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Introduction & Market Context
Bragg Gaming Group (NASDAQ:BRAG) released its second quarter 2025 results presentation on August 14, 2025, highlighting the company’s strategic pivot toward higher-margin proprietary content and geographic diversification. The iGaming technology provider reported modest overall revenue growth of 4.9% year-over-year to €26.1 million, while working to reduce its reliance on the Netherlands market and expand its presence in high-growth regions like the United States and Brazil.
The company’s stock closed at $3.83 on August 13, 2025, down 4.49% for the day, with shares trading significantly below their 52-week high of $6.12 but above the 52-week low of $2.86.
Quarterly Performance Highlights
Bragg reported mixed financial results for Q2 2025, with revenue growth offset by a slight decline in adjusted EBITDA. The company emphasized that excluding the Netherlands market contraction, revenue growth would have been 21% year-over-year.
As shown in the following financial overview chart, revenue reached €26.1 million in Q2 2025, compared to €24.9 million in Q2 2024, while adjusted EBITDA decreased 4.4% to €3.5 million:
A key positive development was the 10.8% year-over-year increase in gross profit to €13.7 million, with gross profit margin expanding by 280 basis points. The company also generated €2.6 million in positive cash flow from operations, a significant improvement from the €0.7 million outflow in the same period last year.
Bragg’s product mix has been evolving strategically, with proprietary content now representing 14.8% of total revenue, up from 10.8% in Q2 2024:
The company highlighted a 44% year-over-year increase in high-margin proprietary content revenue to €3.9 million, demonstrating the sustainability of its game portfolio:
Strategic Initiatives
Bragg’s presentation emphasized several strategic initiatives aimed at improving margins and reducing market concentration risk. The company is actively diversifying away from the Netherlands market, which represented 49% of revenue in 2022 but is projected to decline to 32% in 2025:
The company is making significant inroads in the U.S. online casino market, which is growing at 31% year-over-year and is projected to expand from $10 billion in 2025 to $75+ billion at maturity:
Brazil represents another key growth market for Bragg, with the company launching operations on the first day of market regulation (January 1, 2025) and making a strategic investment in Brazilian games studio RapidPlay:
Bragg also outlined its AI vision for 2027, focusing on building AI capabilities, delivering AI-powered products, operationalizing AI, and fostering an AI-first culture:
Detailed Financial Analysis
The company’s strategic shift toward higher-margin content is central to its long-term profitability goals. Bragg categorizes its revenue into three tiers based on margin profile:
This shift is already yielding results, with proprietary content delivering compounding high-margin revenues. The company noted that over 50% of 2025 proprietary content revenue comes from titles launched pre-2024, demonstrating the long-term value and sustainability of its game portfolio.
Recent operational updates include new content development agreements with Hard Rock Digital and the launch of online casino games with Fanatics Casino in New Jersey, Pennsylvania, and Michigan. The company also strengthened its leadership team with the addition of Scott Milford as EVP Group Content and Luka Pataky as EVP AI & Innovation.
Forward-Looking Statements
Bragg revised its full-year 2025 guidance, now expecting revenue between €106.0-108.5 million and adjusted EBITDA between €16.5-18.5 million. The company projects increasing adjusted EBITDA margins in the second half of 2025, resulting from improved product mix and cost control measures.
The company highlighted that it has realized €2.0 million in annualized synergies by optimizing its cost base and expects to achieve 20% adjusted EBITDA margins in H2 2025.
Bragg emphasized its investment case by noting its current enterprise value of $100 million represents approximately 5.0x EBITDA, which is well below the median 14.7x EBITDA multiple seen in recent gaming sector M&A exits:
Management believes this valuation gap presents a significant opportunity for investors as the company continues to execute on its strategic initiatives to drive growth in high-margin proprietary content and expand in regulated markets worldwide.
Full presentation:
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