Galaxy Gaming Reports Strong Financial Performance for Q2 2023

Galaxy Gaming, a prominent developer and distributor of casino table games and enhanced systems for land-based casinos and iGaming content, has announced its financial results for the quarter and six months ending June 30, 2023.

Strong Financial Highlights for Q2 2023

Galaxy Gaming reported robust financial performance for the second quarter of 2023, marked by significant growth in key financial metrics compared to the same period in 2022.

During Q2 2023, the company’s revenue demonstrated a remarkable increase of 33% when compared to Q2 2022, showcasing a substantial uptick in its income streams. Additionally, the company’s adjusted EBITDA exhibited a substantial growth of 36%, reflecting effective operational management and improved profitability.

Perhaps one of the most noteworthy achievements of the quarter was the company’s transition from a net loss of $(1,116)K in Q2 2022 to a net income of $357K in Q2 2023. This impressive turnaround underscores the effectiveness of strategic decisions and operational improvements.

The positive momentum extended to the first half of 2023 as well, with revenue for the period registering a notable 29% increase compared to the first half of 2022. Similarly, adjusted EBITDA for the first six months of the year experienced a solid rise of 25%. Notably, the company managed to reverse its net loss of $(1,130)K in the first half of 2022 to a net income of $467K in the same period of 2023.

These financial accomplishments are indicative of Galaxy Gaming’s efforts to enhance its financial performance and capitalize on growth opportunities within the gaming industry. The strong financial highlights underscore the company’s commitment to delivering value to stakeholders while maintaining a focus on sustainable business practices.

Executive Comments

Todd Cravens, President and CEO of Galaxy Gaming, expressed satisfaction with Q2 2023 results, highlighting record-breaking figures in revenue, adjusted EBITDA, and cash on hand. Cravens also pointed out significant developments in the company’s partnerships, such as a ten-year agreement with Evolution and an exclusive distribution deal for EZ Baccarat® in various regions, which are expected to contribute to substantial revenue growth.

Harry Hagerty, CFO of Galaxy Gaming, reported strong performance across different segments. Notably, perpetual license sales to a single GG Core customer amounted to $1.6 million in Q2, with revenue in GG Core reaching $3.8 million. In GG Digital, revenue (net) totaled $2.2 million.

Hagerty emphasized the company’s solid liquidity position, with cash at $18.7 million and long-term debt at $58.6 million, well within compliance with debt covenants. He also outlined the company’s plan to reduce net leverage and pursue debt refinancing in the future.

Regarding fiscal 2023 guidance, the company raised its expectations for revenue (net of iGaming royalties) from a range of $27.5-$28.5 million to a range of $29-$30 million. The guidance for Adjusted EBITDA was increased to the high end of the previously announced range of $13.0-13.25 million.

The forecast assumes no adverse impact from the war in Ukraine and no economic recession, and is based on currency exchange rates experienced in the second quarter.