Bragg Gaming Group’s Earnings Call Highlights Growth and Challenges

Bragg Gaming Group Inc ((TSE:BRAG)) has held its Q2 earnings call. Read on for the main highlights of the call.

Bragg Gaming Group Inc’s recent earnings call painted a picture of a company experiencing significant growth in proprietary content revenue and forming strategic partnerships in the U.S. market. The call emphasized strong operational efficiency and leadership enhancements. However, these positive developments were somewhat overshadowed by challenges in the Netherlands market and a decline in adjusted EBITDA, which tempered the overall positive sentiment.

Strong Growth in Proprietary Content Revenue

The company reported a remarkable 44% year-over-year increase in proprietary content revenue, reaching EUR 3.9 million in 2025. This growth was particularly pronounced in the U.S. market, where revenue surged by 270% compared to the previous year, underscoring Bragg’s successful expansion efforts.

Cost Synergies and Operational Efficiency

Bragg Gaming Group realized EUR 2 million in annualized cash savings through planned cost synergies. The company anticipates further opportunities for cost savings in the second half of the year, demonstrating a commitment to operational efficiency.

Partnerships with Tier 1 Operators

The company has solidified its position as a preferred content partner through bespoke content agreements with industry giants like Caesars and Hard Rock Digital. These partnerships validate Bragg’s capabilities and enhance its market presence.

U.S. Market Expansion and Growth

Bragg’s content experienced a 270% increase in gross gaming revenue (GGR) year-over-year in the U.S., with successful new launches in key states such as New Jersey, Pennsylvania, and Michigan, highlighting the company’s robust market expansion strategy.

Leadership Additions

The company strengthened its leadership team with key hires, including Scott Milford as EVP, Group Content, and Luka Pataky as EVP of AI and Innovation. These additions are expected to drive content and AI-driven growth, aligning with Bragg’s strategic focus.

Decline in Adjusted EBITDA

Bragg reported a 4.3% decrease in adjusted EBITDA for Q2 2025, amounting to EUR 3.5 million. This decline was primarily attributed to increased compensation spending, which impacted the company’s profitability.

Challenges in the Netherlands Market

The Netherlands market posed significant challenges, with a 17% decline influenced by regulatory changes, higher taxes, and new deposit rules. The overall market in the region was down by 25%, affecting Bragg’s performance.

Lower Than Expected Top Line Growth

Revenue growth in Q2 was 4.9% year-over-year, falling short of expectations due to market challenges in the Netherlands and other regions. This slower growth rate highlights the hurdles faced by the company in certain markets.

Forward-Looking Guidance

During the earnings call, CEO Matevž Mazij and CFO Robbie Bressler provided guidance that emphasized a strategic focus on improving margins and cash flow performance over aggressive revenue expansion. Despite a 4.9% increase in revenue year-over-year to EUR 26.1 million, the company revised its full-year guidance, projecting revenues between EUR 106 million and EUR 108.5 million and adjusted EBITDA between EUR 16.5 million and EUR 18.5 million. This reflects a shift towards higher-quality earnings, prioritizing margin and cash generation, with expectations for improved adjusted EBITDA margins in the latter half of 2025.

In conclusion, Bragg Gaming Group Inc’s earnings call highlighted a mix of strong growth in proprietary content and strategic partnerships, particularly in the U.S. market, alongside challenges in the Netherlands and a decline in adjusted EBITDA. The company’s forward-looking guidance suggests a strategic pivot towards enhancing margins and cash flow, setting the stage for improved financial performance in the coming quarters.