$8.0m Revenue, $1.4m Free Cash Flow: Galaxy Gaming Reports Q3 2026 Under Matthew Reback, Steve Kopjo
Galaxy Gaming, Inc. (OTCQB: GLXZ) has reported its financial results for the third quarter ended 30 September 2026, and the quarter marks a clear turn in how the company earns. Total revenue rose 9% to $8.0 million from $7.3 million a year earlier, driven by organic growth, while recurring revenue reached a record and now accounts for essentially all of what the business brings in.
The results, announced on 9 November 2026, are the first the Las Vegas-based supplier has posted with its terminated merger with Evolution fully behind it. They pair record recurring revenue with a Global Gaming Awards win and a new product launch, giving operators a view of both the company’s financial direction and its product momentum heading into the final quarter of the year.
Galaxy Gaming recurring revenue rises 10% to a record $8.0 million
Recurring revenue, net of royalties, increased 10% to a record $8.0 million and represented more than 99% of total revenue for the quarter. Non-recurring revenue decreased, which the company attributed to the timing of perpetual license sales of progressive gaming systems. Core recurring revenue, net of royalties, rose 11% to a record $5.0 million, while digital revenue, net of royalties, grew 7% to $3.0 million, with all digital revenue described as recurring in nature. Royalties on licensed titles increased 20%, growing faster than gross revenue and rising to 31% of gross revenue from 29% in the prior-year period.
The company said core growth was driven by new game placements in the United States and higher participation-based revenue in foreign jurisdictions, supported by continued momentum from the Galaxy Operating System Progressive System and the MONOPOLY-branded progressive systems launched earlier in the year.
Galaxy Gaming net income rises to $5.1 million in the third quarter
Net income increased to $5.1 million, or $0.20 per diluted share, compared with $1.0 million, or $0.04 per diluted share, in the prior-year period. The company said the current-period result primarily reflects a $5.2 million termination fee received in connection with the terminated Evolution merger agreement, partially offset by approximately $1.2 million of professional fees and transaction-related costs largely associated with that agreement.
Income from operations was $0.7 million, compared with $1.9 million a year earlier, reflecting the merger-related costs, around $0.3 million of G2E trade show expenses that fell in the third quarter this year, higher incentive compensation accruals, and a charge of approximately $0.2 million of state sales and use tax expense that the company said is substantially attributable to periods prior to 2026. Interest expense decreased 16% to $0.7 million, and Adjusted EBITDA was relatively flat at $3.2 million, which the company linked to the timing of the G2E expenses. Free Cash Flow for the quarter rose 9% to $1.4 million, compared with $1.3 million a year earlier.
MONOPOLY table games progressive named Product Innovation of the Year at Global Gaming Awards Americas 2026
At G2E, the company’s MONOPOLY table games progressive was named Product Innovation of the Year at the Global Gaming Awards Americas 2026. In the release, CEO Matthew Reback said it was recognition for a product that has been adopted faster than any other in the Galaxy portfolio.
“The third quarter was a milestone quarter for Galaxy, both in our results and on the show floor,” said Matthew Reback, Chief Executive Officer of Galaxy.
The company also used the show to unveil Galaxy Link, an all-table linked progressive launching with initial themes of MONOPOLY Building Riches and Spotlight Spin in Art Deco. Galaxy said the product connects tables across the casino floor to a shared jackpot, creating new billable units on tables it already serves, and that it expects to convert operator interest from the show into placements in the coming quarters.
Galaxy Gaming returns $1.7 million of capital and cuts debt to $37.4 million
Galaxy returned $1.7 million of capital in the quarter, repurchasing 330,758 shares and cancelling all 778,320 outstanding Fortress warrants, which reduced the diluted share count by 4.2%. The repurchases were made under a share repurchase program of up to $4.0 million authorised by the Board on 22 July 2026, of which approximately $2.3 million remains available.
The company reported $9.1 million of cash and cash equivalents as of 30 September 2026, up from $4.3 million at the end of 2025. Total long-term debt, net of debt issuance costs, decreased to $37.4 million from $39.3 million at the end of 2025, and total leverage stood at 2.75x, compared with 2.79x at 30 June 2026.
During the first nine months of 2026, the company generated $11.9 million of cash from operations, which includes the $5.2 million termination fee, and invested $3.1 million in the business, including a 65% increase in internally developed software and a 51% increase in gaming systems deployed at customer locations.
“With a stronger balance sheet, we are returning capital directly to shareholders,” said Steve Kopjo, Chief Financial Officer of Galaxy.
In a subsequent event, the company said Class II Director Meredith Brill informed the Board of her intention to step down effective 20 October 2026, and that the Board appointed John M. Boushy as a Class II Director effective 21 October 2026 to succeed her.
What Galaxy Gaming’s recurring revenue at 99% of total means for casino operators
With recurring revenue now representing more than 99% of the total, Galaxy has completed the transition it set out to make, away from one-time perpetual sales and toward placements that earn across their full life. For operators, that points to a supplier whose income is increasingly tied to how its games perform on the floor over time rather than to upfront purchases, which aligns the vendor’s interest with sustained player engagement. The combination of an award-winning progressive, a new linked-progressive launch in Galaxy Link, and a strengthened balance sheet gives the company room to keep investing in product while returning value to shareholders as it moves into 2027.
Source: Galaxy Gaming
