Breaking Down Gambling.com Group Limited (GAMB) Financial Health: Key Insights for Investors

Are you keeping a close watch on Gambling.com Group Limited (GAMB) and wondering about its financial stability? Did you know that in 2024, the company achieved a record revenue of approximately $127.1 million and a net income of about $30.5 million? With an impressive adjusted EBITDA of $48.5 million, reflecting a 38% margin, and free cash flow soaring to $41.5 million, how sustainable is this growth? Let's delve into the key financial insights that can help investors like you make informed decisions.

Gambling.com Group Limited (GAMB) Revenue Analysis

Understanding Gambling.com Group Limited (GAMB)'s financial health requires a close examination of its revenue streams, growth, and segment contributions. A detailed look into these aspects provides investors with key insights into the company’s performance and future prospects. For further information, you can also check: Breaking Down Gambling.com Group Limited (GAMB) Financial Health: Key Insights for Investors.

Gambling.com Group Limited (GAMB) generates revenue primarily through these sources:

• Online Gambling Affiliation: Earning commissions by directing users to online gambling operators.
• Media Partnerships: Collaborating with media outlets to provide gambling-related content.

Analyzing year-over-year revenue growth rates reveals the company's historical performance and trends. For instance, examining the percentage increase or decrease in revenue over the past few years can highlight periods of strong growth or potential challenges. In 2024, Gambling.com Group reported a revenue of $109.3 million, marking a 24% increase compared to $88.1 million in 2023. This growth was primarily driven by strong performance in North America, particularly in states with newly regulated online sports betting markets.

To provide a clearer picture, here is a breakdown of Gambling.com Group Limited's revenue by region for 2024:

The North American market is the largest revenue contributor. The United Kingdom and Ireland also represent a significant portion, while the rest of the world contributes a smaller percentage.

Examining significant changes in revenue streams helps identify emerging trends and strategic shifts. For example, Gambling.com Group's increasing focus on the North American market, driven by the legalization of online sports betting in various states, has significantly boosted revenue. Monitoring these shifts is crucial for assessing the company's adaptability and growth potential.

Gambling.com Group Limited (GAMB) Profitability Metrics

Assessing the profitability of Gambling.com Group Limited (GAMB) involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends in profitability over time and comparisons with industry averages.

Based on the 2024 financial year data, Gambling.com Group Limited (GAMB) reported a gross profit of $76.5 million. This figure represents the revenue remaining after deducting the cost of revenue. The gross profit margin, calculated as gross profit divided by revenue, was approximately 77.4% for the same period.

Operating profit, which is earnings before interest and taxes (EBIT), stood at $17.1 million for 2024. This indicates the profit earned from the company's core business operations. The operating profit margin, calculated as operating profit divided by revenue, was about 17.3%.

Net profit, or net income, reflects the company's profit after all expenses, including interest and taxes, have been deducted. For the year 2024, Gambling.com Group Limited (GAMB) reported a net profit of $13.7 million. The net profit margin, calculated as net profit divided by revenue, was approximately 13.9%.

Here's a summary of Gambling.com Group Limited's profitability metrics for 2024:

Analyzing these figures over time can reveal important trends in the company's profitability. For example, consistent growth in gross profit margin may indicate improved cost management or increased pricing power. Similarly, increasing operating profit margins suggest enhanced operational efficiency. Fluctuations in net profit margin can reflect changes in interest expenses, tax rates, or other non-operating factors.

Operational efficiency is also reflected in the company's cost management practices. A high gross margin suggests effective control over the cost of revenue. Monitoring trends in these metrics helps in understanding the sustainability and potential for future profitability improvements.

More insights can be found here: Breaking Down Gambling.com Group Limited (GAMB) Financial Health: Key Insights for Investors

Gambling.com Group Limited (GAMB) Debt vs. Equity Structure

Understanding how Gambling.com Group Limited (GAMB) manages its debt and equity is crucial for investors. It provides insights into the company's financial stability and growth strategies. This involves looking at the levels of debt, how they compare to equity, and any recent activities in debt management.

As of the fiscal year 2024, Gambling.com Group Limited (GAMB) showcases the following financial data points:

• The company's total debt stands at $46.72 million.
• Its total equity is valued at $193.97 million.

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. For Gambling.com Group Limited (GAMB), the debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Debt / Total Equity = $46.72 million / $193.97 million = 0.24

A debt-to-equity ratio of 0.24 indicates that Gambling.com Group Limited (GAMB) has a relatively low level of debt compared to its equity. This suggests a more conservative financial structure.

Here's a more detailed breakdown presented in a table:

Generally, a lower debt-to-equity ratio can be seen as more favorable, indicating less risk. However, it's essential to compare this ratio with industry standards to get a comprehensive understanding. Different industries have different norms regarding debt levels.

Gambling.com Group Limited (GAMB) seems to be balancing its debt financing and equity funding effectively, maintaining a stable financial structure. Recent activities such as debt issuances, credit ratings, or refinancing can provide additional insights into the company's financial strategy. Reviewing these factors helps in assessing the company's approach to funding growth and managing financial obligations.

Further insights into the company's investor profile can be found here: Exploring Gambling.com Group Limited (GAMB) Investor Profile: Who’s Buying and Why?

Gambling.com Group Limited (GAMB) Liquidity and Solvency

Understanding Gambling.com Group Limited's (GAMB) financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. These aspects are vital for investors assessing the risk and sustainability of their investment.

Assessing Gambling.com Group Limited's Liquidity:

Analyzing liquidity involves several key metrics and financial statements:

• Current and Quick Ratios: These ratios provide insights into the company's ability to cover its current liabilities with its current assets.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps in understanding the efficiency of short-term asset management.
• Cash Flow Statements Overview: Examining cash flow from operating, investing, and financing activities reveals the sources and uses of cash, which directly impacts liquidity.

By evaluating these components, investors can identify potential liquidity concerns or strengths, which are crucial for making informed decisions about Gambling.com Group Limited (GAMB).

Liquidity Positions: Current and Quick Ratios

The current and quick ratios are fundamental indicators of a company's liquidity. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure. A higher ratio generally indicates better liquidity.

Analysis of Working Capital Trends

Working capital, defined as current assets less current liabilities, reflects a company's operational liquidity. Monitoring the trend of working capital can reveal whether the company is efficiently managing its short-term assets and liabilities.

Cash Flow Statements Overview

Cash flow statements provide a comprehensive view of all cash inflows and outflows. These statements are divided into three main activities:

• Operating Activities: Cash generated from the company's core business operations.
• Investing Activities: Cash used for investments in assets, such as property, plant, and equipment.
• Financing Activities: Cash flows related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths

An analysis of Gambling.com Group Limited's (GAMB) liquidity involves identifying potential concerns or strengths. For instance, a declining current ratio or negative operating cash flow could signal liquidity issues. Conversely, a consistently high current ratio and positive operating cash flow would indicate strong liquidity.

Here is more information: Breaking Down Gambling.com Group Limited (GAMB) Financial Health: Key Insights for Investors

Gambling.com Group Limited (GAMB) Valuation Analysis

Assessing whether Gambling.com Group Limited (GAMB) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios (if applicable), and analyst consensus.

Currently, detailed P/E, P/B, and EV/EBITDA ratios for Gambling.com Group Limited are not uniformly available across all financial data sources. Real-time data discrepancies can occur due to differing calculation methodologies and reporting periods. Always refer to the latest financial statements and reputable financial data providers for the most accurate information.

Analyzing the stock price trends of Gambling.com Group Limited (GAMB) over the past 12 months provides insights into market sentiment and company performance. As of April 2025, the stock has experienced notable volatility. For instance, GAMB’s stock demonstrated a fluctuating pattern throughout 2024, reflecting broader market adjustments and specific company-related news.

Here’s a summary of GAMB's stock performance:

• One-Year Target Estimate: The one-year target estimate suggests a potential for growth, with analysts projecting an average price target of $14.50.
• Analyst Ratings: The consensus among analysts is generally positive, with a mix of 'Buy' and 'Hold' ratings.
• Recent Developments: Monitor Gambling.com Group Limited's financial releases and investor updates for any revisions to guidance or significant news that could impact the stock's valuation.

Given that Gambling.com Group Limited does not currently offer dividends, dividend yield and payout ratios are not applicable in this valuation analysis.

Analyst consensus is a crucial factor in determining stock valuation. Recent ratings and price targets from financial analysts provide a consolidated view of market expectations:

These ratings reflect analysts' expectations based on Gambling.com Group Limited's financial performance, market position, and growth prospects. Keep in mind that analyst ratings are just one component of a comprehensive valuation analysis and should be considered alongside other financial metrics and qualitative factors.

For further insights into the investors behind Gambling.com Group Limited, explore: Exploring Gambling.com Group Limited (GAMB) Investor Profile: Who’s Buying and Why?

Gambling.com Group Limited (GAMB) Risk Factors

Gambling.com Group Limited (GAMB) faces a variety of internal and external risks that could impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Here's a breakdown of key risk areas:

• Industry Competition: The online gambling market is intensely competitive. Gambling.com Group Limited (GAMB) contends with numerous other affiliate marketing companies and direct operators, some of which may have greater financial resources or stronger brand recognition. Increased competition could lead to higher marketing expenses and reduced market share.
• Regulatory Changes: The online gambling industry is subject to evolving and often unpredictable regulatory environments across different jurisdictions. Changes in regulations, such as increased taxes, stricter licensing requirements, or outright bans on online gambling, could significantly impact Gambling.com Group Limited (GAMB)'s revenue and profitability.
• Market Conditions: Economic downturns or shifts in consumer behavior can affect the demand for online gambling services. A decrease in disposable income or a change in entertainment preferences could lead to reduced traffic to Gambling.com Group Limited (GAMB)'s websites and, consequently, lower revenue.

Recent filings and earnings reports may highlight specific operational, financial, or strategic risks. These could include:

• Reliance on Key Partnerships: Gambling.com Group Limited (GAMB) relies on partnerships with online gambling operators to generate revenue. The loss of a major partner or a significant change in the terms of these partnerships could adversely affect the company's financial performance.
• Technology and Security Risks: The company's operations depend on the reliability and security of its technology infrastructure. Cyberattacks, data breaches, or system failures could disrupt operations, damage the company's reputation, and result in financial losses.
• Acquisition and Integration Risks: Gambling.com Group Limited (GAMB) has grown through acquisitions, and integrating acquired businesses can be complex and challenging. Failure to successfully integrate acquisitions could lead to operational inefficiencies and a failure to realize expected synergies.

Mitigation strategies or plans Gambling.com Group Limited (GAMB) might employ to address these risks could include:

• Diversification of Revenue Streams: Reducing reliance on a single market or a small number of partners can help mitigate the impact of regulatory changes or the loss of a key relationship.
• Investment in Technology and Security: Strengthening cybersecurity measures and ensuring the reliability of technology infrastructure can help protect against cyberattacks and system failures.
• Proactive Regulatory Engagement: Actively engaging with regulators and industry bodies can help Gambling.com Group Limited (GAMB) stay informed about upcoming regulatory changes and advocate for favorable policies.

For further insights into Gambling.com Group Limited (GAMB)'s mission, vision, and core values, refer to: Mission Statement, Vision, & Core Values of Gambling.com Group Limited (GAMB).

Gambling.com Group Limited (GAMB) Growth Opportunities

Gambling.com Group Limited (GAMB) is strategically positioned to capitalize on several key growth drivers. These include product innovations, expansion into new markets, strategic acquisitions, and the establishment of key partnerships. These elements collectively contribute to the company's potential for future revenue growth and enhanced earnings.

The company's competitive advantages, such as its brand recognition and technological infrastructure, further solidify its position for sustained growth. These strengths enable Gambling.com Group Limited (GAMB) to effectively compete in the dynamic online gambling market and capture emerging opportunities.

Key growth drivers for Gambling.com Group Limited (GAMB) include:

• Product Innovations: Continuous development and introduction of new and engaging content platforms.
• Market Expansions: Targeting new geographic regions and expanding the company's presence in emerging markets.
• Acquisitions: Strategic acquisitions of complementary businesses to broaden the company's service offerings and market reach.
• Strategic Partnerships: Forming alliances with key industry players to leverage their expertise and resources.

To gain a comprehensive understanding of Gambling.com Group Limited (GAMB)'s financial health, consider this insightful analysis: Breaking Down Gambling.com Group Limited (GAMB) Financial Health: Key Insights for Investors.

While specific future revenue growth projections and earnings estimates for Gambling.com Group Limited (GAMB) beyond 2024 are subject to market conditions and company performance, analysts provide insights based on available data. For instance, Gambling.com Group Limited (GAMB) reported a revenue of $97.4 million in 2023, representing a 42% increase compared to 2022. The company's Q4 2023 revenue reached $32.8 million, a 51% increase year-over-year. These figures, along with strategic initiatives, provide a foundation for estimating future performance.

Strategic initiatives and partnerships poised to drive future growth include:

• Expansion in North American Markets: Focusing on states with newly legalized online gambling.
• Technological Advancements: Investing in platform improvements and data analytics to enhance user experience.
• Content Diversification: Expanding the range of content offerings to attract a broader audience.

Gambling.com Group Limited (GAMB) possesses several competitive advantages that support its growth trajectory:

• Strong Brand Recognition: A well-established brand in the online gambling affiliate marketing space.
• Proprietary Technology Platform: Advanced technology that provides a scalable and efficient platform for growth.
• Experienced Management Team: A skilled leadership team with a proven track record in the industry.

The following table summarizes key financial highlights and growth prospects for Gambling.com Group Limited (GAMB):

These factors collectively suggest a positive outlook for Gambling.com Group Limited (GAMB), positioning it to capitalize on the expanding online gambling market and deliver value to its stakeholders.