By M. Marin
NASDAQ:GMGI
READ THE FULL GMGI RESEARCH REPORT
Revenue trends recovered in July, which was up both y/y and sequentially
Golden Matrix Group (NASDAQ:GMGI) recorded 2Q25 year-over-year revenue growth of 9.6% to $43.2 million, despite the negative impact of ‘customer-friendly’ sports outcomes. Online casino revenue advanced 29% year-over-year to $12.7 million, while Classics for a Cause, which was fully acquired and consolidated subsequent to 2Q24, contributed $2.0 million. At the Meridianbet Group segment, product enhancements led to a 30% increase in wager volume and 124% advance in new registrations, according to GMGI.
The company noted that despite the challenge of customer-friendly sports outcomes in GMGI’s European business, it remains on track to achieve full-year revenue guidance in the range of $185 million to $188 million, which would represent annual growth of 22% to 24% compared to 2024. Prior guidance was 2025 revenue to range from $190 million to $195 million. The company is not alone in experiencing what the industry terms customer-friendly outcomes in recent months whereby player win rates were higher than anticipated. However, GMGI indicated that its July revenue growth from the European business recovered and was up both compared to the same period of 2024 and sequentially by roughly 25% in constant currency terms, which represents a return to expected trends and is more consistent with transactional volumes than in 2Q25.
RKings Competitions The company recently has deployed new systems to support its raffle ticket businesses and believes the new technology is already producing positive results. For instance, RKings Competitions - GMGI’s largest raffle ticket business - delivered its all-time daily revenue record in 2Q25 and subsequently beat that daily record by an additional 40% earlier this month, with more than 30,000 orders in a single day.
Meridianbet Meridianbet Group is an online sports betting and gaming group, licensed and operating in 15 jurisdictions across Europe, Africa and South America. It was founded in 2001 and acquired by Golden Matrix in 2024. Meridianbet leverages its proprietary technology and scalable systems to operate in multiple countries and currencies with an omni-channel approach to markets.
Meridianbet registered 16% year-over-year revenue growth in 2Q25 to $29.2 million. Online revenue is a key strategic focus for GMGI. This channel saw a 20% year-over-year advance. In addition, Meridianbet is now fully operational in Brazil, with a license to operate through 2029. Meridianbet’s casino GGR grew 29%. Sports revenue per player grew 28% despite headwinds noted earlier and turnover reached $434 million, which represents a 30% year-over-year improvement. With a 2,500 game expansion in its content library, casino turnover per player increased 50% sequentially. Active users expanded 15% year-over-year, and new registrations climbed 124%, as noted, primarily reflecting Meridianbet’s Brazil launch.
Strong balance sheet, with leverage ratio down to 1.5x
Importantly, the company has strengthened its balance sheet by paying down debt. The recent debt repayment returns the company’s leverage ratio to 1.5x. We believe the elimination of this debt enhances the company’s financial flexibility to support its multiple growth initiatives. The company had cash and equivalents of $22 million at the end of 2Q25 to support its growth initiatives.
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