Golden Matrix Group 2025 Q2 Earnings Net Loss Widens Significantly

Golden Matrix Group (GMGI) reported its Q2 2025 earnings on August 7, 2025. The results missed expectations, with the company posting a net loss of $3.73 million, a dramatic decline compared to its net income in the same period last year. Management reaffirmed its full-year revenue guidance, remaining in line with previous expectations.

Revenue

Golden Matrix Group reported total revenue of $43.25 million for Q2 2025, representing a 9.7% increase from $39.42 million in the prior-year period. This growth reflects continued demand for its services, particularly in key markets such as Brazil and across its digital platforms. The company also noted a 135 basis point improvement in gross margin, underscoring stronger operational performance.

Earnings/Net Income

Despite the revenue increase, Golden Matrix Group reported stable earnings per share of -$0.03, consistent with the prior year. However, the company recorded a net loss of $3.73 million in Q2 2025, a sharp 23982.6% deterioration compared to the $15,626 net income in Q2 2024. This significant decline in profitability highlights ongoing challenges in cost and revenue management.

Price Action

The stock of Golden Matrix Group edged down 0.00% during the latest trading day, declined 1.32% for the week, and dropped 10.71% month-to-date. These figures indicate ongoing investor uncertainty around the company’s short-term performance and outlook.

Post-Earnings Price Action Review

The post-earnings trading strategy of buying GMGI when it beats estimates and selling after 30 days has performed poorly, delivering a -78.15% return. This underperformed the benchmark by 118.96%, with a Sharpe ratio of -0.42 suggesting high risk. While volatility was relatively low at 87.40%, the maximum drawdown of 0% signals limited buffer in a downturn.

CEO Commentary

CEO Li Hui highlighted the company's sustained revenue growth and gross margin improvements as evidence of operational strength. He attributed the GAAP revenue and EPS shortfall to short-term challenges, particularly in European sports betting, and emphasized the company’s customer-focused policies and cost discipline. Li also pointed to strong engagement metrics and record raffle ticket sales as positives, while expressing cautious optimism for the future.

Guidance

Management reiterated its full-year 2025 revenue guidance of $185–188 million, representing 22–24% growth compared to FY2024. The company remains focused on expanding in regulated markets, particularly Brazil, and enhancing product offerings through its Meridianbet platform and proprietary content. Key watchpoints include cost control, debt management, and regulatory progress.

Additional News

On August 7, 2025, Golden Matrix Group Inc hosted its Q2 2025 Earnings Call. During the event, the company emphasized strategic expansion in regulated markets, including Brazil, and highlighted ongoing efforts to improve product offerings through its Meridianbet platform. No major mergers or acquisitions were announced in the quarter. The CEO did not indicate any changes to the C-suite, and there were no discussions around dividend or buyback initiatives. Investors were encouraged to enable JavaScript and cookies to access further details on the call.