Gambling.com Group Ltd Q3 FY2025 Earnings Call

Greetings. Welcome to Gambling.com Group's Third Quarter 2025 Earnings Conference Call. Please note, this conference is being recorded. I will now turn the conference over to Peter McGough, Vice President of Investor Relations. Thank you. You may begin.

Hello, everyone, and welcome to Gambling.com Group's Third Quarter 2025 Results Call. I am 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 e-mailing 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. These statements are based on information currently available to us and involve risks and uncertainties that could affect actual future results, performance and business prospects and opportunities to differ materially from those expressed in or implied by these statements. Some 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. 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 press release, both of which are available in the Investors tab of our website. I'll now turn the call over to Charles.

Thank you, Pete. Good morning, and thank you for joining our third quarter 2025 conference call. We generated record third quarter revenue and adjusted EBITDA with revenue rising 21% and adjusted EBITDA growing 3% year-over-year. Our sports data services business grew over 300% year-on-year in the third quarter. The marketing business was flat year-on-year as revenue was held back by less favorable search rankings that persisted for the entire third quarter. Google search algorithms have continued to favor low-quality spam content in the gaming space, particularly outside the U.S. However, since late October, the search marketing dynamics have started to improve for us. Our sports data services business continues to outperform our expectations with another quarter of strong growth driven by enterprise sales. Sustained strong growth in sports data services is the future of GAMB given our attractive offering and the multi-billion-dollar total addressable market ahead of us. I will start today's call by outlining the opportunity we see within sports data services, our fastest-growing segment. Through a combination of acquisitions and excellent execution, we have built a rapidly growing sports data services business, which delights both enterprise and consumer clients and now accounts for 25% of our 2025 revenue. The strong product-market fit we have inspires confidence in a simple path to sustainable and predictable growth for this business. Sports betting operators are increasingly examining their cost structures, especially in stagnant markets. Our next-generation data platform offers comprehensive premium data services at competitive prices, allowing both start-up and established operators to reduce costs while enhancing their services. We anticipate this business will finish 2025 strong and continue to grow organically at a robust pace into 2026 and beyond. The fastest-growing segment of our sports data services business is OpticOdds, our enterprise solution for sportsbook operators. OpticOdds' third quarter revenue doubled year-over-year, reflecting customer growth and increased revenue per customer. OpticOdds started by providing multi-operator odds data globally to trading teams and sports betting operators for their risk management processes. We have broadened our services to include bet settlement, which is now operational with multiple clients. Sportsbook operators can now use OpticOdds as a complete solution for both pricing and bet settlement. Our bet settlement services support dynamic pricing of same-game parlays, and we are exploring the addition of early cash-out functionality. OpticOdds has partnered with specialist odds providers like Rimble and Pro League Network to integrate with our OpenOdds marketplace, allowing operator clients to easily subscribe to additional third-party data services through the OpticOdds feed, which adds value for our customers and boosts our partners' distribution. OpticOdds began with a focus on American sports, but we are rapidly expanding the odds data available on the platform for global sports betting operators. Year-to-date, we have added 10 sports, 350 leagues, and over 1,000 different betting markets. OpticOdds recently signed a deal with Pragmatic Play, a leading international platform provider, enhancing U.S. player prop market coverage. In short, we are providing more odds data and trading tools to a growing client base, thanks to improved distribution. Another significant aspect of the OpticOdds business is the value we can generate for firms involved in prediction markets. This sector is expanding quickly and includes several well-known Wall Street firms, as well as market-making divisions of Kalshi and Polymarket. We expect the prediction market ecosystem to grow significantly due to the national addressable market and certain advantages over state-regulated sports betting. Prediction markets represent an additive category in the U.S., not a replacement for traditional sports betting, which will continue to thrive given its simplicity and accessibility. We believe our OpticOdds solution is uniquely positioned to assist market makers and capitalize on the growth of prediction markets, providing sophisticated consumers with better risk exposure, payouts, and fewer gimmicks. With a long runway for consistent growth in our sports data services business, we believe this promising future will be central to GAMB. That said, we expect our leading marketing business to grow in 2026 and beyond, generating ample cash to continue investing in our sports data services offering while maintaining the capacity to create shareholder value. I want to congratulate our marketing team for winning the EGR Affiliate of the Year Award for a remarkable third time in October. We are unmatched in our success in the online gambling affiliate sector. Having operated a search marketing business at the highest levels for nearly two decades, we remain confident that the recent poor performance of the marketing business is mainly due to short-term search dynamics, which we will address. Following Elias' review of the third quarter financial details, I will explain how we plan to return to growth in the marketing business.

Thank you, Charles. Third quarter revenue grew 21% year-over-year to a Q3 record of $39 million. Sports data services revenue quadrupled to $9.2 million in the seasonally slower third quarter. Subscription revenue was 24% of total revenue. Inclusive of revenue share arrangements in our marketing business, recurring revenue was 49% of total third quarter revenue. Our marketing business continues to be impacted by low-quality search results in the gaming space, primarily outside of the U.S. as we have discussed. As a result, marketing revenue was flat and NDCs of 101,000 were down 13% year-over-year. Gross profit increased 17% to $35.6 million. Cost of sales of $3.4 million compares to cost of sales of $1.7 million in the year-ago period, reflecting costs associated with the acceleration of our traffic sources diversification strategy for the marketing business and cost of sales from the acquired OddsJam and OpticOdds businesses. Gross profit margin was 91.2% compared to 94.7% in the year-ago period. Operating expenses adjusted for fair value movements and acquisition and restructuring related expenses grew 30% to $25.7 million. This growth is primarily associated with added headcount from this year's acquisitions, higher marketing costs associated with traffic source diversification and increased share-based payment expense. Headcount outside the acquired businesses is flat year-to-date. While keeping a very keen eye on cost control by optimizing our operating teams and adopting AI in our work processes, we continue to invest in product development and diversification strategies that we believe will power growth in coming years. Adjusted EBITDA grew 3% to $13 million. Adjusted EBITDA margin of 33% compared to 39% in the year-ago period, reflecting the higher cost of sales and marketing expenses associated with our traffic diversification strategy. Adjusted net income and adjusted net income per share for the third quarter fell 16% from the year-ago period to $9.3 million and $0.26, respectively, primarily because of increased interest expense. Free cash flow was $9.6 million, reflecting strong cash conversion from adjusted EBITDA of 74%. Free cash flow was down from $14.2 million in the year-ago period as a result of timing differences in 2024, where we saw an atypically strong Q3 following an atypically weak Q2. At the end of the quarter, we had total cash of $7.4 million, and we had $70.5 million of undrawn capacity on our credit facility. During the quarter, we acquired Spotlight.Vegas, which included a payment of $8 million before working capital adjustments. We also made interest and term loan repayments of $3.4 million and $5.6 million, respectively, in the quarter, and we've repurchased approximately 562,000 shares for a total consideration of $4.7 million. Year-to-date, we have acquired 672,000 shares for total consideration of $5.6 million, and we have $14.4 million remaining with our share buyback authorization. We continue to generate strong free cash flow, which, together with our healthy balance sheet and undrawn credit facilities, continues to provide us with the flexibility to optimize our capital structure and shareholder value. This morning, we revised our full year guidance to revenue of approximately $165 million and adjusted EBITDA of approximately $58 million. The change in guidance reflects the continued headwind of poor search dynamics, which affected all of Q3 and while recently somewhat recovering, persists in Q4. During our Q2 call, we expected Google's anti-spam team to make more progress against bad actors than we have seen to date. When Google addresses these quite objectively and frankly, serious quality problems with the search results, we will immediately see meaningful revenue improvement, which flows straight through to adjusted EBITDA. Our revised guidance also includes approximately $1 million in higher cost of sales than previously anticipated related to the successful acceleration of our traffic diversification strategy. The midpoint of the revised guidance represents 30% year-over-year growth. The midpoint of the revised adjusted EBITDA guidance reflects 19% year-over-year growth. Our guidance assumes an average euro to USD exchange rate of $1.15 for the year. I will now turn the call back to Charles for a review of the work we're doing to diversify and expand our marketing business.

Thank you, Elias. We continue to see tremendous value in our marketing business that far exceeds the value currently being ascribed to it by the public markets. The perception gap is due to the fact that the marketing business has already been transformed from a pure SEO business into a diversified marketing engine, which is less reliant on SEO than ever before. Our push into non-SEO channels has succeeded and is already evident in our year-to-date results. In Q4, we expect to generate more revenue from non-SEO channels than SEO for the first time as a public company. And as these non-SEO channels scale further, the economics become increasingly attractive. I think the best is yet to come as our marketing business is uniquely well positioned to drive growth and an exciting new line of business we plan to launch in Q1, which will further diversify our offerings. My positive tone today reflects the fact that my senior leaders and I are genuinely excited about both our fast-growing sports data services business and the future of the marketing business. On the marketing side, we are, however, behind where we and our analysts thought we would be this year. And as a result, the share price has come under substantial pressure. This recent price action seems to suggest that the marketing business is dead or dying, a position which is simply unsupported by the facts as we produced $13 million in adjusted EBITDA and nearly $10 million in free cash flow in the quarter despite having one hand tied behind our back from short-term search dynamics. Furthermore, our business is now more resilient than ever, thanks to 2 years of successful execution against our plan to diversify away from SEO. While the full SEO recovery remains in front of us, we are now past the worst of the short-term challenges and off the low point of the last several months. Even though SEO is a smaller part of our future, there is still substantial upside to the current run rate of the SEO side of our marketing business. We consider the company's current market valuation simply wrong and have a sizable authorization for share repurchases in effect, which we are using. All in all, our diversification initiatives have already resulted in both a new fast-growing sports data services business and a more resilient marketing business that we expect will grow in 2026 and continue to throw our strong free cash flow for years to come. Operator, we will open up the floor for questions.

Our first question is from Ryan Sigdahl with Craig-Hallum Capital Group.

I want to stay on Google search, just given the impact to results and kind of the transitory impact of the business right now. I guess what gives you confidence to step out on a ledge with confidence and say you're positioned to grow that business in 2026? Specifically, I know you gave some comments, but I guess, secondly, to that or more specifically, has Google changed their algorithm where you've actually seen rankings start to change? Or have you guys refined internally to make things better? But what exactly has happened in recent weeks that gives you that confidence?

Towards the end of October, we noticed that some of the spammy results began to decrease, leading to improved rankings. As a result, we experienced a boost in traffic and, consequently, an increase in revenue. Google search continues to function as it always has. While we previously discussed AI challenges, I believe we may have overly emphasized their impact. Currently, the situation reflects a standard search environment, where rankings play a crucial role. With the return of those rankings, we immediately saw an increase in revenue as expected. This reinforces our confidence that Google operates as usual. Historically, we've navigated ranking challenges successfully, and I have no doubt this will be the case again. However, what is different this time is that we rely more on Google. It is not our responsibility to eliminate spam from search results; that is the search engine's role. We anticipate that there may be another update from Google at the end of December, focusing on tackling spam results. Therefore, we expect improvements to occur, possibly before December. This process has taken longer than usual, which has impacted our results and guidance, but we don't believe there have been any fundamental changes.

Helpful. Data services, big focus, great growth, a lot of opportunity. I appreciate kind of the comments there. On the B2B side, it certainly seems like a lot of momentum in core markets and predictions. I want to actually ask about the B2C side, which historically was the bigger part of that business. But has that continued to grow? Is that an emphasis? And then what are you guys working on specifically on the OddsJam side?

Yes. Revenue in the consumer data services, which includes B2C RotoWire and B2C OddsJam, grew slightly year-on-year. On a pro forma basis year-to-date, growth is approximately 10%. The third quarter experienced some impact from the launch of the updated RotoWire products, as we are focusing on enhancing customer lifetime value, which has affected short-term revenue. Typically, we see significant revenue spikes from that business at the start of the football season due to their previous monetization methods for the apps. Currently, subscriber numbers for RotoWire have increased by 20% to 21% year-on-year, alongside significantly improved estimates of subscriber lifetime value. This positions us well for future growth in that area. Additionally, in October, OddsJam introduced new features that analyze liquidity in prediction markets and betting exchanges to pinpoint where the significant money is. This allows their users to align themselves with that informed money. This product has quickly gained popularity, driving growth in average revenue per user and attracting new users, demonstrating our commitment to continuous innovation and feature enhancements for growth.

I can attest that I've tried your sharp money product, that is fantastic. Good luck, guys.

Our next question is from Jeff Stantial with Stifel.

Maybe hanging on Ryan's second question, but switching more to the enterprise side of the data services business. Charles, could you just give us a little bit more color on progress to date on OpticOdds commercialization? Sort of what inning are you in of having that new sales team attack sort of some of the opportunity in Europe, bring more customers into trial? What's been the conversion rate on those trials? Just any sort of additional metrics or color that can help us think about sort of what point on the J-curve you're at today would be helpful.

Yes. I mean, as I said in the prepared remarks, we've got a tight product market fit with the offering we have today with OpticOdds. I think there's a very clear and long runway to grow the business just with that offering. Now having said that, we've got a great team there. They're very ambitious and very keen to build additional features and expand the capability of the product as we all are. And so I think when you look out over '26, '27, there's a lot of opportunity there beyond just pure data and bet settlement. There's an entire kind of category of services called managed trading services. Some people call that sportsbook operations, but you've got personalization of content, player profiling, active risk management, bet acceptance. There's a whole kind of suite of problems that need to be solved before you get to being a platform provider. We don't want to do that. That I think operators need to do that themselves. They need that last step where the UI touches the user. I mean that's the critical place where an operator differentiates their offering. But everything kind of behind the scenes, especially around risk management, bet acceptance is very interesting to us. And I think it was Bezos that said, your margin is my opportunity. There's quite a lot of margin out there between Sportradar and Genius and others that are doing very well with this category. And I think we've just got the team, the tools and the platform to be extremely competitive in more than just data and bet settlement. So that's where our heads are at when you look at the next kind of 1 to 2 years.

That's great. Switching gears, Elias, could you help us think a bit about the margin side as we approach 2026? I know you're not providing formal guidance yet, but with the cost of sales slightly increasing in some areas of the marketing business, you mentioned in your prepared remarks that we might be in an investment phase before we see the benefits of leverage. Could you provide some insight on what to consider regarding margins compared to your historical guidance as we look forward to 2026?

Yes. I think before we look into '26, and you're right, we're not giving formal guidance here, but a few talking points, I think, would be helpful for everyone. But before we get into that, it's important to kind of highlight what Charles said earlier that we think we are through the worst of the SEO challenges and our non-SEO efforts are really bearing fruit faster than planned. So we have a high degree of confidence that we have bottomed out, and we're on the right path here. So this means that we expect to see kind of mid-teens growth in revenue and around 10% adjusted EBITDA growth or even mid-teens growth quarter-on-quarter from Q3 to Q4. Our updated guidance implies revenue of $46 million for Q4, which will be by far the biggest quarter in the company's history, just to illustrate that we think that although we're not where we thought we would be at the beginning of the year, we're in a healthy place and we have bottomed out. If we turn into 2026, we expect to see overall revenue growth in the low-teens with the sports data services business continue to lead the way. We expect marketing to grow at a rate in the low-teens and for sports data services to grow in the high-teens with B2C in the high-single digits and B2B above 20%. And if we look at our marketing business, our non-SEO marketing business continues to scale. The contribution margin becomes more attractive in the non-SEO channels, and that also carries much fewer fixed costs compared to the traditional SEO business. All in all, we expect to maintain overall adjusted EBITDA margins in the mid-30s as we see on a run rate basis. So in Q3, our EBITDA margin was 33%. Our Q4 guidance looks towards 33%, 34%. I think that's pretty indicative for our expectations for 2026.

Our next question is from Barry Jonas with Truist Securities.

Some of the other data providers have said they're not ready yet to work with prediction markets. Curious to what extent that impacts your opportunity or strategy today?

Barry, this definitely has a positive impact on us. You’re correct that many prominent names are adopting an extremely cautious stance towards the category, which means that as a market maker, you can’t currently purchase data from certain sources. As I mentioned earlier, we have an interesting business developing in this area. Many market makers, both traditional Wall Street firms active in prediction markets and companies native to prediction learning in these markets, are clients of our data services business, although not necessarily in terms of marketing. The data we possess is precisely what traders need to make markets and mitigate risk.

Great. And then just as a follow-up question, I wanted to talk more about trends in the affiliate business outside of sort of that transitory Google algo change. The larger U.S. operators have talked about heightened OSB promotions. Is that something you're seeing translate to your wider business? At the same time, I'm curious to get your thoughts on any implications from PENN shutting down ESPN bet.

Yes. If you look at North America, we experienced a 55% year-on-year growth in the third quarter, primarily driven by sports data services. While our marketing business remained flat globally, it declined slightly in North America due to Canada. However, in the U.S., marketing saw year-on-year growth, attributed to our non-SEO diversification efforts. There is healthy operator demand on the sports betting side, and there hasn't been a significant change in our relationships with operators. We continue to onboard more players on a revenue share basis, which delays revenue recognition and affects our growth rates. Despite this, the U.S. marketing business definitely grew year-on-year. Regarding PENN and ESPN, we were all eagerly anticipating the developments there. We had some ideas about what ESPN might have pursued if they weren’t collaborating with PENN. One possibility is that they could have partnered more deeply with an individual operator like they did with DraftKings, but this will not significantly impact our business. We continue to work with PENN, but it won't meaningfully influence our overall performance. Additionally, we also collaborate with DraftKings.

Our next question is from David Katz with Jefferies.

Charles, I wanted to go just a little more strategic with respect to the Odds data business and just talk through what the sort of critical success factors are, the barriers, right? I mean you did mention some others that play in similar spaces that may be larger. How important is scale, bundling as part of offerings? What are the things you really need beyond just your obvious innovation capabilities?

David, I appreciate your long-term perspective. As I've mentioned, we have a clear strategy in place but there are definitely areas where we can expand easily. Many managed trading service providers exist beyond just Radar and Genius; there are numerous established private companies that have been around for 20 to 25 years. However, many of these companies lack modern technology because they were not built in the last few years using advanced methods like native cloud services, data science, and low latency. Regardless of past intelligence, their systems tend to feel outdated today, resulting in significant technology debt for these larger players. We've highlighted our ace team at OpticOdds and OddsJam, who are eager and quick to build solutions effectively. I believe we have the right talent and platform to pursue various opportunities successfully. Another important trend is the ongoing discussion around official data following the regulatory changes a couple of years ago. There was an effort by lobbyists to mandate the purchase of official data, but so far, that hasn't made progress. While having access to official data is beneficial, not everyone sees it as a necessity. This industry, although it continues to grow, isn't expanding as rapidly as it did in the past, which is prompting operators to reassess their costs. If projected growth is only 10% instead of 25%, they will seek ways to reduce expenses and enhance their earnings. For a long time, there was a natural gravitation towards official data, but we’re now witnessing a shift among various customers who are increasingly open to exploring alternative options. This approach opens doors for us to sell other services to our operator clients. We’ve built solid relationships with them in our data services business, fostering trust and encouraging them to reach out for our assistance in developing solutions. There’s a strong channel of communication and feedback, positioning us well to address their needs.

Understood. I see the clear advantage of the upstart. However, a common follow-up question we receive about this aspect of the business is whether larger operators could manage this themselves if not for the official data, scale, and length of tenure. This is a question we encounter frequently, and I wanted to bring that up as well.

If you consider the OpticOdds market data business, we invest over $1 million annually on computing to process that data. So if any single operator decides to handle it themselves, it will cost them at least that much, plus the expenses of building all the necessary software, assembling a team, and everything else. We don’t charge our clients that much each year, so it’s clear that buying from us is more advantageous than attempting it independently. This is a complex industry where you can't do everything alone. It’s useful to categorize operators into tiers. Tier 1 operators typically want to manage everything on their own. If they can't, it undermines their business model. While we collaborate with Tier 1s on data services, we aren't focused on restructuring their businesses. In contrast, there are many Tier 2, Tier 3, and Tier 4 operators willing to outsource significant parts of their business to whoever can execute better. For instance, in Europe, numerous online casino operators that provide sports betting view it as a supplementary product, simply a feature on their website. They prefer a set-and-forget solution and are looking to generate some additional revenue with minimal involvement. They are eager to partner with the most efficient provider available. This situation allows us the opportunity to invest and excel in product development. Historically, we've succeeded with superior marketing and distribution, but our data services division allows us to focus on product excellence. We aim to create something so superior that it sells itself, and I believe our team is capable of building such products.

Our next question is from Chad Beynon with Macquarie.

Charles, I wanted to ask about the upcoming U.K. autumn budget and how this could affect the business. You guys are obviously a leader in that market. So from what we've heard, it could hurt some of the smaller players. But anything you can help in terms of how you think this will change the affiliate business in that market and what you've learned in the past when taxes have been adjusted?

Chad, if the upcoming U.K. budget increases gaming duty, it will impact player lifetime values in the market, which in turn affects our pricing for clients, though this won't happen immediately. The understanding of player lifetime value takes time to change, and so do our commercial agreements. Regardless, if gaming duty is raised, it's not a positive development. Our expectations for the U.K. and Ireland segment next year are quite realistic. As we plan our budget for next year, we are not anticipating growth. We also don't expect a significant decline, but it won't be a growth driver for us next year as it has been in the past.

Okay. And then in terms of maybe a medium or longer-term question in terms of how you're thinking about running the company's leverage. You talked about at the outset that you are active in terms of share repurchases and you're unhappy with the stock price. So that's obviously a use of capital. You've made some recent acquisitions in the last couple of quarters. And then more importantly, with OpticOdds and the sports data business, there might be other tuck-in acquisitions. So how are you thinking about running the company's leverage at this point, if maybe this is a time to lever up, create the best product for the future or if you're going to run more conservative with just what you currently have in the tank?

Yes, Elias and I are focused on maximizing shareholder value through continuous optimization of capital allocation. We see buybacks as a strategic tool to enhance shareholder value, rather than a way to return a specific amount of capital. Currently, we have about $89 million in outstanding interest-bearing debt and approximately $70 million in unused credit facilities. As we generate cash, repaying debt is one of the options we can consider. OddsJam and OpticOdds are performing well and are in a strong position to secure most or all of the contingent consideration related to 2025, which means we will owe them $40 million in April 2026 and $20 million in April 2027. Therefore, we have these payments coming up. At this stage, I don't see us increasing our leverage beyond our current credit facility. We would prefer to see some recovery in the marketing sector and more growth in sports data services first. Once we have more confidence, we can pursue shareholder value creation through buybacks and other initiatives. This is an ongoing discussion that we consider regularly.

Our next question is from Mike Hickey with The Benchmark Company.

We have a couple of points to share. Regarding the predictions market, it's clear that it's a hot topic among us, investors, and operators, and it’s gaining momentum. Last night, Flutter announced plans to launch in December, and DraftKings is likely to follow suit. Part of this growth is due to significant investments in user interface improvements, as we heard last night, along with the presence of Kalshi and Polymarket creating a dynamic ecosystem. With that context, how are you viewing the marketing services opportunity in this area? I'm aware your data counterpart Sportradar is already involved. I'm interested to know if you are participating and how you anticipate the opportunity will develop, particularly in 2026 for growth.

Mike, I appreciate your question. The sports data services area is particularly promising for prediction markets. In terms of marketing, one distinctive aspect of prediction markets compared to traditionally regulated sports betting is the necessity for equal treatment of all participants. This means no personalization or varying bonuses, leading to less emphasis on marketing. However, people still need to discover and register for these services, and we can assist in that process. We're adopting a more cautious strategy due to our relationships with U.S. regulators. While broad data services are quite harmless, we do see potential in marketing, though our primary focus remains on data services.

Charles, on the data services, it sounds like you might be constrained a little bit on M&A, just given your current leverage profile and your stock being down. How are you thinking about investment there? It sounds like you're adding layers, which is exciting. But how do you sort of balance, I guess, internal investment and capital allocation to sort of the organic development of data versus M&A, which I imagine there's probably some nice tuck-in assets out there that could sort of round out your current offering?

That's a good question and something we're discussing frequently these days. If we approach it from the fundamentals, it's important to determine what we want to acquire and whether it aligns well with our business goals. If it meets all the necessary criteria and everyone is confident about it, then we need to figure out a way to finance it, which we hope will work out. Currently, due to our share price, most acquisitions are not enhancing. This certainly complicates our ability to justify M&A activity. However, we are still considering options and are focused on capital efficiency like never before. Each deal is unique and interesting, and there are various methods we can explore to maintain our capital efficiency.

With no further questions, I would like to hand the conference back over to management for closing remarks.

Thanks for joining us today. We do expect to finish the year strong here in Q4, subject to our updated guidance, and we look forward to updating everybody on that early next year. Thanks for joining. Bye-bye.

This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.