Kambi reports Q4 and full-year revenue declines

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2025/11/05: Kambi revenue down 13.1% to €37.4 million in Q3 2025/02/26: Light & Wonder reports record-breaking US$3.2 billion full-year revenue 2025/01/08: Kambi Group and Stake sign sports betting partnership in Brazil 2025/11/04: Kambi expands in Brazil with Superbet partnership

The Backstory

Why Kambi’s latest results matter now

Kambi’s fourth-quarter and full-year update underscores a strategic crossroads for one of sports betting’s key technology suppliers. Revenue fell again as taxes in multiple markets and foreign exchange headwinds bit into the top line, while migrations of major clients continued to weigh on momentum. Management held to 2026 profitability guidance and flagged cost discipline and product innovation as levers, but also warned that further tax hikes in Colombia could pressure the outlook. The mix of cyclical and structural pressures puts more emphasis on new market entries, notably Brazil, and on converting a robust pipeline of turnkey and odds-feed deals into durable revenue.

The stakes extend beyond a single quarter. Kambi’s business model depends on scaling high-margin trading and risk technology across a diversified set of operators while navigating regulatory flux. That requires landing and expanding with fast-growing brands in newly regulated markets at the same time legacy customers reshape their tech stacks. The company’s recent partnerships suggest green shoots, yet the lag between signing and monetization is visible in the financials. The backstory below traces how the slowdown emerged through 2025, where commercial progress is building, and what to watch as the industry pivots to Brazil and other growth regions.

Signals from Q3 pointed to a slower trajectory

Warning signs were already evident in last year’s third quarter. Kambi reported revenue of €37.4 million, down 13.1% year over year, or 8.1% after excluding prior-year transition fees, while adjusted EBITDA margin slipped to 9%. Operating profit narrowed to €1.6 million with a 4.3% margin. Management emphasized new signings to offset churn, citing seven turnkey sportsbook partners, three Odds Feed+ deals and two renewals in the period, and moved to strengthen its tech stack by acquiring Omega Systems’ player account management source code. The company also highlighted Latin American momentum through a broader pact with Superbet Group.

That Q3 update, detailed in Kambi revenue down 13.1% to €37.4 million in Q3, set expectations for a choppy close to the year as customer migrations and higher tax burdens intersected with selective investments. The pattern now visible across the second half suggests the commercial engine is working but not yet fully offsetting revenue leakage from departing or transitioning clients. It also illustrates how transition and migration fees can distort year-over-year optics, masking underlying run-rate performance when compared against prior periods with one-off items.

Brazil becomes the growth laboratory

With Brazil’s regulated sports betting market opening on Jan. 1, Kambi has moved quickly to stake out ground in what could become one of the world’s biggest regulated betting arenas. The company signed a strategic deal to power Stake’s licensed sportsbook in Brazil, a partnership framed as a launchpad for broader regulated expansion. Inside the market, the arrangement gives Stake access to Kambi’s turnkey platform built for complex regulatory frameworks, while providing Kambi a marquee client with brand recognition and crypto-native reach. The tie-up, outlined in Kambi Group and Stake sign sports betting partnership in Brazil, positions the supplier to capture early share as operators race to localize products and secure sustainable unit economics under the new rules.

Beyond Stake, Kambi has leaned into a trading-led strategy with established operators in the region. Its agreement to provide a comprehensive odds feed to Superbet across Latin America and parts of Europe signals a push to sell modular services where operators manage front-end experience and retention while leaning on Kambi for pricing depth and coverage. The strategy aims to diversify revenue and reduce reliance on full-stack deals. The contours of that approach are clear in Kambi expands in Brazil with Superbet partnership, which pairs Kambi’s market-making capabilities with Superbet’s local growth ambitions. Together with prior Latin American wins, these partnerships form the backbone of Kambi’s argument that new customer growth will increasingly offset revenue lost to migrations.

Customer churn, migrations and the omnichannel race

Kambi’s results also reflect an industry in transition as large operators retool technology stacks and consolidate supplier relationships. Some of Kambi’s high-profile clients are migrating to internal platforms or alternative providers, creating a revenue overhang until new deals in growth markets scale. Against that backdrop, extensions with major U.S. operators are notable, as is the health of those operators’ online businesses. Penn Entertainment, for instance, reported a 35.9% year-over-year jump in second-quarter revenue for its Interactive segment to $316.1 million, citing record online sports betting and casino revenue alongside product upgrades and an omnichannel push. Details are in Penn Entertainment’s igaming segment reports 35.9% year-over-year increase in second-quarter earnings, which also notes the redesign of ESPN Bet.

For Kambi, partnering with scaled brands that are growing in online sports and casino helps stabilize utilization of its trading and risk infrastructure even as certain marquee names rotate off the platform. The company’s portfolio of turnkey and feed-based contracts is meant to hedge against volatility in any single customer. Still, timing matters. Revenues from new launches in regulated markets, particularly those requiring tailored compliance and localization, typically ramp over multiple quarters. That lag, plus tax changes and FX pressure, has kept the near-term outlook cautious while management emphasizes cost efficiency and AI-led product enhancements to defend margins.

Competitive landscape and product velocity

Supplier performance across gaming has diverged, with content-led, land-based heavyweights showing strong momentum. Light & Wonder, for example, posted a record $3.2 billion in 2024 revenue, up 10%, driven by double-digit growth in gaming and a 22% jump in machine sales on market share gains in North America and Australia. The company also reported higher operating income and AEBITDA and pointed to an expanded studio footprint and a charitable gaming acquisition to extend distribution. The results, summarized in Light & Wonder reports record-breaking US$3.2 billion full-year revenue, illustrate how product roadmaps and distribution breadth can accelerate growth.

While Light & Wonder operates in a different mix than Kambi, the comparison highlights a common theme: scale and product cadence are decisive as regulation unlocks new markets and incumbents defend share. For Kambi, that means doubling down on advanced trading, compliance-first platform capabilities and AI-driven personalization that improves hold and engagement for operator partners. It also means using modular services like Odds Feed+ to land with operators that prefer to control the front end but outsource the most capital-intensive components of sportsbook operations.

What’s next: regulation, execution and margins

The near-term watchlist is clear. In Latin America, Brazil execution will be critical as operators transition from license wins to product localization, marketing and retention under the new regime. Kambi’s Stake and Superbet deals give it exposure to both turnkey and feed-led models there. In Colombia, any increase in sports betting taxes would test the company’s confidence in hitting the upper end of 2026 adjusted EBITA guidance. In Europe and North America, the pace and impact of customer migrations will dictate how quickly new logos backfill the top line.

Investors and partners will also track unit economics from recent launches, the cadence of additional signings in regulated markets and evidence that cost discipline can sustain margin expansion in an inflationary backdrop. If Kambi converts its commercial pipeline into live, scaled contracts while limiting churn and absorbing regulatory shifts, the second half of 2026 could look meaningfully different from 2025’s declines. Until then, the company’s story is one of transition: shoring up its core trading edge, leaning into Brazil and other growth markets and running a tighter cost base to buy time for the revenue mix to reset.