GAN Limited has reported its financial results for Q4 and 2024, showing revenue growth and improved profitability, supported by cost-cutting measures.
The company continues to work towards finalizing its merger with Sega Sammy, which is expected to close in the second quarter of 2025.
Looking at GAN’s total revenue in 2024, this reached $135 million, a 4% increase from the previous year. The main growth driver here was in the B2B segment, which generated $50.7 million — up 17% from 2023.
The B2C segment, on the other hand, did get hit with a slight decline, thanks to a 2% revenue drop to $84.3 million.
Increased player activity in Europe helped sustain the segment, but this was counterbalanced by reduced engagement in Latin America and unfavorable exchange rates.
GAN’s focus on cost reduction had a significant impact, with operating expenses decreasing by 19% to $98.2 million. The company cut compensation costs by 23% and reduced depreciation expenses due to fully amortized assets. These measures contributed to a 77% reduction in net loss, which dropped to $8 million in 2024.
Adjusted EBITDA showed strong improvement, turning positive at $8.6 million compared to an $8.4 million loss in 2023. The company’s cash reserves also improved, rising by 6% to $38.7 million, supported by a payment received from a partner exit.
Sega Sammy merger progress
Looking to the near future, GAN’s merger with Sega Sammy remains on track for completion in Q2 2025.
The deal has already received approvals from GAN shareholders, the Committee on Foreign Investment in the U.S. (CFIUS), and several gaming regulators, including the Nevada Gaming Commission.
GAN CEO Seamus McGill commented: “We continue to work through the remaining regulatory requirements and expect the merger to be successfully completed in the second quarter of 2025.”
What does 2025 look like for GAN?
With its financial position improving, GAN is focused on expanding on B2B elements in North America while stabilizing player activity in its B2C business.
The company’s significant cost reductions and improved adjusted EBITDA suggest further profitability improvements in 2025 but the completion of the Sega Sammy merger and the ability to sustain growth in both business segments will be critical factors shaping its future trajectory.
