By M. Marin
READ THE FULL GMGI RESEARCH REPORT
Balance sheet strengthened with debt reduction
Golden Matrix Group (NASDAQ:GMGI), an iGaming group providing a broad array of gaming products and software solutions on a B2B and B2C basis, strengthened its balance sheet by paying down debt. The company had issued Lind Global Asset Management a $12.0 million secured convertible note in July 2024. GMGI subsequently has made monthly payments on this note through cash and share payments and fully repaid it this week, with a recent $7.2 million payment to cover the balance that remained as of April 28, 2025. GMGI incurred no prepayment penalties by repaying this note before it came due.
The debt repayment was funded using cash on hand, with no share issuance. 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 $30 million at year-end 2024.
In addition to debt reduction, the company’s capital allocation strategy also includes a share repurchase plan. GMGI’s goal is to maintain sufficient liquidity and financial flexibility to fund operations and growth. The company has also enhanced its financial flexibility with an ATM agreement. As it implements expected growth measures, GMGI intends to prioritize expansion into new regulated markets, including Latin America and Europe, enhance AI-driven gaming innovation and boost operational efficiencies. As GMGI has done in the past, the company intends to pursue strategic acquisitions to boost market share, expand product offerings and complement organic growth. To fund acquisitions, the company has used a combination of cash and shares, as well as earnouts.
The debt reduction comes as GMGI is seeing strong momentum in its underlying business, reflecting industry expansion and its growth measures. The company generated 81% and 63% year-over-year revenue growth in 4Q24 and full year 2024, respectively, to $46 million and $151 million. Pro forma basis for the integration of Meridianbet, organic growth was roughly 20%. Fueled by AI-powered engagement tools and content expansion, wagering volume on the GMAG B2B gaming platform increased 84% to $4.7 billion.
…And strengthening capabilities with new game features
GMGI operates a growing portfolio of brands and continues to expand its capabilities and reach for its overall portfolio. For example, Meridianbet recently launched a new mobile feature, Watch & Bet, which allows users to stream live sports in full-screen mode and concurrently place in-play bets and is designed to boost in-play betting volume, extend session duration, and drive higher revenue per active user. This is consistent with the company’s strategy to continue to add high margin features to its platform and increase revenues and operating leverage. In addition, Expanse Studios announced a new distribution agreement with BetConstruct and also attained game certification in Brazil.
…And distribution agreements to extend reach, boost revenue, expand margins
Expanse Studios is GMGI’s iGaming division specializing in slots, crash games, table games, and other related features. Expanse has an expanding portfolio of more than 55 proprietary games. Expanse announced a new distribution agreement with BetConstruct, which will enable distribution of Expanse Studios’ games through BetConstruct’s B2B network, which management notes reaches hundreds of operators in regulated markets globally, including advanced access to U.S. sweepstakes and social casino operators, where GMGI’s portfolio is already live in over 40 states. The U.S. sweepstakes market was estimated at $5.6 billion in 2023, with projections to reach $7 billion to $11 billion by 2025, according to various forecasts. The BetConstruct alliance is expected to strengthen Expanse’s reach within the U.S. market and is consistent with GMGI’s strategy to expand its footprint without having to depend on third-party content. It is also expected to increase the company’s recurring revenue and contribute to margin expansion.
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