Galaxy Gaming (GLXZ) AI Stock Analysis

• Market Cap: $70.20M
• Dividend Yield: N/A
• Average Volume (3M): 38.03K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.44
• Revenue Growth: 11.12%
• EPS Growth: -173.82%
• Country: US
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.08
• Shares Outstanding: 25,253,515
• 10 Day Avg. Volume: 33,884
• 30 Day Avg. Volume: 38,030
• PEG Ratio: 0.17
• Price to Book (P/B): -3.35
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.51
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 2.26
• Enterprise Value/Ebitda: 1.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.00 ▲(7.14%Upside)

Galaxy Gaming's overall score is primarily impacted by financial performance concerns, notably high leverage and negative equity. While the company benefits from revenue growth and operational improvements, the lack of profitability and unattractive valuation metrics limit its potential. Technical indicators reinforce the uncertainty surrounding market sentiment.

Galaxy Gaming Business Overview & Revenue Model

Company Description

Galaxy Gaming, Inc., a gaming company, designs, develops, acquires, assembles, markets, and licenses proprietary casino table games and associated technology, platforms, and systems for the casino gaming industry. The company's proprietary table games comprise side bets, which are proprietary features and wagering options added to public domain games, such as poker, baccarat, pai gow poker, craps, and blackjack table games under the Lucky Ladies, 21+3, and Bonus Craps titles; and premium games, which are stand-alone games with their own set of rules and strategies under the Heads Up Hold 'em, High Card Flush, Cajun Stud, and Three Card Poker. It also provides enhanced table systems, which include Bonus Jackpot System, an electronic system installed on gaming tables designed to collect data by detecting player wagers and other game activities. In addition, the company offers automated electronic tables and other ancillary equipment, as well as relicenses various game titles to operators of online gaming systems. The company markets its products to online casinos worldwide; land-based casino gaming companies in North America, the Caribbean, Central America, the United Kingdom, Europe, and Africa; and cruise ship companies. Galaxy Gaming, Inc. was founded in 2006 and is headquartered in Las Vegas, Nevada.

How the Company Makes Money

Galaxy Gaming generates revenue through the licensing of its proprietary table games and side bets to casinos and gaming operators. These licensing agreements typically involve recurring fee structures, providing a steady income stream. Additionally, the company earns money from the sale and lease of electronic gaming systems and platforms, such as their Bonus Jackpot System and TableMAX e-Table solutions. Galaxy Gaming also partners with online casino operators to offer its game content in digital formats, further diversifying its revenue streams. The company's growth is supported by expanding its product offerings and establishing strategic partnerships within the gaming industry to enhance its market presence.

Galaxy Gaming Financial Statement Overview

Summary

Galaxy Gaming exhibits strong revenue growth with improving operational efficiencies. However, it faces significant challenges in achieving profitability and maintaining financial stability due to high leverage and negative equity, posing risks despite positive trends in operating cash flows.

Income Statement

Galaxy Gaming has shown consistent revenue growth, with a notable increase from $10.2 million in 2020 to $31.5 million in the TTM period ending March 2025. Despite revenue growth, the company is struggling with profitability, as indicated by negative net income, though gross profit margins remain high. The company's ability to improve EBIT and EBITDA margins over time suggests operational efficiency gains, yet the persistent net losses are a concern.

Balance Sheet

The balance sheet reveals a heavily leveraged financial structure, with total debt consistently exceeding total assets, leading to a negative stockholders' equity. This high leverage poses significant risk, although the company has managed to reduce its net debt over the period. The negative equity ratio further highlights financial instability, which could impact future growth and investment capabilities.

Cash Flow

Cash flow analysis shows improvement in operating cash flows, with positive free cash flow in the TTM period. However, the cash flow to net income ratios suggest inefficiencies in converting net income to cash, exacerbated by net losses. While the company has managed to generate positive operating cash flow, the sustainability of this trend amidst financial instability remains uncertain.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
31.52M	31.74M	27.79M	23.44M	19.98M	10.23M
	Gross Profit
30.23M	30.23M	26.53M	23.24M	19.90M	10.16M
	EBIT
5.37M	5.70M	6.73M	6.07M	4.35M	-2.26M
	EBITDA
6.20M	9.61M	9.85M	8.84M	6.75M	419.62K
	Net Income Common Stockholders
-4.86M	-2.63M	-1.81M	-1.77M	2.11M	-2.21M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.39M	18.12M	16.69M	18.24M	16.06M	5.99M
	Total Assets
41.84M	41.01M	40.48M	42.01M	40.45M	30.57M
	Total Debt
54.39M	55.55M	54.91M	54.98M	54.49M	53.32M
	Net Debt
38.00M	37.43M	38.21M	36.74M	38.43M	47.33M
	Total Liabilities
59.35M	61.07M	58.72M	59.90M	57.74M	55.37M
	Stockholders Equity
-17.51M	-20.05M	-18.24M	-17.89M	-17.29M	-24.80M
Cash Flow		Free Cash Flow
4.03M	1.29M	-1.06M	3.59M	5.74M	-1.65M
	Operating Cash Flow
3.90M	4.10M	2.73M	6.39M	6.00M	-1.59M
	Investing Cash Flow
-1.55M	-1.62M	-2.96M	-3.42M	-233.73K	-6.46M
	Financing Cash Flow
-14.52M	-886.13K	-1.37M	-745.63K	4.36M	4.39M

Galaxy Gaming Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.80
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.8 is above the 20-day moving average (MA) of 2.80, above the 50-day MA of 2.80, and above the 200-day MA of 2.79, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 36.19 is Neutral, 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
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
GLXZ	52 Neutral	$70.20M	―	13.24%	―	11.12%	-173.82%
GAN	51 Neutral	$91.53M	―	229.13%	―	7.02%	74.19%
CNTY	48 Neutral	$65.05M	―	-350.66%	―	-1.27%	-230.55%
FLL	44 Neutral	$115.84M	―	-79.70%	―	13.92%	-54.82%
SBET	40 Underperform	$2.20B	―	-147.04%	―	―	―
LTRY		$33.38M	―	-98.11%	―	―	―

Galaxy Gaming Corporate Events

Galaxy Gaming Enhances Financial Flexibility with Debt Refinancing

Galaxy Gaming, Inc. announced the successful refinancing of its outstanding debt with a new Credit Agreement with BMO Bank N.A., replacing its previous loan with Fortress Credit Corp. This refinancing reduces the company’s total outstanding debt by $12.6 million, lowers interest rates, extends maturities, and achieves approximately $2.8 million in annual interest savings, enhancing financial flexibility and supporting growth initiatives.