Gambling.com Group Limited

Good afternoon, ladies and gentlemen, and welcome to Gambling.com Group's first quarter 2026 earnings conference call. During the call, your lines will remain in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I would like to advise all parties that this conference call is being recorded. Now, I will turn things over to Peter McGough, Senior VP of Investor Relations and Capital Markets. Thank you, and you may proceed, Peter.

Good afternoon. Hello, everyone, and welcome to Gambling.com Group's first quarter 2026 results call. I'm Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Kevin McChrystal, Co-Founder and incoming Chief Executive Officer, Charles Gillespie, Gambling.com Group's Co-Founder and current Chief Executive Officer, and Elias Mark, Chief Financial Officer. This call is being webcast live through the investor relations section of our website at gdcgroup.com 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 cause actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some important 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 to 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. The description of these non-IFRS financial measures is included in the press release issued earlier this morning, and reconciliations of this 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 Kevin.

Good afternoon, everyone, and thank you for joining our 2026 first quarter conference call. Given that I will be formally taking over as CEO next week, I will also leave the call today. Elias will follow the review of the first quarter results, and then Charles will offer some closing comments before we open it up for questions. First quarter revenue was $40.4 million in line with last year, while adjusted EBITDA was $9 million. Our sports data services business grew 13% year-over-year to $11.2 million and accounted for 28% of total revenue, the highest percentage yet. This growth was offset by a 5% revenue decline in our marketing business, which continues to be impacted by the previously discussed challenges with search ranking, as well as more recent regulatory headwinds we highlighted on a Q4 call. Elias will provide more details in our first quarter financial results, but I do want to highlight that we generated attractive adjusted free cash flow in Q1 and expect revenue, adjusted EBITDA, and free cash flow to expand in the second half of the year. As I noted, sports data services revenue was up 13% year over year. The year-on-year growth primarily reflects continued improvement on the enterprise side of the business, catching up to the consumer side. For the first time, revenue contributions were roughly equal for both offerings. Our B2B OpticOdds business continued to be the catalyst of our strong sports data services performance. OpticOdds growth in Q1 was driven by 94% new deal growth compared to Q1 25, including international partners of 178% year over year. Middle active partners were up 24% quarter on quarter. 86% of OpticOdds customers are now API customers rather than just traditional odd screen partners, which was the initial focus of the business. A key driver of our ability to have the most innovative sports data enterprise solutions is our increasing integration with customer AI touchpoints. As an example, OpticOz now has an MCP integration into Cloud, allowing our enterprise customers to use Optics data where they're already spending their workday. By integrating with the number one enterprise AI tool in the world, our already incredibly sticky enterprise odds product is even stickier. More recently, OpticOz entered into a partnership with Perplexity, be the odds data provider across their product suite, with an expected launch date before the end of Q2. Turning now to our marketing business, revenue of $29.2 million in Q1 reflects the negative SEO trends we have been discussing for several quarters. There has been some bifurcation between smaller niche sites and larger brands within SEO, and some of our larger brands, such as Rotowire, are showing more positive rankings. We are continuing to focus on a more concentrated portfolio of brands, and diversifying revenue streams, marketing channels, and CRM re-engagement on these larger brands. There are two other impacts on the marketing business to call out. First, the change in UK and Finland regulation we highlighted on the Q4 call had a modestly worse than expected impact on performance in Q1. And revenue from revenue share agreements was impacted by unfavorable outcomes in the quarter, causing a decline in the rev share hold percentage versus deposit. We continue to make steady progress diversifying our marketing revenue away from SEO. In Q1, our non-SEO revenue exceeded SEO revenue for the second consecutive quarter, and we expect that trend to continue. There is a near-term margin impact as these channels scale, but we do expect margins to begin gradually expanding in the second half of 2026 and into 2027. We have spent years building internal platforms to optimize engagement and monetization across our portfolio. This audience monetization platform bundles our ad tech, vet tech, business intelligence, and data science. Over the past year, we have begun leveraging these tools and technology to help us more effectively monetize third-party audiences by allowing external partners to access our wide range of technology, commercial relationships, and know-how. In the rapidly evolving digital ecosystem, we are diversifying how we market our owned and operated brands, but also developing a platform to engage and monetize users across a wide variety of partner assets and communities. Previous iterations of what we then called media partnerships had a narrower focus on SEO. Partnership platform revenue was up 3x year-over-year for Q1. As part of our channel diversification initiative, this does have an impact on our cost of sales, but we can scale this platform with low OPEX requirements. As we continue the R&D efforts to expand our technology capabilities on our internal portfolio, it will open up new types of partners where we can leverage our technology to grow their business as we both share in the revenue. We've been focused on AI adoption for the past 18 months. The work so far has proven the effectiveness of AI-first agentic workflows. Now we're taking the next step, moving from AI assisting our teams, making AI the foundational layer of how the entire organization operates. That shift is significant, and it's driving a real change in how we work. AI tools allow us to move faster, adapt more quickly, and deliver more product, marketing, and sales innovation, all while doing so with smaller, nimbler teams focused on building. This way of working puts a premium on human agency. with our people bringing their expertise and craft to direct what AI produces. We have already made significant progress, with 80% of new code being generated by AI today. Alongside this, we are resetting our team structures, roles, and processes to fit an AI-first world. That means embracing context layers, skills, and agents across the company. The result is a flatter organization, newer management layers, and everyone from senior leadership down focused on building automations, products, and go-to-market campaigns, that compress timelines and drive efficient growth. We are confident this transition to AI-first ways of working will allow us to move faster and with fewer people. Highlighted in this afternoon's press release, we have proposed a strategic restructuring, which is expected to affect a reduction of approximately 25% of our workforce. The annualized savings will be approximately $13 million. Given the timing of this streamlining of the organization, We expect about half of this amount will be realized this year, beginning in Q3, with a full amount realized in 2027. The $13 million of annualized savings is a net of an increase in AI usage costs associated with our transition to an AI-first company. This restructure resets our organization to work more effectively in an AI-first environment. With that, I'll turn the call over to Elias for a review of our Q1 financial results and detail our guidance for the year.