Kambi pushed into new markets, including Nevada, Brazil, and Ontario, marking a busy first quarter for the sports betting technology provider.
While new partnerships were good news, Kambi reported a drop in revenue and a steep decline in profit as broader economic headwinds and player-friendly results weighed on performance.
Kambi on Wednesday announced €41.5 million ($47.2 million) in revenue for Q1, a 4% year-over-year decline. Revenue would have been up 7% without the transition fees paid by former sports betting partners from the first quarter of 2024. Operating profit fell to €800,000 ($910,000), down 82% from the same period last year, while adjusted EBITDA dropped to €2.3 million ($2.6 million).
“While revenue grew 7% when excluding the impact of transition fees, our financial performance was below what should be expected of a company of Kambi’s standing and far from the future level I aspire to,” CEO Werner Becher said on the earnings call.
March Madness drag, global margin lift
Becher attributed part of the margin pressure to an unusually favorable March Madness tournament for US bettors. All four No. 1 seeds advanced to the Final Four, a rarity that dented sportsbook win rates during one of Kambi’s highest-volume events.
Still, operators reported a trading margin of 10.2% for the quarter, up from 9% in Q1 2024. The improvement came from stronger-than-expected results in European soccer and increased engagement with higher-margin products.
Licenses, launches, lottery deals
Kambi began 2025 with several strategic wins across the Americas. In January, the company secured licensing approval in Nevada, enabling it to provide its sportsbook platform to nonrestricted gaming establishments in the state. It also launched on the first day of Brazil’s regulated market, partnering with Stake, BetMGM and BetWarrior, among others.
Meanwhile, in Canada, Kambi was named the long-term sports betting provider for the Ontario Lottery and Gaming Corp. through 2032. The partnership underscores Kambi’s growing focus on state-owned or former monopoly operators, such as ATG (Sweden), the Belgian National Lottery and Svenska Spel, Becher said.
“Our commitment to delivering best-in-class sports betting solutions remains unwavering,” Becher said. “The demand for our core Turnkey Sportsbook, coupled with the broader diversification of our product portfolio and partner network, provides a strong platform for future growth and success.”
Kambi shrinks reliance on largest partners
As part of its diversification strategy, Kambi continued to reduce reliance on its largest partners. Revenue from the company’s top three clients dropped from 45% in 2023 to 39% in 2024 and declined further in the first quarter of 2025, according to the company.
Operator turnover in the Americas grew 7% year over year and accounted for 57% of the total, while 98% of all sportsbook turnover came from locally regulated markets.
Kambi reaffirmed its full-year guidance of €20 million to €25 million ($22.7 million to $28.3 million) in adjusted EBITDA, with expectations for a stronger second half of the year driven by new customer launches and the sports calendar.
