Bragg Gaming Group Inc.

Second quarter revenue was EUR 22.9 million, down 12% from EUR 26.1 million in Q2 2025. Gross profit was EUR 11.8 million versus EUR 13.7 million a year ago, and gross margin was 51.7% compared with 52.7%. Adjusted EBITDA was EUR 3.5 million, flat year over year, with adjusted EBITDA margin expanding to 15.4% from 13.3% (up 212 basis points). For the first half of 2026, revenue was EUR 48.5 million, down 6% from EUR 51.6 million, and adjusted EBITDA was EUR 7.5 million, flat year over year. Cash was EUR 3.3 million at June 30, 2026. Looking ahead, Bragg withdrew its previously disclosed fiscal 2026 guidance after closing Drayton, saying it does not yet have a reasonable basis to forecast the combined business; prior to withdrawal, standalone revenue was tracking below the low end of guidance, EBITDA at the low end, and EBITDA margin toward the upper end of the implied range.

Matevž Mazij said Bragg is intentionally emphasizing margin and cash flow over aggressive top-line growth, describing the company as being in a renewed group-wide strategy centered on a leaner, AI-first operating model. He framed the quarter’s strategic wins as greater focus on proprietary games, less low-margin aggregation, and a shift from supplying components to building the ecosystem operators run on. He was upbeat about North American proprietary content momentum, calling the U.S. the most important market and highlighting Drayton as a way to expand reach into ADW and improve content, technology, and margin profile.

Robert Bressler detailed that revenue fell to EUR 22.9 million from EUR 26.1 million, gross profit to EUR 11.8 million from EUR 13.7 million, and gross margin to 51.7% from 52.7%, while adjusted EBITDA stayed at EUR 3.5 million and margin improved to 15.4% from 13.3%. He said gross compensation costs before capitalization were down 14% year over year and that the restructuring actions announced in January and July should produce about EUR 10.5 million of annualized cash savings, with the savings expected to start showing more clearly from Q4 onward. On capital structure, he noted EUR 3.3 million of cash at quarter-end, the Drayton acquisition was completed for USD 9 million in shares, subscription receipts converted and released about EUR 1.1 million to the company, and the revolving credit facility with Bank of Montreal was renewed for another year on existing terms.

Analysts focused on why guidance was withdrawn, where the underlying revenue pressure is coming from, and whether Drayton and the restructuring should offset it. Bressler said the main standalone headwinds were softer Brazil intermediary revenue as suppliers moved direct, tougher-than-expected regulatory changes in some European markets such as Croatia, and a slight decline in Wild Streak studio output. On Drayton, management repeatedly said it is still early, with five studio interests and additional assets needing integration before they can give a reasonable combined forecast, though they see potential synergies and higher-margin growth from the North American focus.