Transition pains ease as company leans into innovation and international growth
Revenue Decline Linked to Legacy Transition
Kambi Group has reported Q2 2025 revenues of €40.5 million, marking an 11.5% year-on-year drop. However, this headline figure is partially skewed by a one-off transition fee of €4.5 million from the Penn Entertainment contract in Q2 2024. When adjusted for that, the real revenue drop is only 2.0%, indicating a relatively stable underlying business despite major contractual shifts.
For H1 2025, revenue totalled €81.9 million, reflecting a 7.9% decrease. When excluding the €8.9 million in transition-related revenue from H1 2024, Kambi actually posted a 2.3% increase, suggesting the company’s core operations are beginning to recover from legacy disruptions.
Profitability Pressured by FX Losses and One-Off Costs
Operating profit for Q2 shrank significantly to €1.6 million, with the operating margin dipping to 4.0%, down from 13.5% a year prior. Adjusted EBITA (acq) came in at €3.7 million, yielding a 9.2% margin, dragged down by foreign exchange revaluation losses and one-off strategic expenses.
Total expenses fell to €38.1 million (a 3.8% decrease), signaling progress in Kambi’s 2025 cost-efficiency programme. Yet, FX losses continue to be a headwind, with €1.2 million lost in H1 2025, a notable jump from just €0.01 million in H1 2024.
Share Buyback and New Market Entries
Despite the earnings pressure, Kambi launched a €15 million share buyback programme – its largest to date – signaling board confidence in long-term valuation. At the same time, Kambi has extended its partnership with LeoVegas Group, securing not just a Turnkey Sportsbook renewal but also adding the Odds Feed+ service, with LeoVegas now its fourth partner on the new feed.
Additionally, a new Turnkey Sportsbook agreement with RedCap in Latin America marks another strategic gain. Kambi will power Betpro and Starplay in Panama and El Salvador, replacing a rival provider and strengthening its competitive foothold in the region.
Product Innovation and Esports Momentum
CEO Werner Becher credited the company’s Bet Builder tool as a major contributor to the quarter’s 11.5% operator trading margin, surpassing the long-term guidance of 9.5%–11.0%. The product’s low stake/high margin dynamics continue to resonate with partners, bolstering profitability per bet.
Kambi’s esports arm, Abios, has also gained momentum. In Q2, esports became the company’s fifth-largest vertical by turnover, indicating rising global appetite for competitive gaming. Integration of esports into Kambi’s Odds Feed+ offering further strengthens its relevance in next-gen wagering.
Strategic Positioning and Long-Term Outlook
Although Q2 marked a revenue decline, Kambi is clearly transitioning toward diversified, long-term growth. In Q1 and Q2 2025, the company secured key licenses in Brazil and Nevada, and signed a landmark partnership with the Ontario Lottery and Gaming Corporation – replacing FDJ.
As Becher notes, macroeconomic uncertainties remain, but the roadmap is clear: strengthen products, expand global partnerships, and streamline operations. With a refocused strategy, strong partner loyalty, and increasing traction in high-growth markets, Kambi is positioning itself not only to rebound but to thrive in a competitive, tech-driven sports betting landscape.
