Galaxy Gaming, Inc.

What they do

Galaxy Gaming designs, develops, acquires, assembles and markets technology and entertainment-based products for the gaming industry, primarily proprietary table games, side bets, electronically enhanced table game platforms and ancillary equipment. Its products are placed on casino floors, in card rooms and on legal internet gaming sites, and it also licenses intellectual property to legal online gaming operators. Products are assembled at its Las Vegas headquarters, with certain sub-assemblies outsourced in the United States.

Revenue drivers

• Core (land-based) recurring revenue — Licensing and placement of proprietary table games, side bets and table-game platforms with land-based casinos and card rooms; management describes the Core business as one of two segments showing momentum in Q2 2026.
• Digital / iGaming — Licensing of intellectual property and gaming content to legal internet gaming operators; cited alongside Core as a source of year-over-year recurring revenue growth in Q2 2026.
• Electronically enhanced table game platforms and ancillary equipment — Technology and equipment tied to licensed casino operators' table games activity, aimed at increasing operator profitability and productivity or expanding their entertainment offerings; assembled in Las Vegas with some sub-assembly outsourced.

Recent performance

Preliminary Q2 2026 revenue was expected at $7.8M-$7.9M, versus $7.5M in Q2 2025 and $7.7M in Q1 2026, with net income of $0.9M-$1.0M versus $1.0M a year earlier and Adjusted EBITDA of $3.3M-$3.4M versus $3.2M. Management called this an expected record recurring revenue quarter, up approximately 8% year over year. FY2025 revenue was $30.9M with net income of $1.5M and operating cash flow of $7.7M, after FY2024 revenue of $31.7M and a $2.6M net loss. At June 30, 2026, the company reported total assets of $27.0M, total liabilities of $42.1M, shareholder equity of negative $15.2M, cash of $4.8M and long-term debt of $35.1M.

Strategy

The company says it is pursuing strategic initiatives, deepening customer relationships and expanding the value of its gaming content and technology to operators online and land-based. Management frames growth as sustainable and profitable, supported by a recurring revenue business model. A major strategic event was the July 18, 2024 merger agreement under which Evolution Malta Holding Limited would acquire the company in a cash transaction; Evolution failed to waive or meet closing conditions by the Extended Outside Date of July 17, 2026, and the agreement was terminated on July 21, 2026. The company's 10-K and 10-Q continue to flag risks tied to entry and maintenance of strategic alliances, product placements and iGaming growth. Subsequent 8-K filings since the 10-K report a merger termination, new material agreements, a direct financial obligation and a director or officer change.

Risks

• Terminated Evolution merger — The Evolution merger was terminated on July 21, 2026 after Evolution failed to meet or waive closing conditions by the Extended Outside Date, and filings cite the effects of the termination on the business and stock price.
• High leverage and negative equity — Long-term debt of $35.1M against total liabilities of $42.1M and total assets of $27.0M left shareholder equity at negative $15.2M at June 30, 2026.
• Regulatory and licensing dependence — Operations require gaming licenses and game approvals across jurisdictions, and the company cites changes in gaming and non-gaming statutes and regulations affecting its customers' revenues.
• Customer and market concentration — Filings list dependence on major customers and the ability to maintain strategic alliances and product placements in land-based casinos among the named risk factors.

Outlook

Management stated in the July 22, 2026 release that it remains focused on driving sustainable, profitable growth and creating long-term shareholder value, citing momentum across both its Digital and Core businesses. The preliminary Q2 2026 figures were unaudited, derived from internal reports and subject to quarter-end review, and the company said at the time it expected to release final Q2 2026 results on or about August 7, 2026. No forward guidance for the full year is provided in the excerpts.