Galaxy Gaming Sales Rise 9% as Recurring Revenue Reaches Record

Galaxy Gaming reported third-quarter results on 9 novembre 2026, with revenue rising 9% from a year earlier to $8.0 million and recurring revenue, net of royalties and perpetual-license system sales, reaching a record and accounting for more than 99% of the total. Net income rose to $5.1 million, primarily reflecting a $5.2 million fee tied to the terminated Evolution merger.

Recurring revenue increased 10%, with both Core and Digital contributing. Because recurring placements generate revenue across the life of an installation while perpetual-license sales occur in one period, that mix ties more of Galaxy’s quarterly performance to ongoing placements instead of individual system transactions.

Core and Digital Drive Recurring Growth

Core revenue net of royalties rose 10%. Galaxy attributed the increase to new U.S. game placements and higher participation-based revenue in foreign markets, largely from the Galaxy Operating System and MONOPOLY-branded progressive systems launched earlier in 2026.

Digital revenue net of royalties increased 7.1%. Galaxy said higher play volume with existing operators and content launches with new customers drove the increase, while royalties growing faster than gross revenue limited the net gain. All Digital revenue is recurring.

Galaxy attributed the sharp decline in perpetual-license system sales to transaction timing and its decision to prioritize recurring placements, and expects full-year 2026 perpetual-license sales to fall below the prior year as it balances those transactions against recurring installations.

Operating Profit Falls Despite Higher Revenue

Operating income declined to $0.66 million from $1.90 million. The quarter included approximately $1.2 million of professional fees and transaction-related costs, largely associated with the terminated Evolution agreement. G2E trade-show expenses were incurred in the third quarter of 2026 rather than the fourth quarter of 2025, incentive-compensation accruals increased, and Galaxy recorded a state sales-and-use-tax charge relating substantially to periods before 2026.

Galaxy described adjusted EBITDA as essentially flat at $3.2 million. The measure excludes transaction termination income, professional and transaction costs, the tax assessment and other items, separating those effects from its view of ongoing operations. The larger recurring base therefore did not produce adjusted EBITDA growth in the quarter.

Galaxy nevertheless returned $1.7 million of capital by repurchasing shares and cancelling all outstanding Fortress warrants, reducing the diluted share count by 4.2%. CFO Steve Kopjo said operating cash funded product investment and debt reduction, allowing part of the Evolution fee to finance those returns, while the remaining proceeds can support additional repurchases under the authorization.

At G2E, Galaxy unveiled Galaxy Link, an all-table linked progressive that connects casino-floor tables to a shared jackpot. Its planned initial themes are MONOPOLY Building Riches and Spotlight Spin in Art Deco. CEO Matthew Reback said the system is intended to create new billable units on tables Galaxy already serves, with the company aiming to convert operator interest into placements in coming quarters.

The next test is whether those billable units can lift operating earnings as well as recurring revenue, after a quarter in which the Evolution fee and related costs shaped the bottom line.