Press release·08/11/2026 07:41:08

Financial Performance Overview

Galaxy Gaming, a leading developer and provider of casino table games and electronic gaming products, has reported its financial results for the three and six months ended June 30, 2026. The company’s overall financial performance during this period was solid, with increases in both revenue and net income compared to the same periods in the prior year.

Revenue Trends

Galaxy Gaming’s total revenue for the three months ended June 30, 2026 was $7.94 million, representing a 5.4% increase from the same period in 2025. This growth was driven by strong performance across the company’s core and digital revenue streams.

Recurring core license revenue, which makes up the majority of Galaxy’s business, increased by 6.2% year-over-year to $5.50 million. This was led by growth in Europe, the Middle East and Africa, as well as continued demand for the company’s GOS progressive gaming systems globally. Digital revenue, which includes recurring license fees from online gaming operators, grew by 10.7% to $3.14 million.

Table 1: Revenue Breakdown

Revenue	Q2 2026	Q2 2025	% Change
Recurring Core License	$5,499,746	$5,180,133	6.2%
Perpetual License Sales	$51,182	$256,421	-80.0%
Digital Recurring License	$4,355,037	$4,020,989	8.3%
Total Revenue	$7,937,890	$7,527,691	5.4%

For the six-month period ended June 30, 2026, total revenue increased 1.9% to $15.60 million. Recurring core license revenue grew 4.7% to $10.92 million, while digital revenue increased 7.5% to $6.02 million. The company saw a decline in perpetual license sales of its progressive gaming systems, which decreased 80.6% to $147,549, as Galaxy Gaming continues to prioritize recurring placements over one-time sales.

Profitability and Expenses

Galaxy Gaming’s net income for the three months ended June 30, 2026 was $997,000, up 4.9% from the prior year period. This was primarily driven by the increase in revenue, as well as a 56.4% decrease in cost of ancillary products and assembled components.

Selling, general and administrative (SG&A) expenses increased 15.2% to $4.85 million, largely due to $505,000 in state tax expenses related to a voluntary sales and use tax audit, as well as $168,000 in professional fees associated with the terminated acquisition by Evolution. Excluding these one-time items, underlying SG&A grew by a more modest 5.0%.

Research and development costs decreased 47.1% to $129,000, reflecting lower payroll expenses and increased capitalization of internal development activities. Depreciation and amortization rose 17.0% to $919,000, in line with the company’s continued investment in client-deployed gaming assets.

For the six-month period, Galaxy Gaming reported net income of $2.36 million, compared to a net loss of $1.07 million in the prior year. This turnaround was aided by the absence of the $2.97 million loss on debt extinguishment that occurred in 2025.

Table 2: Profitability Metrics

Metric	Q2 2026	Q2 2025	% Change
Net Income	$996,978	$950,357	4.9%
Adjusted EBITDA	$3,548,217	$3,199,269	10.9%
Free Cash Flow	$1,677,075	$1,342,810	24.9%

Adjusted EBITDA and Free Cash Flow

In addition to reporting GAAP net income, Galaxy Gaming provides supplemental non-GAAP metrics to give investors a better understanding of the company’s underlying operating performance. Adjusted EBITDA, which excludes the impact of interest, taxes, depreciation, amortization, and other one-time items, grew 10.9% year-over-year to $3.55 million in Q2 2026.

Free cash flow, defined as Adjusted EBITDA less cash paid for interest, capital expenditures, and taxes, increased 24.9% to $1.68 million. This strong cash generation provides the company with financial flexibility to invest in growth initiatives, make strategic acquisitions, and service its debt obligations.

Balance Sheet and Liquidity

As of June 30, 2026, Galaxy Gaming had total current assets of $10.81 million and total assets of $26.96 million. This represents a slight decrease from the prior year-end, primarily due to a reduction in accounts receivable from improved customer collections.

Total current liabilities stood at $7.01 million, down from $8.06 million at December 31, 2025, driven by the payment of annual bonuses. The company’s credit facility with BMO, which provides a $2 million revolving line of credit and a $45 million term loan, remains undrawn on the revolver as of the latest reporting period.

Galaxy Gaming’s management believes the company has sufficient liquidity to fund operations and meet its debt obligations over the next 12 months based on its current forecast. The company continues to invest in new licenses, product development, and other growth initiatives, which may require additional capital in the future.

Outlook and Strategic Initiatives

Looking ahead, Galaxy Gaming remains focused on expanding its recurring revenue streams through the placement of its proprietary table games and electronic gaming systems with land-based and online casino operators globally. The company’s digital business, which has grown at a double-digit pace, is expected to be a key driver of future growth as it continues to penetrate new markets.

While perpetual license sales of progressive gaming systems declined in the first half of 2026, Galaxy Gaming plans to maintain a balanced approach, selectively offering these one-time sales alongside its core recurring placement model. The company believes this strategy will optimize the long-term value generated per customer.

Other strategic priorities include pursuing new gaming licenses in additional jurisdictions, investing in product innovation and R&D, and exploring potential acquisition opportunities that can complement the company’s existing portfolio and capabilities. Galaxy Gaming’s strong cash flow generation provides the financial resources to execute on these initiatives.

Conclusion

Galaxy Gaming delivered a solid financial performance in the first half of 2026, with growth in both revenue and profitability. The company’s core recurring license business remains the foundation of its success, supplemented by continued expansion in the digital gaming segment.

While facing some near-term headwinds related to one-time expenses, Galaxy Gaming’s underlying operating trends are positive, and the company appears well-positioned to capitalize on opportunities in the global gaming market through its diversified product offerings and strategic initiatives. The company’s strong cash flow generation and healthy balance sheet provide the financial flexibility to invest in future growth.