Galaxy Gaming Reports $1.37M Net Income in Q1 2026, Revenue Declines 1.6%

Galaxy Gaming, Inc. reported its financial results for the first quarter of 2026, revealing a net income of $1.37 million, a significant turnaround from a net loss of approximately $2.02 million in the same period of 2025. The company's total revenue for the quarter was $7.66 million, a decrease of 1.6% compared to $7.78 million in the prior year. The decline in revenue was primarily attributed to a substantial drop in perpetual license sales of progressive gaming systems, which fell by 80.9% to $96,367, while recurring license revenue increased by 3.3% to $5.42 million, reflecting growth in licensing across various regions.

In terms of operational efficiency, Galaxy Gaming reported a decrease in total costs and expenses, which amounted to $5.49 million, down 5.5% from $5.81 million in the previous year. Notable reductions were seen in the cost of ancillary products and assembled components, which decreased by 64.3%, and research and development expenses, which fell by 58.1%. The company also experienced a significant reduction in stock-based compensation expenses, which dropped by 68.2% due to changes in board compensation structure.

The company’s balance sheet as of March 31, 2026, showed total assets of $27.04 million, a slight decrease from $27.50 million at the end of 2025. Current assets also declined to $10.95 million from $11.57 million, primarily due to a reduction in accounts receivable as a result of improved customer collection efforts. Total current liabilities decreased to $7.32 million from $8.06 million, driven by lower costs associated with special projects, particularly legal expenses related to the ongoing merger with Evolution Malta Holding Limited.

Galaxy Gaming continues to pursue its strategic merger with Evolution Malta, which is expected to close by July 17, 2026, pending necessary regulatory approvals. The company is actively engaged with gaming regulators to secure these approvals. The merger, if completed, will transition Galaxy Gaming into a privately held entity, with its shares no longer listed on public markets. The management remains optimistic about the future, projecting sufficient liquidity to fund operations and meet obligations over the next 12 months, despite the challenges posed by market conditions and regulatory requirements.