Q3 2025 Golden Matrix Group Inc Earnings Call

Operator: Joining us today. On today's call are Brian Goodman, CEO of Golden Matrix Group; Zoran Milosevic, CEO of Meridian Vet Group; Rich Christensen, CFO of Golden Matrix Group. At the conclusion of the call, the recording and supporting resources will be available on Golden Matrix Group's IR website. As a reminder, today's call will contain forward-looking statements. Certain statements made on this conference call, including our responses to questions, may constitute forward-looking information within the meaning of applicable securities laws. These statements are based on various assumptions about future events, including market and economic conditions, business prospects, technological developments, and regulatory changes. While we believe these assumptions are reasonable, they are subject to risks and uncertainties that could cause actual results to differ materially. For a complete discussion of these factors, please refer to our most recent 10-K filing and other public disclosures.

Operator: Non-GAAP measures will be discussed, and reconciliation of these numbers can also be found in our recently filed 10-K and earnings press release available on our website. I will now hand it over to Brian Goodman, CEO of Golden Matrix Group.

Brian Goodman: Good morning, everyone, and thank you for joining us. Golden Matrix delivered another strong quarter, achieving record revenue of $47.3 million, up 15.4% year over year, and marking a return to profitability with net income of $0.4 million. This performance underscores the resilience of our diversified business and the scalability of our platform across multiple markets. Our focus on disciplined execution and operational efficiency is paying off, with gross profit rising to $26.4 million at a 56% margin and adjusted EBITDA growing 32% to $5.7 million. Across the business, we continue to see strong engagement and organic growth, particularly in Latin America and other regulated markets where we are expanding rapidly. With that, I'll hand things over to our CFO, Rich Christensen, to walk you through our financial and operational highlights for the quarter.

Rich Christensen: Thank you, Brian. Total revenue for the third quarter of fiscal 2025 was $47.3 million, up 15.4% year over year from $41 million, driven by continued growth in online casino and raffle operations. Revenue growth includes a 3% benefit from currency exchange rates, and organic revenue increased 14% year over year. Gross profit increased to $26.4 million, representing a 56% margin, up 111 basis points year over year, reflecting marketing optimization and an improved product mix. We reported net income of $400,000 compared to the net loss of $3.3 million in the same quarter last year, marking a return to profitability. Adjusted EBITDA rose 32% year over year to $5.7 million, representing a 12% margin. This was supported by disciplined cost management and operating efficiency. Our balance sheet remains strong, with $22 million in cash and total debt of $45.1 million.

Rich Christensen: We have a net debt leverage ratio of 1.2 times trailing 12-month adjusted EBITDA at quarter end. Now I'd like to turn the call over to Zoran Milosevic, CEO of Meridian Vet, to provide an update on Meridian Vet's performance and strategic initiatives. Zoran.

Zoran Milicevic: Thank you, Rich. Meridian Vet delivered strong year-over-year growth in Q3, with revenue up 26% to $32.5 million. Online casino GGR rose 30% to $14.6 million, driven by a 35% increase in turnover and the launch of over 2,500 new games. Sports betting revenue grew 25% to $13.3 million, while retail casino revenue increased 17% to $3.7 million. Player activity remained robust across all markets. Depositors rose 25%, new registrations surged 70%, and first deposit transactions jumped 87% quarter over quarter, fueled by expansion in Brazil. Online active users grew 21%, and sports revenue per player in our top three markets climbed 29%. Casino turnover per player also increased 29% to $4,147, reflecting strong engagement and content appeal. We also introduced Meridian Missions, a proprietary gamification feature to boost retention, alongside enhanced responsible gaming tools to support sustainable compliant growth.

Zoran Milicevic: Meridian Vet's robust financial performance has been a key driver of our consolidated growth trajectory this year. Their disciplined execution, scalable infrastructure, and strong market positioning have translated into meaningful top-line acceleration and margin expansion. As we enter the fourth quarter, I remain confident that Meridian Vet will continue to deliver outsized contributions, reinforcing our operating leverage and meeting our full-year financial targets. With that, I'll turn it back to Rich.

Rich Christensen: Thank you, Zoran. Those results from Meridian Vet continue to demonstrate the strength of our diversified portfolio. Now let me walk you through the performance of our other key business units. First, Arcane's delivered another strong quarter in Q3, maintaining steady growth across acquisition, engagement, and order value. New users increased 19% quarter over quarter, with conversion holding at a strong 84%. Order volumes were up 8%, and average order value rose 10%, driving more spend per customer and higher overall activity. A major highlight came in August of 2025 when Arcane's recorded a record-breaking sales day, generating £361,000 in gross sales from over 31,800 orders. Over 3,500 new users joined that day, with over 3,000 making purchases. The £400,000, or 2024 Lamborghini Revuelto competition, was a standout success, attracting 42,000 entrants, selling 291,000 tickets, and producing £580,000 in total order value.

Rich Christensen: This campaign showcases Arcane's ability to combine scale, engagement, and strong purchase intent to deliver exceptional results. Next, Classics for Cause rebounded sharply in Q2, achieving strong sequential growth in user acquisition and engagement. New user registrations rose 72% quarter over quarter, and new VIPs climbed 82%, highlighting effective targeting and reactivation efforts. Conversion held steady at an impressive 94%, while average transaction value increased 21%. And average revenue per paying user rose 6%, signaling healthier customer spending patterns. Complementing this rebound, the August Hold'em Toronto campaign set a new business record, generating $776,000 in sales over 10,000 packages, attracting over 1,700 new customers. Turning to GMAG, who reported stable Q3 revenue of $3.5 million, which was slightly below Q2's $3.6 million, this reflected a planned transition phase as we build momentum in key markets.

Rich Christensen: Sales in emerging regions rose over 40%, driven by strong growth in Brazil and Mexico, underscoring demand for localized gaming content. We onboarded 12 new providers to the GMAG aggregator, leveraging AI-powered integration and improving scalability and personalization. These enhancements are expected to support a 10% increase in operator count over the coming quarters. Finally, MexPlay generated record quarter-over-quarter performance, with net gaming revenue improving 42% from last year. Registrations and new user deposit metrics were as standout areas, with total registrations up 38% quarter-over-quarter, showing strong acquisition and onboarding effectiveness. Reduced withdrawal levels and higher net revenue generated as a percent of deposits signal healthier engagement and margin trends heading into Q4.

Rich Christensen: As we enter the fourth quarter, we are tightening our full-year revenue guidance to $186 to $187 million, representing 23 to 24% year-over-year growth, and expect Q4 revenue between $52.7 and $53.7 million, up 15 to 17% year-over-year. The third quarter was a record quarter, underscoring the strength of our operating model, disciplined execution, and scalable platform. Our performance reflects a resilient business focused on profitable growth, operational efficiency, and expanding in regulated markets. As we enter Q4, we are well-positioned to drive continued growth and margin improvement across all segments. With that, I'll turn it over to Brian to wrap up the call.

Brian Goodman: Thank you, Rich. Golden Matrix is entering a pivotal stage in its evolution as a global leader in our gaming. Our core businesses remain strong, and we continue to build on a foundation of consistent performance, operational excellence, and international growth. This quarter's results highlight our financial resilience and the scalability of our business model. We remain focused on long-term profitable expansion driven by innovation, disciplined execution, and a growing presence in regulated markets. As we look ahead, we are energized by the opportunities before us, and we remain committed to delivering sustained value for our shareholders through strategic growth and technology leadership. Thank you to our team, our partners, and investors for your continued support. The best is yet to come.

Operator: This concludes today's program. Thank you for your participation, and you may disconnect at any time.

Brian Goodman CEO of Golden Matrix Group, Zoran Milosevic C E O of Meridian bat group Rich Christiansen CFO of Golden Matrix group at the conclusion of the call the recording and supporting resources will be available on Golden matrix groups IR website.

As a reminder, today's call will contain forward looking statements.

Certain statements made on this conference call, including our responses to questions may constitute forward looking information within the meaning of applicable securities laws.

These statements are based on various assumptions about future events, including market and economic conditions business prospects technological developments and regulatory changes. While we believe these assumptions are reasonable they are subject to risks and uncertainties that could cause actual results to differ materially.

For a complete discussion of these factors. Please refer to our most recent 10-K filing and other public disclosures non.

non-GAAP measures will be discussed and reconciliation of these matters of these numbers can also be found in our recently filed 10-K and earnings press release available on our website I will now hand, it over to Brian Goodman CEO of Golden Matrix Group.

Good morning, everyone and thank you for joining us Golden matrix delivered another strong quarter, achieving record revenue of $47 3 million up 15, 4% year over year, and marking a return to profitability with net income of <unk> 4 million.

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This performance underscores the resiliency.

The supplies business and the scalability of our platform across multiple markets.

Our focus on disciplined execution and operational efficiency is paying off with gross profit rising to $26 4 million and a.

56% margin and adjusted EBITDA growing 32% to $5 7 million.

Cross the business, we continue to see strong engagement and organic growth, particularly in Latin America, and other regulated markets, where we are expanding rapidly.

With that I'll hand things over to our CFO rich Christenson to walk you through our financial and operational highlights for the quarter.

Thank you Brian.

Total revenue for the third quarter of fiscal 2025 was $47 3 million up 15, 4% year over year from $41 million driven by continued growth in online casino and raffle operations.

Revenue growth includes a 3% benefit from currency exchange rates.

Organic revenue increased 14% year over year.

Gross profit increased to $26 4 million, representing a 56% margin up 111 basis points year over year, reflecting marketing optimization and an improved product mix.

We reported net income of $400000 compared with a net loss of $3 3 million in the same quarter last year, marking a return to profitability.

Adjusted EBITDA rose, 32% year over year to $5 7 million, representing a 12% margin. This was supported by disciplined cost management and operating efficiency our.

Our balance sheet remains strong with $22 million in cash and total debt of $45 1 million.

We have a net debt leverage ratio of one two times trailing 12 month adjusted EBITDA at quarter end.

Now I'd like to turn the call over to Zoran Milosevic CEO of Meridian bet to provide an update on meridian better performance and strategic initiatives.

Lauren.

Thank you rich.

And bed delivered strong year over year growth in Q3 with revenue up 26% to $32 5 million.

Online casino GTR rose, 30% to $14 6 million driven by 35% increase in turnover and the launch of over 2500 new games.

Sports betting revenue grew 25% to $13 3 million, while the retail casino revenue increased 17% to $3 7 million.

Play out activity remains robust across all markets.

<unk> rose, 25%, new registrations surged, 70% and photos that positive infections jumped 87% quarter over quarter fueled by expansion in Brazil.

Online active users grew 21% and sports revenue per player in our top three markets climbed 29%.

Casino turnover per player also increased 29% to 4147 doors, reflecting strong engagement and content to appeal.

We also introduced meridian missions, our proprietary giving mucification feature to boost retention alongside enhanced responsible gaming tools to support sustainable compliant growth.

Meridian bets Robert's financial performance has been key driver of our consolidated growth trajectory this year.

Their disciplined execution scalable infrastructure and strong market position have translated into meaningful top line acceleration and margin expansion.

As we entered to the water I remain confident that the meridian beds will continue to deliver outsized contributions reinforcing our operating leverage and meeting our full year financial targets with that I'll turn it back to rich.

Thank you Soren those.

Those results from Meridian, but continue to demonstrate the strength of our diversified portfolio now.

Now, let me walk you through the performance of our other key business units first our kings delivered another strong quarter in Q3, maintaining steady growth across the acquisition engagement and order value.

New users increased 19% quarter over quarter with conversion holding at a strong 84% order volumes were up 8% and average order value rose, 10% driving more spend per customer and higher overall activity.

Major highlight came in August of 2025, when Arcanes recorded a record breaking sales day generating 361000 pounds in gross sales from over 31800 orders.

Over 3500, new users joined <unk> with over 3000, making purchases.

The 400000 pound or 2024, Lamborghini Ray well toe competition was a standout success, attracting 42000 entrants selling 291000 tickets and producing 580000 pounds and total order value.

This campaign showcases <unk> ability to combine scale engagement and strong purchase intent to deliver exceptional results.

Next classics for cause rebounded sharply in Q2, achieving strong sequential growth in user acquisition and engagement, new user registrations rose, 72% quarter over quarter, and new VIP has climbed to 82% highlighting effective targeting and reactivation efforts.

Conversion held steady at an impressive 94% while average transaction value increased 21%.

And average revenue per paying user rose, 6% signaling healthier customer spending patterns.

Complementing this rebound the August hold them Toronto campaign set of new business records generating $776000 in sales over 10000 packages attracting over 1700 new customers.

Turning to G&A G, who reported stable Q3 revenue of $3 5 million, which was slightly below Q2 was $3 6 million. This reflected the planned transition phase.

As we build momentum in key markets sales in emerging regions rose over 40% driven by strong growth in Brazil, and Mexico underscoring demand for localized gaming content, we on boarded 12, new providers to the <unk> aggregator leveraging AI powered integration and improve.

<unk> scalability and personalization.

These enhancements are expected to support a 10% increase in operator count over the coming quarters.

Finally next play generated record quarter over quarter performance with net gaming revenue improving 42% from last year.

<unk> and new user deposit metrics were a standout areas.

With total registrations up 38% quarter over quarter, showing strong acquisition and Onboarding effectiveness.

Reduced withdrawal levels and higher net revenue generated as a percent of deposits signal healthier engagement and margin trends heading into Q4.

As we enter the fourth quarter.

We are tightening our full year revenue guidance to $186 million to $187 million, representing 23% to 24% year over year growth.

We expect Q4 revenue between $52, seven and $53 7 million up 15% to 17% year over year.

Third quarter was a record quarter underscoring the strength of our operating model disciplined execution and scalable platform.

Our performance reflects the resilient business focused on profitable growth operational efficiency and expanding in regulated markets.

As we enter Q4, we are well positioned to drive continued growth and margin improvement across all segments with that I'll turn it over to Brian to wrap up the call.

Thank you rich.

Matrix is entering a pivotal stage in its evolution as a global leader in non gaming our core businesses remain strong and we continue to build on our foundation of consistent performance operational excellence and international growth. This quarter's results highlight our financial resilience.

And the scalability of our business model.

We remain focused on long term profitability expansion driven by innovation disciplined execution and a growing presence in regulated markets. As we look ahead, we are energized by the opportunities before us and we remain committed to delivering sustained value for our shareholders.

Strategic growth and technology leadership.

Thank you to our team our partners and investors for your continued support and the best is yet to come.

This concludes today's program. Thank you for your participation and you may disconnect at any time.