Introduction

Are you able to name a company that has all of the following?

⁃ Profitable

⁃ High growth: Compounding Revenue and Earnings growth YOY

⁃ Gross Margin 94%

⁃ PE ratio of 12 and PS ratio of 3.1

⁃ Market Cap <500 million (potential multibagger)

⁃ Substantial share buybacks

⁃ 100% Analyst Buy Rating

$GAMB [Gambling.com] ticks all the above boxes.

What is Gambling.com?

Simply put, they own gaming related websites including Gambling.com, Bookies.com, Casinos.com etc. Gaming operators such as DraftKings and Bet365 acquire customers via these websites. Revenue is earned for each referral made to an operator and recurring revenue share fees as a percentage of revenue generated by each referred user.

Financials & Business Model

Revenue: 42M (2021) > 138M (TTM) [328%]

- Q1 2025 Revenue: 40.6M (up 39% YOY)

- Q1 2025 Gross Profit: 38.4M (up 42% YOY)

Gross Margin: 94%

EBITDA Margin: 38%

2025 Guidance

Full Year Revenue: 170-174M (~35% YOY)

Full Year EBITDA: 67-69M (~40% YOY)

The above guidance is assuming no additional North American markets come online over 2025; however online sports betting is expected to begin in Missouri in the second half of 2025. This will provide an additional tailwind for GAMB to beat guidance.

Massive Buybacks

$GAMB management has shown significant confidence in the business with their aggressive buyback program. In 2024, the company repurchased 4.25M shares. Current shares outstanding is 35.6M. The company bought back >10% of the stock in 2024 alone.

In a recent interview by Stocktwits with the CEO of Gambling.com published 28 May 2025, he mentioned that the company may consider further buy backs if the stock remains undervalued in the 2nd half of 2025.

Valuation

PE: 12

PS: 3.1

Market Cap: 431M

At a market cap of <500M and Price/Sales Ratio of 3.1, buying the stock at the current valuation is a steal. Other companies growing revenue at 30-40% YOY have much higher P/S ratios.

Analyst Coverage

$GAMB stock is covered by 8 analysts, of which 100% have a BUY rating on the stock. The most recent coverage by Texas Capital was yesterday (12 June 2025) and they initiated a BUY rating on the stock.

Price Targets range from 17 to 20 with an average of 18.57 (56% upside, current price <12)

Conclusion

$GAMB is a compounding machine with consistent double digit top and bottom line growth. The industry it operates in is insulated from the geopolitical crises occurring in Ukraine and the Middle East. Management is investor-friendly, focusing on stock buybacks instead of diluting investors unnecessarily. In addition, the company is massively undervalued, trading at an obscenely low valuation despite being a growth stock. Usually stocks growing revenues at 30-40% have much higher valuations.

At a market cap of 400 million, this is an easy 10x to 4 billion where P/S will be ~20 with revenue growing 30-40% YOY.