GAMB Stock’s Massive 38% Slide Takes It To Record Lows Today – Retail Now Expects Shares To Hit The $2 Mark

• Benchmark noted that the stock’s lower rating and price target reflect a weaker near-term earnings profile during the company's transition period. 
• Jefferies lowered the price target on Gambling.com stock to $6 from $7 and kept a ‘Buy’ rating.
• Gambling.com said it has initiated an AI-led restructuring to reduce its workforce by 25% and deliver $13 million in annualized cost savings.

Shares of Gambling.com Group (GAMB) hit record lows on Friday after the online gambling affiliate platform delivered a bleak quarterly report, reduced full-year guidance, and an AI-led restructuring of the firm.

At the time of writing, Gambling.com shares were down by more than 38% on Friday. Following the earnings report, multiple analysts have lowered their price targets for the stock.

Wall Street Reflects On GAMB’s Q1 Earnings, Transition Period

According to TheFly, Jefferies lowered the price target on Gambling.com stock to $6 from $7 and kept a ‘Buy’ rating. 

The firm termed the first-quarter (Q1) earnings results and lowered full-year outlook as near-term negative for the stock but noted that the company’s initiatives and prediction market growth opportunities "support a more constructive longer-term outlook for patient, duration-oriented investors."

Meanwhile, Benchmark downgraded the stock to ‘Speculative Buy’ from a ‘Buy’ rating and lowered the price target to $4 from $6. The firm stated that Gambing.com reported mixed Q1 results and reduced its full-year guidance due to a faster-than-expected shift from SEO-driven revenue and hiked traffic acquisition costs related to its marketing channels.

Benchmark added that the stock’s lowered rating and price target reflect ‘a lower near-term earnings profile during the company's transition period.’

GAMB’s Q1 Earnings

The company reported quarterly revenue of $40.4 million, narrowly beating analysts’ expectations of $40.25 million. 

Adjusted net income of $0.09 per share dropped compared to the adjusted net income of  $0.46 from the year-ago quarter. 

Gambling.com lowered its full-year guidance and now expects revenue to be in the range of $165 million to $170 million, down from its prior range of $170 million to $180 million.

The company also lowered its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $45 million to $50 million, down from the previously announced $50 million to $58 million.

“While our marketing operations continue to be impacted by previously disclosed poor organic search dynamics and more recent regulatory headwinds, we continue to deliver on our strategy to diversify traffic sources,” said Kevin McCrystle, Incoming Chief Executive Officer and Co-Founder at Gambling.com Group

GAMB Announces 25% Workforce Reduction

Gambling.com said it has initiated an AI-led restructuring to reduce its workforce by 25% and deliver $13 million in annualized cost savings.

“We expect to realize about half of the $13 million in annualized savings in the second half of 2026, which will help drive margin expansion in this period and beyond,” said Elias Mark, Chief Financial Officer of Gambling.com Group.

What Does Retail Think Of GAMB?

On Stocktwits, retail sentiment surrounding the stock has remained ‘extremely bullish’ amid ‘extremely high’ message volumes in the past 24 hours.

One user on Stocktwits said the stock could fall to $2.

 https://stocktwits.com/WaitingforNext/message/653492620

Shares of Gambling.com Group have declined more than 52% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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