$220M MC with 72% Revenue Growth Trading at 1.3x Sales & 11x FCF
MMN Recommend
Today we’re featuring Coughlin Capital.
Coughlin Capital isn’t noise. It’s one investor, thinking out loud — clearly.
It’s deep dives into quality businesses, why they matter, and what they’re worth. If you value independent thinking and long-term clarity, this one’s for you.
I’ll let Coughlin Capital take over from here…
72% revenue growth last quarter. 57% gross margins. A balance sheet that just got significantly cleaner. Management executing on a clear playbook.
Look, I’ll be honest—I’d never heard of this company until recently. It’s a small gaming tech business that’s completely under the radar. No analyst coverage worth mentioning and barely a whisper on Twitter.
But here’s what makes it interesting: they’ve quadrupled revenue in two years, expanded into nearly 20 countries, and the stock still trades like they’re headed for bankruptcy.
72% revenue growth last quarter. 57% gross margins. A balance sheet that just got significantly cleaner. Management executing on a clear playbook—acquire quality assets, integrate smartly, expand into large addressable markets.
Yet here it sits at 1.3x sales and 11x FCF. Either I’m missing something fundamental, or this is one of those rare disconnects where patience gets rewarded handsomely.
Credit where it’s due: Mark Colin (@uboat159) brought this one to my attention. Give him a follow if you’re not already—his insights are consistently solid.
The company is Golden Matrix Group ($GMGI), and it represents exactly the kind of overlooked opportunity that makes small-cap investing interesting.
What They Actually Do
Golden Matrix operates a portfolio of digital gaming platforms across B2B and B2C verticals. Think of it as a mini-conglomerate for internet gambling assets—they acquire, improve, and scale digital gaming properties worldwide.
The transformation story centers on their 2024 acquisition of MeridianBet Group, a European sportsbook and casino operator with 20+ years of operating history. That deal turned GMGI from a small-cap software provider into a legitimate global gaming platform operating across 18 jurisdictions in Europe, Africa, and Latin America.
Today’s portfolio spans six subsidiaries:
MeridianBet: The crown jewel. Sports betting and online casinos operating since 2001, with established positions across multiple continents. This is where the 72% gross margins come from.
GM-AG (Atlas): B2B aggregation platform licensing 10,000+ casino games to third-party operators. Think of it as the Netflix of casino content.
RKings/Classics for a Cause: Online prize competitions in UK and Australia. Less glamorous than sports betting, but generates steady cash flow with high engagement.
MexPlay: Regulated online casino in Mexico, giving GMGI a foothold in Latin America’s emerging markets.
Expanse Studios: In-house game development arm that’s recently expanded into the U.S. sweepstakes market across 40+ states.
It’s a capital-light model that scales beautifully. No physical casinos, no armies of dealers, no slot machine inventory. Just digital platforms that connect players with games and betting markets. The infrastructure investments are front-loaded—once built, incremental users drop straight to the bottom line.
The Growth Story
The MeridianBet acquisition supercharged GMGI’s financials in exactly the way management promised. Revenue exploded from $36 million in 2022 to $151 million in 2024—a clean 4x increase. Q1 2025 delivered $42.7 million in revenue, up 72% year-over-year, putting them on track for their guided $190-195 million in 2025 revenue.
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