Golden Matrix Group Reports 72% Revenue Increase but Faces Net Loss in Latest Quarter

Golden Matrix Group, Inc. reported significant financial changes in its latest quarterly filing, revealing a 72% increase in revenue for the three months ended March 31, 2025, totaling $42.7 million, compared to $24.9 million in the same period last year. This growth was primarily driven by the acquisition of MeridianBet Group, which contributed approximately $15 million to the revenue. However, the company also experienced a net loss of $258,217, a stark contrast to the net income of $3.9 million reported in the previous year, largely due to increased operating expenses and interest costs.

The company's cost of goods sold (COGS) surged by 159% to $18.5 million, reflecting the operational scale-up following the Meridian acquisition. General and administrative expenses also rose by 74% to $24.3 million, influenced by stock-based compensation, increased salaries, and professional fees associated with the integration of MeridianBet. The gross profit for the quarter was reported at $24.2 million, a 37% increase from the prior year, indicating that while costs rose, the company was able to maintain a healthy margin on its increased sales.

Operationally, Golden Matrix has expanded its footprint significantly, now operating in over 15 jurisdictions across Europe, Africa, and Central and South America. The company employs approximately 1,200 personnel and operates around 700 betting shops, with a focus on both online and retail sports betting and casino operations. The integration of new gaming content and the launch of a fifth-generation sports betting platform have contributed to a more diverse product offering, which includes over 2,000 online casino games.

Looking ahead, Golden Matrix is focused on leveraging its recent acquisitions to enhance its market position and expand its product offerings. The company plans to continue investing in technology and marketing to drive user engagement and revenue growth. However, it also acknowledges the need for additional financing to support its growth strategy, particularly in light of the significant cash obligations arising from the Meridian acquisition. As of March 31, 2025, the company reported cash and cash equivalents of $29.7 million, with a working capital deficit of $16.1 million, indicating a need for careful financial management moving forward.