Kambi Group (KAMBI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 4% year-over-year to €41.5m, but grew 7% excluding prior year transition fees, with performance aligned with expectations and significant product launches and partner integrations, including Bet Play in Paraguay and Oddspedia Plus with Hard Rock and Rei do Pitaco.

• Key launches included Brazil and Ontario Lottery and Gaming Corporation (OLG) partnerships, with business transformation and diversification efforts positioning for future growth.

• Revenue base diversification continues, reducing reliance on top three operators from 60% in 2021 to 39% in 2024, with further reduction expected in 2025.

• Expansion in regulated markets strengthens long-term growth and stability, with 98% of turnover from regulated markets in Q1.

• Adjusted EBITA (acq) fell 60% to €2.3m, with margin dropping to 5.6% from 13.3%.

Financial highlights

• Q1 2025 revenue was €41.5m, down from €43.2m in Q1 2024, with gross profit at €36.3m and gross margin at 87.5%.

• Adjusted EBITA (acq) was €2.3m, compared to €5.8m in Q1 2024.

• Cash and cash equivalents at quarter-end were €56.4m, up from €46.0m a year earlier.

• Operator trading margin for Q1 was 10.2%, up from 9.0%.

• Module revenues declined to 6% of total, down from 10% last year, mainly due to customer churn, especially on the Shape side.

Outlook and guidance

• Full-year 2025 Adjusted EBITA (acq) expected at €20–25m, with expenses for Adjusted EBITA (acq) projected at €145–150m, and total expenses €150–155m, all excluding FX impacts.

• Anticipates improved performance in H2 as headwinds ease, with growth expected from Brazil, Hard Rock, and OLG contracts.

• Q4 expected to be strong due to seasonality, with all key leagues active.

• Ongoing cost-saving program to further benefit results throughout the year.

• Sportsbook margin guidance for 2025 set at 10.25% (midpoint of 9.5-11% range).