Earnings Releases·Nov 9, 2026, 4:45 PM ET

Galaxy Gaming, Inc. — Third Quarter 2026 Earnings Summary

Total revenue rose 9% year-over-year to $8.0 million, with net recurring revenue hitting a record $8.0 million (99% of total), while net income surged to $5.1 million from $1.0 million, driven by a $5.2 million termination fee from the terminated Evolution merger.
Adjusted EBITDA remained flat at $3.2 million, though free cash flow increased 9% to $1.4 million, supported by a 16% reduction in interest expense and a balance sheet strengthening with cash reserves rising to $9.1 million and leverage declining to 2.75x.
Management announced a strategic shift away from perpetual license sales, which fell 83.2% to $11,570, prioritizing recurring revenue growth via the Galaxy Operating System® and new product launches like Galaxy Link.
Capital return activities included $1.7 million in share repurchases and warrant cancellations, with $2.3 million remaining available under the $4.0 million authorization, alongside plans to reinvest free cash flow into business growth.
Full-year 2026 perpetual license sales are expected to be lower than the prior year as the company focuses on recurring streams, while the company navigates risks related to the terminated merger and regulatory compliance.