GAN Q1 2025 revenue decreases 4%, reports net loss of $6.8m

The company stated the fall in revenue is primarily attributed to a 58.8% decrease in revenue year-over-year from its B2B segment, which reported just under $5.1m for Q1 2025.

GAN has released the figures behind its financial performance for the first quarter of 2025, including a decrease in revenue year-over-year of 4% to $29.4m, as well as a net loss of $6.8m throughout the period, representing an increase of 64.1% from the prior year period. 

Along with the $6.8m net loss reported for Q1 2025 and the loss in revenue, the company witnessed an adjusted EBITDA loss of $1.5m throughout the quarter, equating to a significant increase of 165.6% from the loss reported for the first quarter of 2024. 

Despite the less-than-fortunate results, GAN CEO Seamus McGill stated he was “pleased” with the continued progress seen throughout the first quarter, having said, “Our B2C results were particularly strong and underscore the strength of our market position in European and Latin American markets.

“We are nearing the conclusion of the regulatory requirements to close our merger with Sega Sammy, which we expect to be successfully completed in the second quarter of 2025.”

While the company’s B2C segment reported an increase in revenue of 32.6% year-over-year for a total of close to $24.3m for Q1 2025, GAN’s B2B segment witnessed its revenue fall by 58.8% from the prior year period, managing to generate just $5.1m during the quarter. 

According to GAN, its pending merger with Sega Sammy was approved by shareholders at a special general meeting, received clearance from the Committee on Foreign Investment in the U.S. (CFIUS) and received approval from several gaming regulatory agencies including the Nevada Gaming Commission.

Good to know: Rush Street Interactive published the figures behind its Q1 2025 performance on April 30, including a 21% increase from the prior year period in total revenue to $262.4m and a net income of $11.2m throughout the period

The closing of the merger remains subject to remaining regulatory requirements and other customary closing conditions, but GAN anticipates the closing will occur throughout the second quarter of 2025.

For revenue by geography, GAN reported the highest activity from the Europe region, having generated nearly $14.5m throughout the first quarter of 2025, while LatAm and the US produced an additional $8.4m and $4.7m, respectively. 

GAN reported an operations cost of just over $34.4m for Q1 2025, representing an increase of 1.4% year-over-year and possibly leading to an operations loss of almost $5.1m, which equates to a 52.9% increase from the prior year period. The highest expense reportedly stemmed from cost of revenue at $10.7m, while product and technology and general and administrative each totaled $7.9m of expenses as well. 

Kirk Geller

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