Galaxy Gaming, Inc. reported a net loss of $2.02 million for the first quarter of 2025, a significant decline from a net income of $208,908 in the same period of 2024. The company's total revenue for the quarter was $7.78 million, down 2.7% from $8.00 million year-over-year. The decrease in revenue was primarily attributed to a reduction in perpetual license sales of progressive gaming systems, which fell by 37.3% to $505,120, and a slight decline in recurring license revenue, which decreased by 2.7% to $5.25 million. The company also experienced a notable loss on extinguishment of debt amounting to $2.97 million, which further impacted its financial performance.
In terms of operational metrics, Galaxy Gaming's total current assets decreased to $11.69 million as of March 31, 2025, from $24.17 million at the end of 2024, largely due to cash outflows related to debt refinancing. The company’s total liabilities increased to $7.55 million, reflecting the current portion of long-term debt following the refinancing of its credit agreement with BMO Bank. The company’s employee headcount has also increased, contributing to a rise in research and development expenses, which were up 44% year-over-year.
Strategically, 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 in the second half of 2025, pending regulatory approvals. Upon completion, Galaxy Gaming will become a wholly owned subsidiary of Evolution, and its shares will no longer be publicly traded. This merger is anticipated to enhance the company's market position and operational capabilities in the gaming industry.
Looking ahead, Galaxy Gaming's management expressed confidence in the company's ability to maintain sufficient liquidity to fund operations and meet financial obligations over the next 12 months. The company continues to pursue new licensing opportunities in various jurisdictions, which may lead to increased legal and regulatory expenses. Despite the challenges faced in the first quarter, the company remains focused on expanding its digital content offerings and enhancing its product portfolio to drive future growth.
About Galaxy Gaming, Inc.
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