Kambi Q2 revenue down 11.5% as transition fees phase out

Key points: 

– Q2 2025 revenue fell 11.5% year-on-year to €40.5m. Excluding transition fees, revenue declined only 2.0%

– Adjusted EBITA margin dropped to 9.2%, while operator trading margin reached 11.5%

– Kambi extended LeoVegas partnership, entered new LatAm markets and launched €15m buyback programme

Kambi Group plc posted €40.5m ($47.5m) in Q2 2025 revenue, down 11.5% year-on-year, as the company continued to transition from its former contract with Penn Entertainment. Excluding €4.5m in transition fees recorded in Q2 2024, revenue declined by just 2.0%.

The report reflects a continued adjustment from legacy agreements and softer macroeconomic conditions. For H1 2025, revenue stood at €81.9m, down 7.9%, though this shifted to a 2.3% increase when excluding €8.9m in transition fees from H1 2024.

Operating profit dropped to €1.6m in Q2, reflecting a reduced 4.0% margin (from 13.5%). Adjusted EBITA (acq) for the quarter fell to €3.7m, translating to a 9.2% margin, impacted partly by foreign exchange losses and one-off costs.

Costs stabilise amid FX drag

Total expenses for Q2 were €38.1m, down 3.8%, demonstrating early benefits from Kambi’s 2025 cost efficiency programme. For H1, expenses reached €78.6m, broadly flat, although this included a €1.2m FX revaluation loss – a notable increase from €0.01m in H1 2024.

Cash flow excluding working capital and M&A was €1.3m for the quarter and €9.0m for H1, down from €8.1m and €13.5m respectively. Earnings per share dropped to €0.009 for Q2 and €0.036 for H1.

Good to know: Kambi began a €15m share buyback programme – its largest to date – following shareholder approval at its extraordinary general meeting

Strategic partnerships and global reach

Despite financial pressures, Kambi made several commercial strides in Q2. The company extended its Turnkey Sportsbook partnership with LeoVegas Group, alongside signing a new Odds Feed+ agreement – making LeoVegas the fourth partner to adopt the service since its launch in late 2024.

It also signed a Turnkey Sportsbook deal with RedCap in Latin America, allowing RedCap’s Betpro and Starplay brands to debut in Panama and El Salvador, with future plans for retail expansion. RedCap replaces a competing provider, signalling Kambi’s increased competitive positioning.

Earlier this year, in Q1 2025, Kambi secured key licences in Brazil and Nevada and replaced FDJ as Ontario Lottery and Gaming Corporation’s long-term sportsbook partner. These moves form part of a broader strategy to diversify the company’s partner base following changes to its legacy contracts.

Product evolution and esports growth

Kambi’s Bet Builder product was highlighted by CEO Werner Becher as a key driver of the 11.5% operator trading margin, which exceeded the company’s long-term guidance of 9.5–11.0%. The product’s low staking but high-margin structure continues to gain adoption among operators.

Meanwhile, esports betting – powered by Kambi’s Abios division – became the fifth largest betting vertical by turnover across the company’s global network in Q2. Esports is gaining relevance within the Odds Feed+ product.

Executive outlook

CEO Werner Becher said: “Looking ahead to the rest of the year, the external environment will continue to pose challenges, but I remain optimistic that we can increasingly deliver value for our partners, expand our partner network, strengthen our product portfolio and position the business for long-term, sustainable growth.”

Q1 2025 and previous quarters

In Q1 2025, Kambi recorded €41.5m in revenue, down 4%, with operating profit falling 138.5% to €0.8m. That quarter also marked the start of a series of global licensing wins and strategic partnerships, including deals in Brazil, Nevada and Ontario.

With two consecutive quarters of low-single-digit revenue decline (excluding transition fees) and increasing global diversification, Kambi enters the second half of 2025 aiming to balance long-term growth opportunities with near-term financial recalibration.