Since I don't like having money in my clearing account, I've been looking around a bit for new growth stocks. I came across $GAMB (-0,38%) and thought I might as well give it a try with a little introduction.
If there is anything you would improve, please write it in the comments. I love to learn :)
What does the company do?
Gambling.com is not a betting provider, but an affiliate marketing company for the online gambling industry. Via sites such as bsow. Gambling.com, the company directs players to partners and earns commissions in the process.
The model is high-margin, scalable and legally much more stable because Gambling.com does not offer its own bets. The main focus is on the fast-growing US and Canadian markets.
Figures and outlook
Q2 2025:
Revenue USD 39.6 million (+21%), net income USD 8.4 million
EBITDA margin above 35 percent.
For the year as a whole, management expects revenue of USD 155 to 160 million and EBITDA of USD 55 to 58 million.
Valuation and analysts
5 out of 6 analysts recommend the share as a buy according to MarketScreener.
The average price target is around USD 14, which represents an upside potential of around 75 percent.
The current P/E ratio is around 19, the expected forward P/E ratio is around 8.
Current situation
In August, the share price fell after the founders sold 6.7 million shares. This was a secondary sale, i.e. not a capital increase. Operational growth remains strong and the annual targets were confirmed.
Risk
I am currently still somewhat hesitant: The rapidly growing influence of AI search systems such as ChatGPT or Google SGE could lead to less organic traffic in the long term.
$GAMB (-0,38%) lives heavily on search engine rankings and is working on stronger brand building to reduce the risk.
Conclusion
$GAMB (-0,38%) is a profitable and fast-growing niche player in iGaming marketing, which could also be an interesting growth stock in view of the upcoming World Cup. It will be on my watch list for the time being
