Gambling.com Group Limited

Greetings. Welcome to Gambling.com Group Third Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Peter McLaugh, Vice President, Investor Relations. Thank you. You may begin. Thank you.

Hello, everyone, and welcome to Gambling.com Group's third quarter 2025 results call. I am Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Charles Gillespie, Gambling.com Group's co-founder and Chief Executive Officer and Elias Mark, Chief Financial Officer. This call is being webcast live through the Investor Relations section of our website at Gambling.com forward slash corporate forward slash investors. and a downloadable version of the presentation is available there as well. A webcast replay will be available on the website after the conclusion of this call. You may also contact investor relations support by emailing investors at gdcgroup.com. I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could affect actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some factors that could cause such differences are discussed in the risk factors section of Gambling.com Group's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. During the call, There will also be a discussion of non-IFRS financial measures. A description of these non-IFRS financial measures is included in the press release issued earlier this morning, and reconciliations of these non-IFRS financial measures to their most directly comparable IFRS measures are included in the appendix to the presentation and press release, both of which are available in the Investors tab of our website. I'll now turn the call over to Charles.

Thank you, Pete. Good morning and thank you for joining our third quarter 2025 conference call. We generated record third quarter revenue and adjusted EBITDA with revenue rising 21% and adjusted EBITDA growing 3% year over year. Our sports data services business grew over 300% year on year in the third quarter. The marketing business was flat year on year as revenue was held back by best favorable search rankings As previously discussed, that persisted for the entire third quarter. As has been the case since July, Google search algorithms continue to generously favor low quality spam content in the gaming space, in particular outside the US. However, since late October, the search marketing dynamics have started to improve for us. Our sports data services business continues to outperform our expectations with another quarter of strong growth driven by enterprise sales. Sustained strong growth in sports data services is increasingly the future of GAM, given our attractive offering and the multi-billion dollar TAM in front of us. I will therefore start today's call by laying out the opportunity that we see within sports data services, our fastest growing segment. Through a combination of acquisitions and great execution, we have created a fast-growing sports data services business out of nothing, which delights both enterprise and consumer clients and is already responsible for 25% of our 2025 revenue. The tight product market fit we have gives us confidence that there is a straightforward path for sustainable and highly predictable growth for this business. Sports betting operators are increasingly reviewing the cost side of their businesses, particularly in markets which are not growing like they used to. Our next generation data platform delivers comprehensive premium data services at a competitive price point, enabling both startup and scaled operators to take costs out of their businesses while potentially improving their offerings. We expect this business to finish 2025 strong and to continue to grow organically at a healthy pace in 2026 and beyond. The fastest growing part of our sports data services business is OpticOdds, our enterprise solution for Sportsbook operators. OpticOdds' third quarter revenue doubled year over year, reflecting growth in both customers and revenue per customer. Optic Odds began by providing multi-operator odds data from around the world to the trading teams and sports betting operators to use as an input to their risk management processes. Like a bond trader would use a Bloomberg terminal to understand the bond market. We have expanded the products and now also provide bet settlement services, which is now live with multiple customers. Sports league operators can now rely on Optic Odds as an end-to-end solution to power both pricing and bet settlement. Included in our bet settlement services is support for the dynamic pricing of same-game parlays, and we are investigating adding on early cash-out functionality. Optic Odds has also partnered with specialist odds providers like RIMBL and Pro League Networks to plug into our open odds marketplace where our operator clients can easily subscribe to additional third-party data services and get delivery through the Optic Odds feed, creating additional value for our customers and enhancing our partners' distribution. Optic Odds was founded by Americans with an initial focus on American sports. We continue to rapidly expand the odds data offered on the platforms that cater to sports betting operators around the world, And year to date, we have added 10 sports, 350 leagues, and over 1,000 different betting markets to the Optic Odds offering. Optic Odds recently announced a deal with Pragmatic Play, a leading international platform provider. Optic Odds will expand Pragmatic Play's offering by enhancing U.S. player prop market coverage. In short, we are offering more odds, data, and trading tools to an expanding client base thanks to enhanced distribution. Another exciting aspect of the OpticOdds business is the clear value we can create for firms trading on prediction markets. This segment of the business is growing rapidly and currently includes a number of Wall Street's most well-known firms, as well as the market-making arms of Kalshi and Polymarket themselves. We expect the prediction market ecosystem to become significantly larger given the national addressable market and some advantages over state-regulated sports betting. Prediction markets are additive as a new category in the U.S., not a substitute for sports betting as we know it, which will no doubt still thrive given its simpler and more accessible products. We believe that our OptiGuide solution is uniquely well positioned to assist market makers and therefore monetize the growth of prediction markets as they expand options for sophisticated consumers who want to create risk exposure with better payouts and fewer gimmicks. Given the long runway we have for consistent growth in our source data services business, we believe that this exciting future will be the core of GAM. Having said that, we expect our sector-leading marketing business to grow in 2026 and beyond, which will throw off more than enough cash for us to continue to invest in our source data services offering and retain firepower to deploy capital to create shareholder value. I'd like to congratulate everyone working on our marketing business for winning the EGR Affiliate of the Year Award for an unprecedented third time in October. We are simply unequaled in our success in the online gambling affiliate industry. Having operated a search marketing business at the highest levels of success for nearly two decades, we remain confident that the recent underperformance of the marketing business is overwhelmingly driven by short-term temporary search dynamics, which will be addressed. Following Elias's review of the third quarter financial details, I will map out how we expect a return to growth in the marketing business.