Executive Summary / Key Takeaways

• Golden Matrix Group (GMGI) is undergoing a significant transformation, evolving into a diversified global iGaming and sports betting leader through strategic acquisitions and a strong emphasis on proprietary technology and AI-driven innovation.
• The company reported robust financial performance for the nine months ended September 30, 2025, with revenues increasing by 27% to $133.28 million, driven by strong growth in online casino, online sports betting, and contributions from recent acquisitions.
• GMGI's technological edge, highlighted by the Atlas platform, AI-powered recommenders, and the in-house Expanse Studios, is enhancing user engagement, operational efficiency, and driving substantial content-driven growth.
• Aggressive strategic expansion into high-growth markets like Brazil, Peru, and South Africa, coupled with a disciplined M&A approach, underpins management's ambitious targets for annual revenues exceeding $150 million and Adjusted EBITDA over $13 million by 2025.
• While the company maintains a healthy balance sheet, investors should closely monitor liquidity management, particularly regarding current liabilities from long-term loans and acquisition-related consideration, and potential dilution from future financing activities.

The Genesis of a Global Gaming Powerhouse

Golden Matrix Group, Inc. (GMGI) has rapidly transformed its operational footprint and strategic trajectory, establishing itself as a significant force in the global iGaming and sports betting industry. This evolution is largely defined by the pivotal acquisition of MeridianBet Group on April 9, 2024, a transaction accounted for as a reverse merger that integrated MeridianBet's extensive operations across Europe, Africa, and Central and South America. This strategic move expanded GMGI's offerings beyond its original Software-as-a-Service (SaaS) solutions for Asia-Pacific operators and its pay-to-enter prize competitions in the UK and Australia. The company's overarching strategy centers on leveraging this expanded scale, proprietary technology, and a disciplined approach to market entry and acquisitions to drive sustainable, profitable growth.

GMGI operates through three distinct yet synergistic segments: MeridianBet Group, GMAG, and RKings CFAC. MeridianBet Group spearheads online and retail sports betting and casino operations across over 15 jurisdictions, boasting approximately 1200 personnel and 700 betting shops. GMAG focuses on providing enterprise SaaS solutions and reselling third-party gaming content, primarily in the Asia-Pacific region, with ambitions for broader global deployment. The RKings CFAC segment manages pay-to-enter prize competitions in the UK and online trade promotions in Australia, offering unique customer engagement models. This diversified portfolio, underpinned by a commitment to technological innovation, forms the bedrock of GMGI's foundational strengths in a highly competitive digital entertainment landscape.

Technological Bedrock: Atlas, AI, and Expanse Studios

At the core of GMGI's competitive strategy lies its advanced technological infrastructure, which serves as a significant differentiator in the iGaming sector. The company's proprietary Internet gaming enterprise software systems, including the GM-X System and GM-Ag System, provide configurable and scalable turn-key and white-label gaming platforms for regulated real money Internet gaming (RMiG), Internet sports gaming, and virtual simulated gaming (SIM). These platforms offer a full suite of tools, from player registration and payment services to real-time analytics, enabling operators to run successful online iGaming operations.

A cornerstone of GMGI's technological advancement is the Atlas platform, its fifth-generation system for sports betting and online casino. Over 80% of Meridianbet's core operations have transitioned to Atlas, marking a significant software upgrade designed for seamless deployment across major markets. This scalable micro-service-based architecture positions GMGI to compete directly with industry leaders like bet365 and Betano, who also utilize cutting-edge software. The Atlas platform's introduction of features such as Bet Boost (enhanced odds), Auto Cashout (automatic cashout based on predefined conditions), and Early Payout (settlement of bets before the final result), alongside a redesigned sports webpage and improved live betting, directly contributed to a 20% increase in online sports betting revenue for the three months ended September 30, 2025.

Further enhancing its technological moat, GMGI has integrated artificial intelligence (AI) into its offerings. In Q3 2024, Meridianbet introduced two AI-powered tools: the AI Casino Recommender and the AI Bet Recommender. The AI Casino Recommender leverages player behavior and preferences to deliver precise game recommendations, resulting in over a 10% increase in engagement with recommended games and a 9% boost in interactions with new game titles. The AI Bet Recommender, designed for real-time sports betting, analyzes extensive sports data to provide personalized bet suggestions, improving user segmentation, engagement, and retention. These AI tools offer tangible benefits by driving higher player activity and retention, directly impacting revenue generation and customer lifetime value.

Expanse Studios, GMGI's in-house iGaming development vertical, is another critical technological differentiator. It has expanded its portfolio to 56 proprietary games, including crash-style formats, classic slots, and card games. Player activity on Expanse Studios' games surged in Q3 2024, with total spins in September reaching $72.3 million, double the count from Q3 2023. The active player base grew by 135% year-over-year to 135,000 in September 2024, and revenue increased by 167% compared to Q3 2023. The studio has also launched new games specifically designed for the "explosively popular" social casino category in the U.S., and secured a U.S. and EU distribution deal with Bragg Gaming Group (BRAG). Expanse Studios' ability to develop high-demand proprietary content and secure broad distribution channels directly contributes to GMGI's competitive moat, offering unique content that attracts and retains players, thereby enhancing gross margins and market positioning.

Forging a Competitive Moat in a Dynamic Arena

The online gaming industry is intensely competitive, with new entrants frequently emerging. GMGI operates within this dynamic environment, positioning itself as a specialized provider of enterprise SaaS solutions and a diversified operator of online and retail betting and gaming services. Compared to direct competitors like DraftKings (DKNG), Flutter Entertainment (FLUT), Evolution AB (EVVTY), and Caesars Entertainment (CZR), GMGI's competitive standing is shaped by its focus on customizable platforms and global reach, particularly in emerging markets.

While DraftKings and Flutter excel in direct-to-consumer betting platforms with strong brand recognition and broader market penetration, GMGI's enterprise-focused approach offers operators greater flexibility for third-party integrations and tailored solutions. GMGI's proprietary intellectual property for platform development, exemplified by the Atlas system, provides a unique value proposition in terms of efficient content delivery and operational adaptability across diverse regulatory environments. This contrasts with Flutter's integrated ecosystem and Evolution's specialized live gaming solutions, where GMGI aims for versatility across various gaming types.

GMGI's strengths include its ability to support operators in multiple jurisdictions and currencies, leveraging the same technical infrastructure for odds setting and risk management. This omni-channel approach, encompassing iOS, Android, mobile browser, desktop, SMS, SST, and USSD applications, ensures broad accessibility for customers across diverse regions and connectivity levels. However, GMGI's smaller scale compared to industry giants like Flutter and DraftKings can lead to higher customer acquisition costs and potential lags in innovation speed for certain advanced features. For instance, the GMAG segment experienced reduced usage by some key customers due to increased market competition, highlighting the ongoing need for product diversification and margin enhancement.

The company's strategic response to competitive pressures involves continuous innovation, customer-centricity, and adaptability. By integrating AI-powered tools and expanding its proprietary game portfolio through Expanse Studios, GMGI aims to enhance user engagement and retention, thereby strengthening its competitive edge. Furthermore, its disciplined M&A strategy, focusing on profitable and cash-positive businesses, allows it to expand its global footprint and diversify revenue streams, mitigating some of the risks associated with intense competition in specific market niches.

Operational Momentum and Financial Resilience

Golden Matrix Group demonstrated robust operational momentum and a strengthening financial position for the nine months ended September 30, 2025. Consolidated revenues surged by 27% to $133.28 million, compared to $105.26 million in the prior-year period. This growth was broad-based, with online casino revenues increasing by 26% to $38.72 million, online sports betting by 13% to $30.00 million, and retail sports betting and casino by 11% to $18.22 million. The GMAG segment also saw a 24% increase in revenues to $11.01 million, while RKings and Classics for a Cause contributed significantly, with revenues increasing by 42% to $26.26 million and 222% to $6.63 million, respectively.

Gross profit for the nine months ended September 30, 2025, rose by 21% to $74.96 million from $61.78 million in the previous year. This improvement reflects the strong revenue growth across segments, although costs of goods sold increased by 34% to $58.33 million, primarily due to higher gaming taxes and software fees in line with increased income. The company's gross profit margin for the latest trailing twelve months (TTM) stands at 56.57%.

Operating expenses, however, increased by 32% to $77.76 million, driven by higher amortization expenses from newly recognized intangible assets (up 67% to $7.19 million), increased salaries and wages (up 29% to $19.68 million due to headcount expansion and salary increases), and a significant 54% rise in marketing expenses to $19.64 million. The increase in marketing was attributed to new sponsorship agreements and intensified PR activities. Despite these increases, the company's net income attributable to GMGI for the three months ended September 30, 2025, was $566,014, a substantial improvement from a net loss of $3.41 million in the comparable prior-year period. For the nine months, the company reported a net loss attributable to GMGI of $3.25 million, compared to a net income of $650,095 in the prior year, primarily due to the aforementioned increase in general and administrative and interest expenses.

Liquidity and capital resources remain a key focus. As of September 30, 2025, GMGI held $22.04 million in cash and cash equivalents. However, the company reported a working capital deficit of $25.27 million, primarily due to $10.89 million in current portion of long-term loans and $24.31 million in consideration payable to the Meridian Sellers. Management believes its current cash, supplemented by proceeds from its At-The-Market (ATM) offering, is sufficient for at least the next twelve months. Subsequent to September 30, 2025, the company sold an additional 577,418 shares under the ATM program, generating approximately $598,110 in net proceeds. As of the filing date, $17.60 million remains eligible for sale under this agreement. The voluntary full prepayment of the $7.20 million Secured Convertible Note in April 2025 demonstrates proactive debt management and reduces future interest obligations.

Strategic Horizons: Expansion and Efficiency

GMGI's strategic initiatives are firmly focused on expanding its global footprint and enhancing operational efficiencies to capitalize on the booming iGaming industry. A significant growth vector is the company's aggressive pursuit of new licenses in high-potential markets. Meridian Gaming Brazil, for instance, has advanced in the federal shortlisting process for a statewide sports betting and iGaming license, with management expressing confidence in completing the licensing process by the end of 2024. This positions GMGI to tap into Brazil's substantial market, projected at approximately $20 billion with a potential player base of 106 million by 2025. Furthermore, GMGI has secured new licenses in Peru, a market valued at $1.2 billion and growing at 6.4% annually, and South Africa, where digital gaming revenue is expected to reach $828.5 million in 2024. Expanse Studios is also actively applying for a New Jersey casino service industry enterprise license, signaling a strategic entry into the competitive U.S. iGaming market.

Beyond geographical expansion, GMGI is committed to implementing cost efficiencies and rationalization across the company. This involves reducing overall costs through product synergies and eliminating redundancies, particularly following the integration of recent acquisitions. The company aims to improve sales and marketing through broader distribution and increased efforts, while identifying product and distribution synergies to maximize efficiency and build higher sales with improved margins. Optimizing global operations and implementing tighter cost controls are central to this strategy.

Management's outlook is bullish, with expectations for strong ongoing growth and sustainable results. The company has started the fourth quarter of 2024 strongly and is on track to set new records. GMGI is progressing towards its targeted annual revenues of over $150 million and adjusted EBITDA of over $13 million by 2025. This guidance is underpinned by the successful consolidation of Meridianbet, the operational efficiencies being implemented, and the strategic expansion into new, high-growth markets.

Navigating the Investment Landscape: Risks and Outlook

While Golden Matrix Group presents a compelling growth story, investors must consider several key risks. The company's working capital deficit and significant consideration payable for the MeridianBet Group acquisition, totaling $24.31 million, indicate a continued need for prudent liquidity management. GMGI anticipates needing to raise additional funding to meet these obligations and support future growth, with equity sales being the most likely source. Such sales could result in dilution for existing shareholders. The company's common stock has also experienced a highly sporadic, illiquid, and volatile market, which could persist and impact investor returns.

Further dilution could arise from the exercise of outstanding warrants, such as the Lind Warrant, which entitles the holder to purchase up to 750,000 shares of common stock. Legal disputes, including a contested holdback payment of approximately £500,000 related to the RKings acquisition and a tax dispute in Greece involving Meridian Malta, also present potential financial liabilities. However, management is vigorously defending these matters and believes they will be resolved favorably.

Despite these risks, GMGI's outlook remains positive, driven by its diversified business model, proprietary technology, and strategic market expansion. The company's advanced Atlas platform and AI-powered engagement tools are expected to continue driving operational efficiency and customer retention. The strong performance of Expanse Studios and the successful entry into new jurisdictions like Peru and South Africa, alongside the anticipated Brazilian license, are critical growth catalysts. Management's commitment to cost rationalization and disciplined M&A further strengthens the long-term investment thesis.

Conclusion

Golden Matrix Group is in the midst of a profound transformation, strategically leveraging its MeridianBet acquisition to forge a formidable presence in the global iGaming and sports betting arena. The company's investment thesis is deeply rooted in its technological prowess, exemplified by the Atlas platform, AI-driven engagement tools, and the prolific Expanse Studios, which collectively enhance operational efficiency, drive customer loyalty, and deliver a differentiated product offering. This technological leadership, coupled with a disciplined strategy of market expansion into high-growth regions and a focus on cost rationalization, positions GMGI for sustained growth.

While the company faces challenges related to liquidity management and potential dilution from future financing, its robust revenue growth, improving profitability, and clear strategic roadmap underscore its potential. The bullish outlook for 2025, targeting over $150 million in annual revenues and $13 million in Adjusted EBITDA, reflects management's confidence in its ability to execute on its vision. For discerning investors, GMGI represents an opportunity to participate in the rapidly expanding digital entertainment market through a company actively shaping its future with strategic acquisitions and a strong commitment to innovation.