Galaxy Gaming Reports Q2 2025 Revenue Decline, Net Income Increase Amid Strategic Merger

Galaxy Gaming, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $7.53 million, a decrease of 11.7% compared to $8.52 million in the same period of 2024. The decline in revenue was attributed to a significant drop in perpetual license sales of progressive gaming systems, which fell by 82.9% to $256,421. This was partially offset by a 14.0% increase in digital revenues, which reached $2.83 million, driven by the expansion of digital content across new customer sites. The company's net income for the quarter was $950,357, a substantial increase from $242,697 in the prior year, reflecting improved operational efficiency and reduced interest expenses.

For the first half of 2025, Galaxy Gaming's total revenue was $15.31 million, down 7.3% from $16.52 million in the same period of 2024. The decrease was primarily due to a 66.9% drop in perpetual license sales, which management attributed to a strategic shift towards higher-margin recurring revenue streams. The company reported a net loss of $1.07 million for the six months ended June 30, 2025, compared to a net income of $451,605 in the same period of the previous year. This loss was significantly impacted by a $2.97 million loss on extinguishment of debt related to the refinancing of its credit facilities.

In terms of operational developments, Galaxy Gaming's total current assets decreased to $10.45 million as of June 30, 2025, down from $24.17 million at the end of 2024. This decline was primarily due to a reduction in cash and cash equivalents, which fell to $5.04 million from $18.12 million. The company's total liabilities also decreased to $46.85 million, down from $61.07 million, largely due to the repayment of long-term debt following the refinancing with BMO Bank. The company’s employee headcount has remained stable, supporting its ongoing operations and strategic initiatives.

Strategically, Galaxy Gaming is in the process of completing a merger with Evolution Malta Holding Limited, which is expected to close in the second half of 2025, pending regulatory approvals. Under the terms of the merger agreement, shareholders will receive $3.20 per share in cash. The merger is anticipated to enhance Galaxy Gaming's market position and operational capabilities, allowing for greater investment in product development and market expansion. The company continues to focus on licensing its proprietary gaming technology and expanding its presence in both land-based and online gaming markets.

Looking ahead, Galaxy Gaming's management expressed optimism about future growth, citing ongoing efforts to secure new licenses and expand its product offerings. The company aims to leverage its strategic partnerships and enhance its digital content to drive revenue growth. However, management also acknowledged potential challenges, including market conditions and the need for regulatory approvals related to the merger, which could impact operational plans and financial performance in the near term.