Galaxy Gaming, Inc. (GLXZ) valuation at a glance
- Price
- $1.62
- Market cap
- $41M
- P/S (TTM)
- 1.3×
CompaniesGLXZ
GLXZ
Galaxy Gaming, Inc.
Consumer Cyclicalcasino IP licensingrecurring revenuelevered microcapOTCQB
Overview
$1.62+2.9%
Market Cap
$41M
SEC filings
P/E (TTM)
8.2×
SEC filings
Rev Growth YoY
–
SEC filings
Gross Margin
98.2%
SEC filings
FCF Yield
9.0%
Calculated from SEC filings
Fair Value
Not established
yfinance
Conviction
2/5A 99%-margin casino game licensing royalty stream trading near 8x earnings, offset by negative book equity, a 2028 debt wall and OTCQB illiquidity.
Research Depth
ScreeningDeep ResearchFull Model
Updated 1d ago
Quality Snowflake
Overall 75/100
Value4/4
Futuren/a
Past4/4
Health2/2
Dividend0/1
Each axis scores the checks for which data is available (filled = pass, hollow = no data). Computed from the sourced metrics on this page, not a third-party rating.
Thesis
Galaxy Gaming licenses proprietary casino table games, side bets and enhanced table systems to land-based and online operators for recurring monthly fees. The 10-Q for the quarter ended 2026-06-30 reports every dollar of revenue on a single line, Licensing fees, of 7,937,890 USD for the quarter and 15,600,451 USD for the half, against cost of ancillary products and assembled components of only 149,191 USD for the half, so incremental revenue drops through at close to full margin. It screens as deep value because the business is profitable, cash generative and priced near 1.62 USD per share on 25,023,865 shares outstanding as of 2026-07-31. The strongest counter-evidence is the balance sheet and the tape: total stockholders' deficit of 15,154,370 USD, gross long-term obligations of 38,274,143 USD with 33,750,000 USD maturing in 2028, two European clients at 18.8% and 13.8% of half-year gross revenue, and daily share volume measured in the low tens of thousands on OTCQB. Confirmation would be visible share count reduction under the 4,000,000 USD repurchase authorization alongside continued debt amortization and flat-to-higher licensing revenue in the Q3 and FY2026 filings.
Bull Case
Business qualityAll revenue is recurring licensing fees, 15,600,451 USD for the six months ended 2026-06-30 against 149,191 USD of product cost, per the 10-Q filed 2026-08-10.
Capital structureThe Fortress term loan was repaid in full on 2025-01-06 and refinanced into a BMO Bank N.A. credit agreement, with H1 interest expense falling from 1,909,948 USD in 2025 to 1,589,972 USD in 2026.
Capital returnEvolution's 5,234,678 USD termination fee funded a 4,000,000 USD repurchase authorization on 2026-07-22, under which 330,758 shares were repurchased at about 1.55 USD on 2026-07-31, and 778,320 Fortress warrants were cancelled for about 1.2 million USD on 2026-08-12, leaving no warrants outstanding.
Bear Case
LeverageLong-term obligations were 38,274,143 USD gross at 2026-06-30 with 33,750,000 USD falling due in 2028, against total stockholders' deficit of 15,154,370 USD.
ConcentrationClient A and Client B, both in Europe, were 18.8% and 13.8% of gross revenue before royalties for the six months ended 2026-06-30, a combined 32.6%.
LiquidityThe stock is quoted on the OTCQB marketplace with no securities registered under Section 12(b), and daily volume between 2026-09-10 and 2026-09-16 ranged from 1,200 to 40,800 shares.
Key Metrics
Market Cap
$41M
SEC filings
Enterprise Value
$74M
Calculated from SEC filings
Revenue (TTM)
$31M
SEC filings
P/E (TTM)
8.2×
SEC filings
Forward P/E
–
yfinance
P/S (TTM)
1.3×
SEC filings
P/B
–
SEC filings
EV/EBITDA
6.2×
Calculated from SEC filings
PEG
–
Calculated from SEC filings
Revenue Growth
–
SEC filings
Gross Margin
98.2%
SEC filings
Operating Margin
26.7%
SEC filings
Net Margin
15.8%
SEC filings
Free Cash Flow
$4M
SEC filings
FCF Yield
9.0%
Calculated from SEC filings
Debt / Equity
–
SEC filings
Current Ratio
1.5×
SEC filings
Short Interest
–
SEC filings
Institutional Own.
12.9%
SEC filings
Insider Own.
13.3%
SEC filings
Shares Out.
25.0M
SEC filings
Float
19.1M
SEC filings
Valuation
Price vs Fair Value
Now $1.62
DCF Summary
DCF awaiting Phase 2+
Discounted cash-flow model is built once research reaches the deep-research stage.
Historical Multiples
Multiple history pending
This section is being deepened.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| GLXZ | $41M | 8.5× | 1.3× | 6.1× | +5.0% | 98.0% | 16.0% |
| INSE | $134M | – | 0.5× | 5.1× | -24.0% | 76.0% | -3.0% |
| BRAG | $45M | – | 0.4× | – | -12.0% | 55.0% | -7.0% |
| EVO.ST | $166.90B | 15.1× | 81.3× | 138.3× | -1.0% | 100.0% | 52.0% |
Financials
| Line Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Total Revenue | 23.4 | 27.8 | 31.7 | 30.9 |
| Cost of Revenue | 0.2 | 1.3 | 1.5 | 0.8 |
| Gross Profit | 23.2 | 26.5 | 30.2 | 30.1 |
| Operating Income | 6.1 | 6.7 | 5.7 | 8.2 |
| EBITDA | 8.8 | 9.9 | 9.6 | 8.7 |
| Net Income | (1.8) | (1.8) | (2.6) | 1.5 |
| Diluted EPS | -0.07 | -0.07 | -0.10 | 0.06 |
| Line Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Cash & Equivalents | 18.2 | 16.7 | 18.1 | 4.3 |
| Total Assets | 42.0 | 40.5 | 41.0 | 27.5 |
| Total Debt | 55.0 | 54.9 | 55.5 | 39.6 |
| Total Liabilities | 59.9 | 58.7 | 61.1 | 45.0 |
| Shareholders' Equity | (17.9) | (18.2) | (20.1) | (17.5) |
| Shares Out. (M) | 24.4 | 24.8 | 25.1 | 25.4 |
| Line Item | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Operating Cash Flow | 6.4 | 2.7 | 4.1 | 7.7 |
| Capital Expenditure | (3.5) | (3.8) | (2.8) | (3.1) |
| Free Cash Flow | 2.9 | (1.1) | 1.3 | 4.6 |
| Investing Cash Flow | (3.4) | (3.0) | (1.6) | (2.8) |
| Financing Cash Flow | (0.7) | (1.4) | (0.9) | (18.9) |
Figures normalized from Galaxy Gaming, Inc.'s SEC 10-K filed 2026-03-30. USD millions; EPS and share count per their units. Annual periods. Source: 10-K filed 2026-03-30 ↗
Catalysts
realized
Corporatehigh relevance
Evolution terminated the merger agreement
Evolution Malta Holding Limited failed to waive or meet closing conditions by the extended outside date of 2026-07-17 and terminated on 2026-07-21, paying a cash termination fee of 5,234,678 USD. No merger or acquisition is pending as of the 10-Q filed 2026-08-10.
Q3 2026 10-Q
Earnings
Share count and debt balance in the Q3 2026 report
Filing cadence in prior years places the Q3 report in early November; the date is an estimate, not company confirmed. The observable items are shares outstanding below 25,023,865 and further principal amortization under the BMO facility.
ongoing
Corporate
Execution of the 4,000,000 USD repurchase authorization
The BMO first amendment dated 2026-07-24 permits repurchases only if at least 5,000,000 USD of unencumbered liquid assets remain, the Evolution termination fee is the sole source of funds, and all financial covenants are met. Progress is measurable from the cover-page share count of each filing.
refinancing window
Corporate
33,750,000 USD of long-term obligations mature in 2028
The maturity table in the 10-Q for the period ended 2026-06-30 shows 1,149,143 USD due in 2026, 3,375,000 USD in 2027 and 33,750,000 USD in 2028, so the facility must be refinanced or repaid well ahead of that date.
Risks
| Risk | Category | Severity | Probability | Impact on Thesis |
|---|---|---|---|---|
| Balance sheet leverage with a single-year maturity wall | Financial | High | Medium | 33,750,000 USD of the 38,274,143 USD gross obligation matures in 2028 against a stockholders' deficit of 15,154,370 USD, so refinancing terms rather than operations could set the equity outcome. |
| Revenue concentrated in a small number of casino operators | Operational | High | Medium | Two European clients were 32.6% of H1 2026 gross revenue before royalties. Non-renewal by either would remove a large share of near-fully-incremental margin. |
| Microcap trading liquidity on OTCQB | Liquidity | High | High | No Section 12(b) listing and observed daily volume in the low tens of thousands of shares means valuation gaps can persist and transaction costs are wide. |
| Gaming regulatory licensing burden across many jurisdictions | Regulatory | Medium | Medium | The licensing model requires approvals from gaming authorities in each jurisdiction served; the 10-Q also discloses a self-initiated sales and use tax review in which 505,361 USD of state tax was recognized and paid, with the review ongoing in other jurisdictions. |
| Floating-rate interest and covenant tightness | Financial | Medium | Medium | The BMO credit agreement prices SOFR loans at a margin of 3.0% to 3.5% on a leverage-based grid and imposes maximum total funded debt to EBITDA, minimum fixed charge coverage, minimum EBITDA and maximum capital expenditure covenants, which the 2026-07-24 amendment revised. |
Technical Snapshot
52-Week Range
–$1.62–
RSI (14)
n/a
insufficient history
50-Day MA
–
insufficient history
200-Day MA
–
insufficient history
Avg Vol (30d)
vs average
Support Levels
Resistance Levels
Technical inputs: SEC filings. See the record-specific source notes for measurement basis.
Ownership & Insider Activity
Institutional Holdersvia Source-linked
Institutional holder details unavailable
This research record does not include a holder-level table.
Insider Activity
Directors carry meaningful stock. Form 4s dated 2026-01-05 for the 2025-12-31 period show director Mark A. Lipparelli at 2,031,330 shares, Bryan W. Waters at 616,410, Meredith B. Brill at 146,602 and Cheryl Kondra at 177,280 following that period. Those and the prior quarterly Form 4s are equity grants coded A at 2.85 USD per share, not open-market purchases; no code P open-market purchase appears in the Form 4s filed since 2025. The most recent Form 4 in the EDGAR index is dated 2026-01-05. An 8-K filed 2026-09-10 amended the CFO employment agreement and granted 120,000 options struck at 1.656 USD. Outside ownership filings are dated: the latest Schedule 13G/A was filed 2024-11-13 and the latest Schedule 13D/A 2022-04-26. No DEF 14A has been filed since 2024-04-26, so no current proxy beneficial-ownership table is available.
Detailed insider transactions unavailable
This research record does not include a transaction-level table.
Additional issuer disclosures: SEC EDGAR company filings. Availability and filing forms vary by issuer.
Peer Comparison
| Ticker | Mkt Cap | P/E | P/S | EV/EBITDA | Rev Growth | Gross Mgn | Net Mgn |
|---|---|---|---|---|---|---|---|
| GLXZ | $41M | 8.5× | 1.3× | 6.1× | +5.0% | 98.0% | 16.0% |
| INSE | $134M | – | 0.5× | 5.1× | -24.0% | 76.0% | -3.0% |
| BRAG | $45M | – | 0.4× | – | -12.0% | 55.0% | -7.0% |
| EVO.ST | $166.90B | 15.1× | 81.3× | 138.3× | -1.0% | 100.0% | 52.0% |
Recognizable sector comparables. Source basis: SEC filings; lowest multiple in each column highlighted. Loss-making peers show no P/E.
Research Notes
2026-09-17SEC 10-Q
Licensing model and concentration at 2026-06-30
The quarter ended 2026-06-30 produced 7,937,890 USD of licensing fees versus 7,527,691 USD a year earlier, and income from operations of 1,899,687 USD versus 1,943,991 USD. Concentration disclosure names Client A in Europe at 18.8% and Client B in Europe at 13.8% of gross revenue before royalties for the half. The company reported total stockholders' deficit of 15,154,370 USD.
2026-09-17SEC 8-K
Termination fee, repurchase authorization and warrant cancellation
Evolution Malta Holding Limited terminated the merger agreement on 2026-07-21 and paid a 5,234,678 USD termination fee. The board authorized a 4,000,000 USD repurchase program on 2026-07-22, superseding a prior 750,000 USD authorization under which nothing had been repurchased, and BMO amended the credit agreement on 2026-07-24 to permit it subject to a 5,000,000 USD unencumbered liquidity floor and the termination fee being the sole source of funds. On 2026-08-12 the company paid about 1.2 million USD to cancel 778,320 Fortress-affiliate warrants, leaving no warrants outstanding.
2026-09-17Research
Trading venue and price context
Filing cover pages state the common stock trades on the OTCQB marketplace with no securities registered under Section 12(b). The free Yahoo chart endpoint shows a 2026-09-16 close of 1.62 USD against a 52-week range of 1.42 USD to 2.99 USD, with daily volume over the prior week between 1,200 and 40,800 shares.
Sources
Galaxy Gaming, Inc. valuation questions
What is Galaxy Gaming, Inc.'s market cap?
Galaxy Gaming, Inc. (GLXZ) has a market capitalization (its market value, often searched as "net worth") of $41M, and an enterprise value of $74M.