Gambling.com Q1 Revenue Flat at $40.4M as EBITDA Margin Drops to 22%
Gambling.com’s Q1 revenue held steady at $40.4 million year-over-year, while adjusted EBITDA margin fell from 39% to 22% and cash flow declined to $3.9 million. It plans $13 million savings via a 25% workforce cut and achieved 13% Sports Data Services growth to $11.2 million alongside 80% AI-generated code adoption.
1. Q1 Financial Performance
Gambling.com reported Q1 revenue of $40.4 million, unchanged year-over-year, while adjusted EBITDA margin declined from 39% to 22%. Cash flow fell to $3.9 million from $10.3 million a year earlier, reflecting higher costs tied to marketing diversification and regulatory headwinds.
2. Strategic Restructuring Plan
The company initiated a strategic restructuring to reduce headcount by approximately 25%, targeting $13 million in annual savings, with half expected to materialize in 2026. This plan aims to streamline operations and reallocate resources toward growth initiatives.
3. Segment and AI Adoption Growth
Sports Data Services grew 13% to $11.2 million, marking its highest share of total revenue. Non-SEO marketing revenue surpassed SEO for the second quarter, OpticOds new deals climbed 94%, and 80% of new code is now AI-generated to boost productivity.
4. Regulatory Challenges and Outlook
Regulatory changes in the UK and Finland pressured SEO traffic and revenue share agreements, though mid-April data indicates a rebound in UK SEO visits. Management is monitoring these trends but has not updated full-year guidance.