This article first appeared on GuruFocus .
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Kambi Group PLC ( KMBIF ) signed 12 new commercial agreements in Q3, including a significant partnership with tier 1 operator Superbat Group.
-
The acquisition of a player account management platform's source code is expected to open new market opportunities, particularly in Nevada.
-
The company maintained strong margins and demonstrated disciplined cost control, resulting in a positive underlying cash flow.
-
Kambi Group PLC ( KMBIF ) has a robust partner network with more than 50 operators and manages a global betting liquidity of 17 billion.
-
The Odds Feed Plus product has attracted major operators, enhancing the company's market position and revenue diversification.
Negative Points
-
Revenue for Q3 decreased by 8.1% compared to the previous year, excluding non-recurring transition fees.
-
The company adjusted its full-year EBITA guidance for 2025 to around 17 million due to microeconomic pressures and delayed launches.
-
The regulated Brazilian market developed more slowly than expected, impacting growth projections.
-
Foreign exchange headwinds, particularly the weakening of the US dollar and Colombian peso, negatively impacted financial results.
-
The planned launch with Ontario Lottery has been delayed to early Q1 2026, affecting short-term revenue expectations.
Q & A Highlights
Q: Could you elaborate on the reasons behind the renewal of the Penn Entertainment partnership? A: Unfortunately, we can't share more information about this deal today as Penn is in a silent period, having their earnings call tomorrow. (Werner Becker, CEO)
Q: Is the current cost base maintainable going forward, considering the cost structure was slimmer than expected? A: Yes, the cost base is sustainable, although there was a 1.1 million positive impact due to vacation pay, which is purely a Q3 benefit. The ongoing efficiency program will continue. (David Kenyon, CFO)
Q: Are you seeing any changes in the Brazilian market in Q4 compared to Q3? A: The market is growing, but the overall market size was overestimated before regulations. The black market remains large, and channelization hasn't worked as expected. (Werner Becker, CEO)
Q: Regarding the guidance cuts for 2025, which factor matters the most among FX, Brazil, and the revised timing for the Ontario Lottery launch? A: Brazil is the most significant factor as the growth is not meeting expectations. FX matters least as it's not structural, and the Ontario Lottery delay is just a shift to January. (David Kenyon, CFO)
Q: What is the outlook for continued customer additions? A: The pipeline is strong, with ongoing negotiations for various products. We expect to continue signing new deals at a similar pace. (Werner Becker, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
