Overview

We are a leading designer and supplier of electronic gaming machines (EGMs) and other products and services for the gaming industry. We operate our business in three distinct segments: EGMs, Table Products, and Interactive. Each segment’s activities include the design, development, acquisition, manufacturing, marketing, distribution, installation, and servicing of a distinct product line.

Founded in 2005, we historically focused on supplying EGMs to the Native American gaming market. Since 2014, we have expanded our product line-up to include Class III EGMs for commercial and Native American casinos, EGMs that use the results of historical horse races, table game products, and interactive products.

For the three months ended March 31, 2025, approximately 68% of our revenue was generated through recurring contracted lease agreements where we place EGMs and table game products at our customers’ gaming facilities under either a revenue sharing agreement or a fee-per-day agreement.

On May 8, 2024, the Company entered into a merger agreement to be acquired by affiliates of Brightstar Capital Partners. The transaction is expected to be completed in the third quarter of 2025, subject to regulatory approvals and other closing conditions.

EGM Segment

The EGM segment represents our largest business, accounting for 87% and 91% of our revenue in the first quarter of 2025 and 2024, respectively. We offer a library of over 550 proprietary game titles delivered on our EGM cabinets, including premium lease-only and core cabinets available for sale and lease. Our top-performing game titles include “Triple Coin Treasures,” “Rakin’ Bacon!,” and “Rakin’ Bacon! Deluxe.”

We derive a substantial portion of our EGM revenue from participation agreements, where we place EGMs at customer sites and receive a percentage of the revenue generated or a fixed daily/monthly fee.

Table Products Segment

We offer over 70 unique table products, including live felt table games, side bets, progressives, card shufflers, signage, and other ancillary equipment. As of March 31, 2025, we had placed 5,800 table products domestically and internationally, making us a leading supplier of table products to the gaming industry.

Interactive Segment

We specialize in providing a B2B game aggregation platform and remote gaming server for the online real-money gaming (RMG) sector. We also offer B2C free-to-play social casino apps, with our most popular app being Lucky Play Casino.

Key Drivers of Our Business

Our revenues are impacted by factors such as consumer spending on our revenue share installed base, the pricing of our EGMs, our revenue share percentages, our customers’ capital budgets, the replacement and expansion of existing casinos, the opening or closure of gaming jurisdictions, our ability to obtain gaming licenses, the competitiveness of our products, and macroeconomic conditions.

Our expenses are affected by labor costs, component prices, energy prices, licensing costs, maintenance expenses, and tariffs or trade policy changes.

Results of Operations

In the first quarter of 2025, our total revenues decreased 1.2% year-over-year to $94.8 million, driven by a 11.9% decline in equipment sales, partially offset by a 4.6% increase in gaming operations revenue.

The EGM segment saw a 0.7% decrease in gaming operations revenue due to a $0.86 decline in revenue per day, partially offset by an increase in the installed base. Equipment sales in the EGM segment decreased 12.8% due to a 198-unit decline in EGM units sold.

The Table Products segment experienced a 3.3% increase in gaming operations revenue and a 54.2% increase in equipment sales. The Interactive segment saw a 74.9% jump in gaming operations revenue.

Total Adjusted EBITDA decreased 4.4% to $42.1 million, primarily due to the decline in the EGM segment, partially offset by improvements in the Table Products and Interactive segments.

Segment Operating Results

Segment	Q1 2025	Q1 2024	Change
EGM
Gaming Operations Revenue	$53.4M	$53.8M	-0.7%
Equipment Sales	$29.2M	$33.5M	-12.8%
Adjusted EBITDA	$34.9M	$39.7M	-12.0%
Table Products
Gaming Operations Revenue	$4.2M	$4.1M	+3.3%
Equipment Sales	$0.7M	$0.5M	+54.2%
Adjusted EBITDA	$2.6M	$2.4M	+9.8%
Interactive
Gaming Operations Revenue	$7.3M	$4.2M	+74.9%
Adjusted EBITDA	$4.5M	$1.9M	+134.2%

Liquidity and Capital Resources

As of March 31, 2025, the Company had $39.5 million in cash and $40.0 million available under its revolving credit facility. Management believes the Company has sufficient liquidity to fund its operations for at least the next 12 months.

The Company’s primary liquidity requirements are for operating capital expenditures, working capital, debt servicing, and game development. It expects to finance these needs through a combination of cash on hand, additional financing, and cash flows from operations.

Conclusion

In the first quarter of 2025, the Company saw mixed performance across its business segments. The EGM segment faced headwinds, while the Table Products and Interactive segments showed strong growth. The pending acquisition by Brightstar Capital Partners is expected to close in the third quarter of 2025, subject to regulatory approvals. Overall, the Company appears to have sufficient liquidity to fund its operations and strategic initiatives in the near term.