Galaxy Gaming believes it has never been in a better position to invest in its best ideas after receiving a $5.2m termination fee in relation to the aborted Evolution merger agreement.
Chief Executive Officer Matthew Reback commented on the terminated Evolution deal as the supplier reported its second quarter results, where its total revenue increased by 5% year-on-year to $7.9m (2025: $7.5m).
Evolution announced plans to merge with Galaxy Gaming back in July 2024, but noted in its own Q2 financial release last month that the deal would be cancelled following two years of ‘significant time, effort and resources handling the rather large amount of administration required to close’.
Reback said: “Our balance sheet has gone from consuming cash flow to funding our growth and with the $5.2m termination fee received subsequent to quarter end in connection with the terminated Evolution merger agreement, we have never been better positioned to invest in our best ideas.
“I am excited about what this team will build, and how efficiently we are now able to build it.”
“We have never been better positioned to invest in our best ideas.”
Galaxy Gaming Chief Executive Officer Matthew Reback
Despite the deal’s cancellation, Evolution will continue to have a working relationship with Galaxy Gaming under the terms of its existing 10-year partnership that was agreed upon in 2023.
Evolution CEO Martin Carlsund said in the supplier’s Q2 report back in July that the transaction was no longer significant for the company.
Carlsund said: “Two years have passed, and Evolution has spent significant time, effort and resources handling the rather large amount of administration required to close this acquisition.
“Galaxy is a great company; however, due to its size, the transaction is not significant for Evolution. The outcome has no material impact on our existing business, our US operations, or our long-term ambitions.”
Q2 financials
- Total revenue: $7.9m, up 5% YoY (2025: $7.5m).
- Recurring revenue: $7.9m, up 8% YoY (2025: $7.3m).
- Core revenue: $4.8m, up 7% YoY (2025: $4.4m).
- Digital Revenue: $3.1m, up 11% YoY (2025: $2.8m).
- Net income: $996,978, up 5% YoY (2025: $950,357).
- Adjusted EBITDA: $3.5m (2025: $3.2m).
- Free cash flow: $1.7m, up 25% YoY (2025: $1.3m).