GAN (GAN) Q4 2024 earnings summary

Executive summary

• Achieved improved operating performance and cost structure, resulting in stronger financial results for 2024, with both revenue and net loss showing significant year-over-year improvement.

• Merger with SEGA SAMMY approved by shareholders and key regulators, expected to close in Q2 2025.

Financial highlights

• Q4 2024 revenue rose 3% year-over-year to $31.7M, driven by B2C segment growth; full-year revenue up 4% to $135.0M.

• Q4 net loss improved to $4.2M from $9.4M; full-year net loss narrowed to $8.0M from $34.4M.

• Adjusted EBITDA was slightly positive in Q4 (vs. $(3.9)M prior year); full-year Adjusted EBITDA reached $8.6M (vs. $(8.4)M prior year).

• Operating expenses decreased to $23.4M in Q4 and $98.2M for the year, reflecting cost-saving initiatives and lower depreciation/amortization.

• Cash balance at year-end was $38.7M, up from $36.5M at September 30, 2024.

Outlook and guidance

• Management anticipates continued improvement in profitability and expects the SEGA SAMMY merger to close in Q2 2025, pending final regulatory approvals.