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The company’s digital segment grew 11 per cent year over year and 23 per cent from the second quarter of 2024
Galaxy Gaming saw its revenues for the three months ended June 30, 2026, increase to $7.9m compared to $7.5m in the year-ago quarter, an increase of five per cent driven by organic growth.
Perpetual license sales of progressive gaming systems were $0.1m compared to $0.3m in the prior-year period, due to the timing of individual system sales, which was driven by the strategic decision to prioritise more stable and higher-margin recurring revenue over one-time sales.
“Our Second Quarter results demonstrated yet again continued momentum for the business,” said Matthew Reback, Chief Executive Officer of Galaxy. “We continued executing our plan through the merger process with Evolution, and the results show it — which is why I’ve briefly included a few comparisons to the second quarter of 2024 to enable investors to see what’s changed since the deal was originally announced two years ago. Recurring core and digital revenue, net of royalties, hit a record $7.9m, up eight per cent year over year and 12 per cent from the second quarter of 2024, now representing 99 per cent of total revenue compared with 82 per cent two years ago — a fundamentally more durable and predictable base.
“Our Digital segment grew 11 per cent year over year and 23 per cent from the second quarter of 2024, as we added more content with new and existing operators. In our Core segment, we grew our installed base of recurring revenue progressive systems by 11 per cent year over year and 40 per cent since the second quarter of 2024, thanks to continued demand for our Galaxy Operating System (GOS) and the strong early interest in the MONOPOLY-branded progressive systems we rolled out this year. We are staying focused on recurring placements, where our system generates value across the full life of its installation, while continuing to entertain one-time sales selectively for strategic opportunities.”
“Our operating momentum is compounding with the progress we made in strengthening our balance sheet. Since refinancing in January 2025, we reduced quarterly interest expense by nearly two-thirds; and this quarter we moved below 3.0x total debt leverage, stepping our interest rate margin down to SOFR + three per cent. That flows directly into Free Cash Flow, which grew 25 per cent to $1.7m — and we delivered that growth while increasing capital investment in product development by 50 per cent year to date. We are investing in talent alongside product. In July, we welcomed Anand Singh as our Chief Technology Officer, bringing more than two decades of gaming technology experience, including nearly 20 years at Light & Wonder. His engineering leadership and record of delivering modern, scalable platforms position us to accelerate the pace and range of innovation across both our land-based and digital businesses. Our balance sheet has gone from consuming cash flow to funding our growth and with the $5.2m termination fee received after quarter-end in connection with the terminated Evolution merger agreement, we have never been better positioned to invest in our best ideas. I am excited about what this team will build, and how efficiently we are now able to build it. “
“Beyond the numbers, our amazing team at Galaxy has worked hard to ensure that this is a different and better business than the one we ran two years ago. Our platform is more stable and more scalable; our systems are performing well in the field, and several new products are in field trials with major operators today. This fall, our next wave of games and innovative progressive systems are set to debut at G2E. We have traded one-time revenue for durable revenue, invested in the technology that delivers it, and strengthened the team building it. That is why I believe we are a stronger company today than we were two years ago, and I am excited about the future.”
