By M. Marin
READ THE FULL GMGI RESEARCH REPORT
Golden Matrix Group (NASDAQ:GMGI) management is optimistic about the outlook for 2026 and beyond, as GMGI leverages the infrastructure it has developed and consolidated in 2025, when the company continued to integrate and scale subsidiary Meridianbet, added new gaming licenses, and expanded its geographic footprint significantly, and grew its gaming content library, among other growth initiatives. Moreover, the upcoming FIFA World Cup games and anticipated regulatory changes in Brazil could also be potential catalysts for growth.
GMGI registered 15.4% year-over-year revenue growth in 3Q25, which equates to record quarterly revenue of $47.3 million. Moreover, this growth rate also represents a rebound from the prior quarter, which was negatively impacted by customer-friendly sports outcomes whereby player win rates were higher than anticipated for multiple industry players, and represents a return to expected growth trends. As it executes its growth strategy, the company has the tailwind of a rapidly growing online gambling industry.
Operating leverage showcases focus on operating efficiencies
Reflecting its focus on operating efficiencies and scale, as its revenue base continues to grow, operating expenses as a percentage of revenue continue to decline, and GMGI continues to record improving operating leverage. Operating costs increased about 14.5% year-over-year to $26.7 million. Expenses have generally been earmarked to expand geographically, improve market share, and maintain gaming technology’s leading edge to support growth initiatives.
Key Units Showed Double-Digit Growth
Meridianbet Group – Meridianbet Group is an online sports betting and gaming group, licensed and operating in a growing number of jurisdictions across Europe, Africa, and South America. It was founded in 2001 and acquired by Golden Matrix in 2024. Meridianbet leverages its proprietary technology and scalable systems to operate in multiple countries and currencies with an omnichannel approach to markets.
The Meridianbet Group segment includes revenues from retail sports betting, retail casinos, online sports betting, online casinos, and bars that MeridianBet operates. Segment revenue increased 26% year-over-year to $32.5 million, reflecting robust online and retail performance. Online casino gross gaming revenue (GGR) grew 30% to $14.6 million. A key driver behind this growth reflects an increase in the library of online casino games offered from different providers to more than 2.5k titles and the debut of a new game, Gates of Olympia, from GMGI’s proprietary game arm, Expanse studio, which became a top 5 most popular game in 3Q25. New player registrations were up 70% year-over-year, as the company continues to scale its Brazil operations.
RKings & Classics for a Cause (CFAC) – The RKings & CFAC segment includes revenues from pay-to-enter prize competitions and trade promotions that RKings conducts in the UK and Classics for a Cause conducts in Australia. Consistent with its strategy to maintain leading-edge technology, the company recently deployed new systems to support its raffle ticket businesses and introduced a new CRM to enhance customer engagement and customer lifetime value.
Multiple upcoming potential growth drivers, including FIFA World Cup games…
A core objective is to diversify its revenue base across geographic markets, by operating segment, and channel. GMGI views the diversification of its operations across both B2B and B2C channels and geographic markets as a competitive advantage that also protects Golden Matrix from contractions in any single market or channel. The company continues to advance its strategy to expand its global footprint, which is a core objective, as noted. As it implements expected growth measures, GMGI intends to prioritize expansion into new regulated markets, including Latin America and Europe, enhance AI-driven gaming innovation, and boost operational efficiencies.
… Including upcoming FIFA World Cup games
Among the most significant new markets in which GMGI operates is Brazil, which represents an estimated $5.6 billion gross gaming revenue market. As noted, the upcoming FIFA World Cup games could also be a potential catalyst for growth in Brazil and other markets. The 2026 World Cup will be the first to have 48 teams playing, up from 32. Moreover, tournament hosting by three countries – Canada, Mexico, and the U.S., and featuring a new format with 104 matches, might also boost reach and interest in sports betting across various markets, we believe.
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