Kambi Group plc endured several setbacks during the third quarter of 2025, but the sports betting service provider believes new deals and agreements show that the company is still heading in a profitable direction.
Key Takeaways
- Kambi’s Q3 revenue and Adjusted EBITDA took significant year-over year dips.
- Increased taxes in several jurisdictions, negative FX impacts, winning bettors, and slow market developments contributed to the revenue drop.
- Guidance was lowered, but new deals have Kambi eyeing a more profitable future.
The sportsbook supplier for over 50 operators in more than 60 jurisdictions globally announced Wednesday that Q3 revenue of €37.4 million decreased year-over-year by 13.1%. When excluding transition fees with sports betting platforms, revenue fell 8.1% compared to the same quarter in 2024.
Adjusted EBITDA plummeted 32% year-over-year, reaching €3.4 million in Q3 and reducing the margin to 9%. Profit after tax fell from €2.5 million in Q3 2024 to €1 million in the latest quarter, a 59% decrease.
“Our Q3 financial performance was disciplined in a period impacted by a quieter sporting calendar, which last year included the Euros, Copa América, and the Olympics, and the ongoing increased impact of gaming-related taxes,” Kambi CEO Werner Becher said.
Q3 roadblocks
Besides having lighter sports betting volumes due to fewer major soccer events, Kambi faced “macroeconomic pressures” during a “disciplined” quarter.
Revenue was hurt by the delay of the Ontario market launch, which has been moved to Q1 2026. Tax increases in several U.S. states and the Netherlands affected Kambi. Deposit limits impacted operator turnover, which was down 6% in Q3.
An “ongoing negative impact of FX,” as well as slow development in the Brazilian market, were also contributors to the revenue decline. And to make matters worse for Kambi and its sportsbook partners, bettors did well in a couple of major sports.
“This was a really strong margin in July and August and then dipped quite significantly in September when there were a very player-friendly results, I would say, in both the Champions League and the NFL,” CFO David Richard Kenyon said.
Because of these setbacks, especially the delayed Ontario launch, Kambi lowered guidance to estimate full-year Adjusted EBITA (acq) to be around €17.0 million.
Getting deals done
The quarter did provide several financial benefits through partnerships. Kambi signed three Odds Feed+ deals, including one with European operator Superbet. Seven new Turnkey Sportsbook partnerships were formed, highlighted by Glitnor Group and New York casino operator the Oneida Indian Nation.
Kambi announced Wednesday that the company acquired the source code for a player account management platform that will increase opportunities in gaming-heavy Nevada.
“The recent commercial wins, ongoing improvements to our market-leading product, the opportunities that the PAM will create, as well as the continued progress of our efficiency programme are, together, evidence of the positive momentum we are building,” Becher said. “When coupled with the exciting opportunities we continue to pursue, I have growing confidence we will deliver sustainable growth and long-term returns for our shareholders.”
