Gambling.com Group Limited

data services following the acquisition of OddsJam and OpticOdds on January 1st, we are confident in not only achieving our growth targets for the year, but also delivering on our strategic objectives to expand beyond marketing and reach 100 million in adjusted EBITDA. The growth opportunity for OddsJam and OpticOdds is robust. The integration of these new sports data services is progressing as planned. and execution in this business continues to highlight the significant strategic and financial value this acquisition has brought to Gamley.com Group. Their entrepreneurial energy and ambition fits right in with our team of talented and accomplished entrepreneurs. It is great to now be working hand in hand with these talented operators. The consumer-facing part of the business, OddsJam, has a strong subscriber base that we are confident we can scale while maintaining margins and profitability. For the B2B side of the business, OpticOdds, we are just getting started with leveraging our reach and resources to grow enterprise subscription revenues. We continue to expect incremental adjusted EBITDA from Odds Jam and OptiGods to grow by at least 20% this year, and we see attractive long-term growth prospects for the current products. While the current suite of products has a very attractive growth opportunity, we now own a platform that is capable of powering a broader array of enterprise products and services to solve more problems for our online sports betting clients. Turning to our marketing business, our iGaming-led strategy continues to drive performance with iGaming revenues rising 24% year-over-year. This growth reflects solid organic growth complemented by contributions from FreeBets.com and its related assets. We continue to grow our market share in the UK and the rest of Europe, and our North American sports betting business has now lapped its last quarter of difficult comparisons. For the full year 2025, we continue to expect our marketing business to grow in all of the geographic regions where we operate, including North America. We will add Missouri to our guidance once the launch date is clear. While the uncertain macro environment has recently created volatility in the capital markets and some uncertainty about the economy, I want to highlight that during the entire history of the online gambling industry, no economic slowdown has ever had any meaningful impact on the underlying growth of the industry. The online industry is fundamentally insulated from these economic effects as players don't have to travel to a land-based casino to continue playing. We expect this current cycle will be no different from the other cycles the company has grown through since its founding in 2006. we can confirm that there have been no changes to our business volumes or expectations due to changes in trade policy. Furthermore, we do not expect any impact on our business from any change in tariffs, whether in the U.S. or abroad. In addition to the resilient nature of online gambling, our strong competitive position sets us up to continue on our strong growth trajectory. Our industry-leading brands, such as Gambling.com and Bookies.com, And growing brands like casinos.com continue to drive market share gains. Our full embrace of AI has also accelerated our ability to keep improving upon our technology stack and digital marketing capabilities to continue to drive organic growth. On top of this, with the acquisition of Odds Jam and Optic Odds, we have the best odds data infrastructure in the industry, and the revenue from that platform increases our overall revenue visibility. As a result, we are in our strongest competitive position ever and are thus well positioned to drive continued growth, profitability, and free cash flow as reflected by our reiteration of our 2025 guidance, which will result in another year of record annual revenue and adjusted EBITDA and move us increasingly closer to our next goal of $100 million in annual adjusted EBITDA. I will now turn the call over to Elias to review the first quarter's financial highlights.

Thank you, Charles. First quarter revenues grew 39% year-over-year to $40.6 million. Our marketing business grew 13% as we delivered more than 138,000 MDCs to our customers, representing 29% growth year-over-year. Our sports data services business which includes the first full quarter of revenue contributions from OTSGEM and Opticots quadrupled. Subscription revenue was 24% of total revenue. Inclusive of revenue share arrangements in our marketing business, recurring revenue was 50% of total first quarter revenue. Revenue grew in all geographic regions, and we expect that to continue for the remainder of 2025. Gross profit increased 42% year-over-year to 38.4 million. Cost of sales was 2.2 million, which was flat year-over-year with lower media partnership fees offset by cost of sales related to the acquired BUDS Jam and OptiCost BUDS businesses. While partnership fees were lower year-on-year, they were a bit higher than we had expected. Gross profit margin increased roughly 200 basis points compared to the first quarter of last year to 94.5%. Total operating expenses increased 50% to 28.7 million, primarily reflecting a significant increase in amortization from acquired intangible assets from the odds holdings and prebets acquisitions. Operating expenses also absorbed the cost base of the odds holdings acquisitions. Excluding the non-cash acquisition-related amortization, growth in operating expenses was well under our revenue growth of 48% for Q1. Adjusted EBITDA increased 56% year-over-year to another all-time record of 15.9 million compared to 10.2 million a year ago. First quarter adjusted EBITDA margin was 39%, up 400 basis points from 35% in the year-ago period. First quarter adjusted EBITDA margin would have been even higher if not for slightly higher than expected partnership share of revenue and its related cost of sales, as well as investments in an ambitious product roadmap. Difficult softer seasonality combined with product investments will naturally result in sequentially lower margins in the second quarter before expanding in the second half of the year as we move into the seasonally strongest fourth calendar. and our current wave of product investments start to bear fruit. Adjusted net income for the first quarter of 2025 rose 78% to $16.5 million from the year-ago period. Adjusted net income was positively affected by the strengthening of the euro versus the US dollar when translating balance sheet items at quarter end. Adjusted diluted net income per share increased 92% to 46 cents from the year-ago period. As a reminder, in Q4, we revised the way we define adjusted net income to more closely align adjustments we make to adjusted EBITDA. This is to improve the like-for-like comparability between periods. Free cash flow was 10.3 million, up 25% from the year-ago period. Free cash flow in Q1 reflects strong growth in adiaceribita, partly offset by the timing of tax payments and working capital movements related to the settlement of transaction expenses for the odds holdings acquisition. As of March 31st, we had total cash of 21.5 million and 70.5 million of undrawn capacity on our credit . On April 1st, we made a final payment of $11.2 million for the Freebets.com acquisition using cash balances. In total, we have drawn $94.5 million on our $165 million credit facility. Effective on April 1st, we entered into a swap agreement to effectively convert our $75 million of U.S. dollar term loan to euro borrowings. This lowered our cost of debt capital by approximately 200 basis points. The swap transaction also aligned our borrowings with our functional currency, eliminating the corresponding Forex translation effects in our income statement moving forward. Our free cash flow and borrowing capacity continues to provide the flexibility to pursue both acquisitions and to optimize our capital structure to maximize shareholder value over time. As Charles noted this morning, we reiterated our full year guidance with a midpoint of our revenue guidance of 172 million representing 35% year-over-year growth. The midpoint of our adjusted EBITDA guidance of 68 million represents 40% year-over-year growth. This guidance assumes a resumption of growth in North American marketing business continued global market share gains as well, and well over 20% of full-year revenue coming from recurring subscriptions. As per usual, our guidance does not include contributions from any new acquisitions or any new market launches. While we expect Missouri to launch sports betting in the second half of this year, As per our policy, we will not include it in guidance until the launch date is confirmed. Our guidance also assumes an average Euro to USD exchange rate of 110 for the year. Operator, we will now turn the call for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. We ask that analysts limit themselves to one question and a follow-up so that others may have an opportunity to do so. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Our first question comes from Ryan Signall with Craig Halem Capital Group. Please proceed with your question.