GAN (GAN) Q1 2025 earnings summary

Executive summary

• Revenue declined 4.2% year-over-year to $29.4M, mainly due to the expiration of a major U.S. B2B contract, partially offset by B2C growth in Europe and Latin America.

• Net loss widened to $6.8M from $4.2M in the prior year quarter, reflecting lower B2B revenue and higher costs.

• Adjusted EBITDA was negative $1.5M, compared to negative $0.6M in the prior year period.

• The company is progressing toward a merger with SEGA SAMMY CREATION, expected to close in Q2 2025, pending regulatory approvals.

• B2C revenue grew to $24.3M from $18.3M, driven by strong performance in Europe and Latin America.

Financial highlights

• Revenue: $29.4M, down from $30.7M year-over-year.

• Net loss: $6.8M, compared to $4.2M loss in Q1 2024.

• Operating loss: $5.1M, up from $3.3M loss year-over-year.

• Cash and cash equivalents: $39.9M as of March 31, 2025.

• Adjusted EBITDA: $(1.5)M, compared to $(0.6)M in Q1 2024.

Outlook and guidance

• Management expects continued B2C growth in Europe and Latin America, with B2B revenue impacted by the expired U.S. contract.

• The company anticipates closing the SEGA SAMMY CREATION merger in Q2 2025, subject to final regulatory approvals.

• Mitigation plans include cost reductions, exiting negative margin geographies, and headcount reductions to achieve cash flow targets.

• Forward-looking statements highlight expectations for improved profitability and continued B2C growth.