Kambi Group, a B2B sportsbook technology provider, experienced a remarkable 21% increase in its stock price following the release of its Q1 2026 earnings report. The company reported revenues of €43.5 million (approximately $50.85 million), marking a 5% rise compared to the previous year. This revenue growth was primarily attributed to the successful integration of major partners, including the Ontario Lottery and Gaming Corporation (OLG), alongside a strong trading margin from operators.
Even more notable were the company's EBITDA and earnings per share (EPS), both of which exceeded analyst predictions. Kambi recorded an EBITDA of €14.0 million, surpassing the forecast of €11.8 million by 18.6%, and an EPS of €0.09, exceeding the expected €0.08 by 14.7%.
The Q1 results signal a shift towards a more stable growth phase for Kambi, following a transitional year in 2025. At the time of this announcement, the stock was trading at SEK155.20 ($16.68) on the Swedish Stock Exchange.
Kambi’s recent success in the Canadian lottery market has also contributed to its positive outlook. The company has secured partnerships with the Atlantic Lottery Corporation (ALC) and the British Columbia Lottery Corporation (BCLC), expanding its sportsbook operations to eight out of ten Canadian provinces. CEO Werner Becher highlighted the rigorous tender process that led to these significant deals.
In terms of partner diversification, analysts have noted Kambi's efforts to reduce its dependency on its top three partners, which include FDJ UNITED, Rush Street Interactive (RSI), and ATG. Although FDJ UNITED exited certain markets that impacted revenue, Kambi's management confirmed that new agreements, such as those with PMU in France and ComeOn Group, are helping mitigate this concentration risk.
Moreover, Kambi has leveraged AI technology to enhance operational efficiency, with 60% of Q1 bets being priced and traded through its AI systems, Tzeract. This advancement has contributed to a 64% increase in adjusted EBITA to €5.7 million, reflecting improved operational leverage.
However, challenges remain, particularly in Colombia, where a new 16% GGR tax is expected to reduce revenue by approximately €4 million in 2026. Despite this, management maintains a confident outlook, projecting an adjusted EBITA of €20 to €25 million for the year, bolstered by new contracts and efficiency improvements.