Gambling.com Group has published its financial results for the third quarter ending 30 September, 2025.
Revenue increased 21% year-on-year for a total of $38.98m, while gross profit increased 17% to $35.6m.
However, the net income went from $8.5m to a net loss of $3.9m in a 145% decrease, which was reflected in a 146% dip in net loss per share.
The operating loss also increased 115% to $1.4m, while the cost of sales increased 103% to $3.4m.
Adjusted EBITDA rose 3% to $13m, but cash flows generated by operating activities fell 27% to $10.9m.
Charles Gillespie, Gambling.com Group CEO and Co-Founder, commented: "Our record third quarter revenue and adjusted EBITDA show the power of our business, including its ability to generate substantial adjusted free cash flow, even in the face of persisting, albeit temporary, challenges within the search channel of our marketing business.
"Primarily driven by strong growth in enterprise sales, our sports data services business continued to outperform our expectations with revenue increasing more than 300% year-over-year and accounting for 24% of total revenue."
During this period, Gambling.com Group acquired Spotlight.Vegas, an online booking platform for live events and local attractions in September, and delivered more than 101,000 new depositing customers (NDCs) to clients.
However, this was compared to the 116,000 NDCs in the same quarter last year.
The company explained that the negative results in the financial reports were due to poor organic search dynamics during this period, the cost of sales related to the acquired OpticOdds and OddsJam businesses and higher marketing costs associated with traffic source diversification.
However, he went on to explain that: "The outperformance in our sports data services business is partially offset by the impact to our marketing business from low-quality search results related to the proliferation of spam websites particularly in non-US markets."
As such, Gambling.com Group has adjusted its full-year guidance to reflect revenue of approximately $165m and adjusted EBITDA of $58m.
The company's prior full-year guidance included an expectation that more progress would have been made against spam websites than has been seen to date.
"These headwinds, which began in July, have persisted into the fourth quarter, longer than we initially expected. Despite this near-term challenge, we remain confident that these poor search quality issues will be addressed which when combined with our accelerated initiatives to diversify traffic sources, positions the marketing business to grow in 2026."
Just over half of all revenue this quarter came from North America, with $19.8m coming from this region
