Galaxy Gaming Reports Q3 2025 Revenue Decline but Achieves Net Income Turnaround

Galaxy Gaming, Inc. reported its financial results for the third quarter and the first nine months of 2025, revealing a total revenue of $7.3 million for the three months ending September 30, 2025, a decrease of 4.2% from $7.6 million in the same period of 2024. For the nine-month period, revenue also declined by 6.3%, totaling $22.6 million compared to $24.2 million in the prior year. The company attributed these declines primarily to reduced sales from perpetual licenses of its progressive gaming systems, which fell by 90.3% in the third quarter and 72.4% year-to-date, largely due to timing issues with customer purchases.

Despite the revenue decline, Galaxy Gaming reported a net income of $1.0 million for the third quarter, a significant turnaround from a net loss of approximately $2.2 million in the same quarter of 2024. This improvement was driven by a substantial reduction in total costs and expenses, which decreased by 30.2% to $5.4 million in the third quarter, compared to $7.8 million in the prior year. The company noted a 35.8% reduction in selling, general, and administrative expenses, primarily due to lower legal costs associated with its ongoing merger with Evolution Malta Holding Limited.

Operationally, Galaxy Gaming's total current assets decreased to $10.1 million as of September 30, 2025, down from $24.2 million at the end of 2024, largely due to a significant reduction in cash and cash equivalents. The company’s total liabilities also decreased to $45.5 million from $61.1 million, reflecting the repayment of debt following the refinancing of its credit agreement with BMO Bank. The current portion of long-term debt increased significantly, indicating the impact of this refinancing.

In terms of strategic developments, Galaxy Gaming is in the process of completing a merger with Evolution Malta Holding Limited, which was approved by shareholders in November 2024. The merger is expected to close by January 18, 2026, pending necessary regulatory approvals. The company continues to engage with gaming regulators to secure these approvals, with expectations for regulatory consideration in December 2025.

Looking ahead, Galaxy Gaming anticipates that its ongoing efforts to expand its digital content offerings and the successful launch of new products will help stabilize revenue streams. The company remains focused on maintaining sufficient liquidity to fund operations and meet obligations, projecting that it will have adequate resources for at least the next 12 months.