Kambi reported improved first-quarter results as higher sports betting margins and increased betting activity helped offset ongoing partner transitions.
Revenue rose 5% year-over-year to €43.5 million ($47.0 million) while adjusted EBITA climbed 64% to €5.7 million ($6.2 million) and sports betting hold expanded to 13%, Kambi announced Wednesday.
Betting activity across the sports betting supplier’s network increased by roughly 3 million bets compared to a year earlier, though handle declined 3%, which CFO David Kenyon attributed to the improved margins and bettors losing more money.
Kambi’s stock hit a new 52-week high on the results, jumping 23.9% in Stockholm to close at 158.6 Swedish krona.
Kambi tweaks offerings amid industry shift
Several sportsbook launches and partnerships contributed to the growth, including expansion with Canadian lottery operators and a new deal in France. Kambi expects both to drive more meaningful contributions over the rest of the year
The results come as Kambi continues to adjust its business model amid a broader industry shift away from fully outsourced sportsbook platforms to in-house technology, reducing reliance on third-party providers.
CEO Werner Becher said Kambi is increasingly targeting operators looking to “outsource slices of their offering” rather than rely on full-service platforms.
“We simply wanted to address also the 70% of the market” that runs on in-house sportsbooks, Becher said.
Kambi leans into modular services
That shift has driven adoption of Kambi’s Odds Feed+ product, which provides pricing and trading services to operators including Hard Rock, Kindred, and LeoVegas.
The company said demand is also growing from larger operators seeking to outsource specific components rather than entire platforms.
More than 60% of bets across Kambi’s network are now priced and traded using AI, which has improved pricing accuracy, uptime, and bet acceptance rates, contributing to the margin gains.
March Madness generated the most betting activity of any event in the quarter, while the Super Bowl produced the highest turnover, with favorable results in both contributing to higher-than-expected margins.
Where prediction markets fit in
Prediction markets have yet to materially impact the business, executives said, describing them as an “interesting new type” of sports betting but noting “zero impact” on current revenues.
Becher said the products could create some pressure on customer acquisition costs due to increased marketing spend, but may also serve as a new entry point for younger bettors.
That dynamic has started to surface elsewhere in the industry. BetMGM CEO Adam Greenblatt said earlier this month that prediction markets are driving up acquisition costs, prompting the company to shift marketing spend away from sports betting–only states.
More migrations, busy sports calendar
Kambi said the timing of key partner migrations, particularly related to Kindred, has shifted later than previously expected, delaying associated revenue headwinds.
The company also flagged a roughly €4 million ($4.3 million) revenue impact in 2026 from gaming tax increases in Colombia, though it said the effect is being partially offset by the delayed migrations.
Kambi reiterated its full-year adjusted EBITA guidance of €20 million to €25 million ($21.6 million to $27 million) as it enters a busy stretch of the sports calendar, including the first U.S.-hosted FIFA World Cup in more than 30 years.
