Bragg Gaming Group (NASDAQ:BRAG) shares climbed nearly 4% in premarket trading Thursday after the company reported first-quarter earnings ahead of analyst expectations, even though revenue came in below forecasts.
Investors appeared encouraged by improving profitability metrics and ongoing cost-reduction initiatives.
Earnings Beat Expectations While Revenue Falls Short
Bragg Gaming posted an adjusted loss of -€0.05 per share for the first quarter, outperforming analyst expectations for a loss of -€0.09 per share.
Revenue totaled €25.7 million, missing the consensus estimate of €28.55 million, although it still represented a modest 0.6% increase from €25.5 million in the same quarter last year.
Regional Performance Delivers Mixed Results
The company reported varying trends across its geographic markets.
Revenue from Brazil surged 33.3% year-on-year, while revenue in the Netherlands increased 3.5%.
By contrast, total revenue in the United States declined 12.1%, primarily due to one-time revenue recorded in the prior-year quarter related to a project with Caesars Entertainment.
Losses Narrow as Restructuring Efforts Continue
Operating loss improved to €1.4 million from €1.7 million a year earlier.
Net loss narrowed 55% year-on-year to €1.2 million, compared with €2.6 million in the first quarter of 2025.
Adjusted EBITDA totaled €4.0 million, representing a 15.7% margin, versus €4.1 million and a 16.0% margin in the prior-year quarter.
CEO Says Company Is Entering Transformational Phase
Chief executive Matevž Mazij said the company continued to execute effectively during the quarter while pursuing strategic growth initiatives.
“We continued to execute well across our business in the first quarter,” Mazij said. “But in many ways, I believe we are only just approaching the starting line as we work to complete our potentially transformative transaction with Drayton.”
Full-Year Guidance Reaffirmed
Bragg maintained its outlook for full-year 2026.
The company continues to project revenue between €97.0 million and €104.5 million, with adjusted EBITDA expected between €16.0 million and €19.0 million.
Management also forecast adjusted EBITDA margins ranging from 16.0% to 18.0%.
Workforce Reduction Expected to Generate Savings
During the quarter, Bragg completed a strategic restructuring initiative that reduced its global workforce by approximately 12%.
The company recorded €0.7 million in restructuring costs and said the move is expected to generate annualized cash savings of approximately €4.5 million.