Golden Matrix Group Inc Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Profitability Challenges

Golden Matrix Group Inc (GMGI) reported a 72% YoY increase in total revenue for Q1 2025, driven by strong business growth and record raffle business results. However, gross margin declined by 14 percentage points, and the company reported a net loss of $300,000 due to increased operating expenses and foreign exchange rate impacts. Despite these challenges, GMGI continues to invest in technology and expand into new markets, positioning itself for sustained growth.

Golden Matrix Group Inc. (GMGI) has reported a robust performance for the first quarter of 2025, with a significant increase in total revenue. The company's total revenue surged by 72% year-over-year (YoY) to $42.7 million, driven by strong business growth and record-breaking results in its raffle business segment [1].

The company's raffle segment achieved all-time highs in revenue, ticket sales, and prize values, with user registrations surging by 146% compared to the same period last year. This strong performance was bolstered by the company's strategic initiatives and market expansion efforts, which have positioned GMGI for sustained growth [2].

However, despite the impressive revenue growth, GMGI faced several operational challenges. The company reported a net loss of $300,000 for the quarter, primarily due to increased acquisition-related amortization, interest expense, and stock-based compensation. Additionally, the company's gross margin declined by 14 percentage points to approximately 57%, partially due to a 4% negative foreign exchange headwind [1].

To strengthen its financial position, GMGI has made significant strides in optimizing its balance sheet. The company retired approximately $9.6 million in Lind Global debt and converted over $9.5 million in Meridianbet acquisition-related debt into equity, enhancing its financial flexibility. These actions have positioned GMGI for accelerated growth across 2025 and beyond [2].

Looking ahead, GMGI expects full-year 2025 revenue to range between $190 million and $195 million, representing a growth rate of 26% to 29% over 2024. The company continues to invest in technology, content, and international licenses to drive long-term shareholder value. Despite the operational challenges faced in Q1 2025, GMGI remains committed to executing on its disciplined capital allocation and long-term strategic investments [2].

References:
[1] https://www.tradingview.com/news/tradingview:f2f473be2c1fb:0-golden-matrix-group-inc-q1-2025-financial-results/
[2] https://finance.yahoo.com/news/golden-matrix-q1-revenue-soars-162301689.html