Gambling.com Group Limited (GAMB) Earnings

Management highlights

### Corporate Update & Rebranding - The company completed a substantial restructuring announced in May 2026, which reduced headcount by approximately 25% and will generate $13 million in annualized fixed cost savings starting in H2 2026. Total restructuring costs incurred were $3.2 million, with $1.1 million settled in Q2 and $2.1 million to be settled in Q3. - The company completed a corporate rebranding to Grandstand, reflecting its expanded business beyond its original UK gaming comparison roots to a diversified provider of data, technology, content, and audience solutions for the global sports, gaming, and entertainment ecosystem, serving both consumers and B2B partners. - Restructuring was also designed to embed AI as a core operating layer: the company reduced management layers, automated repetitive processes to increase work velocity, and is launching internal AI tools including Memento (a corporate knowledge context layer) and Multi-Agent Harness (to control AI token costs while accessing top models). New Product Launches - Launched RollCard, an FDIC-insured, high-limit debit purpose-built debit card for sports betting, casino, and prediction market users, addressing the high friction of payments and money movement in gaming. Revenue is generated from interchange fees on deposits, with a 5-year projected revenue opportunity of $50-100 million, with expected gross margins of 80-85% before marketing. The product leverages Grandstand's existing audience and operator partnerships for a fast go-to-market launch. - OpticOdds (B2B sports data) went live as a production connector for Perplexity AI in early July 2026, and is currently the 11th most invoked connector on the platform, ahead of major enterprise tools. API request volume continues to grow ahead of the upcoming NFL season. OpticOdds processes over 1 million data requests per second, with 40% of new Q2 B2B data deals coming from international partners, led by quant and market-making clients. Business Diversification - The marketing segment has dramatically shifted away from reliance on organic SEO, with non-SEO revenue now accounting for two-thirds of total marketing revenue. While non-SEO channels have lower gross margins, they also require far lower operating expenses than organic SEO, and the restructuring targeted fixed costs in the marketing segment to improve future margins. Management expects the marketing segment to return to year-over-year growth for full-year 2027.

Guidance

• Management reaffirmed full-year 2026 guidance, maintaining a total revenue range of $165 million to $170 million, and an adjusted EBITDA range of $45 million to $50 million. Revenue guidance includes the previously projected modest contribution from RollCard in 2026. • Management expects strong sequential revenue growth in H2 2026 driven by positive seasonal trends tied to the North American sports season, plus $6.5 million in fixed cost savings from restructuring that will drive margin expansion. H2 2026 will see significantly higher adjusted EBITDA and adjusted free cash flow compared to H1. • The improved margin and cash flow trajectory from H2 2026 is expected to carry into 2027, driving strong year-over-year adjusted EBITDA growth with full-year 2027 adjusted EBITDA margins expanding to the low 30% range. • The marketing segment is expected to return to positive (modest) year-over-year growth in 2027, with a neutral margin impact, while the sports data segment will continue to scale with high incremental margins. • Upside to the top end of the 2026 revenue guidance would come from faster-than-expected growth in B2B sports data, stronger growth in North American marketing, or a recovery in organic SEO revenue.

Segment performance

Grandstand Limited reported total Q2 2026 revenue of $37.8 million, a 5% year-over-year decline. There are two core reporting segments: 1. **Sports Data Services**: Generated $11.2 million in revenue, representing 30% of total Q2 revenue. This segment grew 12% year-over-year, driven entirely by B2B growth from the OpticOdds solution. B2B revenue now makes up the majority of the segment's total revenue and is on track to grow over 50% year-over-year in 2026. 2. **Marketing**: Generated $26.5 million in revenue, representing 70% of total Q2 revenue. This segment declined 10% year-over-year, driven by falling organic SEO revenue partially offset by strong growth in North America and the partner audience monetization platform (Brandstand Partners). Non-SEO revenue now accounts for 67% of total marketing segment revenue.

Risks & headwinds

• Organic SEO revenue continues to face year-over-year decline, driven by regulatory headwinds in international markets (such as the UK) and ongoing uncertainty around search engine algorithm changes that impact SEO performance. • New product launches like RollCard require ramp time, and success in the competitive payments space is not guaranteed, even with existing audience and ecosystem advantages. • The sports betting and iGaming market has seen shifting competitor market share, which could impact partner acquisition demand and revenue for the marketing segment. • Forward-looking results are dependent on seasonal performance tied to the North American NFL season, and weaker-than-expected consumer or partner demand during this key seasonal period would miss guidance targets.

Analyst Q&A

• Q: What drove the decision to enter the payments space with RollCard, and what advantages does Grandstand have against existing competitors?

  A: Payments are the largest friction point for U.S. gaming consumers and operators, a market Grandstand has monitored for decades. The company wanted to add direct value to its existing audience rather than only referring users to operators. It already has the existing core infrastructure (audience access, ecosystem partnerships, ad tech) to launch and scale RollCard, giving it an advantage over new entrants. The 5-year projected revenue opportunity is $50-100 million with high gross margins.

• Q: How can OddsJam maintain its market positioning against new AI-powered competing tools?

  A: Many new entrants have launched lower-priced, lower-quality AI versions of OddsJam, but Grandstand is building new proprietary core features to create a deeper competitive moat. It has also rebuilt its social distribution engine ahead of the NFL season to stabilize growth. Beyond direct subscription revenue, OddsJam supports other Grandstand products: it drives B2B data for OpticOdds, contributes to marketing segment growth, and supports RollCard user acquisition, creating multiple layered revenue streams that new competitors cannot match.

• Q: What are long-term margin expectations for the marketing segment, split between SEO and non-SEO lines?

  A: Restructuring cut significant fixed costs from the marketing and SEO business, so marketing segment contribution margins are expected to double from Q2 levels by H2 2026 and expand further into 2027. Going forward, non-SEO marketing (which now makes up two-thirds of the segment) is expected to deliver contribution margins in the 40% range, while the sports data segment will deliver contribution margins in the mid-60% range as it scales with high incremental margins.

• Q: What is the current growth trajectory of non-SEO marketing, and what is the long-term sizing opportunity?

  A: Non-SEO marketing now accounts for two-thirds of total marketing revenue, with Grandstand Partners (the audience monetization platform) growing over 100% year-over-year. North American marketing overall is up 63% year-over-year, driven by non-SEO channels including prediction market partner acquisition. It will take several years for sports data revenue to surpass marketing revenue, but the diversified non-SEO marketing business has substantial room to grow from its current size.