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Mar 31
GAN Q1 2025 Earnings Report
GAN reported a net loss of $6.8 million as B2B revenue fell sharply, offsetting gains in B2C operations.
Key Takeaways
GAN's Q1 2025 performance showed strong growth in B2C revenues, particularly in Europe and Latin America, but was weighed down by a significant decline in B2B segment revenue due to contract expiration. Net loss widened as a result, despite improved operational cost efficiency.
Total revenue was $29.4 million, down 4% YoY due to B2B revenue drop.
B2C segment grew to $24.3 million, driven by Latin America and Europe.
Net loss widened to $6.8 million, primarily due to the B2B revenue decline.
Cash reserves improved to $39.9 million, aided by favorable working capital changes.
GAN
GAN
GAN Revenue by Segment
GAN Revenue by Geographic Location
Revenue by Segment
B2B Segment Revenue
CapyFin.comB2C Segment Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comLatin America Revenue
CapyFin.comRest of the World Revenue
CapyFin.com Forward Guidance
GAN expects to close its merger with Sega Sammy in Q2 2025 and continues cost-optimization initiatives to support improved profitability.
Positive Outlook
- Strong B2C performance in Europe and Latin America.
- Merger with Sega Sammy remains on track for Q2 2025.
- Reduced operating expenses through cost-saving initiatives.
- Increased cash position due to favorable working capital changes.
- Improved B2C contribution margin to 64.9%.
Challenges Ahead
- Significant YoY decline in B2B revenue.
- Widened net loss to $6.8 million.
- Lower total segment contribution margin at 63.5%.
- Adjusted EBITDA declined further to -$1.5 million.
- B2B Gross Operator Revenue fell sharply due to contract expiration.
Revenue & Expenses
Visualization of income flow from segment revenue to net income