Group 1 - The article initiates coverage on Golden Matrix Group, Inc. (NASDAQ: GMGI) with a Strong Buy rating and a price target of $8 [1] - Golden Matrix Group specializes in providing enterprise SaaS gaming platforms and licensed content to online casinos and sportsbooks, indicating a growing market presence [1] - Moretus Research emphasizes a structured approach to equity research, focusing on companies with durable business models and mispriced cash flow potential [1] Group 2 - The research methodology of Moretus Research combines rigorous fundamental analysis with a judgment-driven process, aiming to filter out noise and overly complex forecasting [1] - Valuation practices are based on sector-relevant multiples tailored to each company's business model, emphasizing comparability and relevance [1] - The research coverage targets underappreciated companies undergoing structural changes or temporary dislocations, which can lead to asymmetric returns [1]

Core Insights - Golden Matrix Group Inc. (NASDAQ: GMGI) announced an insider purchase of 10,000 shares at a price of $1.36 per share, as reported in an SEC Form 4 filing dated May 27, 2025 [1]. Company Overview - Golden Matrix Group Inc. develops and distributes proprietary gaming platforms, sports betting solutions, and promotional games across over 25 international markets. Its portfolio includes brands such as Meridianbet, Expanse Studios, GMAG, R Kings Competitions, and Classics for a Cause [4]. Insider Activity - There have been a total of 25 insider purchases recorded for GMGI in the past year, indicating a positive sentiment from company insiders [5]. - Argus Research has reiterated a Buy signal for GMGI, suggesting confidence in the company's future performance [5].

Group 1 - Argus Research reaffirms a revenue forecast of $200 million for Golden Matrix Group Inc. (GMGI) in 2025, indicating significant upside potential relative to current trading levels [1][7] - The forecast is supported by new market entries and the performance of AI-driven platforms, suggesting continued revenue growth and operational expansion across key global markets [1][7] - Golden Matrix Group operates as a B2B and B2C gaming technology company, developing proprietary gaming platforms and operating regulated online sports betting and gaming sites [4]

Core Insights - Meridianbet, a member of Golden Matrix Group, is committed to environmental and social responsibility through impactful green initiatives [1][7] - In 2024, the company organized nearly 300 CSR initiatives, with over 80 projects in Q1 2025 focusing on health, education, community impact, responsible betting, and environmental protection [2] Environmental Initiatives - The Fruška Gora Cleanup, linked to the 32nd Fruška Gora MTB Marathon in Serbia, showcased the company's commitment to environmental care by cleaning forest trails and protecting national parks [3][4] - The success of the Fruška Gora initiative inspired similar environmental efforts in other markets, including Tanzania, promoting ecological awareness across borders [4] Community Engagement - The Epic Trail event, part of the 300 community-focused campaigns in 2024, aimed to promote healthy lifestyles and social inclusion while building brand trust through direct community engagement [5][6] - Meridianbet's initiatives are designed to create measurable social impact, reinforcing its presence in the markets it operates [6] Long-term Sustainability Vision - Meridianbet and Golden Matrix Group view sustainability as a long-term global mandate, with future campaigns targeting greenhouse gas reduction, biodiversity protection, and waste minimization [6][7] - The company's efforts position it as a global role model for environmentally conscious gaming, aligning growth with positive global impact [7] Company Overview - Founded in 2001, Meridianbet is a leading provider of betting and gaming technology, licensed in 18 jurisdictions across Europe, Africa, and South America [8] - The company operates with a strong omnichannel presence, including retail, online desktop, and mobile gaming, as a subsidiary of Golden Matrix Group [8]

Group 1 - Expanse Studios, a B2B game development unit of Golden Matrix Group Inc. (NASDAQ: GMGI), has completed multiple integrations across U.S.-focused social and sweepstakes casino platforms [2][5] - The company has launched its new flagship game, Gates of Olympia, aimed at enhancing its proprietary content portfolio and improving partner retention [2][5] - Expanse's recent integrations indicate a growing B2B segment characterized by high engagement and low customer acquisition costs (CAC) [5] Group 2 - The company currently has ten active or contracted partnerships in the social casino and sweepstakes segment, which is expected to drive recurring revenue growth [5] - The launch of the new flagship game is anticipated to contribute to better margins for the company [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $42.7 million, representing a 72% year-over-year increase, with constant currency growth at 76% [8] - Gross profit reached $24.2 million, reflecting a gross margin of approximately 57%, a decline of 14 percentage points from the previous year [9] - Net loss was $300,000 or $0.00 per share, a decline of $4.2 million from the previous year [12] - Adjusted EBITDA declined by $300,000 or 5% to $5.6 million [12] - Cash and cash equivalents as of March 31, 2025, were $29.7 million, with a net debt leverage ratio under 1.6 turns [13] Business Line Data and Key Metrics Changes - The raffle business achieved record results, including all-time highs in revenue, ticket sales, and prize values, with a 46% increase in new users compared to Q1 2024 [6] - MeridianBet saw new registrations increase by 22%, first-time deposits surged over 56%, and total deposits rose 12% [15] Market Data and Key Metrics Changes - MeridianBet secured a permanent online betting license in Brazil, allowing full national coverage in a market projected to generate over $5.6 billion in GGR in 2025 [16] - The company launched B2B operations in Nigeria, tapping into a market with over 60 million bettors [16] Company Strategy and Development Direction - The company is focused on platform innovations and expansion into high-growth regulated markets, positioning itself at the forefront of the iGaming industry [5] - The strategy emphasizes smart growth, operational efficiency, and returning value to shareholders [20] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about growth opportunities for the year, expecting full-year revenue between $190 million and $195 million, representing a 26% to 29% growth rate over 2024 [21] - The company remains committed to disciplined capital allocation and investments that enhance growth and long-term value [21] Other Important Information - The company eliminated approximately $9.6 million in debt and converted over $9.5 million in acquisition-related debt into equity, enhancing financial strength and flexibility [6] - MeridianBet's community initiatives included 56 projects focused on health donations, scholarships, and responsible betting education [17] Q&A Session Summary Question: What are the growth expectations for the company in 2025? - The company expects full-year revenue to be between $190 million and $195 million, indicating a growth rate of 26% to 29% over 2024 [21] Question: How is the company addressing operational costs? - The increase in operating expenses is attributed to costs related to geographic expansion, market share improvement, and technology advancements [11]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $42.7 million, representing a 72% year-over-year increase, with constant currency growth at 76% [10] - Gross profit reached $24.2 million, reflecting a gross margin of approximately 57%, a decline of 14 percentage points compared to the previous year [11] - Net loss was $300,000 or $0.00 per share, a decline of $4.2 million from the previous year [14] - Adjusted EBITDA declined by $300,000 or 5% to $5.6 million [14] - As of March 31, 2025, cash and cash equivalents stood at $29.7 million, with a net debt leverage ratio under 1.6 turns [15] Business Line Data and Key Metrics Changes - The raffle business achieved record results, including all-time highs in revenue, ticket sales, and prize values, with 26,000 new users added, a 46% increase year-over-year [6] - MeridianBet saw new registrations increase by 22%, first-time deposits surged over 56%, and total deposits rose by 12% [17] Market Data and Key Metrics Changes - MeridianBet secured a permanent online betting license in Brazil, allowing full national coverage in a market projected to generate over $5.6 billion in GGR for 2025 [18] - The company launched B2B operations in Nigeria, tapping into a market with over 60 million bettors [19] Company Strategy and Development Direction - The company is focused on platform innovations and expansion into high-growth regulated markets, emphasizing operational efficiency and geographic diversity [5] - MeridianBet's strategy includes smart growth, operational excellence, and returning value to shareholders [22] - The company aims to enhance growth through disciplined capital allocation and investments [23] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about growth opportunities for the year, projecting full-year revenue between $190 million and $195 million, representing a 26% to 29% growth rate over 2024 [23] - The company is well-positioned for long-term success, emphasizing a commitment to profitable and sustainable growth [24] Other Important Information - The company eliminated approximately $9.6 million in debt and converted over $9.5 million in acquisition-related debt into equity, enhancing financial strength and flexibility [6] - MeridianBet completed five new integrations with a US-based sweepstakes casino, expanding its footprint in the North American market [20] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.

Financial Performance - Q1 2025 consolidated revenue was $42.7 million, up 72% year-over-year, despite a negative 4% FX headwind[4] - Gross profit reached $24.2 million, with a consolidated gross margin of approximately 57%[4] - Revenues for the three months ended March 31, 2025, were $42,723,053, a 71.8% increase from $24,850,587 in the same period of 2024[26] - Gross profit for the same period was $24,195,961, compared to $17,691,930, reflecting a significant increase in profitability[26] - Adjusted EBITDA declined by $0.3 million, or 5%, to $5.6 million due to increased operating expenses[4] - Adjusted EBITDA for the three months ended March 31, 2025, was $5,612,300, slightly down from $5,884,405 in the same period of 2024[28] - Comprehensive income attributable to GMGI for the three months ended March 31, 2025, was $1,139,440, down from $2,186,054 in the prior year[27] User Growth - User growth in the raffle segment surged 146% year-over-year, with 26,000 new registrations in Q1[4] - First-time deposits grew 56%, new registrations rose 22%, and total deposits increased 12% compared to Q1 2024[5] Debt and Financial Flexibility - The company eliminated approximately $9.6 million in debt and converted over $9.5 million in acquisition-related debt into equity, enhancing financial flexibility[4] - Total liabilities decreased to $101,576,120 from $104,767,013, showing a reduction in financial obligations[25] - Shareholders' equity increased to $112,377,647 from $108,950,580, indicating a growth in the company's net worth[25] Operating Expenses - Operating expenses rose to $24,301,978 from $13,997,809, indicating a 73.5% increase year-over-year[26] Market Expansion - The company secured a permanent online betting license in Brazil, unlocking access to a projected $5.6 billion gross gaming revenue market for 2025[5] - Meridianbet launched B2B operations in Nigeria, entering one of Africa's most dynamic gaming economies[5] Future Projections - Full-year 2025 revenue is expected to range between $190 million and $195 million, reflecting a growth rate of 26% to 29% over 2024[7] Asset Management - Total assets as of March 31, 2025, were $213,953,767, compared to $213,717,593 at the end of the previous period[25] - The weighted average ordinary shares outstanding increased to 131,728,855 from 83,475,190, reflecting a significant rise in share issuance[27]

Q1, 2025 Earnings Results 8 May 2025 Forward-Looking Statements This document contains forward-looking statements relating to our plans and expectations, all of which are subject to risks and uncertainties. Such statements are based on management's expectations and assumptions as of the date of this release and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in our forward-looking statements including: (1) global economic conditions, ...

Acquisition and Expansion - The company acquired 100% of MeridianBet Group on April 1, 2024, accounting for the transaction as a reverse merger [294]. - The company entered into a Share Exchange Agreement to acquire an 80% ownership interest in Classics Holdings Co. Pty Ltd., effective August 1, 2024 [331]. - The company is focused on expanding its deployment of gaming platforms into Europe, the U.S., South America, and Africa [322]. Market and Operations - The company operates in over 15 jurisdictions across Europe, Africa, and Central and South America, employing approximately 1,200 personnel and managing around 700 betting shops [296][297]. - The online betting market is experiencing significant growth, driven by the shift from physical betting shops to online platforms and increased mobile betting adoption [314]. - The sports betting offerings cover over 800 leagues, providing more than 11 million bets on over 20,000 sporting events each month, including in-play betting [301]. Financial Performance - Revenue increased by $17,872,466, or 72%, to $42,723,053 for the three months ended March 31, 2025, compared to $24,850,587 for the same period in 2024 [363]. - The company reported a net loss of $258,217 for the three months ended March 31, 2025, which was offset by increases in accounts payable and accrued liabilities [349]. - Adjusted EBITDA for the three months ended March 31, 2025, was $5,612,300, compared to $5,884,405 for the same period in 2024 [361]. Expenses and Costs - Cost of goods sold (COGS) rose by $11,368,435, or 159%, to $18,527,092 for the three months ended March 31, 2025, from $7,158,657 for the same period in 2024 [364]. - General and administrative expenses increased by $10,304,169, or 74%, to $24,301,978 for the three months ended March 31, 2025, from $13,997,809 for the same period in 2024 [366]. - Marketing expenses for Q1 2025 were $6,045,796, a 98% increase from $3,061,934 in Q1 2024, driven by marketing fees from Golden Matrix and increased budgets across all advertising channels [371]. Assets and Liabilities - The total assets of the company as of March 31, 2025, were $213,953,767, including $71,039,070 in goodwill and $56,465,858 in net intangible assets [343]. - As of March 31, 2025, the company had $29,661,926 in cash on hand and a working capital deficit of $16,077,344, compared to a deficit of $18,484,062 as of December 31, 2024 [335][344]. - The company had a total consideration payable of $70,000,000 to the former owners of MeridianBet Group, with $34,895,460 remaining as of March 31, 2025 [338]. Technology and Innovation - The company has developed 52 slot games in-house, available online where regulatory approval is granted, enhancing its gaming portfolio [304]. - The proprietary sports betting technology is crucial for operations, enabling online and offline betting across various geographies and regulatory demands [318]. - The integration of advanced Machine Learning technologies aims to personalize the betting experience and reduce the need for manual oversight [313]. Responsible Gaming - The company prioritizes responsible gaming by offering tools for deposit limits, time-outs, and self-exclusion options to empower players [323]. Other Financial Metrics - Interest expense surged by $1,466,989 or 33,562% to $1,471,360 in Q1 2025, mainly due to debt discount amortization and accrued interest on bank borrowings [374]. - Foreign exchange gain increased by $420,731 to $433,668 in Q1 2025, driven by favorable EUR/RSD/USD exchange rate fluctuations [376]. - The effective tax rate decreased to (38.4)% in Q1 2025 from 6.7% in Q1 2024, primarily due to changes in earnings and tax expenses mix [378].