Galaxy Gaming (GLXZ) AI Stock Analysis

• Market Cap: $72.20M
• Dividend Yield: N/A
• Average Volume (3M): 43.60K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.46
• Revenue Growth: -2.27%
• EPS Growth: 64.33%
• Country: US
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.08
• Shares Outstanding: 25,334,215
• 10 Day Avg. Volume: 59,709
• 30 Day Avg. Volume: 43,604
• PEG Ratio: -0.66
• Price to Book (P/B): -3.55
• Price to Sales (P/S): 2.24
• P/FCF Ratio: 55.08
• Enterprise Value/Market Cap: 1.52
• Enterprise Value/Revenue: 3.63
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: 14.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $3.00 ▲(5.26% Upside)

Galaxy Gaming's overall stock score is primarily impacted by its challenging financial performance, characterized by high leverage and negative equity. However, the positive momentum from the merger extension and moderate technical indicators provide some optimism. The valuation remains a concern due to negative earnings.

Positive Factors

Merger Extension with Evolution

The merger extension with Evolution indicates a strategic commitment to growth and market expansion, potentially enhancing Galaxy's market position and accelerating growth.

Strong Gross Profit Margins

High gross profit margins indicate effective cost control and operational efficiency, supporting long-term profitability despite current financial challenges.

Improvement in Free Cash Flow

Growth in free cash flow suggests improved cash generation ability, providing financial flexibility and supporting future investments or debt reduction.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Declining Revenue Growth

Declining revenue growth indicates challenges in market expansion and product adoption, potentially impacting long-term competitiveness and profitability.

Negative Net Income

Negative net income reflects operational challenges and financial strain, potentially limiting reinvestment in business growth and innovation.

Galaxy Gaming Business Overview & Revenue Model

Company Description

Galaxy Gaming (GLXZ) is a leading developer and distributor of casino gaming products, specializing in table game content and technology. The company operates primarily within the gaming and entertainment sectors, offering a diverse portfolio of proprietary table games, electronic gaming solutions, and innovative gaming technology designed to enhance the player experience in casinos worldwide. Galaxy Gaming aims to provide unique gaming products that appeal to both casinos and players, thereby driving engagement and revenue in gaming establishments.

How the Company Makes Money

Galaxy Gaming generates revenue primarily through the licensing of its proprietary table games and gaming technology to casinos. The company earns a percentage of the gaming revenue generated from its games, which can include both traditional table games and electronic variations. Additionally, Galaxy Gaming may receive upfront licensing fees and ongoing royalties from its partners. Key revenue streams include game placements in casino venues, ongoing support and maintenance of gaming systems, and potential partnerships with other gaming companies for co-developing new content. The company's success is also bolstered by strong relationships with casino operators and a growing demand for innovative gaming solutions that enhance player engagement and increase casino profitability.

Galaxy Gaming Financial Statement Overview

Summary

Galaxy Gaming is facing financial difficulties with declining revenues, negative net income, and high leverage. Despite strong gross profit margins and some improvement in free cash flow, the negative equity and substantial debt levels pose significant risks.

Income Statement

Galaxy Gaming's income statement reveals a challenging financial position. The company has experienced a decline in revenue growth, with a negative growth rate of -3.16% in the TTM period. Additionally, the net profit margin is negative, indicating ongoing losses. However, the gross profit margin remains high at 95.90%, suggesting efficient cost management. The EBIT and EBITDA margins have decreased, reflecting reduced operational profitability.

Balance Sheet

The balance sheet shows significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio of -2.06 in the TTM period. This indicates that the company is heavily leveraged, posing a risk to financial stability. The return on equity is positive, but this is due to negative equity, which is not a sustainable position. The equity ratio is also negative, further highlighting the company's financial challenges.

Cash Flow

The cash flow statement presents a mixed picture. Free cash flow has grown by 15.96% in the TTM period, which is a positive sign. The operating cash flow to net income ratio is 0.52, indicating some level of cash generation relative to net income. However, the free cash flow to net income ratio is slightly above 1, suggesting that while cash flow is positive, it is not translating into net income profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.21M	31.74M	27.79M	23.44M	19.98M	10.23M
Gross Profit	22.34M	30.23M	26.53M	23.24M	19.90M	10.16M
EBITDA	7.51M	9.61M	9.85M	8.84M	6.75M	419.62K
Net Income	-912.59K	-2.63M	-1.81M	-1.77M	2.11M	-2.21M
Balance Sheet
Total Assets	26.40M	41.01M	40.48M	42.01M	40.45M	30.57M
Cash, Cash Equivalents and Short-Term Investments	3.33M	18.12M	16.69M	18.24M	16.06M	5.99M
Total Debt	2.86M	55.55M	54.91M	54.98M	54.49M	53.32M
Total Liabilities	45.47M	61.07M	58.72M	59.90M	57.74M	55.37M
Stockholders Equity	-19.06M	-20.05M	-18.24M	-17.89M	-17.29M	-24.80M
Cash Flow
Free Cash Flow	6.26M	1.29M	-1.06M	3.59M	5.74M	-1.65M
Operating Cash Flow	6.54M	4.10M	2.73M	6.39M	6.00M	-1.59M
Investing Cash Flow	-2.66M	-1.62M	-2.96M	-3.42M	-233.73K	-6.46M
Financing Cash Flow	-18.46M	-886.13K	-1.37M	-745.63K	4.36M	4.39M

Galaxy Gaming Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLXZ, the sentiment is Positive. The current price of 2.85 is above the 20-day moving average (MA) of 2.77, above the 50-day MA of 2.73, and above the 200-day MA of 2.80, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.89 is Neutral, neither overbought nor oversold. The STOCH value of 99.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GLXZ.

Galaxy Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSE	69 Neutral	$244.23M	4.55	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPHC	56 Neutral	$73.94M	-52.57	-1.64%	1.85%	-4.85%	-129.08%
GLXZ	54 Neutral	$72.20M	-76.61	13.24%	―	-2.27%	64.33%
FLL	51 Neutral	$104.03M	-2.57	-121.54%	―	7.45%	5.03%
CNTY	44 Neutral	$40.05M	-0.31	―	―	-1.57%	-80.41%
ROLR	36 Underperform	$11.73M	-4.26	-78.26%	―	3.80%	59.04%

Galaxy Gaming Corporate Events

Galaxy Gaming Extends Merger Deadline with Evolution

On November 24, 2025, Galaxy Gaming and Evolution Malta Holding Limited extended their merger agreement deadline to July 17, 2026, to allow more time for regulatory approvals. With Mississippi’s approval already secured, the companies anticipate receiving the remaining approvals by the first quarter of 2026, which will enable the merger to proceed. This extension underscores both companies’ commitment to completing the merger, which is expected to enhance Evolution’s market position and accelerate Galaxy Gaming’s growth while maintaining its operational independence.

Galaxy Gaming Extends Merger Deadline with Evolution

Galaxy Gaming, Inc. and Evolution Malta Holding Limited have extended their merger deadline to January 18, 2026, due to pending gaming regulatory approvals. The companies are actively working with regulators and expect to complete the transaction by the end of 2025, pending all necessary approvals.