GAN Limited

Q1 revenue was $35.1 million, down 6% from the prior-year quarter. B2B revenue was $8.6 million versus $10.7 million in the prior year period, while B2B gross operator revenue processed through the platform was $423 million, up more than 40% year over year. Adjusted EBITDA was modestly positive, and reported net income was $1.5 million, benefiting from a $9.2 million gain from the Ainsworth amendment. Cash at quarter-end was $40.8 million, down from $45.9 million at year end, and management said cash at the end of April was approximately back to year-end levels. Forward guidance was not provided. Management said it cannot give an outlook while the strategic review is ongoing, but it expects to be in a position to provide guidance for the year after those discussions are resolved. Qualitatively, management said take rates should trend higher in coming quarters as GAN Sports rolls out across the U.S., and it expects the business mix to shift toward B2B sports and LATAM B2C.

Dermot Smurfit framed the quarter around strategic simplification and balance-sheet repair rather than top-line growth. He highlighted the extension of FanDuel exclusivity, the rollout of GAN Sports with Wynn, the exit from Ontario B2C, and the strategic review as steps aimed at unlocking shareholder value and improving profitability. His tone was upbeat and confident, but he also acknowledged that Q1 revenue was lighter than expected and that the company is still early in its sports rollout.

Brian Chang focused on the financing changes and their cash impact. He said the amended credit facility is now fully in compliance with covenants, the interest rate is fixed at 8% versus an effectively 15.5% variable rate in the prior-year quarter, and the PIT structure defers cash interest until maturity; he estimated about $4 million in annual cash interest savings. He also said the Ainsworth amendment reduces future cash commitments by $15 million, or $5 million annually, in exchange for 1.25 million shares, and that the two amendments together should reduce cash outflows by about $9 million per year. He noted quarter-end cash of $40.8 million and said diluted share count should be around 47 million including options, Ainsworth, and RSUs.

Analysts pressed management on why Q1 missed the loan by $2 million versus the March 30 indication, and Dermot said the company was still in commercial discussions with B2B clients and some agreements closed too late in the quarter. Ryan Sigdahl also asked about the largest B2B customer and the implied revenue outlook, but management declined to discuss customer-specific terms or forecast that account under the strategic review. Chad Beynon asked about Coolbet’s momentum in Mexico and broader LATAM markets; Dermot said Mexico is slower than initially expected but still promising, while Latin America overall showed strong records in NGR and activity. Questions on GAN Sports timing elicited a response that Wynn rollout is already underway, additional U.S. markets are expected over the summer, and Nevada licensing remains a multi-month process.