Gambling.com Group (GAMB) has released its earnings for the first quarter of 2026, revealing a revenue of $40.4 million, slightly surpassing the expected $40.2 million. This announcement coincides with a significant 25% reduction in workforce, a move described by incoming CEO Kevin McCrystle as part of the company’s shift towards an AI-focused operational model.
The company’s stable revenue performance was overshadowed by increased costs of sales and rising marketing expenditures, reflecting its rapid transition away from traditional organic SEO strategies.
Adjusted EBITDA fell by 43.4% year-over-year to $9.0 million, while adjusted EPS dropped dramatically from $0.46 to $0.09, marking an 80.4% decrease. Despite these declines, the results exceeded analysts' expectations, with EPS beating forecasts by 28%.
Management anticipates that the layoffs will result in annual savings of approximately $13 million, with about half of this amount expected to materialize in the latter half of 2026. In comments accompanying the earnings release, McCrystle emphasized the ongoing integration of AI into the company's operations, stating, “This shift to AI-first working principles enables a proposed restructure of teams that is expected to drive substantial annualized cost savings.”
Key highlights from the earnings report included a 13% revenue increase in Sports Data Services, contrasting with a 5% decline in the legacy marketing segment. The volatility caused by Google’s search algorithm updates and regulatory challenges in Finland, along with tax increases in the UK, further complicated the business landscape.
The adjusted EBITDA margin has decreased from 39% last year to 22%, attributed to the near-term margin effects of expanding into more costly non-SEO traffic channels.
During the earnings call, analysts raised concerns about the risks associated with the 25% workforce reduction and the potential impact of one-time restructuring costs on the balance sheet. CFO Elias Mark estimated these expenses to be around $2.5 million.
McCrystle reassured analysts that the reduction in staff would not compromise productivity, emphasizing that “Quality is key.” He noted that AI now generates 80% of new engineering code, mitigating the effects of reduced human resources.
Furthermore, the company highlighted new AI partnerships, including collaborations with Claude and Perplexity, aimed at enhancing user engagement and modernizing their offerings. “A key driver of our ability to have the most innovative sports data enterprise solutions is our increasing integration with customer AI touchpoints,” McCrystle stated.
Lastly, during the earnings call, Mark announced a downward revision of the company’s full-year 2026 revenue guidance, adjusting it from the previously estimated $170-$180 million range.