Bragg Gaming Group (NASDAQ:BRAG) reported second-quarter revenue on Thursday that fell short of analyst expectations and simultaneously lowered its full-year forecast, as the company shifts its strategy toward higher-margin operations rather than pursuing aggressive top-line growth.
The online gaming content and technology provider posted Q2 revenue of €26.1 million, marking a 4.9% year-over-year increase but falling well below the consensus estimate of €31.37 million. The company reported a loss of €0.07 per share, slightly worse than the predicted €0.06. Adjusted EBITDA dropped 4.3% to €3.5 million, with margins slipping to 13.3% from 14.5% a year earlier.
Gross profit, however, rose 10.8% to €13.7 million, with gross margins widening by 280 basis points to 52.7%.
CEO Matevž Mazij emphasized the company’s strategic pivot: “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.”
Reflecting this strategy, Bragg now expects 2025 revenue to fall between €106.0 million and €108.5 million, with adjusted EBITDA ranging from €16.5 million to €18.5 million, revising down from prior expectations of double-digit growth in both metrics.
During the quarter, the company repaid $5 million of its $7 million secured promissory note and is in advanced discussions to secure a new revolving working capital debt facility from a Tier 1 Canadian bank.
Bragg highlighted several strategic accomplishments, including launching content with Fanatics Casino across the Tri-State region, signing an exclusive content development agreement with Hard Rock Digital, and solidifying its presence 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 that the company is on track to reach a 20% adjusted EBITDA margin in H2 2025.
Bragg Gaming Group stock price
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