Galaxy Gaming FY2025: Revenue Dips 2.7% but Net Income Swings to $1.5m

Galaxy Gaming reported full-year 2025 revenue of $30.87m, down 2.7% from $31.74m in 2024, as a sharp drop in perpetual license sales offset solid digital growth and a significant improvement in profitability driven by lower debt costs.

Revenue: Core Down, Digital Up

Total core revenue fell 10.4% to $19.16m. The primary driver was a 66.3% decline in perpetual license sales of progressive gaming systems, which dropped from $3.50m to $1.18m. The company attributed the decline partly to a deliberate management decision to prioritise higher-margin recurring revenue streams over one-time perpetual deals, as well as timing of customer purchases.

Recurring core license revenue held near flat, declining just 0.4% to $20.94m. North American casino closures weighed on performance, partially offset by growth in Europe, the Middle East and Africa, and early revenue from the GOS progressive gaming system launched earlier in the year.

Digital revenue moved in the opposite direction. Gross digital revenues reached $16.33m, up 14.3% year-on-year, with net digital revenue after royalties growing 13.2% to $11.72m. The 10-K attributed the performance to expansion into new markets and continued demand for branded content with established recognition. Galaxy Gaming licenses its intellectual property to online operators across multiple regulated jurisdictions, with digital now accounting for 38% of net revenue.

Operating Performance and Cost Reductions

Total costs and expenses fell 12.8% to $22.69m, with SG&A the primary lever. Selling, general and administrative costs dropped $2.45m to $17.23m, driven largely by a $2.34m reduction in special project expenses, principally legal fees tied to the pending Evolution acquisition. Normalised SG&A, excluding those merger-related fees, declined a more modest 0.7%.

Income from operations reached $8.18m, up 43.5% from $5.70m in 2024. Operating cash flow grew to $7.70m from $4.10m the prior year, reflecting the swing to net income alongside a $2.97m non-cash loss on debt extinguishment related to the refinancing.

Adjusted EBITDA came in at $13.26m, a marginal increase from $13.04m in 2024, with the improved operating result partially offset by lower interest income and the absence of a prior-year RSU expense reversal.

Debt Refinancing Transforms Interest Line

The single most impactful structural change in the 2025 income statement was the January 2025 refinancing of the company’s debt. Galaxy Gaming replaced its Fortress term loan with a new $45m senior secured term loan and a $2m revolving credit facility from BMO, both maturing January 6, 2028. Interest expense fell 60.4% to $3.59m, compared to $9.07m in 2024.

The refinancing triggered a $2.97m loss on extinguishment of debt, reflecting the write-off of unamortised issuance costs on the Fortress facility. Despite that one-time charge, the company delivered net income of $1.48m for the year, reversing the $2.63m net loss reported in 2024. Basic and diluted earnings per share from continuing operations were both $0.06, compared to a loss of $0.10 per share in the prior year.

As of December 31, 2025, total assets had declined to $27.50m from $41.01m, primarily due to the cash used to service the refinancing and the ongoing amortisation of intangible assets.

Evolution Merger: Extended to July 2026

Galaxy Gaming’s pending acquisition by Evolution Malta Holding Limited continues to work through regulatory approvals. Stockholders voted to approve the merger agreement in November 2024. The outside date for completion has been extended twice automatically, due to outstanding gaming regulatory approvals, and was further extended by agreement in November 2025 to July 17, 2026.

The company stated it remains actively engaged with gaming regulators to secure the remaining approvals but acknowledged no assurance can be given on timing. Nevada regulatory approval had presented a specific hurdle, with the state’s review process among those outstanding. Upon completion, Galaxy Gaming will be delisted and become a wholly owned subsidiary of Evolution.

The 10-K noted that continuing to file for new or enhanced licences in additional jurisdictions may result in material future legal and regulatory expenses, and a significant increase in such costs could require the company to scale back growth initiatives or R&D investment.

Product and Market Activity

Outside the financials, Galaxy Gaming has been active on the product and distribution front. In January 2025, the company launched Monopoly Blackjack Progressive with Hasbro across Metropolitan Casinos in the UK. A five-year licensing agreement extension with Pragmatic Play was confirmed in February 2025, and a new five-year deal with IGT PlayDigital was signed in March 2025. The company also appeared at ICE Barcelona 2025 and the Indian Gaming Tradeshow in early 2026, showcasing the GOS Sapphire and Monopoly-branded table games. Playtech, one of the key competitors in the B2B gaming content space, reported its own 2025 results in February 2026 with EBITDA guidance raised on Americas performance.

For the full year 2025, Galaxy Gaming employed 47 people, assembled products at its Las Vegas headquarters, and sourced sub-assemblies domestically. Management stated it expects sufficient liquidity to fund operations and meet financing obligations over at least the next 12 months.

The company’s revenue trajectory over the coming year will be shaped primarily by whether the Evolution merger closes before the July 2026 deadline, and by the continued expansion of its digital licensing footprint across regulated online markets. Evolution reported its own FY2025 results in February 2026, with flat revenue and EBITDA down 9% as European regulatory pressure mounted.

Source: Galaxy Gaming, Inc.