Executive Summary

Q4 2024 revenue was $31.7M, up 3% year over year (B2C-led), but down sequentially from $37.1M in Q3; diluted EPS was $(0.09) vs $(0.21) in Q4 2023 and $0.04 in Q3 2024 as operating costs fell materially YoY .
Adjusted EBITDA improved to approximately breakeven ($0.008M) from $(3.9)M in Q4 2023, though down from $5.4M in Q3 as B2B revenue and take rate softened sequentially .
B2B Gross Operator Revenue (GOR) rose 69% YoY to $651.2M, but the B2B take rate fell to 1.4% (vs 3.1% in Q4 2023), and B2B revenue declined to $9.0M YoY and sequentially from $16.4M in Q3, reflecting partner dynamics and mix .
No earnings call or quantitative outlook; merger with SEGA SAMMY now expected to close in Q2 2025 (previously “early 2025”), which remains the primary stock narrative and catalyst path forward .

What Went Well and What Went Wrong

Cost reduction drove improved profitability: operating expenses fell to $23.4M from $29.5M YoY, supporting a narrower net loss and near breakeven Adjusted EBITDA; CEO credited “streamlined cost structure” and focus on improved profitability .
B2C performance and margins improved YoY: B2C revenue rose to $22.7M (from $18.9M), with Europe strength; B2C segment contribution margin improved to 64.5% (60.3% prior year) and sports margin reached 8.5% .
B2B activity momentum with higher operator throughput: B2B GOR climbed to $651.2M (+69% YoY), highlighting robust end-market activity in Pennsylvania, New Jersey, Ontario and Connecticut .

B2B revenue and take rate pressured: B2B revenue declined to $9.0M (vs $11.8M YoY and $16.4M in Q3), tied to a partner exit; take rate compressed to 1.4% vs 2.7% in Q3 and 3.1% in Q4 2023, weighing on segment revenue conversion .
Latin America softness continued: management cited reduced player activity and unfavorable FX in Latin America impacting B2C trends, partly offset by Europe .
Transparency limited: no earnings call or numerical guidance due to pending merger, reducing forum for qualitative updates and outlook clarifications .

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Millions)	$30.7	$35.6	$37.1	$31.7
Diluted EPS ($)	$(0.21)	$(0.04)	$0.04	$(0.09)
Operating (Loss) Income ($USD Millions)	$(8.6)	$0.2	$2.1	$(2.7)
Adjusted EBITDA ($USD Millions)	$(3.9)	$3.7	$5.4	$0.0 (≈$0.008)
Total Segment Contribution Margin (%)	68.1%	71.2%	73.3%	65.5%

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
B2B Revenue ($USD Millions)	$11.8	$13.0	$16.4	$9.0
B2C Revenue ($USD Millions)	$18.9	$22.6	$20.7	$22.7
B2B Segment Contribution ($USD Millions)	$9.5	$10.8	$14.1	$6.1
B2C Segment Contribution ($USD Millions)	$11.4	$14.5	$13.1	$14.6

Geography ($USD Millions)	Q4 2023	Q2 2024	Q3 2024	Q4 2024
United States	$8.5	$10.5	$14.1	$8.6
Europe	$12.1	$14.1	$12.2	$14.4
Latin America	$7.1	$8.2	$8.4	$8.0
Rest of World	$3.0	$2.8	$2.5	$0.6

KPI	Q4 2023	Q2 2024	Q3 2024	Q4 2024
B2B Gross Operator Revenue ($USD Millions)	$384.7	$609.3	$610.4	$651.2
B2B Take Rate (%)	3.1%	2.1%	2.7%	1.4%
B2C Active Customers (thousands)	236	237	226	212
B2C Marketing Spend Ratio (%)	28%	23%	24%	17%
B2C Sports Margin (%)	6.5%	8.7%	7.2%	8.5%

Metric	Period	Previous Guidance	Current Guidance	Change
Financial guidance (revenue, EBITDA, etc.)	FY/Q1’25+	None provided; no call	None provided; no call	Maintained “no guidance” (merger pending)
Merger closing timeline	Transaction Close	Early 2025	Q2 2025	Updated timing window
Merger consideration	At close	$1.97/share cash (previous disclosure)	$1.97/share cash (unchanged)	Maintained

Note: No Q4 2024 earnings call was held due to the pending merger; themes derived from Q2/Q3/Q4 releases .

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Cost rationalization	Opex down materially YoY; focus on efficiency and profitability	Opex down to $23.4M (from $29.5M YoY), supporting improved EPS and near-breakeven Adj. EBITDA	Improving
B2B expansion/mix	Nevada expansion; partner exit in Michigan benefited Q2; strong B2B growth in Q3	B2B revenue $9.0M; partner exit weighed YoY; take rate compressed to 1.4% despite GOR strength	Mixed (throughput up, take rate down)
B2C regional dynamics	Europe strength; LATAM weaker and FX headwinds in Q2/Q3	Same pattern: Europe up, LATAM softer and FX adverse	Stable
Sportsbook margin volatility	Q2: 8.7%; Q3: 7.2%	Q4: 8.5%	Improving
Regulatory/merger approvals	NGC approval; timeline early 2025	Target closing in Q2 2025; no call due to merger	Advancing toward close

“This led to stronger financial performance in 2024 with growth in both the top and bottom line. We are simultaneously working diligently to close our merger with SEGA SAMMY... expect the merger to be successfully completed in the second quarter of 2025.” – CEO Seamus McGill .
Management reiterated focus on streamlined cost structure and improved profitability with lower compensation and D&A driving reduced operating expenses .
On B2C trends: Europe benefited from increased player activity, offset by reduced activity and unfavorable FX in Latin America .
On B2B: GOR growth driven primarily by organic growth in Pennsylvania, New Jersey, Ontario and Connecticut, though revenue was impacted by partner exit and take rate .

The company did not host a Q4 2024 earnings call given the pending SEGA SAMMY merger; therefore, no Q&A session or incremental guidance clarifications were provided .

Wall Street consensus (S&P Global) for Q4 2024 revenue and EPS was unavailable at the time of analysis due to missing mapping for GAN; as a result, no formal “vs. consensus” comparison can be provided. S&P Global data unavailable.
In the absence of consensus and company guidance, investors should anchor on sequential/YoY trends and non-GAAP profitability progress while monitoring merger milestones .

Sequential step-down vs Q3 reflects B2B revenue and take rate compression; nonetheless, YoY metrics improved on cost controls and higher B2C revenue with better sports margin .
Mix remains pivotal: high B2B GOR with weak take rate yields lower conversion to revenue; watch contract mix, partner transitions, and geographic drivers behind take rate .
B2C remains resilient in Europe; LATAM faces demand and FX headwinds—trend likely persists near term absent targeted acquisition spend (marketing ratio fell to 17%) .
Profitability trajectory improved significantly in 2024; sustaining positive Adj. EBITDA depends on stabilizing B2B take rate and continued discipline on opex .
No call or guidance shifts focus to merger execution; timing updated to Q2 2025. The $1.97/share cash consideration frames event-driven positioning into close, pending remaining regulatory approvals .
Trading setup near term is headline-driven (merger milestones) with limited fundamental catalysts given lack of guidance; medium term, integration prospects under SEGA SAMMY and B2B growth runway remain the longer-term narrative .

Revenue: $31.7M vs $30.7M (Q4’23) and $37.1M (Q3’24) .
EPS (diluted): $(0.09) vs $(0.21) (Q4’23) and $0.04 (Q3’24) .
Adj. EBITDA: ≈$0.0M vs $(3.9)M (Q4’23) and $5.4M (Q3’24) .
Segment mix: B2B $9.0M; B2C $22.7M (vs Q3: B2B $16.4M; B2C $20.7M) .
Geography: Europe $14.4M; U.S. $8.6M; LATAM $8.0M; ROW $0.6M .
KPIs: B2B GOR $651.2M; Take Rate 1.4%; B2C Active Customers 212k; Marketing Spend Ratio 17%; Sports Margin 8.5% .