Galaxy Gaming, Inc. reported a net revenue of $31.7 million for the fiscal year ending December 31, 2024, marking a 14.2% increase from $27.8 million in 2023. The growth was primarily driven by a 25.6% rise in recurring license revenue, which reached $35.3 million, up from $28.1 million the previous year. However, the company experienced a net loss of $2.6 million, a 45.3% increase from the $1.8 million loss reported in 2023. This decline in profitability was attributed to rising costs in selling, general, and administrative expenses, which surged by 25.6% to $19.7 million, largely due to legal expenses related to the company's pending merger.
In July 2024, Galaxy Gaming entered into a merger agreement with Evolution Malta Holding Limited, which is expected to close in mid-2025, pending regulatory approvals and stockholder consent. The merger will convert each share of Galaxy's common stock into $3.20 in cash. The approval from stockholders was secured during a special meeting held on November 12, 2024. This strategic move aims to enhance the company's market position and operational capabilities within the gaming industry.
Operationally, Galaxy Gaming has focused on expanding its product offerings and market reach. The company reported a significant increase in its digital revenue, which rose by 22.7% to $10.4 million, driven by the successful distribution of its proprietary games in new markets. The total number of employees as of December 31, 2024, was 47, reflecting a commitment to maintaining a lean operational structure while pursuing growth opportunities.
The filing also highlighted the company's ongoing efforts to enhance its product portfolio, particularly through the development of proprietary table games and enhanced table systems. Galaxy Gaming's strategy includes increasing the number of casinos served and expanding its digital content distribution. The company anticipates further growth in the iGaming sector as more U.S. states legalize online gaming, although this expansion is contingent on regulatory developments.
Looking ahead, Galaxy Gaming aims to leverage its recent merger and product innovations to improve its financial performance. The company expects to maintain sufficient liquidity to fund operations and meet obligations over the next 12 months, despite the challenges posed by rising costs and the complexities of the merger process. The management remains optimistic about the future, focusing on strategic growth initiatives and enhancing shareholder value.
About Galaxy Gaming, Inc.
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