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On Thursday, Macquarie analyst Chad Beynon increased the price target for Gambling.com Group Ltd. (NASDAQ: GAMB) to $19.00, up from $18.00, while reaffirming the Outperform rating on the company’s stock. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $18 to $21, suggesting potential upside. Beynon highlighted Gambling.com’s exceptional performance within the affiliate marketing sector, noting its strong momentum, expanding portfolio of complementary businesses, and a business model that capitalizes on the continued strength of iGaming. The company maintains impressive gross profit margins of 91.6% and boasts a "GREAT" financial health score.
Despite Gambling.com shares being down 11% year-to-date, which contrasts with the S&P 500’s 4% decline, Beynon underscored that the stock is currently trading at approximately 7 times the firm’s projected 2026 EBITDA. This valuation comes in the context of Gambling.com’s robust growth outlook and management’s confidence in achieving a $100 million EBITDA target. The analyst cited the company’s guidance for over 35% growth in both revenue and EBITDA, a solid base of recurring subscription revenue, and the positive impact of recent acquisitions as reasons for the reiterated Outperform rating.
Gambling.com reported year-over-year growth in the fourth quarter of 2024, with a 9% increase in revenue and a 39% rise in EBITDA, aligning with its pre-announcement from February 19. This growth was attributed to the strong performance of iGaming and the continued success of its core affiliate business. The recent acquisition of Odds Holdings, which was completed on January 1, is expected to further strengthen these results.
Additionally, Gambling.com has reconfirmed its 2025 revenue guidance, which forecasts a range of $170-174 million and EBITDA between $67-69 million. These figures suggest a 35% year-over-year revenue growth and a 40% increase in EBITDA. The guidance includes a $14.5 million EBITDA contribution from the Odds Holdings acquisition but does not account for potential revenue from new state launches, although the Missouri Online Sports Betting (OSB) market is anticipated to open in the second half of 2025. Management anticipates that the growth in 2025 will be fueled by a resurgence in North American markets and further gains in global market share, with subscription services projected to comprise over 20% of total revenue. For deeper insights into Gambling.com’s growth prospects and detailed financial analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers this and 1,400+ other top US stocks.
In other recent news, Gambling.com Group reported fourth-quarter earnings and revenue that exceeded analyst expectations. The company posted adjusted earnings per share of $0.35, surpassing the analyst estimate of $0.24. Revenue for the quarter reached $35.31 million, topping the consensus forecast of $34.4 million and marking a 9% increase year-over-year. Gambling.com Group also delivered over 145,000 new depositing customers in the fourth quarter, although this represented a 9% year-over-year decrease. For the full year 2025, the company anticipates revenue between $170 million and $174 million, aligning with analyst projections of $171.6 million. The company’s adjusted EBITDA surged 39% year-over-year to $14.7 million in the fourth quarter, with a margin of 42% compared to 32% in the prior year. Additionally, Gambling.com Group completed its acquisition of Odds Holdings, Inc. on January 1, 2025, which is expected to contribute approximately $14.5 million in incremental adjusted EBITDA for the year. These developments reflect the company’s strategic focus on iGaming across its operating markets.
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