10-Q: Golden Matrix Reports Strong Revenue Growth Amidst Q3 Profit Turnaround

Sentiment:

Quarterly Report 30 October 2025 6:31 AM

📋All filings for Golden Matrix Group, INC

Golden Matrix Group, Inc. announced a 15% revenue increase in Q3 2025, turning a net loss into a profit, though year-to-date results show a net loss despite significant top-line growth.

Delay expectedThe remaining $150,000 owed to Zoran Miloevi and $100,000 owed to Sneana Boovi, originally due on October 9, 2025, has been extended to a later date by mutual agreement.

Capital raiseThe company has an Equity Distribution Agreement with Craig-Hallum Capital Group LLC, allowing it to sell up to an aggregate of $20 million in common stock through an at-the-market offering.As of the filing date, the company is eligible to sell up to an additional $17.6 million under this agreement.The company explicitly states it may require additional funding in the future to support operations, expand, complete acquisitions, and repay outstanding debt and post-closing acquisition amounts.The most likely source of future funds is through the sale of equity capital, including through the ATM offering.

Summary

Revenues for the three months ended September 30, 2025, increased by 15% to $47.3 million, up from $41.0 million in the prior year.
Net income attributable to GMGI for Q3 2025 was $566,014, a significant improvement from a net loss of $3.4 million in Q3 2024.
Year-to-date revenues for the nine months ended September 30, 2025, grew by 27% to $133.3 million, compared to $105.3 million in the same period of 2024.
Despite revenue growth, the net loss attributable to GMGI for the nine months ended September 30, 2025, widened to $3.2 million, from a net income of $650,095 in the prior year period.
Adjusted EBITDA for Q3 2025 increased by 32% to $5.7 million, but year-to-date Adjusted EBITDA decreased by 5.5% to $14.8 million.
The company's cash and cash equivalents decreased to $22.0 million as of September 30, 2025, from $30.1 million at December 31, 2024.
The working capital deficit increased to $25.3 million as of September 30, 2025, from $18.5 million at December 31, 2024.
Online casino revenues surged by 30% in Q3 2025, driven by an expanded game offering and new provider integrations.
Online sports betting revenues increased by 20% in Q3 2025, attributed to the launch of the new 'ATLAS' platform and enhanced features.
The GMAG segment experienced an 18% revenue decrease in Q3 2025 due to reduced customer usage and increased market competition.
Significant debt repayments totaling $18.0 million were made during the nine months ended September 30, 2025, including the full prepayment of the $7.2 million Secured Convertible Note.

Sentiment

Score: 6

Explanation: The company demonstrates strong revenue growth and a return to net income in the most recent quarter, indicating operational improvements. However, the year-to-date net loss, increasing working capital deficit, and ongoing need for capital raises (with associated dilution risks) temper the overall positive sentiment. The active management of debt through repayments and conversions is a positive, but significant future obligations remain.

Positives

Total revenues increased by 15% for the three months and 27% for the nine months ended September 30, 2025, demonstrating strong top-line growth.
Net income attributable to GMGI turned positive in Q3 2025, reaching $566,014, a substantial improvement from a $3.4 million loss in Q3 2024.
Adjusted EBITDA for Q3 2025 increased by 32% to $5.7 million, indicating improved operational performance in the recent quarter.
Online casino revenue grew by 30% in Q3 2025, driven by the integration of 13 new providers and the successful launch of the 'Gates of Olympia' game.
Online sports betting revenue increased by 20% in Q3 2025, supported by the new 'ATLAS' platform with features like Bet Boost, Auto Cashout, and Early Payout.
Retail sports betting and casino revenues rose by 27% in Q3 2025, partly due to the addition of 85 new IMPERA brand slot machines and promotions.
The company successfully repaid $17.99 million in debt during the nine-month period, including the full prepayment of the $7.2 million Secured Convertible Note.
Foreign exchange movements resulted in a gain of $817,201 in Q3 2025, a significant improvement from a $219,060 loss in Q3 2024.

Negatives

The company reported a net loss attributable to GMGI of $3.2 million for the nine months ended September 30, 2025, compared to a net income of $650,095 in the prior year.
Working capital deficit increased to $25.3 million as of September 30, 2025, from $18.5 million at December 31, 2024, indicating a deteriorating liquidity position.
Cash and cash equivalents decreased by $8.08 million during the nine months ended September 30, 2025.
The GMAG segment's revenue decreased by 18% in Q3 2025 due to reduced usage by key customers and increased market competition.
Year-to-date Adjusted EBITDA decreased by 5.5% to $14.8 million, despite overall revenue growth.
General and administrative expenses increased by 32% for the nine months ended September 30, 2025, primarily due to higher salaries, marketing, and amortization expenses.
Interest expense increased by 319% for the nine months ended September 30, 2025, largely due to debt discount amortization and accrued interest on borrowings.

Risks

The company requires significant additional financing to grow operations, complete acquisitions, and pay post-closing amounts related to the MeridianBet Group acquisition.
Dilution may occur from the conversion of outstanding debt, preferred stock, and warrants, as well as future acquisitions.
The company's ability to complete future acquisitions and secure funding for them may be disrupted.
Reliance on suppliers of third-party gaming content and the associated costs pose a risk.
The company's ability to obtain additional gaming licenses and maintain existing ones is crucial for operations.
Maintaining the listing of common stock on the Nasdaq Capital Market is a concern.
Challenges in managing growth could adversely affect operations.
The company relies heavily on its management, and the voting control held by Aleksandar Milovanovi (58.8% on closing date) presents a concentration of power.
Related party relationships and potential conflicts of interest exist.
Economic downturns, recessions, changes in interest rates, inflation, and global conflicts could negatively impact operations and prospects.
The company faces risks in protecting its proprietary information and intellectual property.
Intense competition in the market could affect business performance.
Current and future regulations, compliance, and potential penalties for non-compliance are significant risks.
Risks associated with gaming fraud, user cheating, and cyber-attacks are present.
Systems failures, technology/infrastructure failures, and cybersecurity risks could disrupt operations.
Inventory management challenges exist, particularly for prizes in competitions.
Foreign exchange and currency risks could impact financial results.
The outcome of contingencies, including legal proceedings, is uncertain.
Difficulty meeting obligations associated with financial liabilities settled by cash or other financial assets.
Changes in market prices, such as foreign exchange rates and interest rates, could affect income or asset values.
Risks related to the protection of players' deposits.
Risks that participants in sports events intentionally lose or alter outcomes, leading to unexpected payouts.
The common stock market is currently illiquid and volatile, and may remain so, potentially affecting stock price.
Future sales of shares by existing stockholders, including those from warrant exercises, could cause the stock price to decline due to dilution and market overhang.
The Lind Warrant allows the holder to purchase up to 750,000 shares, potentially causing substantial dilution to existing shareholders.

Future Outlook

The company's financial focus is on long-term, sustainable revenue growth with marginal increases in expenses. Operations are highly scalable, and the company plans to continuously add new products to its offerings, anticipating successful revenue growth. The majority of intangible construction in progress is expected to be placed in service in stages beginning at the end of 2025 and continuing into 2026. The company is in discussions with gaming attorneys and plans to engage one for future U.S. gaming license applications.

Management Comments

Our financial focus is on long-term, sustainable growth in revenue with the goal of marginal increases in expenses.
We believe that our operations are highly scalable, and we plan to continuously add new products to our offerings with the anticipation that they will provide successful revenue growth.
We believe we are well positioned to continue to fund the long-term operations of our business.

Industry Context

The betting industry remains highly competitive with frequent new entrants. The company maintains a robust competitive position through advanced technological infrastructure, a diversified product portfolio, personalized customer experience, and regulatory compliance. The online gambling industry in the U.S. is regulated at the state level, presenting both opportunities and regulatory hurdles for expansion. There is growing interest in eSports, which the company caters to with dedicated offerings and partnerships.

Comparison to Industry Standards

No specific comparable companies, projects, or results were mentioned in the filing for direct benchmarking against global industry standards.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
CEO's wholly-owned entity	NA	Luxor Capital, LLC (Anthony Brian Goodman)	August 20, 2025	Entered into a Rule 10b5-1 trading plan to sell shares, indicating a planned change in shareholding by a related party.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Fiscal Year End Change	The Board of Directors approved a change in the company's fiscal year end from October 31 to December 31 to align with MeridianBet Group.	April 5, 2024	Aligns financial reporting periods with the accounting acquirer (MeridianBet Group) post-reverse merger, improving consistency and comparability.

Legal Proceedings

Involved in a dispute with minority owners of Fair Champions Meridian Ltd. (Cyprus), with four related court actions, two of which seek liquidation of the company.
Engaged in a tax dispute with Greek tax authorities (Audit Centre for Large Enterprises) for tax years 2012-2014, with appeals pending in the Administrative Court of Appeal of Athens and the Supreme Court of Greece. The company has accrued $1,468,472 as an accrued liability for this dispute as of December 31, 2024.
In a dispute with Mr. Paul Hardman (former owner of RKings) regarding approximately $626,450 (GBP 500,000) in consideration alleged to be owed, which the company alleges was forfeited due to breaches of the RKings Purchase Agreement.
Involved in various labor and tax-related disputes in the ordinary course of business, primarily with former employees of the Meridian Group, which are not expected to have a material impact on financial position, results of operations, or cash flows.

Related Party Transactions

Dividends paid to former MeridianBet Group owners (Aleksandar Milovanovi, Zoran Miloevi, Sneana Boovi) amounted to $0 for the nine months ended September 30, 2025, compared to $769,534 in the prior year.
A License Agreement with Articulate Pty Ltd (50% owned by the CEO's wife and 50% by the CEO) was mutually terminated effective January 1, 2025, with $132,072 receivable as of September 30, 2025.
A Software License Agreement with Elray Resources Inc. (CEO and COO are directors) generated $16,473 in revenues for the nine months ended September 30, 2025, with $16,245 receivable.
Accounts receivable from Top Level doo Serbia and Network System Development GMBH (common individual shareholders with MeridianBet Group) amounted to $287,105 as of September 30, 2025.
Quarterly salaries of $482,656 are owed to Zoran Miloevi and Sneana Boovi, expected to be settled in shares.

Stakeholder Impact

Shareholders face potential dilution from ongoing equity distribution agreements, debt conversions, and warrant exercises, as well as volatility in the common stock price.
Employees have seen increased headcount and salaries, reflecting growth and expansion into new markets.
Customers benefit from an expanded online casino game library, new sports betting platform features ('ATLAS'), and an omni-channel approach ensuring diverse access to offerings.
Creditors have seen significant debt repayments, including the full prepayment of a secured convertible note, but substantial consideration payable to Meridian Sellers and other loans remain.
Regulatory bodies are involved in ongoing tax disputes in Greece and potential future U.S. gaming license applications, indicating continued regulatory scrutiny and expansion efforts.

Next Steps

Continuously add new products to offerings to drive revenue growth.
Engage specialist gaming attorneys to represent the company in applications for gaming licenses in the U.S. in the future.
Place the majority of intangible construction in progress into service in stages, beginning at the end of 2025 and continuing in 2026.
Address the remaining unpaid 18-month post-closing cash consideration due by October 9, 2025 (though some amounts have been converted to stock or extended).
Manage the potential sales of up to $17.6 million in common stock under the Equity Distribution Agreement.
Monitor and manage the Rule 10b5-1 trading plan entered by Luxor Capital, LLC (CEO's wholly-owned entity) for potential sales of up to 4,160,000 shares starting November 24, 2025.

Key Dates

Date	Description
April 1, 2024	Effective date of the MeridianBet Group acquisition, accounted for as a reverse merger.
April 5, 2024	Board of Directors approved a change in the company's fiscal year end from October 31 to December 31.
August 1, 2024	Effective date of the acquisition of an 80% ownership interest in Classics Holdings Co. Pty Ltd.
August 1, 2024	Effective date of the acquisition of 100% of Media Games Malta (EU) Limited.
September 3, 2024	Sales-purchase agreement signed for the acquisition of a 24.5% minority share in Meridian Gaming Peru S.A.C.
October 3, 2024	Share purchase agreement signed for a 15.5% minority share in Meridian Worldwide Ltd. Cyprus.
October 30, 2024	Second Amendment to Senior Secured Convertible Promissory Note with Lind Global Asset Management VIII LLC.
November 8, 2024	Share purchase agreement signed for a 15.5% minority share in Meridian Worldwide Ltd. Cyprus.
November 22, 2024	Entered into an Equity Distribution Agreement with Craig-Hallum Capital Group LLC for an at-the-market offering.
December 9, 2024	MeridianBet Montenegro entered into a short-term loan with Hipotekarna Bank.
January 1, 2025	1,071,101 shares of restricted common stock issued to acquire a 15.5% minority interest in Meridian Worldwide CY Limited.
January 1, 2025	814,768 shares of restricted common stock issued to acquire a 24.5% minority interest in Meridian Gaming Peru S.A.C.
January 1, 2025	License Agreement with Articulate Pty Ltd (related party) mutually terminated.
January 13, 2025	Aleksandar Milovanovi converted $501,590 of Deferred Cash Convertible Promissory Note into 250,796 shares of common stock.
February 17, 2025	True-Up Amount for Classics Holdings acquisition determined to be $518,651.
February 23, 2025	Debt Conversion Agreement entered with Aleksandar Milovanovi to convert $1,165,358 of contingent cash into 647,422 shares.
April 1, 2025	Number of shares eligible for issuance under the 2023 Equity Incentive Plan increased by 3,632,000 shares.
April 9, 2025	Meridian Serbia entered into a short-term credit line agreement with UniCredit Bank for $1.17 million.
April 9, 2025	Sixth Amendment to Meridian Purchase Agreement, converting $9.45 million owed to Milovanovi into 4,843,826 shares, and smaller amounts to Miloevi and Boovi into shares.
April 28, 2025	Issued 206,634 shares of common stock to Classics Sellers to satisfy the $518,651 True-Up Amount.
April 28, 2025	Voluntarily prepaid in full the $7.2 million remaining balance of the Secured Convertible Note.
June 16, 2025	Company extended the exercise period of certain stock options by one year.
July 15, 2025	Company's $5.0 million share repurchase program expired.
July 31, 2025	45,000 shares of restricted common stock issued to a consultant for services.
August 20, 2025	Luxor Capital, LLC (wholly-owned by CEO) entered into a Rule 10b5-1 trading plan to sell up to 4,160,000 shares.
August 21, 2025	Seventh Amendment to Meridian Purchase Agreement, converting $200,000 of 18-month consideration to Milovanovi into 155,038 shares, and $30,000 each to Miloevi and Boovi into 22,556 shares each.
August 31, 2025	30,000 shares of restricted common stock issued to a consultant for services.
September 9, 2025	Eighth Amendment to Meridian Purchase Agreement (effective August 29, 2025), converting $500,000 of 18-month consideration to Milovanovi into shares at various prices.
September 30, 2025	30,000 shares of restricted common stock issued to a consultant for services.
October 9, 2025	Remaining $150,000 owed to Miloevi and $100,000 owed to Boovi (from April 9, 2025 amendment) extended to a later date.
October 30, 2025	Filing date of the Quarterly Report on Form 10-Q.
November 24, 2025	Potential sales commence under the August 2025 10b5-1 Plan by Luxor Capital, LLC.
April 9, 2026	Promissory notes of $15,000,000 related to the Meridian Purchase Agreement are due.
May 17, 2027	UniCredit Bank Loan is due in full.
July 2, 2029	Lind Warrant to acquire 750,000 shares of common stock expires.
April 1, 2033	The automatic increase period for shares eligible under the 2023 Equity Incentive Plan ends.

Recommendation

hold

Golden Matrix Group, Inc. demonstrates strong revenue growth across its core iGaming segments, and a return to net income in the most recent quarter (Q3 2025) is a positive indicator. However, the year-to-date net loss, increasing working capital deficit, and the ongoing need for capital raises (including through ATM offerings and debt conversions) introduce significant dilution risk and financial uncertainty. While the company is actively managing its debt obligations and expanding its product offerings, the mixed financial performance and the highly volatile stock market suggest a 'hold' recommendation for existing investors. New investors may wish to await clearer trends in sustained profitability and improved liquidity before initiating a position, given the inherent risks in the competitive iGaming sector and the company's capital structure.

Keywords

iGaming, Online Sports Betting, Online Casino, MeridianBet Group, SaaS, Gaming Technology, SEC Filing, Quarterly Report, Financial Results, GMGI, Gambling Industry, Risk Factors, Capital Raise, Equity Distribution, Reverse Merger

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