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TORONTO - On Thursday, Bragg Gaming Group (NASDAQ:BRAG) reported second-quarter revenue that missed analyst expectations and lowered its full-year outlook as the company shifts focus toward higher-margin business over aggressive revenue expansion.
The online gaming content and technology provider posted second-quarter revenue of €26.1 million, up 4.9% YoY but well below the analyst consensus of €31.37 million. The company reported a loss of €0.07 per share, slightly worse than the estimated loss of €0.06. Adjusted EBITDA fell 4.3% to €3.5 million, with margins declining to 13.3% from 14.5% a year earlier.
Bragg’s gross profit increased 10.8% to €13.7 million, with gross profit margin expanding 280 basis points to 52.7%.
CEO Matevž Mazij explained the strategic shift: "While our top-line growth may appear modest, I want to be clear about our strategic focus. With increasing gaming taxes being implemented in key markets like Brazil, The Netherlands, and Romania, we’re prioritizing improved margin and cash flow performance over aggressive revenue expansion."
The company revised its 2025 guidance downward, now expecting full-year revenue between €106.0 million and €108.5 million and adjusted EBITDA of €16.5 million to €18.5 million. Previously, Bragg had anticipated double-digit growth in both metrics.
During the quarter, Bragg repaid $5 million of its $7 million secured promissory note and is in advanced stages of securing a new working capital revolving debt facility from a Tier 1 Canadian bank.
The company highlighted several strategic achievements, including launching content with Fanatics Casino across the Tri-State area, signing an exclusive content development agreement with Hard Rock Digital, and strengthening its position in Brazil’s newly regulated iGaming market.
"We have realized €2 million in annualized synergies from the business, unlocking improved margins for the second half of 2025," Mazij added, noting the company is on track to achieve a 20% adjusted EBITDA margin target in the second half of 2025.
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