital.
In addition, the company delivered more than 138,000 new depositing customers (NDCs) in the quarter, reflecting a 29% year-on-year increase, though the number decreased from the over 145,000 NDCs it reported in Q4 2024.
Acquisition success
The affiliate’s CEO and co-founder, Charles Gillespie, highlighted that the group entered 2025 with the completion of OddsJam and OpticOdds’ acquisition, which it bought for up to $160 million to provide “an expanded suite of sports data services”. It has since made “substantial progress” on integrating the two platforms into the overall business, and the products are “performing strongly as expected”.
The company attributed its 405% year-on-year revenue growth in sports data subscription services, amounting to $9.9 million, to the acquisition. Recurring subscription revenue represented 24% of its Q1 revenue and is expected to account for over 20% of its 2025 revenue, according to Gillespie.
Total operating expenses, however, grew 49% to $28.4 million, primarily due to increased people costs and higher amortisation related to the acquisition of Freebets.com and related assets, alongside OddsJam and OpticOdds.
Sector breakdown
Gambling.com Group reported a slowdown in the North American sector in Q4 2024, with revenue declining 24% year-on-year to $15.6 million, mirroring the struggles other affiliates faced in the market. It has since rebounded from the slump as sector revenue grew 42% to $21 million in Q1 2025, compared to the $14.8 million recorded in the prior-year period.
Revenues from all other geographical regions grew during the quarter, with the UK and Ireland reporting a 24% increase from $8.9 million to $11.1 million. Other European markets saw a 54% rise from $3.9 million to $5.9 million, while revenue from the rest of the world surged 63%, from $1.6 million to $2.6 million.
Despite the significant growth in the affiliate’s subscription sector, performance marketing remains its primary income source, generating $25.7 million, an increase of 10% year-on-year from $23.4 million. Revenue from advertising and other services rose by 29% from $3.9 million to $5.0 million.
Overall, sports revenue rose by 68% to $15.4 million from $9.1 million, while the casino sector generated $24.6 million, reflecting a 24% increase from $19.8 million.
Reiterating targets
The group previously outlined its 2025 financial targets in its FY24 results, aiming for annual revenue between $170 million and $174 million, as well as adjusted EBITDA of $67 million to $69 million, excluding any benefits from sports betting legalisations in new US states.
Elias Mark, Gambling.com Group CFO, reiterated the targets and said the company remains “confident” in its full year outlook, with the midpoints of its guidance for revenue of $172 million and $68 million in adjusted EBITDA, representing year-on-year growth of 35% and 40%, respectively.
Gillespie added that despite “the unpredictable macro environment”, the group continues “to expect 2025 to be another year of record revenue, adjusted EBITDA and free cash flow” as its services “address critical problems for customers” and the igaming industry “is typically insulated from the gyrations of the global economy”.