Galaxy Gaming (GLXZ) AI Stock Analysis

• Market Cap: $70.88M
• Dividend Yield: N/A
• Average Volume (3M): 29.38K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.51
• Revenue Growth: 3.96%
• EPS Growth: -121.53%
• Country: US
• Employees: 47
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.08
• Shares Outstanding: 25,314,016
• 10 Day Avg. Volume: 47,616
• 30 Day Avg. Volume: 29,382
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 3.59
• Enterprise Value/Gross Profit: 3.70
• Enterprise Value/Ebitda: 19.28
• 1Y Price Target: $2.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: $3.00 ▲(7.14% Upside)

Galaxy Gaming's overall stock score is primarily impacted by its financial instability, characterized by negative equity and high leverage. Technical indicators provide a neutral outlook, while valuation metrics are unfavorable due to negative earnings. The absence of earnings call insights and corporate events leaves the financial and technical aspects as the primary influences on the score.

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 several key streams, primarily from the licensing of its proprietary gaming products to casinos and gaming operators. The company earns ongoing royalties based on the performance of its games in the casinos where they are deployed. Additionally, Galaxy Gaming monetizes its software solutions and offers services related to game installation, maintenance, and support. Significant partnerships with major casino operators and participation in gaming conferences also contribute to brand visibility and market penetration, enhancing revenue opportunities.

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	30.53M	31.74M	27.79M	23.44M	19.98M	10.23M
Gross Profit	29.65M	30.23M	26.53M	23.24M	19.90M	10.16M
EBITDA	5.68M	9.61M	9.85M	8.84M	6.75M	419.62K
Net Income	-4.15M	-2.63M	-1.81M	-1.77M	2.11M	-2.21M
Balance Sheet
Total Assets	26.60M	41.01M	40.48M	42.01M	40.45M	30.57M
Cash, Cash Equivalents and Short-Term Investments	5.04M	18.12M	16.69M	18.24M	16.06M	5.99M
Total Debt	41.82M	55.55M	54.91M	54.98M	54.49M	53.32M
Total Liabilities	46.85M	61.07M	58.72M	59.90M	57.74M	55.37M
Stockholders Equity	-20.25M	-20.05M	-18.24M	-17.89M	-17.29M	-24.80M
Cash Flow
Free Cash Flow	4.68M	1.29M	-1.06M	3.59M	5.74M	-1.65M
Operating Cash Flow	4.57M	4.10M	2.73M	6.39M	6.00M	-1.59M
Investing Cash Flow	-2.11M	-1.62M	-2.96M	-3.42M	-233.73K	-6.46M
Financing Cash Flow	-16.91M	-886.13K	-1.37M	-745.63K	4.36M	4.39M

Galaxy Gaming Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.80
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 below the 20-day moving average (MA) of 2.84, below the 50-day MA of 2.86, and below the 200-day MA of 2.82, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 36.57 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
CNTY	48 Neutral	$77.15M	-0.76	255.31%	―	-2.15%	-31.58%
FLL	45 Neutral	$118.81M	-2.80	-7.04%	―	8.24%	-43.10%
GLXZ	44 Neutral	$70.88M	―	13.24%	―	3.96%	-121.53%
SBET	40 Underperform	$3.35B	-1.45	―	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Galaxy Gaming Corporate Events

Galaxy Gaming Extends Merger Deadline with Evolution

Galaxy Gaming, Inc. and Evolution Malta Holding Limited have extended the deadline for their merger agreement to October 18, 2025, due to pending gaming regulatory approvals. The merger is expected to close in the second half of 2025, contingent upon satisfying all closing conditions.