Galaxy Gaming shares rose 8% after the company reported second-quarter results for 2026. Recurring revenue — regular income excluding royalties — reached a record $7.9m, up 8% year over year and 12% from the second quarter of 2024. The share of recurring revenue in total revenue grew from 82% two years ago to 99% today.
Total revenue for the three months ended June 30 came in at $7.9m against $7.5m in the year-ago quarter, a 5% increase. The digital segment grew 11% year over year and 23% from the second quarter of 2024. Sales of perpetual licenses for progressive systems fell from $0.3m to $0.1m — the company is deliberately moving away from one-off deals in favour of steady recurring income. The installed base of progressive systems on the recurring model grew 11% year over year and 40% since mid-2024.
CEO Matthew Reback said the company went through the merger process with Evolution and emerged stronger. Following refinancing in January 2025, quarterly interest expense dropped by almost two thirds, the debt load fell below 3.0x, and the interest margin decreased to SOFR + 3%. Free cash flow rose 25% to $1.7m despite a 50% increase in R&D capital expenditure.
In July Galaxy Gaming appointed Anand Singh as CTO — he spent nearly 20 years at Light & Wonder. After the Evolution deal fell through, the company received $5.2m in compensation. This autumn at G2E, Galaxy will present a new lineup of games and progressive systems built on the Galaxy Operating System platform and the MONOPOLY series.
