Q2 2025 Gambling.com Group Ltd Earnings Call

Executive Officer, and Elliot Mark <unk>, Chief Financial Officer.

This call is being webcast live through the Investor Relations section of our website at <unk> Dot com forward Slash corporate code slash investors.

And a downloadable version of the presentation is available there as well a webcast replay will be available on the website. After the conclusion of this call. You may also contact investor relation support by E mailing investors at GTC group Dot com.

I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided consists of forward looking statements as defined by securities laws. These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results performance and business.

Aspects and opportunities to differ materially from those expressed in or implied by these statements.

Some important factors that could cause such differences are discussed in the risk factors section of gambling Dot com group's filings with the Securities and Exchange Commission.

Forward looking statements speak only as of the date. The statements are made and the company assumes no obligation to update forward looking statements to reflect actual results changes in assumptions or changes in other factors affecting forward looking information except to the extent required by applicable securities laws.

During the call. There will also be a discussion of non <unk> financial measures and a description of these non <unk> financial measures is included in the press release issued earlier this morning, and reconciliations of these non <unk> financial measures to their most directly comparable <unk> measures are included in the appendix.

Two the presentation and the press release, both of which are available in the investors tab of our website I will now turn the call over to Charles.

Good afternoon, and thanks for joining our call today and generating record second quarter revenue and adjusted EBITDA with revenue rising, 30% and adjusted EBITDA, increasing 22% year over year Mark loans, most generated all time highs for second quarter revenue growth.

Growth in our sports data of influence accelerated to where it needs Hyatt, where it's highly visible and high margin recurring subscription revenue accounted for 25% of total revenue despite the second quarter being the seasonally slowest quarter.

These results provide clear evidence that even while we continued to deliver high growth quarter. After quarter. We are also rapidly diversifying our business to include a broader suite of products, which serve a much larger addressable market.

Diversification of traffic sources and revenue models and strong volume for our team.

The past four years as a public company, we have multiplied both our traffic sources and.

Our means to monetize that traffic and our growing audience. The business today is a very matrix.

Operator: Greetings and welcome to the Gambling.com Group's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Peter McGough. Please go ahead, sir.

Relationships between traffic sources and businesses.

CRM platform and its sensor to achieve this we have embraced an omnichannel approach to engage high intense unions across the internet, including with apps email social media Youtube communities and paid media.

Speaker #2: If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Peter McGough.

We've also broadened our ability to monetize our end users and needs to be online gambling operator clients with the addition of new business models through the acquisition of <unk> <unk> and.

Speaker #2: Please go ahead, sir.

Speaker #3: Thank you, operator. Hello, everyone, and welcome to Gambling.com's second quarter 2025 results call. I'm Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Charles Gillespie, Gambling.com Grp's co-founder and Chief Executive Officer.

Charles Gillespie: Thank you, operator. Hello everyone and welcome to Gambling.com's second quarter 2025 results call. I'm Peter McGough, Senior VP of Investor Relations and Capital Markets, and I'm joined by Charles Gillespie, Gambling.com Group's Co-Founder and Chief Executive Officer, and Elias Mark, Chief Financial Officer. This call is being webcast live through the Investor Relations section of our website at gambling.com/corporate/investors, and a downloadable version of the presentation is available there as well. A webcast replay will be available on the website after the conclusion of this call. You may also contact Investor Relations support by emailing investors@gdcgroup.com. I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided, consists of forward-looking statements as defined by securities laws.

And I'll take odds and we'll continue to do so when we close on spotlight on Vegas on September one.

Speaker #3: And Elias Mark, Chief Financial Officer. This call is being webcast live through the Investor Relations section of our website at gambling.com/corporate/investors. And a downloadable version of the presentation is available there as well.

Our focus on diversification and also includes diversifying our go to market approach within our marketing business as traditional search is becoming less central to our digital marketing strategy.

While the development of these other marketing channels like apps email social media and paid media is still relatively early.

Speaker #3: A webcast replay will be available on the website after the conclusion of this call. You may also contact Investor Relations support by emailing investors@gdcgroup.com.

Contributions are growing rapidly.

To the point that they are now more evident in our results.

Speaker #3: I would like to remind you that the information contained in this conference call, including any financial and related guidance to be provided consists of forward-looking statements as defined by securities laws.

We are measuring the growth in these non search channels in terms of orders of magnitude not incremental percentages.

Only speaking the channels have shorter investment cycles, while also offering attractive are alike.

Speaker #3: These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results performance and business prospects and opportunities to differ materially from those expressed in or implied by these statements.

Charles Gillespie: These statements are based on information currently available to us and involve risks and uncertainties that could cause actual future results, performance, and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some important factors that could cause such differences are discussed in the Risk Factors section of Gambling.com Group's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date the statements are made, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. During the call, there will also be a discussion of non-IFRS financial measures.

Having said all of this and search marketing channel continues to drive significant revenue and cash flow for both Google and publishers, while we expect the channels relative proportion to other digital channels to fall. We also expected two intertwine with next generation AI tools to remain the primary digital channel for years to come.

Speaker #3: Some important factors that could cause such differences are discussed in the Risk Factors section of Gambling.com Grp's filings with the Securities and Exchange Commission.

We are confident that this combined channel will continue to drive strong traffic revenue and cash flow for our business over the near and long term.

Speaker #3: Forward-looking statements speak only as of the date the statements are made and the company assumes no obligation to update forward-looking statements to reflect actual results changes in assumptions, or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws.

While AI tools are capable of making recommendations made base those recommendations offered data from specialist websites, such as our own and link back to their sources.

Speaker #3: During the call, there will also be a discussion of non-IFRS financial measures. A description of these non-IFRS financial measures is included in the press release issued earlier this morning, and reconciliations of these non-IFRS financial measures to their most directly comparable IFRS measures are included in the appendix to the presentation and the press release.

AI tools and agents are perfect for outsourcing tasks people want to avoid such as booking a meeting.

Charles Gillespie: A description of these non-IFRS financial measures is included in the press release issued earlier this morning, and reconciliations of these non-IFRS financial measures to their most directly comparable IFRS measures are included in the appendix to the presentation and the press release, both of which are available in the Investors tab of our website. I'll now turn the call over to Charles.

When users evaluate online gambling sites for their next adventure is entertainments not work.

For example, users like to demo and online slot machine before depositing and playing for real money.

Speaker #3: Both of which are available in the Investors tab of our website I'll now turn the call over to Charles.

There was also wants to retain a sense of agency themselves to control the decisions, which have a financial impact on them I.

Speaker #4: Thank you, Peter. Good afternoon, and thanks for joining our call today. We've generated records second quarter revenue and adjusted EBITDA with revenue rising 30%, and adjusted EBITDA increasing 22% year over year.

Peter McGough: Thank you, Pete. Good afternoon and thanks for joining our call today. We generated record second quarter revenue and adjusted EBITDA with revenue rising 30% and adjusted EBITDA increasing 22% year over year. Our marketing business generated all-time highs for second quarter revenue, and the growth in our sports data business accelerated to where it is high, where it's highly visible and high margin recurring subscription revenue accounted for 25% of total revenue, despite the second quarter being the seasonally slowest quarter. These results provide clear evidence that even while we continue to deliver high growth quarter after quarter, we are also rapidly diversifying our business to include a broader suite of products which serve a much larger addressable market. Diversification of traffic sources and revenue models is front of mind for our team.

I think it is fair to say that the AI driven changes to search.

Had a relatively smaller impact on the online gaming industry than other industries based on our results and what we are reading elsewhere.

Speaker #4: Our marketing business generated all-time highs for second quarter revenue, and the growth in our sports data business accelerated to where it is higher, where it's highly visible. High-margin recurring subscription revenue accounted for 25% of total revenue, despite the second quarter being the seasonally slowest quarter.

Our strategy to develop big brands with industry, leading authority like Amazon Com bookings by its own casinos dot com is fundamental to our dominance in traditional search and likewise ideally positions us to capture and monetize high intent traffic wherever it is on the internet, including for next generation AI tools.

Speaker #4: These results provide clear evidence that even while we continue to deliver high growth, quarter after quarter, we are also rapidly diversifying our business to include a broader suite of products, which serve a much larger addressable market.

As a service experience continues to evolve we are doing what we have always done making sure that we optimize their offerings. So they create the most value for consumers looking for information about online gambling and for operators that will always need new players.

Speaker #4: Diversification of traffic sources and revenue models is front of mind for our team. In the past four years, as a public company, we have multiplied both our traffic sources and our means to monetize that traffic and our growing audience.

His skills and processes, we have perfecting for <unk> are exactly what is required to optimize for inclusion in generative AI. Both are fundamentally premised on the same signals of highest already trust and expertise.

Peter McGough: In the past four years as a public company, we have multiplied both our traffic sources and our means to monetize that traffic and our growing audience. The business today is a varied matrix of relationships between traffic sources and businesses with a CRM platform at its center. To achieve this, we have embraced an omnichannel approach to engage high-intent users across the internet, including with apps, email, social media, YouTube, communities, and paid media. We've also broadened our ability to monetize our end users and B2B online gambling operator clients with the addition of new business models through the acquisition of RudderWire, OddsGen, and OpticOds, and will continue to do so when we close on Spotlight.Vegas on September 1st. Our focus on diversification also includes diversifying our go-to-market approach within our marketing business, as traditional search is becoming less central to our digital marketing strategy.

Speaker #4: The business today is a varied matrix. Of relationships between traffic sources and businesses, they CRM platform at its center. To achieve this, we have embraced an omnichannel approach to engage high-intent users across the internet including with apps, email, social media, YouTube, communities, and paid media.

Our key differentiating strengths.

Turning to another key component of our diversification growth and our sports data services business accelerated in Q2 with after gods and leading the way with 120% year on year growth.

Given the momentum of this business is already achieving to date and a realization that the Tam for this business maybe bigger than originally expected due to the wide variety of clients interested in the data we continue to revised up our long term growth expectations.

Speaker #4: We have also broadened our ability to monetize our end users and B2B online gambling operator clients with the addition of new business models. Through the acquisition of RotaWire, OddsJam, and OpticOds, and will continue to do so when we close on Spotlight.Vegas, on September 1st.

Between Odyssey optic gods and be refreshed rudder wire, our vision to establish a strong sports data services business within Gan is now a reality that was the hard part and we are continuing to scale. This business delivering substantial high margin recurring subscription revenue.

Speaker #4: Our focus on diversification also includes diversifying our go-to-market approach within our marketing business. As traditional search is becoming less central to our digital marketing strategy, while the development of these other marketing channels like apps, email, social media, and paid media is still relatively early, the contributions are growing rapidly to the point that they are now more evident in our results.

<unk> growth.

Our success with quickly integrating and scaling answer on and off the gods, which follows a similar success of our <unk> acquisition last year continues to demonstrate our ability to identify close and integrate strategic accretive acquisitions in a capital efficient manner.

Peter McGough: While the development of these other marketing channels like apps, email, social media, and paid media is still relatively early, the contributions are growing rapidly to the point that they are now more evident in our results. We are measuring the growth in these non-search channels in terms of orders of magnitude, not incremental percentages. Generally speaking, these channels have shorter investment cycles while still offering attractive ROI. Having said all of this, the search marketing channel continues to drive significant revenue and cash flow for both Google and publishers. While we expect the channel's relative proportion to other digital channels to fall, we also expect it to intertwine with next-generation AI tools to remain the primary digital channel for years to come. We are confident that this combined channel will continue to drive strong traffic, revenue, and cash flow for our business over the near and long term.

Speaker #4: We are measuring the growth in these non-search channels in terms of orders of magnitude, not incremental percentages. Generally speaking, these channels have shorter investment cycles, while still offering attractive ROI.

Each of our prior transactions, including ROI on bonus finer teams.

Team's execution has successfully lowered the initial purchase multiple.

We expect the acquisition of spotlight that Vegas will continue a run a capital efficient and successful acquisitions spotlight helps consumers access of gambling adjacent entertainment experiences such as live events and local attractions through its online booking platform today the business.

Speaker #4: Having said all of this, the search marketing channel continues to drive significant revenue and cash flow for both Google and publishers. While we expect the channels' relative proportion to other digital channels to fall, we also expect it to intertwine with next-generation AI tools to remain the primary digital channel for years to come.

Serves the Las Vegas market with more than 40 clients, including entertainment venues and land based casinos.

Speaker #4: We are confident that this combined channel will continue to drive strong traffic, revenue, and cash flow for our business over the near and long term.

Visitors to Las Vegas utilized spotlight as a one stop shop for services that include tickets to shows and attractions or for booking out itself.

Speaker #4: While AI tools are capable of making recommendations, they base those recommendations off of data from specialist websites such as our own and link back to their sources.

Peter McGough: While AI tools are capable of making recommendations, they base those recommendations off of data from specialist websites such as our own and link back to their sources. AI tools and agents are perfect for outsourcing tasks people want to avoid, such as booking a meeting. But when users evaluate online gambling sites for their next adventure, it is entertainment, not work. For example, users like to demo an online slot machine before depositing and playing for real money. Users also want to retain a sense of agency themselves to control the decisions which have a financial impact on them. I think it is fair to say that the AI-driven changes to search have had a relatively smaller impact on the online gambling industry than other industries based on our results and what we are reading elsewhere.

This strategic acquisition expand our client base to now include land based operators and gives us yet another lever to monetize our audience.

I think sold over $30 million worth of tickets in 2024 spotlight is.

Speaker #4: AI tools and agents are perfect for outsourcing tasks, people want to avoid. Such as booking a meeting, but when users evaluate online gambling sites for their next adventure, it is entertainment, not work.

Already has attractive sale today.

As we begin to work with their team we are confident that for 2026, our digital marketing expertise will enhance margins and improved cash flow.

Speaker #4: For example, users like to demo an online slot machine before depositing and playing for real money. Users also want to retain a sense of agency themselves to control the decisions which have a financial impact on them.

Looking a little further out we see opportunities to deploy this booking platform on our owned and operated sites in particular on casinos dot com to ultimately expand beyond Las Vegas, and regional casinos and other attractions and hospitality providers.

Speaker #4: I think it is fair to say that the AI-driven changes to search have had a relatively smaller impact on the online gambling industry than other industries based on our results and what we are reading elsewhere.

At this exact moment Las Vegas hotel occupancy is at a low.

People that know the market best have seen many cycles come and go and expect to see the bounce back from this one as it has always done for us that makes the current moment, an opportunistic time to make a capital efficient play on the market with a relatively small upfront investment and substantial long term upside potential.

Speaker #4: Our strategy to develop big brands with industry-leading authority like gambling.com, bookies.com, and casinos.com is fundamental to our dominance of traditional search and likewise ideally positioned us to capture and monetize high-intent traffic wherever it is on the internet, including from next-generation AI tools.

Peter McGough: Our strategy to develop big brands with industry-leading authority like Gambling.com, Bookings.com, and Casinos.com is fundamental to our dominance of traditional search and likewise ideally positions us to capture and monetize high-intent traffic wherever it is on the internet, including from next-generation AI tools. As the search experience continues to evolve, we are doing what we have always done, making sure that we optimize our offerings so that they create the most value for consumers looking for information about online gambling and for operators that will always need new players. The skills and processes we have perfected for SEO are exactly what is required to optimize for inclusion in generative AI. Both are fundamentally premised on the same signals of high authority, trust, and expertise are our key differentiating strengths.

With this new platform the accelerating growth of our sports data services business and our continued industry, leading marketing business. We have transformed the company from an affiliate marketing business into a multi platform integrated marketing data and soon to be ticketing services.

Speaker #4: As a search experience continues to evolve, we are doing what we have always done, making sure that we optimize our offerings so that they create the most value for consumers looking for information about online gambling and for operators that will always need new players.

<unk>.

Speaker #4: The skills and processes we have perfected for SEO are exactly what is required to optimize for inclusion in generative AI. Both are fundamentally premised on the same signals of high authority, trust, and expertise our key differentiating strength.

All while maintaining a strong balance sheet and attractive capital structure through continuously strong cash flow generation capital efficient M&A and well timed share buybacks I will now turn the call over say earliest to review the second quarter's financial highlights.

Speaker #4: Turning to another key component of our diversification, growth in our sports data services business accelerated in Q2 with OpticOds leading the way with 120% year-on-year growth.

Thank you Charles.

Peter McGough: Turning to another key component of our diversification, growth in our sports data services business accelerated in Q2 with OpticOds leading the way with 120% year-on-year growth. Given the momentum this business has already achieved to date and our realization that the PAM for this business may be bigger than originally expected due to the wide variety of clients interested in the data, we continue to revise up our long-term growth expectations. Between OddsGen, OpticOds, and the refreshed RudderWire, our vision to establish a strong sports data services business within GAM is now a reality. That was the hard part, and we are continuing to scale this business, delivering substantial high-margin recurring subscription revenue growth.

Second quarter revenue grew 30% year over year to a Q2 record of $39 6 million.

Our marketing business grew 3% as we delivered more than 100000 mdc's customers in.

Speaker #4: Given the momentum this business is already achieving to date and our realization that the tan for this business may be bigger than originally expected due to the wide variety of clients interested in the data, we continue to revise up our long-term growth expectations.

In line with a year ago period.

Our marketing business grew in all of the regions, while we operate except for North America, while we had a tough comparable with the year ago period, and creating a tailwind from the launch of sports betting in North Carolina.

Speaker #4: Between OddsJam, OpticOds, and the refreshed RotaWire, our vision to establish a strong sports data services business within GAM is now a reality. That was the hard part, and we are continuing to scale this business, delivering substantial high-margin recurring subscription revenue growth.

Our source of services revenue quadrupled to $10 million.

Production revenue increased to 25% of total revenue.

In case of a revenue chatter arrangements in.

In our marketing business recurring revenue was 51% of total second quarter revenue.

Gross profit increased 27% year over year to.

Speaker #4: Our success with quickly integrating and scaling OddsJam and OpticOds, which follows the similar success of our FreeBets.com acquisition last year, continues to demonstrate our ability to identify, close, and integrate strategic creative acquisitions in a capital-efficient manner.

Peter McGough: Our success with quickly integrating and scaling OddsGen and OpticOds, which follows the similar success of our FreeBets.com acquisition last year, continues to demonstrate our ability to identify, close, and integrate strategic, creative acquisitions in a capital-efficient manner. In each of our prior transactions, including RudderWire and BonusFinder, our team's execution has successfully lowered the initial purchase multiple. We expect the acquisition of Spotlight.Vegas will continue our run of capital-efficient and successful acquisitions. Spotlight helps consumers access gambling-adjacent entertainment experiences such as live events and local attractions through its online booking platform. Today, the business serves the Las Vegas market with more than 40 clients, including entertainment venues and land-based casinos. Users to Las Vegas utilize Spotlight as a one-stop shop for services that include tickets to shows and attractions or for booking a hotel.

$36 $90 million cost of sales of $2 7 million compared to cost of sales of $1 4 million in yogurt period for <unk>.

Second cost associated without a successful strategy to diversify our traffic sources.

As well as cost of sales related to the acquired <unk> and optical businesses.

Speaker #4: In each of our prior transactions, including RotaWire and BonusFinder, our teams' execution has successfully lowered the initial purchase multiple. We expect the acquisition of Spotlight.Vegas will continue our run of capital-efficient and successful acquisitions.

Gross profit margin was 93, 2% compared to 95 complete percent any out of period.

Operating expenses of $61 3 million included $23 8 million of charges related to the <unk> Holdings acquisition.

Speaker #4: Spotlight helps consumers access gambling-adjacent entertainment experiences, such as live events and local attractions, through its online booking platform. Today, the business serves the Las Vegas market with more than 40 clients, including entertainment venues and land-based casinos.

Which kind of value movements related to the outperformance of <unk>, North Dakota of $21 2 million.

Non cash amortization of acquired intangible assets of $2 2 million, an entre acquisition related costs of $7 $4 million.

Adjusted EBITDA increased 22% year over year to a second quarter record of $13 7 million and adjusted EBITDA margin was 25% compared to 37% in the year ago period.

Speaker #4: Visitors to Las Vegas utilize Spotlight as a one-stop shop for services that include tickets to shows and attractions or for booking a hotel. This strategic acquisition expands our client base to now include land-based operators, and gives us yet another lever to monetize our audience.

Peter McGough: This strategic acquisition expands our client base to now include land-based operators and gives us yet another lever to monetize our audience. Having sold over $30 million worth of tickets in 2024, Spotlight already has attractive scale today. As we begin to work with our team, we are confident that for 2026, our digital marketing expertise will enhance margins and improve cash flow. Looking a little further out, we see opportunities to deploy this booking platform on our earned and operated sites, in particular on Casinos.com, to ultimately expand beyond Las Vegas and serve regional casinos and other attractions and hospitality providers. At this exact moment, Las Vegas hotel occupancy is at a low. The people that know the market best have seen many cycles come and go and expect the city to bounce back from this one, as it has always done.

Adjusted net income for the second quarter.

Rose, 47% from the other periods to $13 4 million.

Speaker #4: Having sold over 30 million dollars' worth of tickets in 2024, Spotlight is already has attractive scale today. As we begin to work with our team, we are confident that for 2026, our digital marketing expertise will enhance margins and improve cash flow.

Adjusted net income continued to be positively affected by translation effects relating to the strengthening of the euro versus the U S dollar when translating balance sheets hypothetical trend.

Adjusted diluted net income per share increased 42% from <unk> 37.

Speaker #4: Looking a little further out, we see opportunities to deploy this booking platform on our owned and operated sites, in particular on Casinos.com, to ultimately expand beyond Las Vegas and serve regional casinos, as well as other attractions and hospitality providers.

Free cash flow, great, 76% to $8 2 million, reflecting strong cash conversion and adjusted EBITDA growth, partly offset by tax payments of $5 5 million of which $3 3 million was related to the old <unk> acquisition.

Speaker #4: At this exact moment, Las Vegas hotel occupancy is at a low. The people who know the market best have seen many cycles come and go, and expect the city to bounce back from this one as it has always done.

Awesome team buckets, we had total cash of $18 7 million.

Speaker #4: For us, this makes the current moment an opportunistic time to make a capital-efficient play on the market with a relatively small upfront investment and substantial long-term upside potential.

Peter McGough: For us, this makes the current moment an opportunistic time to make a capital-efficient play on the market with a relatively small upfront investment and substantial long-term upside potential. With this new platform, the accelerating growth of our sports data services business and our continued industry-leading marketing business, we have transformed the company from an affiliate marketing business into a multi-platform integrated marketing data and soon-to-be ticketing services business, all while maintaining a strong balance sheet and attractive capital structure through continuously strong cash flow generation, capital-efficient M&A, and well-timed share buybacks. I'll now turn the call over to Elias to review the second quarter's financial highlights.

And 75 million Undrawn capacity on our credit facility.

On April <unk>, we made the final payment of $11 2 million for feedback satcom using cash balances.

Speaker #4: With this new platform, the accelerating growth of our sports data services business, and our continued industry-leading marketing business, we have transformed the company from an affiliate marketing business into a multi-platform, integrated marketing data and soon-to-be ticketing services business.

In total we actual $94 5 million on our $165 million credit facility.

Effective April 1st we entered into swap agreements to effectively come about 75% of U S. Dollar borrowings to euro borrowings lowering our cost of debt capital by approximately 200 basis points.

Speaker #4: All while maintaining a strong balance sheet and attractive capital structure through continuously strong cash flow generation, capital-efficient M&A, and well-timed share buybacks. I will now turn the call over to Elias to review the second quarter's financial highlights.

The swap transaction also aligned our functional currency without borrowings eliminating the corresponding forex translation effects in our income statement moving forward.

We continue to generate strong free cash flow.

Based on the closing price of the SaaS. This afternoon, we expect free cash flow yield to be double digits. Prior to the effects of any thought there shattered purchases when they make in the second half of the year.

Speaker #5: Thank you, Charles. Second quarter revenue grew 30% year-over-year to a Q2 record of $39.6 million. Our marketing business grew 3% as we delivered more than 108,000 NDCs to our customers.

Elias Mark: Thank you, Charles. Second quarter revenue grew 30% year over year to a Q2 record of $39.6 million. Our marketing business grew 3% as we delivered more than 108,000 MVPs to our customers in line with the year-ago period. Our marketing business grew in all of the regions where we operate, except for North America, where we had tough comparables with the year-ago period, including the tailwind from the launch of sports betting in North Carolina. Our sports data services revenue quadrupled to $10 million. Subscription revenue increased to 25% of total revenue. Inclusive of revenue share arrangements in our marketing business, recurring revenue was 51% of total second quarter revenue. Gross profit increased 27% year over year to $36.9 million.

Our free cash flow together with our strong balance sheet, an undrawn credit facilities.

Speaker #5: In line with the year-over period, our marketing business grew in all of the regions where we operate, except for North America, where we had tough comparables with the year-over period including the tailwind from the launch of sports betting in North Carolina.

<unk> to provide the flexibility to pursue both acquisitions and share buybacks to optimize our capital structure and maximize shareholder value.

Today, our board approved a $20 million expansion to a total of $20 million of capacity in our current share repurchase program. Nonetheless.

Speaker #5: Our sports data services revenue quadrupled to $10 million. Subscription revenue increased to 25% of total revenue. Inclusive of revenue share arrangements, in our marketing business, recurring revenue was 51% of total second quarter revenue.

None of which have been utilized yet.

This afternoon, we adjusted our full year guidance to reflect revenues at revenue range of $171 million to $175 million.

Speaker #5: Gross profit increased 27% year-over-year to $36.9 million, with a cost of sales of $2.7 million compared to $1.4 million in the prior year period. This reflects costs associated with our successful strategies to diversify traffic sources, as well as costs related to the acquired OddsJam and OpticOds businesses.

On an adjusted EBITDA range of 62 million to $64 million.

Elias Mark: Cost of sales of $2.7 million compares to cost of sales of $1.4 million in the year-ago period, reflecting costs associated with our successful strategy to diversify traffic sources, as well as cost of sales related to the acquired OddsGen and OpticOds businesses. Gross profit margin was 93.2% compared to 95.3% in the year-ago period. Operating expenses of $51.3 million included $23.8 million of charges related to the Odds Holding acquisition, of which fair value movements related to the outperformance of OddsGen and OpticOds of $21.2 million, non-cash amortization of acquired intangible assets of $2.2 million, and other acquisition-related costs of $0.4 million. Adjusted EBITDA increased 22% year over year to a second quarter record of $13.7 million, and adjusted EBITDA margin was 35% compared to 37% in the year-ago period. Adjusted net income for the second quarter rose 37% from the year-ago period to $13.4 million.

The increase for the full year revenue range reflects the expected four months contribution from spotlight.

I guess.

And the launch of sports betting in Missouri in December partly offset by currency week their SaaS rankings. Following the most recent Google core algorithm update.

Speaker #5: Gross profit margin was 93.2% compared to 95.3% in the year-over period. Operating expenses of $51.3 million included $23.8 million of charges related to the odds holding acquisition.

Adapting to Google's algorithm changes, it's business as usual.

Underway to recover loss positions.

The midpoint of the revenue guidance of $173 million represents 5% to 6% year over year growth.

Speaker #5: Of which fair value movements related to the outperformance of OddsJam and OpticOds of $21.2 million, non-cash amortization of acquired intangible assets of $2.2 million, and other acquisition-related costs of $0.4 million.

The updated full year adjusted EBITDA guidance range reflects the higher cost of sales and our marketing business as a result of the higher proportion of non SCO marketing revenue.

Strategic investments in the new digital marketing channels and monetization models that Charles highlighted.

Speaker #5: Adjusted EBITDA increased 22% year-over-year to a second quarter record of $13.7 million, and adjusted EBITDA margin was 35% compared to $37.7% in the year-over period.

And no adjusted EBITDA contributions from spotlight today, I guess for this year.

Speaker #5: Adjusted net income for the second quarter rose 37% from the year-over period to $13.4 million. Adjusted net income continued to be positively affected by translation effects relating to the strengthening of the euro versus the US dollar when translating balance sheet items at quarter-end.

The midpoint of the adjusted EBITDA guidance reflects 29% year over year right.

Our guidance assumes an average euro to USD exchange rate of 1.15 for the year.

Elias Mark: Adjusted net income continued to be positively affected by translation effects relating to the strengthening of the euro versus the US dollar when translating balance sheet items at quarter end. Adjusted diluted net income per share increased 42% from the year-ago period to $0.37. Free cash flow grew 36% to $8.2 million, reflecting strong cash conversion and adjusted EBITDA growth, partly offset by tax payments of $5.5 million, of which $3.3 million was related to the Odds Holding acquisition. As of June 30th, we had total cash of $18.7 million and $70.5 million in undrawn capacity on our credit facility. On April 1st, we made the final payment of $11.2 million for FreeBets.com using cash balances. In total, we have drawn $94.5 million on our $165 million credit facility.

As Charles highlighted.

The acquisition of spotlight.

The Vegas provides another strategic lever to engage.

Speaker #5: Adjusted diluted net income per share increased 42% from the year-over period to $37. Free cash flow grew 36% to $8.2 million, reflecting strong cash conversion and adjusted EBITDA growth partly offset by tax payments of $5.5 million of which $3.3 million was related to the odds holding acquisition.

Our high intent audiences.

In a capital efficient manner with limited upfront cash outflow on a pay for performance structure that will be accretive to our operating results.

For 2026, we expect to spotlight, but vegas to generate net revenue of at least $8 million and incremental adjusted EBITDA of at least $1.4 million.

Speaker #5: As of June 30th, we had total cash of $18.7 million, and $70.5 million of undrawn capacity on our credit facility. On April 1st, we made the final payment of $11.2 million for FreeBets.com using cash balances.

Operator, we will now turn the call over for questions.

Thank you.

We'll now be conducting a question and answer session. If he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.

Speaker #5: In total, we have drawn $94.5 million on our $165 million credit facility. Affected April 1st, we entered into swap agreements to effectively convert 75% of US dollar borrowings to euro borrowings, lowering our cost of debt capital by approximately 200 basis points.

Elias Mark: Effective April 1st, we entered into a swap agreement to effectively convert 75% of US dollar borrowings to euro borrowings, lowering our cost of debt capital by approximately 200 basis points. The swap transaction also aligned our functional currency with our borrowings, eliminating the corresponding forced translation effects in our income statements moving forward. We continue to generate strong free cash flow. Based on the closing price of the shares this afternoon, we expect free cash flow yield to be double digits prior to the effects of any further share purchases we may make in the second half of the year. Our free cash flow, together with our strong balance sheet and undrawn credit facilities, continues to provide the flexibility to pursue both acquisitions and share buybacks to optimize our capital structure and maximize shareholder value.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.

Speaker #5: The swap transaction also aligned our functional currency with our borrowings eliminating the corresponding foreign translation effects in our income statements moving forward. We continue to generate strong free cash flow.

Again that is star one to ask a question.

And our first question will come from Jeff substantial with Stifel.

Hey, good afternoon, Charles Thanks for taking our questions maybe let's start off if we can on a spotlight Vegas transaction starting off I always can you just provide us with some of the metrics underlying the earn out compensation.

Speaker #5: Based on the closing price of the share this afternoon, we expect free cash flow yield to be in double digits prior to the effects of any further share repurchases we may make in the second half of the year.

And then more high level, Jonathan I'm curious just as you under wrote this transaction sort of how did you come to understand the similarities and differences in the user journey for live events versus sort of your legacy online gambling focus sites and as a corollary to that what really gave you the confidence that.

Speaker #5: Our free cash flow together with our strong balance sheet and undrawn credit facilities continues to provide the flexibility to pursue both acquisitions and share buybacks to optimize our capital structure and maximize shareholder value.

And experience would translate well over to live in that space.

Speaker #5: Today, our board approved a $10 million expansion to a total of $20 million of capacity in our current share repurchase program. None of which has been utilized yet.

Elias Mark: Today, our board approved a $10 million expansion to a total of $20 million of capacity in our current share repurchase program, none of which has been utilized yet. This afternoon, we adjusted our full-year guidance to reflect a revenue range of $171 million to $175 million and an adjusted EBITDA range of $62 million to $64 million. The increase to the full-year revenue range reflects the expected four months of contribution from Spotlight.Vegas and the launch of sports betting in Missouri in December, partly offset by currently weaker search rankings following the most recent Google Core algorithm updates. Adapting to Google's algorithm changes is business as usual, and we're on the way to recover lost positions. The midpoint of the revenue guidance of $173 million represents 36% year-over-year growth.

If on top of the first part of that question.

As they manage the intent here is to be very capital efficient and other limited upfront payment and pay per performance.

Speaker #5: This afternoon, we adjusted our full-year guidance to reflect revenue range of $171 million to $175 million. And then adjusted EBITDA range of $62 million to $64 million.

Essentially we have an upfront.

Payment of $8 million, which we expect to settle in cash.

And then we had a two year earn out component.

Speaker #5: The increase to the full-year revenue range reflects the expected four months of contribution from Spotlight.Vegas and the launch of sports betting in Missouri in December, partly offset by currently weaker search rankings following the most recent Google Core algorithm updates.

That it's capped at an additional $22 million $11 million per year based on incremental.

EBITDA above a certain threshold for each of 2026 and 27 MD effective multiple in that analysis.

Speaker #5: Adapting to Google's algorithm changes is business as usual, and we're on the way to recover lost positions. The midpoint of the revenue guidance of $173 million represents 36% year-over-year growth.

<unk> operating profit.

From my perspective is a very attractive acquisition, it's a bit I don't think any of our competitors. We're looking at this right. It does involve a little bit of our original thinking.

Speaker #5: The updated full-year adjusted EBITDA guidance range reflects the higher cost of sales in our marketing business as a result of the higher proportion of non-SEO marketing revenue.

Elias Mark: The updated full-year adjusted EBITDA guidance range reflects the higher cost of sales in our marketing business as a result of the higher proportion of non-SEO marketing revenue, strategic investments into the new digital marketing channels and monetization models that Charles highlighted, and no adjusted EBITDA contributions from Spotlight.Vegas for this year. The midpoint of the adjusted EBITDA guidance reflects 29% year-over-year growth. Our guidance assumes an average euro to USD exchange rate of 1.15 for the year. As Charles highlighted, the acquisition of Spotlight.Vegas provides another strategic lever to engage our high-intent audiences. In a capital-efficient manner, we limited upfront cash outflow and a pay-for-performance structure that will be accretive to our operating results. For 2026, we expect Spotlight.Vegas to generate net revenue of at least $8 million and incremental adjusted EBITDA of at least $1.4 million. Operator, we will now turn the call over for questions.

We're looking for ways to monetize this audience, we have and deploying the skills. We have and this is a perfect opportunity to do both.

We.

Speaker #5: Strategic investments in the new digital marketing channels and monetization models that Charles highlighted and no adjusted EBITDA contributions from Spotlight.Vegas for this year. The midpoint of the adjusted EBITDA guidance reflects 29% year-over-year growth.

You now have this incredible audience of people that want to gamble that loved gambling, whether it's online orlando's suitable.

Single visit Las Vegas ends.

When you look at the spotlight business.

There is not a new and different ways to do digital marketing within the online gambling industry, we wouldn't have gone all the way to do.

Full blown ticketing outside of gaming.

Speaker #5: Our guidance assumes an average euro to USD exchange rate of 1.15 for the year. As Charles highlighted, the acquisition of Spotlight.Vegas provides another strategic lever to engage our high-intent audiences.

That's a step too far.

But ticketing within gaming gaming adjacent.

There is some synergy there.

When we look at this particular business.

It's still a relatively young business.

There's a lot of things that our team can go in and do immediately to make a difference and it reminds us a lot of the very best Dot Com acquisition that those assets were not operated it at.

Speaker #5: In a capital-efficient manner, we limited upfront cash outflow and a pay-for-performance structure that will be a creative to our operating results. For 2026, we expect Spotlight.Vegas to generate net revenue of at least $8 million and incremental adjusted EBITDA of at least $1.4 million.

As well as liquidity and as our team was able to unlock that value.

Last but not least it's always about people and they've got a great team over there and a very strong leader, Doug, which we very much look forward to working with them and I think.

US combining our.

Digital marketing skills with the technology platform that they have already exists or that they don't have to build it.

Speaker #5: Operator, we will now turn the call over for questions.

Speaker #2: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press *1 on your telephone keypad.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Again, that is star one to ask a question. And our first question will come from Jess Stanchel with Stifel.

There's a very clear.

Way to grow that business and do it under.

Our roof.

Speaker #2: A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue.

Okay. That's great. Thank you for all that color and then maybe shifting gears and turning over.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * key. Again, that is *1 to ask a question.

AI you know Charles from some helpful commentary at the beginning of the call I think we're all sort of.

Grappling with figuring out how this looks and evolved and over the long term impacts your business.

Speaker #2: And our first question will come from Jess Stanchell with Staple.

Two part question here first I'm curious if you've done any work or seen anything in terms of sort of click through rates for.

Speaker #6: Okay. Good afternoon, Charles. Elias, thanks for taking our questions. Maybe let's start off if we can on the Spotlight.Vegas transaction. It was starting off, Elias, can you just provide us with some of the metrics underlying the earnout ut compensation and then more high-level?

Analyst: Hey, good afternoon, Charles. Elias, thanks for taking our questions. Maybe let's start off, if we can, on a Spotlight.Vegas transaction. Starting off, Elias, can you just provide us with some of the metrics underlying the earnout compensation and then more high level? Charles, I'm curious, just as you underwrote this transaction, sort of how did you come to understand the similarities and the differences in the user journey for live events versus sort of your legacy online gambling focus sites? And as a corollary to that, what really gave you the confidence that your tech and experience would translate well over to the live event space?

For a typical high intent AI search and how that frames up against legacy search and then second how do you think about the potential for market share consolidation for traffic source through AI searches and sort of how you are positioned to be one of those 123 sites that is ultimately search are sourced by the mean AI engine.

Speaker #6: Charles, I'm curious, just as you underwrote this transaction, sort of how did you come to understand the similarities and the differences in the user journey for live events versus sort of your legacy online gambling-focused sites and as a corollary to that, what really gave you the confidence that your tech and experience would translate well over to the live event space?

Typical gambling search and that's all from us.

Yeah.

Look when when Google or any other search engine puts an AI overview at the top of the search engine results page, obviously fewer clicks make it through to the stuff below that.

Speaker #6: Thanks.

Speaker #5: Yeah. If I if I cover the first part of that question, as we managed the intent here is to be very capital-efficient and have a limited upfront payment and pay-for-performance.

Elias Mark: Thanks. Yeah, if I cover the first part of that question, as we managed the intent here, is to be very capital-efficient and have a limited upfront payment and pay-performance. Essentially, we have an upfront payment of $8 million, which we expect to settle in cash. And then we have a two-year earnout component that is capped at an additional $22 million, so $11 million per year, based on incremental EBITDA above a certain threshold for each of 2026 and 2027. And the effective multiple on that earnout is 6x operating profit.

Shouldnt surprise anyone.

In terms of market share.

Share of voice is probably a better way to put that.

In terms of these different AI agents.

Speaker #5: Essentially, we have an upfront payment of $8 million, which we expect to settle in cash. Then, we have a two-year earnout component that is capped at an additional $22 million.

<unk>.

If you Havent, Google search you've got at least you used to have center results now it can be less.

But it was a long.

Longer list than what you would get from an AI tool.

So what are you going to get.

Speaker #5: So, $11 million per year based on incremental EBITDA above a certain threshold for each of 2026 and 2027. The effective multiple on that earnout is 6X operating profit.

Two or three.

Unless you are specifically asking for more so you're really has to be in a position to the extent there are conditions on things that are there tools immediately position kind of one two and the only way you're going to get there is to have industry, leading authority, which of course is what we've been trying to build for the past 20 years with kind of a dot com.

Speaker #4: From my perspective, it was a very attractive acquisition. It's a bit yeah, I don't think any of our competitors were looking at this, right?

Charles Gillespie: From my perspective, it was a very attractive acquisition. It's a bit, yeah, I don't think any of our competitors were looking at this, right? You know, it does involve a little bit of original thinking. Yeah, we're looking for ways to monetize this audience we have and deploy the skills we have. And this is a perfect opportunity to do both. You know, we have this incredible audience of people that want to gamble, that love gambling, whether it's online or land-based. These people visit Las Vegas. And when you look at the Spotlight business, you know, there's not a million different ways to do digital marketing within the online gambling industry. You know, we wouldn't have gone all the way to do full-blown ticketing outside of gaming. I think that's a step too far. But ticketing, you know, within gaming, this gaming adjacent, there's some synergy there.

Casino Stockholm.

We have invested in big brands to rise above the fray and be the the obvious go to source for information on this industry.

Speaker #4: You know, it does involve a little bit of original thinking. We're looking for ways to monetize this audience we have and deploy the skills we have.

Our early indications show that we've got a very high share of voice on these on these new tools.

Speaker #4: And this is a perfect opportunity to do both. You know, we have this incredible audience of people that want to gamble, that love gambling, whether it's online or land-based.

Of course, it's growing very rapidly for us. It was it didn't exist a few years ago. So the growth rates are basically infinity.

Speaker #4: These people visit Las Vegas. And when you look at the Spotlight business, you know, it's there's not a million different ways to do digital marketing within the online gambling industry.

But it's.

It's.

It's going to be a big part of the future of the business.

Speaker #4: You know, we wouldn't have gone all the way to do full-blown ticketing outside of gaming. You know, I think that's a step too far.

That's great. Thank you very much I'll pass it on.

And our next question comes from Ryan <unk> with Craig Hallum Capital Group.

Speaker #4: But ticketing you know within gaming, it's gaming-adjacent, there's some synergy there. And you know, when we look at this particular business, you know, it's still a relatively young business.

Hey, guys I want to go to the Google algorithm update when I look at the guidance it looks like EBITDA kept by $5 million in the back half of the year. Despite some good guys layering in there as well with acquisitions in Missouri, and FX and so on so I'm curious when exactly that happened what you've seen since then.

Charles Gillespie: And you know, when we look at this particular business, you know, it's still a relatively young business. There's a lot of things that our team can go in and do immediately to make a difference. It reminds us a lot of the FreeBets.com acquisition. You know, those assets were not operated as well as they could have been. And it was our team that was able to unlock that value. You know, last but not least, it's always about people. And we've got a great team under there and a very strong leader, Doug, which we very much look forward to working with. And I think, you know, us combining our digital marketing skills with the technology platform that they have already, it exists, and then they don't have to build it. It's a very clear way to grow that business and do it under our roof.

Speaker #4: There's a lot of things that our team can go in and do immediately to make a difference. You know, it reminds us a lot of the FreeBets.com acquisition.

And then if you're willing to quantify the other.

Speaker #4: You know, those assets were not operated as well as they could have been, and it was our team that was able to unlock that value.

Components and assumptions within guidance of the Missouri launch how much that's contributing.

I'm happy to speak to that and give you some color on the guidance for the rest of the year. So.

Speaker #4: You know, last but not least, it's always about people, and they've got a great team over there and a very strong leader, Doug, which we very much look forward to working with. I think, you know, us combining our digital marketing skills with the technology platform that they have already exists, and they don't have to build it.

Uh huh.

The latest Google algorithm update rolled out in the Alaska 30, 45 days within squarely within Q3.

It is a reminder, that this stuff still matters.

Speaker #4: It's a very clear way to grow that business and do it under our roof.

And.

Search rankings.

There are still a fundamental part of digital marketing.

In terms of revenue for the second half of the year or an increase of $1 million at the midpoint for revenue guidance until they're a small bit of additional revenue from salt Lake to Vegas, but the main drivers of the change in revenue expectations are an upward revision of sports data services revenue.

Speaker #6: Yeah. That's great. Thank you for all that color. And then maybe shifting gears and turning over the AI, you know, Charles, some helpful commentary at the beginning of the call.

Analyst: That's great. Thank you for all that color. And then maybe shifting gears and turning over to AI, you know, Charles, some helpful commentary at the beginning of the call. I think we're all sort of grappling with figuring out how this looks and evolves and over the long term impacts your business. A bit of a two-parter question here. First, I'm curious if you've done any work or seen anything in terms of sort of click-through rates for a typical high-intent AI search and how that frames up against legacy search. And then second, how do you think about the potential for market share consolidation for traffic sourced through AI searches and sort of how you're positioned to be one of those one, two, three sites that is ultimately searched or sourced by the main AI engines for a typical gambling search? And that's all from us. Thanks.

Speaker #6: I think we're all sort of grappling with figuring out how this looks and evolves, and over the long-term impacts your business. Bit of a two-part question here.

In a downward revision of the traditional search revenue due to the search rankings we've discussed.

Speaker #6: First, I'm curious if you've done any work or seen anything in terms of sort of click-through rates for a typical high-intent AI search and how that frames up against legacy search.

And that's partly offset by an increase in revenue from all the other non SCO channels.

In terms of the adjusted EBITDA, the higher proportion of revenue from non SCO sources.

Speaker #6: And then second, how do you think about the potential for market share consolidation for traffic sourced through AI searches and sort of how you're positioned to be one of those one, two, or three sites that is ultimately searched or sourced by the main AI engines for a typical gambling search?

Higher cost of sales.

And we don't expect any meaningful contribution to adjusted EBITDA from spotlight a vegas until next year.

And we have also decided to accelerate investments into these non SCR channels as.

Speaker #6: And that's all from us. Thanks.

Speaker #4: Yeah. Look, when Google or any other search engine puts an AI overview at the top of the search engine results page, obviously fewer clicks make it through to the stuff below that.

As well as a very exciting.

Charles Gillespie: Yeah. Look, when Google or any other search engine puts an AI overview at the top of the search engine results page, obviously fewer clicks make it through to the stuff below that. That shouldn't surprise anyone. In terms of market share, you know, share of voice is probably a better way to put that. You know, in terms of these different AI agents, LLMs, you know, if you have a Google search, you've got, you know, at least you used to have 10 results. Now it can be less. But it was a longer list than what you would get from an AI tool. You know, on an AI tool, you're going to get two or three unless you specifically ask it for more. So you really have to be, you know, positioned to the extent there are positions on these, you know, generative AI tools.

Entirely new project, which is outside of anything we do today.

Hmm, which will drive further diversification and growth in 2026 and beyond.

Speaker #4: That shouldn't surprise anyone. In terms of market share, you know, share of voice is probably a better way to put that. You know, in terms of these different AI agents, LLMs, you know, if you have a Google search, you've got you know at least you used to have 10 results.

Everybody always loves to kind of opine or get our opinion on whether on pricing and operators into that and everything in that debt.

That remains as it is okay. So when you look at these.

When you look at the margins coming down it's entirely due to mix shifts.

<unk>.

Speaker #4: Now it can be less. But it was a longer list than what you would get from an AI tool. You know, on an AI tool, you're going to get two or three.

I really want to stress that it's not margin compression per se.

Ability to monetize and advancing the clients haven't changed in any way the margin profile of any given channel hasn't changed it's just that the channel mix.

Speaker #4: Unless you're specifically asking for more. So you really have to be you know positioned to the extent there are positions on these you know generative AI tools, you need to be positioned kind of one, two.

He is changing.

That's helpful. Thanks, Charles Mingus on spotlight Dot Vegas can.

Charles Gillespie: You need to be positioned kind of one, two. And the only way you're going to get there is to have industry-leading authority, which, of course, is what we've been trying to build for the past 20 years with Gambling.com, Bookings.com, Casinos.com. You know, we have invested in big brands to rise above the fray and be the the obvious go-to source for information on this industry. And, you know, our early indications show that we've got, you know, a very high share of voice on these on these new tools. And, you know, of course, it's growing very rapidly for us. It was, it didn't exist a few years ago, so the growth rates are basically infinity. But it's, you know, it's going to be a big part of the future of the business.

Speaker #4: And the only way you're going to get there is to have industry-leading authority, which of course is what we've been trying to build for the past 20 years with gambling.com, bookies.com, casinos.com.

Can you give her.

Or do you want to quantify it but anything from the past few years from a financial standpoint, I guess with a growing and as was it profitable and just to put the 2026 estimates put more context around it.

Speaker #4: You know, we we have invested in big brands to rise above the fray and be the the obvious go-to source for information on this industry and you know our early indications show that we've got you know a very high share of voice on these on these new tools.

Yeah.

We look at.

Plenty of 24.

It's growing nicely.

Our $30 million and platform <unk>.

Speaker #4: And you know, of course, it's growing very rapidly for us. You know, it was it didn't exist a few years ago, so the growth rates are basically infinity.

Wed.

And it was profitable.

The lower margin business at this scale that as it scales.

It's a quite quickly.

Speaker #4: But it's you know, it's it's going to be a big part of the future of the business.

Net marketing revenues.

At the moment.

Our expectations for 2025 is that it's roughly breakeven, Nevada city would lead the microenvironment in.

Speaker #6: That's great. Thank you very much. I'll pass it on.

Analyst: That's great. Thank you very much. I'll pass it on.

Speaker #2: And our next question comes from Ryan Sigdahl with Craig Hallum, Capital Group.

Operator: And our next question comes from Ryan Sitdall with Craig Hallam, Capital Group.

In.

I guess, we expect to get together with a little bit of a rebound and seasonal strength.

Speaker #7: Hey, guys. I want to go to the Google algorithm update. When I look at the guidance, it looks like EBITDA was cut by $5 million in the back half of the year.

Analyst: Hey, guys. I want to go to the Google algorithm update. When I look at the guidance, it looks like EBITDA cut by $5 million in the back half of the year, despite some good guys layering in there as well with acquisitions in Missouri and FX and so on. So I'm curious when exactly that happened, what you've seen since that, and then if you're willing to quantify the other components and assumptions within guidance of the Missouri launch, how much that's contributing.

And a little bit more efficient marketing when we get our hands on that.

Speaker #7: Despite some good guys layering in there as well. With acquisitions in Missouri and FX and so on. So I'm curious, when exactly that happened, what you've seen since that, and then if you're willing to quantify the other components and assumptions within guidance of the Missouri launch, how much that's contributing.

We're guiding towards 8 million on that drop in <unk> and $1 4 million of incremental adjusted EBITDA for 2026.

Thanks Elliot good luck guys.

Yeah.

And moving on to Barry Jonas with tourists Securities.

Speaker #4: Yeah. I'm happy to speak to that and give you some color on guidance for the rest of the year. So the latest Google algorithm update rolled out in the last kind of 30, 45 days within squarely within Q3.

Charles Gillespie: Yeah, I'm happy to speak to that and give you some color on guidance for the rest of the year. So the latest Google algorithm update rolled out in the last kind of 30, 45 days squarely within Q3. You know, it is a reminder that this stuff still matters. And, you know, search rankings are still a fundamental part of digital marketing. You know, in terms of revenue for the second half of the year, our increase of $1 million at the midpoint for revenue guidance entails a small bit of additional revenue from Spotlight.Vegas. But the main drivers of the change in revenue expectations are an upward revision of sports data services revenue and a downward revision of the traditional search revenue due to the search rankings we've discussed. And that's partly offset by an increase in revenue from all the other non-SEO channels.

Hey, guys I appreciate the color you just gave on the EBITDA guidance change for 25, and maybe wanted to dig in in another way I know you haven't guided 26, yet, but can you talk about how kind of 26 looks relative to your view 90 days ago, given all the changes we're seeing now and maybe.

Speaker #4: You know, it is a reminder that this stuff still matters. And you know, search rankings are still a fundamental part of digital marketing. You know, in terms of revenue for the second half of the year, our increase of a million at the midpoint for revenue guidance entails a small bit of additional revenue from Spotlight.Vegas.

If you can't talk quantitatively, maybe just qualitatively. Thank you.

Yeah.

Hey, Barry happy to touch on that so look I think we get the search rankings back that.

Mhm brings brings back up the natural search revenue.

Speaker #4: But the main drivers of the change in revenue expectations are an upward revision of sports data services revenue and a downward revision of the traditional search revenue due to the search rankings we've discussed.

But I think overall you know we are we are seeing the effects of AI on search and our expectations for search revenue going forward or.

Not what they were in the past.

Speaker #4: And that's partly offset by an increase in revenue from all the other non-SEO channels. In terms of the adjusted EBITDA, the higher proportion of revenue from non-SEO sources drives higher cost of sales.

Having said that we are.

Making a lot of progress on scaling up all these other channels stuff that we kind of purposefully didn't do in the past to keep all our focus on SCO, but now we've got this kind of extra bandwidth if were not going all in on SCO. We can deploy some of our best people on on scaling up apps, you know paid media et cetera, and as you can see our results.

Charles Gillespie: In terms of the adjusted EBITDA, the higher proportion of revenue from non-SEO sources drives higher cost of sales. And we don't expect any meaningful contribution to adjusted EBITDA from Spotlight.Vegas until next year. And we have also decided to accelerate investments into these non-SEO channels, as well as a very exciting, entirely new project, which is outside of anything we do today, which will drive further diversification and growth in 2026 and beyond. You know, everybody always loves to kind of opine or get our opinion on whether on pricing and operators and demand and everything. And, you know, that remains as is. Okay. You know, so when you look at these, when you look at the margins coming down, it's entirely due to mix shift. You know, I really want to stress that it's not margin compression per se.

Speaker #4: And we don't expect any meaningful contribution to adjusted EBITDA from Spotlight.Vegas until next year. And we have also decided to accelerate investments into these non-SEO channels as well as a very exciting entirely new project, which is outside of anything we do today, which will drive further diversification and growth in 2026 and beyond.

Today.

Its making its making a difference in health.

Helping to set the numbers for Q2.

So when I think about next year, it's just going to be less about search.

Other channels will.

Scale meaningfully and.

Speaker #4: You know, everybody always loves to kind of opine or get our opinion on whether on pricing and operators and demand and everything. And you know, that remains as is, okay?

Thank you.

On the revenue side, it's a different margin profile. So you have to kind of bear that in mind.

Yes, there is always kind of the highest margin but.

Speaker #4: You know, so when you look at these when you look at the margins coming down, it's entirely due to mixed shifts. You know, I really want to stress that it's not margin compression per se, you know, our ability to monetize in a demand from the clients hasn't changed in any way.

We'll see healthy revenue growth from from those other channels.

It will flow through quite as well so the bottom line as is natural search has done for years, but.

It'll still absolutely be profitable and when you pair it together with all the different why do we have to monetize the audience will be.

Charles Gillespie: You know, our ability to monetize and the demands on the clients haven't changed in any way. And the margin profile of any given channel hasn't changed. It's just that the channel mix is changing.

Speaker #4: The margin profile of any given channel hasn't changed. It's just that the channel mix is changing.

We'll be in the best position of anyone to monetize people interested in Miami.

Speaker #6: That's helpful. Thanks, Charles. Then just on Spotlight.Vegas, can you give however you want to quantify it, but anything from the past few years from a financial standpoint?

Analyst: That's helpful. Thanks, Charles. And just on Spotlight.Vegas, can you give, however you want to quantify it, but anything from the past few years from a financial standpoint? I guess, was it growing and was it profitable? And just to put the 2026 estimates, a little more context around it.

Got it that's helpful. And then you know in the past you've talked a bit about prediction markets in terms of opportunities. There curious if if if any updated thoughts there in terms of search, but maybe also from a from a data or other out of use for revenue there. Thank you.

Speaker #6: I guess, was it growing and was it profitable? And just to put the 2026 estimates a little more context around it.

Yeah.

We've been spending a lot of time looking at prediction markets, It's a fascinating category I really like it.

Speaker #5: Yeah. If you if you look at 2024, it was it was growing nicely. It did over $30 30 million in platform turnover. With and it was profitable.

Elias Mark: Yeah. If you look at 2024, it was growing nicely. It did over $30 million in platform turnover, and it was profitable. It's a lower margin business at this scale, but as it scales, it quite quickly grows net margin revenues. At the moment, and our expectations for 2025 is that it's roughly break-even, and that has to do with the macro environment in Vegas. We expect to get together with a little bit of a rebound and seasonal strength and a little bit more efficient marketing when we get our hands on that. We're guiding towards $8 million of net revenue and $1.4 million of incremental adjusted EBITDA for 2026.

Yeah, it's it's not a big driver of our business, yet, but I think it very well could be in a couple of years. I think these lawsuits are going to go to the Supreme Court and Youre going to have another path for like a decision which could throw the doors open in.

Speaker #5: It's a lower-margin business at this scale, but as it scales, it quickly grows net margin revenues. At the moment, our expectations for 2025 are that it's roughly break-even, and that has to do with the macro environment in Vegas.

It really create the next kind of chapter of growth for the whole industry in North America.

But you know I'd like to kind of speak up for the player. Okay. You know so much that's written about this industry is.

It's about the regulators the operators the businesses obviously.

At the end of the day somebody needs to advocate for the player and that maybe that role falls to me because I don't think too many people in the U S are doing it and if you look at the state of sports betting in the United States.

Speaker #5: We expect to get together with a little bit of a rebound and seasonal strength. And a little bit more efficient marketing when we get our hands on that.

Yeah, that's right you know.

Speaker #5: We're guiding towards $8 million on net revenue and $1.4 million of incremental adjusted EBITDA for 2026.

You don't have full access to these products in different states, you've got a ton of states with propulsion is tax rate that gets passed onto the consumer you got states with single operator monopolies like how outrageous is that that is so anthony consumer it's kind of shocking that exists.

Speaker #6: Thanks, Elias. Good luck, guys.

Analyst: Thanks, Elias. Good luck, guys.

Speaker #2: And moving on to Barry Jonas with Truist Securities.

Operator: And moving on to Barry Jonas with Truist Securities.

So when you look at the traditional gaming regulation model state based regulators state based legislation.

Speaker #8: Hey, guys. Appreciate the color just gave. The EBITDA guidance changed for '25. But maybe we wanted to dig in in another way. I know you haven't guided '26 yet, but can you talk about how kind of '26 looks relative to your view 90 days ago?

Charles Gillespie: Hey, guys. Appreciate the call you just gave on the EBITDA guidance change for '25, but maybe wanting to dig in in another way. I know you haven't guided '26 yet, but can you talk about how kind of '26 looks relative to your view 90 days ago, given all the changes we're seeing now? And maybe if you can't talk quantitatively, maybe just qualitatively. Thank you. Yeah. Hey, Barry, happy to touch on that. So look, I think we get these search rankings back. That brings back up the natural search revenue. But I think overall, you know, we are seeing the effects of AI on search and our expectations for search revenue going forward are not what they were in the past.

At least you know I don't want to say anything bad about him and his people and I wouldn't you know these are very serious hard working people doing their best to.

The laws that have been created.

Speaker #8: Given all the changes we're seeing now and maybe if you can't talk quantitatively, maybe just qualitatively, thank you.

But at the end of the daily consumer.

And getting the best deal and that's why you still see these offshore sites with meaningful market share.

Speaker #4: Yeah. Hey, Barry, happy to touch on that. So look, I think we get these search rankings back. That brings back up the natural search revenue.

And you're starting to see some state AG is actually complaints with EOG Doj to maybe do something about it which would be helpful.

But then enter prediction markets. Okay. This is a completely new way to regulate this industry.

Speaker #4: But I think overall, you know, we are seeing the effects of AI on search and our expectations for search revenue going forward are not what they were in the past.

It's actually quite sophisticated they borrow a lot of really smart technology from financial markets, which.

Speaker #4: Having said that, we are making a lot of progress on scaling up all these other channels. You know, stuff that we kind of purposefully didn't do in the past to keep all our focus on SEO, but now we've got this kind of extra bandwidth if we're not going all in on SEO, we can deploy some of our best people on scaling up apps, email, paid media, etc.

Do you actively more sophisticated and certain.

Charles Gillespie: Having said that, we are making a lot of progress on scaling up all these other channels, you know, stuff that we kind of purposefully didn't do in the past to keep all our focus on SEO. But now we've got this kind of extra bandwidth. If we're not going all in on SEO, we can deploy some of our best people on scaling up apps, email, paid media, etc. And as you can see in our results today, you know, it's making a difference and it helps us hit the numbers for Q2. So when I think about next year, it's just going to be less about search, that these other channels will scale meaningfully. And you know, I think, you know, on the revenue side, it's a different margin profile, so you have to kind of bear that in mind.

Sensus than what a lot of the operators and regulators are using today.

I think I think it has a if it's given a proper chance I think it could be radically more consumer friendly NBA dramatically better products for end users.

So I'm I'm really excited about it and I Hope These court decision breaking the right way and I hope for the American sports better.

Speaker #4: And as you can see in our results, today, you know, we it's making it it's making a difference. And it, you know, helps us hit the numbers for a Q2.

With this.

The legal ambiguity on this category goes away then becomes a big new thing because you know as somebody that grew up in the states I'm as frustrated that I couldn't bet on sports like it is.

Speaker #4: So when I think about next year, it's just going to be less about search. But these other channels will scale meaningfully. And you know, I think, you know, on the revenue side, it's a different margin profile, so you have to kind of bear that in mind.

A lot of progress has been made but the U S is still pretty clearly behind most other OECD.

Speaker #4: SEO is always kind of the highest margin, but you know, we'll see healthy revenue growth from those other channels. And it won't flow through quite as well to the bottom line as natural search has done for years, but it'll still absolutely be profitable.

Charles Gillespie: SEO is always kind of the highest margin, but you know, we'll see healthy revenue growth from those other channels, and it won't flow through quite as well to the bottom line as natural search has done for years, but it'll still absolutely be profitable. And you know, when you pair it together with all the different ways we have to monetize the audience, we'll be, you know, we'll be in the best position of anyone to monetize people interested in online gambling. Got it. That's helpful. And then, you know, in the past, you've talked a bit about prediction markets in terms of opportunities there. Curious if any updated thoughts there in terms of search, but maybe also from the data or other avenues for revenue there. Thank you. Yeah. So we've been spending a lot of time looking at prediction markets. It's a fascinating category.

OECD develops countries in terms of the availability and the competitiveness of these products. So sorry for the ramp in very long answer to your simple question, but I think I think it's a great thing and it should be given a chance and I will be watching closely and hoping for the best.

Speaker #4: And you know, when you pair it together with all the different ways we have to monetize the audience, we'll be, you know, in the best position of anyone to monetize people interested in online gambling.

I appreciate all the comments thank you.

Moving on to Clark Lampern with BP I G.

Okay.

Speaker #8: Got it. That's helpful. And then you know, in the past, you've talked a bit about prediction markets in terms of opportunities there. Curious if any updated thoughts there in terms of search, but maybe also from the data, or other avenues for revenue there.

Thanks for taking my questions good evening guys.

Charles I guess, if we go or focus on the sort of marketing piece of your business. If we strip out I guess the impact of algo changes what are you seeing any changes in behavior for you now.

Speaker #8: Thank you.

So to your core customers I guess, whether that's incumbents or sort of.

Speaker #4: Yeah. So we've been spending a lot of time looking at prediction markets. It's a fascinating category. I really like it. You know, it's not a big driver of our business yet, but I think it very well could be in a couple of years.

<unk> in the U S.

Charles Gillespie: I really like it. You know, it's not a big driver of our business yet, but I think it very well could be in a couple of years. I think these lawsuits are going to go to the Supreme Court, and you're going to have another pass-through-like decision, which could throw the doors open and, you know, really create the next kind of chapter of growth for the whole industry in North America. But you know, I'd like to kind of speak up for the player. Okay. You know, so much that's written about this industry is about the regulators, the operators, the businesses, obviously. You know, at the end of the day, somebody needs to advocate for the player. And you know, that maybe that role falls to me because I don't think too many people in the US are doing it.

From a marketing standpoint, any meaningful changes in their sort of makes allocations to the affiliate channel overall and then.

Speaker #4: I think these lawsuits are going to go to the Supreme Court and you're going to have another pass the like decision, which could throw the doors open.

Earlier, you said you talked about I guess the margin profile of sort of different channels. As we're trying to I guess sort of think about maybe digest the interplay of search shalwar lambs and sort of attraction has the view of I guess, the structural margin opportunity or long run EBITDA generation changed in any way.

Speaker #4: And you know, really create the next kind of chapter of growth for the whole industry in North America. But you know, I'd like to kind of speak up for the player, okay?

Speaker #4: You know, so much that's written about this industry is about the regulators, the operators, the businesses, obviously. You know, at the end of the day, somebody needs to advocate for the player.

Thanks, a lot.

Yes, no problem.

Hey, Kurt.

Yes.

Speaker #4: And you know, that maybe that role falls to me. Because I don't think too many people in the US are doing it. And if you look at the state of sports betting in the United States, it ain't great.

Let's pick up on the second one on the long term margin profile I think you know we've been talking for years about 35% to 40% and I think with the new guidance. We're at 36%. This year. So we're still in that range, obviously, we're more towards the bottom of the range but.

Charles Gillespie: And if you look at the state of sports betting in the United States, it ain't great. You know, you don't have full access to these products in different states. You've got a ton of states with preposterous tax rates that get passed on to the consumer. You've got states with single operator monopolies. Like, how outrageous is that? That is so anti-consumer. It's kind of shocking that that exists. So when you look at the traditional gaming regulation model, state-based regulators, state-based legislation, you know, I don't want to say anything bad about any of these people, and I wouldn't. You know, these are very serious, hardworking people doing their best to implement the laws that have been created. But at the end of the day, the consumer ain't getting the best deal. You know, and that's why you still see these offshore sites with meaningful market share.

Speaker #4: You know, you don't have full access to these products in different states. You've got a ton of states with preposterous tax rates that gets passed on to the consumer.

That remains our outlook, we think we can dramatically grow revenue.

Speaker #4: You've got states with single operator monopolies. Like how outrageous is that? That is so anti-consumer. It's kind of shocking that that exists. So when you look at the traditional gaming regulation model, state-based regulators, state-based legislation, you know, these you know, I don't want to I don't want to say anything bad about any of these people and I wouldn't.

And have a very meaningful contribution to adjusted EBITDA with these other channels within the search market and business sorry, the marketing business.

But I need to bring you back out of that to the sports data services business and everything else we're doing now.

Taken as of September.

That's growing like weeds.

Speaker #4: You know, these are very serious hardworking people doing their best to, you know, implement the laws that have been created. But at the end of the day, the consumer ain't getting the best deal.

Phenomenal business incredible product market fit Super high growth people love it they can't get enough of it.

Yeah that is increasingly the future of this business and you can't or won't.

Speaker #4: You know, and that's why you still see these offshore sites with meaningful market share. And you're starting to see some, you know, state AGs actually complain to the DOG to maybe do something about it, which would be helpful.

We talked about.

The business overall, you've done you've got to get that part of it its airtime as well in terms of mix allocation from operators demand all that.

Charles Gillespie: And you're starting to see some, you know, state AGs actually complain to the DOJ to maybe do something about it, which would be helpful. But then, you know, enter prediction markets. Okay. This is a completely new way to regulate this industry. It's actually quite sophisticated. You know, they borrow a lot of really smart technology from financial markets, which, you know, is objectively more sophisticated in certain senses than what a lot of the operators and regulators are using today. Yeah. So I think it has a chance. If it's given a proper chance, I think it could be radically more consumer-friendly and be a dramatically better product for end users. So I'm really excited about it. And I hope these court decisions break in the right way.

Now what has changed in the past kind of year or two.

Speaker #4: But then, you know, enter prediction markets, okay? This is a completely new way to regulate this industry. It's actually quite sophisticated. You know, they borrow a lot of really smart technology from financial markets, which, you know, is objectively more sophisticated in certain senses.

We've seen more and more deals.

I would say more and more.

Traffic that we're delivering through our operators go over to them on a revenue share basis.

So that's.

Like for like North American revenue and it does affect the comparability of the figures if the previous figures were more CPI driven.

Speaker #4: Than what a lot of the operators and regulators are using today. You know, so I think it I think it has a if it's given a proper chance, I think it could be radically more consumer-friendly.

We are.

Seeing a return on those investments on the Rev share it is profitable.

But that's the only meaningful change I would say that's not a Q.

Speaker #4: And be a dramatically better product for end users. So I'm really excited about it. And I hope these court decisions break in the right way.

One to Q2 thing that's just kind of past 12 months thing.

Speaker #4: And I hope for the Americans sports better. That this that the legal ambiguity on this category goes away and it becomes a big new thing.

Charles Gillespie: And I hope for the American sports better that the legal ambiguity on this category goes away and it becomes a big new thing. Because, you know, as somebody that grew up in the States and was frustrated that I couldn't bet on sports, like, it's, you know, a lot of progress has been made, but you know, the US is still pretty clearly behind, you know, most other, you know, OECD-developed countries in terms of, you know, the availability and competitiveness of these products. So I'm sorry for the rant and very long answer to your simple question, but I think it's a great thing, and it should be given a chance. And I, you know, will be watching closely and hoping for the best.

Thank you.

Our next question comes from Chad Beynon with Macquarie.

Speaker #4: Because you know, as somebody that grew up in the States and was frustrated that I couldn't bet on sports, like it's you know, a lot of progress has been made, but you know, the US is still pretty clearly behind, you know, most other you know, OECD-developed countries in terms of, you know, the availability and competitiveness of these products.

Yes.

Hey, guys. This is Aaron on for Chad. Thanks for taking the question subscriptions are now about a quarter of the business. As you noted so you've grown that into a nice chunk of the business is there an opportunity to raise pricing or how do you think about the next steps to further grow this part of the business. Thank you.

Uh huh.

Speaker #4: So sorry for the rant and very long answer to your simple question, but I think it's a great thing, and it should be given a chance.

Among all of the stuff we're doing.

<unk> growth and in the sports data services business in particular, the optic gods.

Speaker #4: And I you know, we'll be watching closely and hoping for the best.

He is the most straightforward.

Speaker #6: Appreciate all the comments. Thank you.

Analyst: Appreciate all the comments. Thank you.

It's a product people love and need.

We've got some new salespeople on the ground in new markets.

Speaker #2: And And moving on to Clark Lampen with BTIG.

Operator: And moving on to Clark Lampen with BTIG.

A couple of product tweaks that need to be made to make it appeal to a broader.

Speaker #7: Thanks for taking the questions. Good evening, guys. Charles, I guess if we go or focus on the sort of marketing piece of your business, if we strip out, I guess, the impact of algo changes, were you seeing any changes in behavior for, you know, sort of your core customers, I guess, whether that's incumbents or sort of, you know, challengers in the US?

Analyst: Thanks for taking the questions. Good evening, guys. Charles, I guess if we go or focus on the sort of marketing piece of your business, if we strip out, I guess, the impact of algo changes, were you seeing any changes in behavior for, you know, sort of your core customers, I guess, whether that's incumbents or sort of, you know, challengers in the US from a marketing standpoint, you know, any meaningful changes in their sort of mix allocations to the affiliate channel overall? And then earlier, you sort of talked about, I guess, the margin profile of sort of different channels as we're trying to, I guess, sort of think about and maybe digest the interplay of search LLMs and sort of attractions. Has the view of, I guess, the structural margin opportunity or long-run EBITDA generation changed in any way? Thanks a lot.

More different types of operators if you will.

But fundamentally it's the best data that's out there and.

It's not too terribly difficult to themselves. So that's that's the most the clearest opportunity I think at this stage.

Okay that sounds good.

Speaker #7: From a marketing standpoint, you know, any meaningful changes in their sort of mix allocations to the affiliate channel overall? And then earlier you sort of talked about, I guess, the margin profile of sort of different channels as we're trying to, I guess, sort of think about maybe digest the interplay of search, LLMs, and sort of attractions.

Then with regard to the rotavirus refresh I'm just interested to hear how that's going you know what's changed and maybe an early read on impact you can see here that thank you.

Yep.

No we did a refresh in the middle of summer before NFL started obviously.

It's a both a product and brand refresh the.

Speaker #7: Has the view of, I guess, the structural margin opportunity or long-run EBITDA generation changed in any way? Thanks a lot.

Roto wire numbers are up double digits year on year to the first half.

But we won't really see the full power of the <unk>.

Speaker #4: Yeah. No problem. Hey, Mark. Hey, Clark. To pick up on the second one, the more like long-term margin profile, I think, you know, we've been talking for years about 35 to 40%.

Charles Gillespie: Yeah, no problem. Hey, hey, Clark. To pick up on the second one, the long-term margin profile, I think, you know, we've been talking for years about 35% to 40%. And, you know, I think with the new guidance, we're at 36% this year. So we're still in that range. Obviously, we're more towards the bottom of the range, but that remains our outlet. You know, we think we can dramatically grow revenue and have a very meaningful contribution to adjusted EBITDA with these other channels just within the search marketing business, sorry, the marketing business. But, you know, I need to bring you back out of that to the sports data services business and everything else we're doing now. You know, ticketing as of September, that's growing like the weeds. It's a phenomenal business, incredible product-market fit, super high growth. People love it. They can't get enough of it.

New products and brand until we get through the sorry.

Sort of NFL. So soon in November for the full report on reservoir.

Speaker #4: And you know, I think with the new guidance where at 36% this year, so we're still in that range. Obviously, we're more towards the bottom of the range, but that remains our outlook.

Okay got it thank you.

Okay.

Moving on to David Katz with Jefferies.

Hi afternoon, everybody.

Speaker #4: You know, we think we can dramatically grow revenue and have a, you know, very meaningful contribution to adjusted EBITDA with these other channels. Just within the search marketing business, within, sorry, the marketing business.

Charles just just digesting the.

Acquisition can you talk a bit more about what the drivers are of Successfactors.

For that business to requiring a aside from you know integration restaurants, where I think you've proven yourself already.

Speaker #4: But you know, I need to bring you back out of that to the sports data services business and everything else we're doing now. You know, ticketing as of September, that's growing like a weed.

What drives that business long term.

You know the overlap versus those drivers of our core business, where there are no different than similar would help thank you.

Speaker #4: It's a phenomenal business. Incredible product-market fit. Super high growth. People love it. They can't get enough of it. You know, that is increasingly the future of this business.

Yep.

It's what I like to go with digital fundamentals so conversion rates.

Charles Gillespie: You know, that is increasingly the future of this business. And you can't, you know, when we talk about the business overall, you've got to give that part of it its airtime as well. In terms of mixed allocation from operators, demand, all that, you know, what has changed in the past kind of year or two is, you know, we've seen more and more deals or, you know, shall I say, more and more traffic that we're delivering to our operators go over to them on a revenue share basis. So that's, you know, like-for-like North American revenue, and it does affect the comparability of the figures if the previous figures were more CPA driven. You know, we are seeing a return on those investments on the red share that is profitable. But that's the only meaningful change, I would say. And that's not a Q1 to Q2 thing.

Speaker #4: And you can't, you know, when we talked about the business overall, you've got to give that part of it. It's airtime as well. In terms of mix allocation from operators, demand, all that, you know, what has changed in the past kind of year or two is, you know, we've seen more and more deals or, you know, shall I say more and more traffic that we're delivering to our operators go over to them on a revenue share basis.

Across the board following that customer journey optimizing each step of it.

And then of course marketing efficiency, yeah. They do a lot of you know.

They do a fair amount of paid media already.

And they have decent tracking want it and when we look at the numbers they are actually pretty good.

But it could be a lot better I think fundamentally we just have a small team so they haven't been able to.

To put the pedal to the floor on all the different opportunities that they have will also be able to of course bring.

Speaker #4: So that's you know, like-for-like, North American revenue and it does affect the comparability of the figures if the previous figures were more CPA-driven. You know, we are seeing a return on those investments on the rev share that is profitable.

Cash to invest in media as necessary.

And theirs.

Yeah.

As opposed to the affiliate business.

We are not providing the ultimate service we're handling the use are off to.

Speaker #4: But that's the only meaningful change I would say. And that's not a one to Q2 thing. That's just a kind of past 12 months thing.

Another company to do that.

We lose control at some point.

Yeah, it's always been a bit of a frustrating element of that business to us because when we hand that user off.

Charles Gillespie: That's just a kind of past 12 months thing.

Okay, Yeah, we hope that they do a good job of converting them, but they might not.

Speaker #6: Thank you.

Analyst: Thank you.

Speaker #2: Our next question comes from Chad Bannon with Macquarie.

With that spotlight.

Operator: Our next question comes from Chad Bannon with Macquarie.

We own the whole thing ANZ.

It's only our fault if a user doesn't kimberly we can't blame it on anyone else that having full control of that customer journey.

Speaker #8: Hey, guys. This is Aaron on for Chad. Thanks for taking the question. Subscriptions are now about a quarter of the business, as you noted.

Analyst: Hey, guys. This is Aaron on for Chad. Thanks for taking the question. Subscriptions are now about a quarter of the business, as you noted. So you've grown that into a nice chunk of the business. Is there an opportunity to raise pricing, or how do you think about the next steps to further grow this part of the business? Thank you.

Speaker #8: So you've grown that into a nice chunk of the business. Is there an opportunity to raise pricing or how do you think about the next steps to further grow this part of the business?

Allows us to lean in a lot harder and deploy our skills.

Across that full customer journey, you know, there's a lot of things we can do to help our operators improve their conversion rates, but its a delicate conversation to go to them and get them to change their landing pages to air products.

Speaker #8: Thank you.

Speaker #4: You know, among all the stuff we're doing, I think growth in the sports data services business in particular, OpticOds, is the most straightforward.

Charles Gillespie: You know, among all the stuff we're doing, I think growth in the sports data services business, in particular, OpticOds, is the most straightforward. It's a product people love and need. You know, we've got some new salespeople on the ground in new markets. There's a couple of product tweaks that need to be made to make it appeal to a broader, you know, to more different types of operators, if you will. But fundamentally, it's, you know, the best data that's out there, and it's not too terribly difficult to sell. So that's the clearest opportunity, I think, at this stage.

But when we and the whole the whole thing, it's where we can just go into it.

Speaker #4: It's a product people love and need. You know, we've got some new salespeople on the ground and new markets. There are a couple of product tweaks that need to be made to, you know, make it appeal to a broader, you know, to more different types of operators, if you will.

Thank you I appreciate it.

Our next question comes from Mike Hickey with the benchmark company.

Hey, Charles L. A S. P. Congratulations guys on your spotlight deal just two questions from US I guess first topic.

Speaker #4: But fundamentally, it's you know, the best data that's out there. And it's not too terribly difficult to sell. So that's the that's the clearest opportunity I think at this stage.

On AI search disruption just curious Charles how you sort of assess the pace.

Of natural search traffic decay from these shifts to AI powered search engines.

Speaker #6: Okay. That sounds good. And then with regard to the RotaWire refresh, just interested to hear how that's going, you know, what's changed and maybe an early read on impact if you can share that.

And if you think you have sort of the runway here to recalibrate your business model to offset that or.

Analyst: Okay. That sounds good. And then with regard to the RudderWire refresh, just interested to hear how that's going, you know, what's changed, and maybe an early read on impact if you can share that. Thank you.

There could be I guess, a more meaningful.

Disruption.

Speaker #6: Thank you.

To your growth profile in the near term and I have a follow up.

Speaker #4: Yeah. So you know, we did the refresh in the middle of summer before NFL started, obviously. It's both a product and brand refresh. The RotaWire numbers are up double digits here on year to the first half.

Charles Gillespie: Yeah. So, you know, we did the refresh in the middle of summer before NFL started, obviously. It's a birthday product and brand refresh. The RudderWire numbers are up double digits year on year through the first half. But we won't really see the full power of the new products and brand until we get through the start of NFL. So tune in in November for the full report on RudderWire.

Yeah I mean.

Mike Thanks for the question.

If you look at these dinner day I just mentioned they've been around for.

Two three years, it's not this isn't new.

It's been having an effect for some time, but.

Speaker #4: But we won't really see the full power of the new products and brand until we get through the start of the NFL season. So tune in in November for the full report on RotoWire.

But.

We think a lot of that effect as we've already seen.

People still need to search it sounds like it has no utility anymore, clearly, it's still a useful products and research.

Our experiences are using Google search and what's that mean.

Speaker #6: Okay. Got it. Thank you.

Analyst: Okay. Got it. Thank you.

Behind a lot of the day I answered that.

Speaker #2: Moving on to David Katz with Jefferies.

Google search.

Operator: Moving on to David Katz with Jeff Reese.

So.

Speaker #8: Hi. Afternoon, everybody. Charles, just digesting the, you know, acquisition. Can you talk a bit more about what the, you know, drivers or success factors you know are for that business you're acquiring?

We are very realistic about the future of that channel.

Charles Gillespie: Hi. Afternoon, everybody. Charles, just digesting the, you know, acquisition. Can you talk a bit more about what the, you know, drivers or success factors, you know, are for that business you're requiring? Aside from, you know, integration risk, which where I think you've proven yourselves already, you know, what drives that business long term? And, you know, the overlap versus drivers of the core business, where they're, you know, different and similar would help. Thank you. Yeah. It's what I like to call digital fundamentals. So, you know, conversion rates across the board, following that customer journey, optimizing each step of it. And then, of course, marketing efficiency. You know, they do a lot of, you know, they do a fair amount of paid media already, and they have decent tracking on it. And when we look at the numbers, they're actually pretty good.

We certainly brought in our expectations meaningfully.

But I'm also rather encouraged by our early results and the work the team has done too.

Speaker #8: Aside from, you know, integration rush where I think you've proven yourselves already, you know, what drives that business long-term? And, you know, the overlap versus drivers of the core business, where they're, you know, different and similar would help.

Grandpa traveling from other channels. So I think we're gonna be absolutely fine Ah Theres just a.

A couple of quarters here, where we redeployed.

Redeployed resources into other channels.

Speaker #8: Thank you.

Speaker #4: Yeah. It's what I like to call digital fundamentals. So you know, conversion rates, across the board, following that customer journey, optimizing each step of it.

Okay. Thanks Charles.

Second question on cost optimization, you've done obviously, a number of very successful.

Deals are now spotlight.

Speaker #4: And then, of course, marketing efficiency. You know, they do a lot of, you know, they do a fair amount of paid media already. And they have decent tracking on it.

Joining sort of the portfolio.

Do you feel like there's opportunities year to realize cost optimization or operational synergies across the group.

Speaker #4: And when we look at the numbers, they're actually pretty good. But it could be a lot better. I think, you know, fundamentally, they just have a small team.

Charles Gillespie: But it could be a lot better. I think, you know, fundamentally, they just have a small team, so they haven't been able to put the pedal to the floor on all the different opportunities that they have. You know, we'll also be able to, of course, bring, you know, cash to invest in media as necessary. You know, and there's, you know, as opposed to the affiliate business, where, you know, we are not providing the ultimate service, we're handing the user off to another company to do that. You know, we lose control at some point. And, you know, it's always been a bit of a frustrating element of that business to us because when we hand the user off, okay, you know, we hope that they do a good job of converting them, but they might not. With Spotlight, we own the whole thing, A to Z.

That could maybe help offset some of the incremental cost pressure on profitability that surgery center here in <unk> and 'twenty five and maybe 26.

Speaker #4: So they haven't been able to put the pedal to the floor on all the different opportunities that they have. You know, we'll also be able to, of course, bring you know, cash to invest in media as necessary.

Yes.

There is.

An enormous amount of cost we can take out of this business and step in and make it incredibly profitable.

Speaker #4: You know, and there's, you know, as opposed to the affiliate business where, you know, we are not providing the ultimate service. We're handing the user off to another company to do that.

But we don't want to do that because now is.

Notwithstanding that we need to invest in these new channels and build out new capabilities. So we're leaning into our team we're still hiring nothing's changed on our end.

Speaker #4: You know, we lose control at some point. And you know, it's always been a bit of a frustrating element of that business to us.

And we.

Speaker #4: Because when we hand the user off, okay, you know, we hope that they do a good job of converting them, but they might not.

We see opportunity and we think we're very good allocators of capital. So we are in investment mode. At this moment.

Speaker #4: With Spotlight, we own the whole thing. A to Z. So it's, it's only our fault if a user doesn't convert. We can't blame it on anyone else.

Thank you guys. Good luck.

Charles Gillespie: So it's only our fault if a user doesn't convert. We can't blame it on anyone else. And having full control of that customer journey allows us to lean in a lot harder and deploy our skills across that full customer journey. You know, there's a lot of things we could do to help our operators improve their conversion rates, but you know, it's a delicate conversation to go to them and get them to change their landing page, their product. But when we own the whole thing, we can just go into it. Thank you. Appreciate it.

Moving next to David Bain, with Texas Capital Bank.

Speaker #4: And having full control of that customer journey allows us to lean in a lot harder and, and, and, and, and deploy our skills across that full customer journey.

Great. Thank you just two questions. One just looking at past algorithm changes from Google How how long did it take you to rebalance previously and you know if this can lead the share shifts.

Speaker #4: You know, there's a lot of things we could do to help our operators improve their conversion rates. But, you know, it's a delicate conversation.

How this algorithm perhaps changes from.

Speaker #4: To go to them, you know, get them to change their landing page, their products. But when we own the whole whole thing, it's, we can just go and do it.

From different ones in the past.

Yeah.

Usually.

123 months sort of thing we should have it back I'd like to say that it's not.

Speaker #6: Thank you. Appreciate it.

Speaker #2: Our next question comes from Mike Hickey with the Benchmark Company.

The physicians that we don't have.

Operator: Our next question comes from Mike Hickey with the Benchmark Company.

In this particular moment in time have been picked up by operators not affiliates.

Speaker #8: Hey, Charles. Elias, congratulations, guys, on your Spotlight deal. Just two questions from us. I guess first topic, on AI search disruption. Just curious, Charles, how you sort of assess the pace of natural search traffic decay from these shifts to AI-powered search engines.

Analyst: Hey, Charles. Elias, congratulations, guys, on your Spotlight deal. Just two questions from us. I guess first topic on AI search disruption. Just curious, Charles, how you sort of assess the pace of natural search traffic decay from these shifts to AI-powered search engines. And if you think you have sort of the runway here to recalibrate your business model to offset that, or if there could be, I guess, a more meaningful disruption to your growth profile in the near term, I have a follow-up.

There is nothing to read into that.

That's that's.

It's business as usual with Google search and the volatility that does not mean that they are somehow Google now favors them more than affiliates and then some kind of a long term basis is just how its working at the moment.

Speaker #8: And if you think you have sort of the runway here to recalibrate your business model to offset that, or if there could be, I guess, a more meaningful disruption to your growth profile in the near term.

So we haven't.

We haven't lost I think on a relative basis. It appears we can paint continued sort of theoretically outcompete them.

Our share of voices I think way higher than the next and the number two player in most of these markets but.

Speaker #8: I have a follow-up.

Speaker #4: Yeah. I mean, hey, Mike, good. Thanks for the question. If you look at these generative AI expansions, they've been around for, you know, two, three years.

Charles Gillespie: Yeah. I mean, hey, Mike, thanks for the question. If you look at these generative AI solutions, they've been around for, you know, two, three years. It's not, this isn't new. It's been having an effect for some time. But you know, we think a lot of that effect is we've already seen. You know, people still need Google Search. It's not like it has no utility anymore. Clearly, it's still a useful product, and the AI experiences are using Google Search. You know, what's behind a lot of these AI answers is a Google Search. So you know, we are very realistic about the future of that channel. You know, we've certainly brought in our expectations meaningfully. But I am also rather encouraged by our early results and the work the team has done to ramp up traffic from other channels.

Operator.

<unk> taken a few positions we had in a few key places.

Okay any end of the year I would think we'd have enough.

Speaker #4: It's not, this isn't new. It's been having an effect for some time. But you know, we think a lot of that effect is, we've already seen.

Okay. Okay Amendment, it's Bob go ahead.

Okay.

Not at all.

And then my follow up was just on Opex.

Speaker #4: You know, people still need Google Search. It's not like it has no utility anymore. Clearly, it's still a useful product, and the AI experiences are using Google Search.

Opic if are there some kind of kpis.

That you believe would be helpful for us to understand that growth a little bit better I mean is it number of customers from the individual or operator standpoint, depending on which optic or is it you know has there been menu choice changes pricing changes anything.

Speaker #4: You know, what's, you know, behind a lot of these AI answers? Is it, is it Google search? So you know, we are very realistic about the future of that channel.

Would be helpful.

Speaker #4: You know, we've certainly brought in our expectations meaningfully. But I am also rather encouraged by our early results and the work the team has done to ramp up tracking from other channels.

Yeah happy to give you a give you some color there so on its two different businesses, it's Oh, Shannon I'll take I'll touch on is the consumer facing business off the dog.

<unk> enterprise business.

Jim.

Speaker #4: So you know, I'm, I think we're going to be absolutely fine. There's just a a couple quarters here where we leave employee resources into other channels.

Charles Gillespie: So you know, I think we're going to be absolutely fine. There's just a couple of quarters here where we redeploy resources into other channels.

Clients is roughly flat, but the average revenue per user is up meaningfully as they are upselling.

More into the same user base and then on the optic outside.

Speaker #6: Okay, thanks, Charles. The second question on cost optimization. You've done, obviously, a number of very successful deals now, Spotlight joining sort of the portfolio.

Analyst: Okay. Thanks, Charles. The second question on cost optimization. You've done, obviously, a number of very successful deals, now Spotlight joining sort of the portfolio. Do you feel like there's opportunities here to realize cost optimization or operational synergies across the group that could maybe help offset some of the incremental cost pressure on profitability that searches seem here in '25 and maybe '26?

They are signing up new clients left and rights.

And they are also quite meaningfully.

Kris and the average revenue per user or.

Client shall we say on on that business. So.

Speaker #6: Do you feel like there are opportunities here to realize cost optimization or operational synergies across the group? That could maybe help offset some of the incremental cost pressure on profitability that is surfacing here in 2025 and maybe 2026.

I'm excited.

And on that second one what should we sort of think about larger operators with more needs are the operator base getting larger from a just a number standpoint.

Meaning mix.

One thing that surprised us about this business is it's not all operators right I mean, you've got startups you've got.

Speaker #4: Yeah. There's an enormous amount of cost we could take out of this business and make it incredibly profitable. But we don't want to do that.

Charles Gillespie: Yeah. There's an enormous amount of cost we could take out of this business and stick in and make it incredibly profitable. But we don't want to do that because now's not the time to do that. We need to invest in these new channels and build out new capabilities. So we're leaning into our team. We're still hiring. Nothing's changed on our end. And we, you know, we see opportunity. And we think we're very good allocators of capital, so we are in investment mode at this moment.

Professional betters Arbitrager as you've got you now.

Speaker #4: Because now's not the time to do that. We need to invest in these new channels and build out new capabilities. So we're leaning into our team.

That's a media companies.

There's a lot of a lot of people need high quality Ards data, it's not just the operators, but even within the gaming ecosystem in service to operators as the platforms, we can do platform Nielsen and distributing them too.

Speaker #4: We're still hiring. Nothing's changed on our end. And we see opportunity. And we think we're very good allocators of capital. So we are in investment mode at this moment.

All the operators are on any given platform. So.

Theres sweeps, we've signed a number of different interest in deals and.

Speaker #6: Thank you, guys. Good luck.

Analyst: Thank you, guys. Good luck.

Speaker #2: Moving next to David Bain with Texas Capital Bank.

Operator: Moving next to David Bain with Texas Capital Bank.

Sure.

I think the future is very bright for that and you know when you include roto wire.

Speaker #6: Great. Thank you. Just two questions. One, just looking at past algorithm changes from Google, how long did it take you to rebalance previously? And you know, if this can lead to share shifts, how does this algorithm perhaps change from different ones in the past?

Analyst: Great. Thank you. Just two questions. One, just looking at past algorithm changes from Google, how long did it take you to rebalance previously? And you know, if this can lead to shares.Gifs,

We work with multiple members of the Max seven they come to us for our sports data to power.

And in part there.

Various offerings, including AI tools.

Operator: how this algorithm perhaps changes, from different ones in the past. Be helpful.

Brian I'm very helpful. Thank you.

Speaker #6: Be helpful.

Speaker #4: Yeah. Usually, you know, one, two, three months sort of thing. We should, you know, have it back. I'd like to say that it's not the positions that we don't have in this particular moment in time that have been picked up by operators, not affiliates.

Elias Mark: Yeah. usually, you know, one, two, three months sort of thing. We should, you know, have it back. I'd like to say that it's not the positions that we don't have, in this particular moment in time have been picked up by operators, not affiliates. there's nothing to read into that. you know, that's, that's, that's business as usual with Google search engine volatility. That does not mean that they're somehow Google now favors them more than affiliates on some kind of long-term basis. It's just how it's working at the moment. so yeah, we haven't, we haven't lost, you know, I think on a relative basis of appears we can continue to dramatically outcompete them and, you know, our share of voice is, I think, way higher than the next, than the number two player in most of these markets.

And this does conclude our question and answer session I would like to turn the floor back over to Charles Gillespie for closing comments.

Thanks, everybody for joining we look forward to updating you on our Q3 results in November.

Yeah.

Speaker #4: There's nothing to read into that. You know, that's business as usual with Google search engine volatility. That does not mean that they're somehow Google now favors them more than affiliates.

Elias Mark: but, you know, a couple of operators have have taken a few positions we had in a few key places.

Operator: Okay.

Elias Mark: But, okay, end of the end of the year, I would think we had it back.

Operator: Okay. Okay. and then.

Elias Mark: It's not, go ahead.

Operator: Okay. No, right. No, not at all. and then my follow-up was just on, optic. You know, if are there some kind of KPIs, that you believe would be helpful for us to understand that growth a little bit better? I mean, is it number of customers from the individual or operator standpoint, depending on which optic, or is it, you know, has there been menu choice changes, pricing changes? Anything, would be helpful.

Elias Mark: Yeah, happy to give you, give you some colors there. So on, you know, it's two different businesses. It's, OpsGM and OpticObs. OpsGM is the consumer-facing business. OpticObs is the, you know, B2B enterprise business. OpsGM clients is is roughly flat, but the, average revenue per user is up meaningfully as they are upselling. They're selling more to the same user base. And then on the OpticObs side, they, you know, they're signing up new clients left and right. and they are also quite meaningfully, increasing the average revenue per user of client, shall we say, on on that business. so, excited.

Operator: And on that second one, would should we sort of think about larger operators, with more needs? are the operator base getting larger from a just a number standpoint?

Elias Mark: It's a mix. okay. You know, one thing that surprised us about this business is it's not all operators, right? I mean, you've got startups, you've got, you know, professional bettors, arbitragers, you've got, you know, apps, media companies. You know, there's a lot of, a lot of people need high-quality odds data. It's not just the operators. but even within the gaming ecosystem of service, the operators are the platforms. You know, we can do platform deals and then distribute it into all the operators that are on any given platform. So, you know, there's, we've signed a number of different interesting deals and, you know, we're, I think the future is very bright for that. You know, when you include Rotowire, you know, we work with multiple members of the Mag7.

Elias Mark: You know, they come to us for our sports data to power, you know, in part their various offerings, including AI tools.

Operator: Right on. Very helpful. Thank you.

Charles Gillespie: And this does conclude our question and answer session. I would like to turn the floor back over to Charles Gillespie for closing comments.

Elias Mark: Thanks, everybody, for joining. We look forward to updating you on our Q3 results in November.

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

Charles Gillespie: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.