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Gambling.com Group closed Q3 2025 with its highest quarterly revenue to date. The headline looked strong. The story behind it was more complex.
The company entered the quarter facing a wave of disruption in organic search. Entire markets were flooded with low-quality spam sites, pushing trusted affiliate brands down the rankings. For a business that depends heavily on discoverability, the impact was immediate.
Sports data becomes the engine of growth
The bright spot came from a different part of the business.
Sports data services continued to climb fast. OpticOdds and OddsJam pulled in enterprise clients and new subscribers at a pace, helping data revenue jump to $9.2m. That was a 304% increase year on year and now makes up nearly a quarter of all company revenue.
Recurring subscriptions also rose, showing that operators and media groups are increasingly locked into these tools.
Marketing services, however, flattened at $29.8m. The group still delivered more than 101,000 new depositing customers, but that figure was down from 116,000 last year. The company said the downturn came almost entirely from poor search visibility in several non-US markets.
Costs climb as the business adapts
Gross profit grew 17% to $35.6m, but costs also climbed. The company doubled its cost of sales to $3.4m as it pushed into alternative traffic sources to reduce reliance on search.
Operating costs rose to $37m. Much of this came from staff added through recent acquisitions as well as investment in the data arm.
The bottom line shifted. Gambling.com posted a net loss of $3.9m, compared with an $8.5m profit in Q3 last year. A large part of this came from contingent consideration tied to Odds Holdings over performing.
Adjusted EBITDA reached a record $13m with a margin of 33% , showing strong underlying performance even in a difficult market.
Guidance adjusted as headwinds persist
Cash flow dipped compared with last year, and the group ended Q3 with $7.4m in cash and access to more than $70m in credit.
The company also continued its buyback program, repurchasing more than 560,000 shares during the quarter.
Looking ahead, Gambling.com lowered its full-year outlook to $165m in revenue and $58m in adjusted EBITDA. The group said search-quality volatility remains the biggest challenge and that diversifying traffic sources is now a core priority.
Despite the turbulence, management expects to finish the year with 30% revenue growth and 19% EBITDA growth.
The bigger picture
Q3 showed what happens when a fast-growing affiliate business meets an unpredictable search environment. It also showed why Gambling.com is pushing deeper into data and subscriptions. These revenue streams are stable, defensible and less exposed to algorithm swings.
As the company continues realigning its marketing operations, can Gambling.com build a model strong enough to grow regardless of what happens in search?
Source: NEXT.io
