Bragg Gaming Group (NASDAQ:BRAG) reported third-quarter results on Thursday that missed Wall Street expectations, although the company reaffirmed its full-year outlook as it pushes ahead with a transition toward higher-margin operations.
The iGaming technology and content supplier posted a loss of €0.09 per share, falling short of analyst expectations for a €0.07 loss. Quarterly revenue landed at €26.8 million, below the estimated €31.18 million, but still up 2% year over year. Adjusted EBITDA increased 9% to €4.45 million, compared with €4.08 million a year earlier.
Performance varied sharply by geography. Bragg posted 86% revenue growth in the U.S. and an 80% increase in Brazil, reflecting strong traction in strategic markets. However, these gains were tempered by a 22% revenue decline in the Netherlands, where tighter regulations and higher taxes weighed on activity. Excluding the Dutch market, total revenue climbed 20% from last year’s third quarter.
“Bragg delivered another solid quarterly performance, anchored by increased revenue, improved operational efficiency, and higher Adjusted EBITDA, all reflecting the strength and resilience of our diversified business model,” said CEO Matevž Mazij. “The Company is successfully navigating evolving international regulatory and taxation developments with a view to pursuing markets and jurisdictions that offer opportunities to higher margin business.”
Despite the mixed results, management reiterated its 2025 guidance, forecasting revenue between €106.0 million and €108.5 million and adjusted EBITDA of €16.5 million to €18.5 million. Bragg also secured a new $6 million financing facility with the Bank of Montreal, replacing previous debt at less than half the prior borrowing cost.
The company continues to broaden its global presence. Recent highlights include rolling out content with Fanatics Casino in New Jersey, Michigan, and Pennsylvania, and increasing distribution in Brazil, Spain, and other regulated jurisdictions.