Gambling.com Group Lays Off 25% Of Workforce Amid AI-led Restructuring

Gambling.com Group has lowered its full-year guidance and launched a major restructuring programme to reduce its workforce by around 25%, as regulatory pressures on the affiliate sector heighten.

Revenue for Q1 2026 remained flat at $40.4m, but profitability weakened. The company reported a net loss and a 43% drop in adjusted EBITDA to $9.0m. This was driven by rising costs, weaker organic search performance and tighter regulation in key markets.

In response, the group is restructuring around an AI-first operating model. The plan is expected to deliver approximately $13m in annual cost savings, with benefits beginning from Q3.

CEO Kevin McCrystle, who took over in March, said the company is fundamentally redesigning how it operates “to fit an AI-first world.” 

“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,” he said.

“These initiatives, and the continued transition in our business to benefit from a higher mix of high-margin sports data services contributions and our more diversified marketing business, will help ensure we can build on our foundation to return to delivering consistent high margin growth going forward.”

Data growth offsets weakness in core marketing business

The company’s revenue stability was largely supported by its sports data segment. Revenue from data services rose 13% year-on-year to $11.2m, driven by enterprise demand. In contrast, marketing services declined 5% to $29.2m, reflecting ongoing challenges in search visibility and regulation in the UK and Finland.

Of the marketing total, $25.5m came from performance marketing, while $3.7m was generated through advertising and other activity.

“While our marketing operations continue to be impacted by previously disclosed poor organic search dynamics and more recent regulatory headwinds, we continue to deliver on our strategy to diversify traffic sources,” McCrystle said.

Regionally, North America stood out, contributing $26.5m in revenue, up 26%. However, revenue crashed across other regions. Revenue from the UK and Ireland fell 30%, while Europe declined 27% to $4.3m. Rest of world revenue dropped 31% to $1.8m.

Casino activity generated $21.6m of revenue, followed by $16.6m from sports and $2.2m from other operations. The company also recorded 140,000 new depositing customers, slightly higher than last year.

Profitability hit by rising costs and weaker margins

Cost of sales increased 171%, reducing gross profit by 11% to $34.4m. Operating profit fell 67% to $3.3m as overall expenses increased. Pre-tax profit also dropped sharply to $52,000 from $10.9m a year earlier. 

After paying $1.2m in tax, the company recorded a net loss of $1.2m. Additional factors, including a $1.2m negative foreign currency impact, pushed bottom-line net loss to $2.4m, compared to a $12.6m profit in Q1 2025.

Lower guidance reflects continued sector pressure

Following the Q1 performance, Gambling.com Group reduced its full-year expectations. Revenue guidance has been set between $165m and $170m, down from the previous $170m to $180m range. Adjusted EBITDA is also expected to fall between $60m and $64m, compared to the earlier forecast of $67m to $69m.

Despite the downgrade, management is focused on long-term positioning through diversification and operational changes. Kevin McCrystle added that the restructuring will guarantee a more efficient operation.

“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.

25% of staff at Gambling.com Group are being laid off in a move to restructure operations. Due to a drop in first quarter revenue, the company hopes to save costs and improve its financial results by Q3 by adopting an AI-first approach. Full-year guidance and adjusted EBITDA have also been adjusted to reflect the current realities.