Gambling.com Group plans 25% workforce cut in AI restructure
Table of contents
- Gambling.com Group has announced a proposed 25% workforce reduction as part of an AI-first strategic restructure, targeting $13m in annualised savings.
- Q1 2026 revenue held flat at $40.4m year on year, though the company swung to a net loss of $1.2m from net income of $11.2m in the prior-year period.
- Shares fell approximately 27% in after-hours trading following the results and a cut to full-year guidance.
Gambling.com Group has announced a proposed restructure expected to reduce its global workforce by approximately 25%, formally confirming the move alongside its Q1 2026 financial results on 14 May.
The Nasdaq-listed affiliate posted flat revenue of $40.4m for the quarter and swung to a net loss as higher operating costs and financing charges weighed on the bottom line.
Reports of redundancies had emerged in the 24 hours prior to the earnings release, with affected employees across content, SEO and finance departments in the US and Ireland said to have announced their departures on LinkedIn. Gambling.com Group declined to comment ahead of the call.
Q1 results
Revenue of $40.4m was in line with the prior-year period. Sports data services grew 13% year on year to $11.2m, driven by strong enterprise sales at OpticOdds, with active partners up 24% quarter on quarter.
Marketing revenue declined 5%, reflecting ongoing SEO headwinds and additional regulatory pressure in the UK and Finland.
Operating profit fell to $3.3m from $10.0m in Q1 2025, and the company posted a net loss of $1.2m against net income of $11.2m a year earlier.
Higher external marketing spend, increased AI-related subscription costs and acquisition-related expenses contributed to the deterioration in margins. Adjusted EBITDA was $9m for the quarter.
Kevin McCrystle, incoming chief executive officer and co-founder of Gambling.com Group, said:
“First quarter revenue of $40.4 million was in line with our expectations as well as the prior-year period, and reflects a 13% year-over-year increase in sports data services revenue offset by a 5% decline in marketing revenue.
“The growth in sports data services revenue was driven by strong enterprise sales led by OpticOdds with active partners up 24% quarter-on-quarter.”
Restructure and guidance
The company announced a proposed strategic restructure expected to reduce headcount by approximately 25% and deliver annualised cost savings of $13m. Around half of those savings are anticipated in the second half of 2026, with the full benefit flowing through in 2027.
Management said AI integration across team structures and internal processes is the foundation of the new operating model.
Elias Mark, chief financial officer of Gambling.com Group, said:
“The strategic shift in how we operate internally to have AI be the foundation of our team structures and processes across the organization, allows us to initiate a proposed restructure of teams expected to deliver annualized cost savings of $13 million.
“We expect to realize about half of the $13 million in annualized savings in the second half of 2026 which will help drive margin expansion in this period and beyond. As our business continues to evolve, we remain well-positioned to continue delivering substantial free cash flow that allows us to both to de-lever and further invest in new products.”
Full-year 2026 revenue guidance was revised down to $165m to $170m, from prior guidance of $170m to $180m. Adjusted EBITDA guidance was cut to $45m to $50m, from a previous range of $50m to $58m.
Management cited continued search headwinds, European regulatory developments in Finland and the UK, and ongoing investment in traffic diversification as key variables.
Shares fell approximately 27% in after-hours trading following the release.
Leadership and context
The results and restructuring announcement come as Gambling.com Group prepares for a formal leadership transition.
Charles Gillespie, who co-founded the business in 2006 and has led it as CEO since inception, is set to become executive chair following the company’s AGM on 15 May. McCrystle will formally take over as CEO at that point.
The Gambling.com Group cuts are not an isolated event in the iGaming sector. Earlier this month, LSports cut jobs in an AI-driven restructure, with CEO Dotan Lazar announcing the move at the Israeli sports betting data supplier. Local press reported up to 20% of staff were affected.
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