Kambi Group plc reported a year-on-year revenue decline of 11.5 percent in the second quarter of 2025, reflecting the impact of legacy contract transitions and ongoing macroeconomic challenges.
Revenue falls, but adjusted decline smaller
Kambi posted €40.5 million ($47.5 million) in revenue for Q2 2025, down from €45.8 million in the same quarter last year. The decrease was largely due to the gradual wind-down of its former contract with Penn Entertainment. When excluding €4.5 million in transition fees recorded in Q2 2024, the adjusted revenue drop was limited to 2 percent.
For the first half of 2025, Kambi reported €81.9 million in revenue, down 7.9 percent year-on-year. Without the €8.9 million in transition fees from H1 2024, the figure actually marked a 2.3 percent increase, showing stability in its core business despite shifting partnerships.
Profit margins tighten
Operating profit fell to €1.6 million in Q2, a sharp drop from €6.2 million in the same period last year. This pushed the operating margin down to 4 percent, compared to 13.5 percent previously. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITA), after acquisitions stood at €3.7 million for the quarter, reflecting a margin of 9.2 percent.
The company also faced foreign exchange losses and one-off costs. A €1.2 million FX revaluation loss was recorded in H1 2025, a substantial increase from just €0.01 million a year earlier.
Expenses and cash flow
Total expenses for to €38.1 million, pointing to early gains from Kambi’s cost efficiency programme introduced in 2025. For the first half, expenses remained stable at €78.6 million.
Cash flow excluding working capital and M&A activity was €1.3 million in Q2 and €9.0 million for H1, both down from the prior-year levels of €8.1 million and €13.5 million respectively. Earnings per share declined to €0.009 for the quarter and €0.036 for H1.
The company also initiated a €15 million share buyback programme, the largest in its history, following approval at an extraordinary general meeting.
Global deals and licensing expansion
Kambi made notable progress on the commercial front in Q2. It extended its Turnkey Sportsbook partnership with LeoVegas Group and signed a new Odds Feed+ agreement. LeoVegas is the fourth partner to adopt the enhanced feed since its launch in late 2024.
In Latin America, Kambi signed a new Turnkey Sportsbook deal with RedCap. The agreement covers RedCap’s Betpro and Starplay brands, which are now live in Panama and El Salvador. The deal marks a competitive win, as RedCap shifted from a rival provider.
Earlier in 2025, Kambi secured licences in Brazil and Nevada. It also replaced FDJ as the long-term sportsbook partner for Ontario Lottery and Gaming Corporation. These moves are part of a broader effort to reduce reliance on legacy contracts and diversify the company’s partner network.
CEO comment
“While the first half of the year played out broadly as expected, I want to reiterate that I am not satisfied with where we are at today, with my ambition for the business being far greater.
“Looking ahead to the rest of the year, the external environment will continue to pose challenges, but I remain optimistic that we can increasingly deliver value for our partners, expand our partner network, strengthen our product portfolio and position the business for long-term, sustainable growth,” said Werner Becher, CEO of Kambi Group.
Product development and esports growth
Kambi’s Bet Builder product stood out as a key contributor to profitability. It supported an operator trading margin of 11.5 percent for Q2, above the company’s long-term guidance range of 9.5 percent to 11 percent. The product continues to gain traction due to its high-margin structure.
Esports betting, supported by Kambi’s Abios division, emerged as the fifth largest betting vertical by turnover during the quarter. It is also being integrated more deeply into the Odds Feed+ product.
