Golden Matrix (GMGI) Q2 Revenue Up 10%

Key Points

• Revenue (GAAP) grew 9.6% year over year to $43.2 million in the quarter but missing GAAP revenue estimates by $3.2 million.

• Gross margin (GAAP) improved to 56%, while Operating costs and interest expenses led to a GAAP EPS loss of $0.03.

• Full-year 2025 revenue guidance remains unchanged at $185–188 million, despite a swing to net loss (GAAP) in the quarter.

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Golden Matrix Group (NASDAQ:GMGI), a gaming technology and online wagering company, released earnings for the quarter ended June 30, 2025, on August 6, 2025, revealing mixed results. While revenue (GAAP) increased by 9.6% year-over-year in the quarter and Gross margin (GAAP) also improved by 135 basis points year-over-year to approximately 56%, both GAAP revenue and GAAP EPS fell short of analyst expectations. GMGI reported GAAP revenue of $43.2 million, almost $3.2 million below the $46.4 million GAAP estimate, and EPS (GAAP) of ($0.03) versus an anticipated ($0.003). The quarter saw a net loss as Operating and interest costs outpaced top-line gains, although management reaffirmed its full-year revenue guidance and highlighted ongoing momentum in technology, market expansion, and user engagement.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

About Golden Matrix Group

Golden Matrix Group is a developer and operator of online gambling technology platforms. The company offers a wide portfolio of sports betting, online casino, prize competitions, and eSports betting products. Its reach spans more than 8.3 million registered players as of December 31, 2024, and supports over 800 distinct games through platforms like GM-X and GM-Ag.

The company’s recent business strategy has focused on expanding geographically, particularly through the acquisition of Meridianbet Group, and deepening its product offering. Key success factors for GMGI are technological innovation, expansion into regulated markets, and disciplined financial management. Holding multiple gaming licenses and deploying proprietary technology allows it to target both business-to-consumer and business-to-business markets worldwide.

Quarter in Detail: Financial and Operational Highlights

During the quarter, GMGI saw GAAP revenue rise 9.6% in the quarter, with foreign exchange gains contributed 4.5% of this growth. Even so, GAAP revenue underperformed analyst estimates by 6.98%. The company reported a gross margin of 56%, a 1.35 percentage point improvement in gross margin compared to the same period last year. However, these positives were offset by a $3.6 million GAAP net loss, compared to near-breakeven profits a year ago, as operating and interest expenses climbed sharply.

Adjusted EBITDA, a non-GAAP measure of operational earnings that excludes non-cash and one-time items, fell to $3.4 million, down from $5.4 million in Q2 2024. Management linked these costs to accelerated geographic expansion and technology upgrades, especially within its Meridianbet business and proprietary gaming platforms.

The Meridianbet segment drove most of the company’s operational momentum. The segment posted revenue growth of 16% year-over-year, with the online channel up 20% year-over-year. Its casino gaming products saw demand climb, with gross gaming revenue up 29% year-over-year and total casino turnover expanded 30%, reaching $434 million. Meridianbet’s casino product line includes a mix of classic table games and Expanse Studios’ in-house developed slot games, all distributed via online channels.

GMGI’s raffle ticket business (RKings) set new daily revenue records, with one instance in August 2025 exceeding the previous record by 40%. In Brazil, a new regulated license fueled a 124% jump in new player registrations and a 165% increase in first-time deposits quarter-over-quarter. Technology improvements also delivered user engagement benefits, as seen in a 50% quarter-over-quarter rise in casino turnover per player and international certifications for Expanse Studios’ content in multiple countries.

On the expense side, selling, general, and administrative costs (GAAP) increased to $26.7 million from $21.6 million versus Q2 2024. The company attributed the rise to geographic expansion, improved market share, and advancements in gaming technology. An interest expense of $1.5 million on debt prepayments further contributed to bottom-line pressures. Strategic actions, such as the debt conversion related to Meridianbet’s acquisition, improved balance sheet flexibility.

Looking Ahead: Guidance and Watch Points

GMGI’s management kept its full-year FY2025 revenue outlook unchanged, guiding for $185–188 million in revenue. This represents roughly 22–24% growth over FY2024. Management attributed the quarter’s shortfall to temporary “customer-friendly sports outcomes” in Europe but July revenue from the European business was up roughly 25% year-over-year in constant currency. with leadership focusing on top-line targets and market momentum as primary indicators.

For upcoming quarters, investors should monitor how the company manages operating costs and integration expenses following rapid market expansion. Key focus areas include continued growth in Brazil, product innovation within online casino and social gaming, and the successful integration of acquired operations. Any updates on regulatory compliance and additional licensing—especially in large new markets—will also be significant for the company’s outlook.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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