Gambling.com Group to cut around 25% of staff after profit drop and AI restructuring push

Gambling.com Group will lay off around 25% of its workforce as it launches an AI-driven restructuring program following a sharp fall in profitability in the first quarter of 2026 and a reduced full-year outlook.

The company reported flat year-on-year revenue of $40.4 million for Q1, but saw adjusted EBITDA drop 43% to $9 million, marking a shift from profit to net loss amid weaker search performance and regulatory pressure across key European markets.

Chief Executive Kevin McCrystle said the restructuring is designed to reposition the company around “AI-first ways of working.”

“We are resetting team structures, roles, and processes to fit an AI-first world,” he said during the post-results earnings call. “The result is a flatter organisation, fewer management layers, and everyone from senior leadership down focused on building automations, products, and go-to-market campaigns that compress timelines and drive efficient growth.”

The restructuring is expected to deliver around $13 million in annualized cost savings starting in Q3 2026.

Alongside the restructuring announcement, the company lowered its full-year outlook. Revenue guidance was revised down to $165–$170 million from $170–$180 million, while adjusted EBITDA expectations were cut to $60–$64 million from $67–$69 million.

Q1 results showed a widening performance gap across Gambling.com Group’s business segments and regions. Sports data services grew 13% year-on-year to $11.2 million, supported by stronger enterprise demand. In contrast, marketing services declined 5% to $29.2 million, weighed down by weaker organic search traffic and regulatory pressures in markets such as the UK and Finland.

North America remained the company’s strongest market, with revenue increasing 26% to $26.5 million. However, other regions saw significant declines. Revenue in the UK and Ireland fell 30%, while other European markets dropped 27% to $4.3 million. The rest of the world segment also weakened, falling 31% to $1.8 million.

The company also reported 140,000 new depositing customers in Q1, slightly up from 138,000 a year earlier. Profitability deteriorated sharply as the cost of sales surged 171%, pushing gross profit down 11% to $34.4 million. Operating profit fell 67% to $3.3 million, while pre-tax profit nearly disappeared, dropping 99.5% to $52,000.

After taxes and foreign exchange impacts, the group posted a net loss of $2.4 million, reversing a $12.6 million profit in Q1 2025.

Despite the downturn, McCrystle said the company remains confident in its long-term trajectory. “We remain confident in the long-term growth opportunities across our business and believe the actions we are taking today will position Gambling.com Group to emerge as a leaner, faster-growing and more diversified organisation,” he said.