Galaxy Gaming and GigaCloud Technology report third-quarter results

Galaxy Gaming reported third-quarter revenue of $8.0 million, a 9% increase from the previous year. The company reached a record in recurring revenue, which accounted for more than 99% of total revenue. Net income rose to $5.1 million, a figure influenced by a $5.2 million fee related to the terminated Evolution merger. While Core revenue rose 10% due to new U.S. game placements and foreign market participation, operating income declined to $0.66 million from $1.90 million, impacted by professional fees and trade-show expenses.

GigaCloud Technology posted third-quarter results showing higher revenue and net income compared to the previous year. Despite an earnings beat and positive fourth-quarter guidance, the company's share price recently declined by 7.36% to $58.37. Analysts have suggested the stock may be undervalued, with some estimating a fair value of $73 per share. The company continues to apply integration strategies to its portfolio, though it faces risks from ocean freight fluctuations and a previous governance investigation.