Galaxy Next Generation, Inc.

Revenue increased 63% year over year to $1.2 million in the quarter from $777,000, and rose 40% to $3.9 million for the nine-month period from $2.8 million. Gross profit was $252,000 in the quarter versus $421,000 a year ago, and $1 million for nine months versus $1.1 million last year. G&A expense declined 29% to $1.2 million in the quarter and 47% to $3.8 million for nine months. Other expenses fell to $125,000 in the quarter from $1.6 million, and to $1.1 million for nine months from $17.8 million. Net loss improved to $1.1 million in the quarter from $2.9 million, and to $3.9 million for nine months from $23.8 million. Adjusted EBITDA was a loss of $953,000 in the quarter and a loss of $1.4 million for nine months. Cash and cash equivalents were approximately $480,000 at quarter-end, down from about $540,000 at fiscal year-end. Management did not provide next-quarter or full-year numeric guidance.

The CEO was not separately quoted, but management’s strategic message was focused on expansion across reseller channels, deeper penetration in existing regional markets, and broader reach beyond K-12. The tone was optimistic about G2 Link, e-commerce, and new partnerships as growth drivers, with management saying the company is “fundamentally well positioned for substantial growth over the long term.”

Magen McGahee said the quarter reflected continued momentum from sales execution and rising demand, with revenue up 63% to $1.2 million. She also highlighted improved cost control, including a 29% decline in G&A to $1.2 million, a drop in other expenses to $125,000, and a reduction in net loss to $1.1 million. On the balance sheet, she said total liabilities fell 40% to $5.3 million, cash was about $480,000, and the shareholder deficit declined by about $1.1 million; she also emphasized ongoing efforts to manage dilution and maintain financing flexibility through receivables lending, purchase order financing, and other capital market options.

Analysts asked how Galaxy makes money through its new partnerships, and management explained that most are reseller relationships: Galaxy sells products to resellers, who then sell to end users, while Galaxy’s margins are determined by what it sells to the reseller, not the reseller’s end pricing. Questions also focused on the company structure, board compensation, dilution after the reverse split, and whether management can address stock volatility. Management said the reverse split and prior financing were intended to support growth and a better share structure for business development and acquisitions, and reiterated that stock price movement is outside its control.