Galaxy Gaming, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, expenses, and net loss compared to the previous fiscal period. Total revenue for the third quarter reached $7.6 million, a 25% increase from $6.1 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $24.2 million, up 15% from $21.1 million in 2023. The increase in revenue was primarily driven by higher licensing fees, which amounted to $7.6 million for the quarter and $24.2 million for the nine-month period, reflecting growth of 25% and 15%, respectively.

Despite the revenue growth, the company reported a net loss of $2.2 million for the third quarter, compared to a loss of $1.5 million in the prior year, marking a 51% increase in losses. For the nine-month period, the net loss was $1.7 million, up 77% from a loss of $987,695 in 2023. The increase in losses was attributed to rising total costs and expenses, which surged to $7.8 million for the third quarter, a 44% increase from $5.4 million in 2023, and $19.6 million for the nine months, up 26% from $15.6 million in the previous year.

Key contributors to the increased expenses included a significant rise in selling, general, and administrative costs, which rose by 50% in the third quarter due to special project expenses related to the company's merger with Evolution Malta Holding Limited, as well as higher internal labor costs. Research and development expenses also increased by 15% in the third quarter, reflecting ongoing software development efforts.

In terms of strategic developments, Galaxy Gaming entered into a Merger Agreement on July 18, 2024, with Evolution Malta, which is expected to close in mid-2025, pending shareholder and regulatory approvals. Under the terms of the agreement, each share of Galaxy Gaming common stock will convert to $3.20 in cash. However, the merger has raised concerns among shareholders, leading to legal complaints regarding the adequacy of disclosures related to the merger.

The company reported a significant increase in operating cash flow, which reached $3.0 million for the nine months ended September 30, 2024, compared to $399,450 in the same period of 2023. This improvement was attributed to favorable variances in the use of assets and liabilities related to operations. Cash and cash equivalents at the end of the period stood at $17.9 million, up from $15.9 million a year earlier.