BRAG — Bragg Gaming Group Inc.

Bragg Gaming Group Q2 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: €26.1 million, a 4.9% year-over-year increase; 21% growth excluding the Netherlands.
• Gross Profit: €13.7 million, up 10.8% year-over-year; gross profit margin increased by 280 basis points to 52.7%.
• Adjusted EBITDA: €3.5 million, down 4.3% from Q2 2024, with an adjusted EBITDA margin of 13.3%.
• Cash Position: €4.2 million in cash and cash equivalents; repaid $5 million of a $7 million promissory note.
• Proprietary Content Revenue: Grew by 270% year-over-year, contributing 14.8% of total revenue.

2. Strategic Updates and Business Highlights:

• Bragg is focusing on enhancing user experience and leveraging AI for player engagement and operational efficiency.
• The company is diversifying away from the Netherlands market, which is projected to decrease from 49% of total revenue in 2022 to 32% in 2025.
• Strong growth in the U.S. market, with proprietary content revenue reaching €3.9 million, and a 64% year-over-year growth in North America.
• New product launches and partnerships with Tier 1 operators like Caesars and Hard Rock Digital are expected to drive future growth.
• Leadership changes include the hiring of Scott Milford as EVP of Group Content and Luka Pataky as EVP of AI and Innovation.

3. Forward Guidance and Outlook:

• Revised full-year guidance expects revenue between €106 million and €108.5 million and adjusted EBITDA between €16.5 million and €18.5 million.
• The company anticipates improved adjusted EBITDA margins in the second half of 2025 compared to the first half.
• Focus remains on margin-accretive growth and cash generation over aggressive revenue expansion.

4. Bad News, Challenges, or Points of Concern:

• Regulatory changes and increased gaming taxes in key markets like the Netherlands and Brazil are impacting growth.
• The Netherlands market is contracting, with Bragg down 17% compared to a 25% industry decline.
• Adjusted EBITDA has decreased due to increased compensation spending.
• The company is facing headwinds from broader market pressures, including competition in the iGaming sector.

5. Notable Q&A Insights:

• Management expressed optimism about reaching the previously mentioned target of proprietary content contributing 15% of revenue for the full year.
• The company acknowledged a slight negative impact from foreign exchange rates but deemed it not significant.
• Future growth opportunities are seen primarily in proprietary content, with a focus on leveraging existing market positions and enhancing product offerings.
• Bragg is confident in its ability to adapt to market conditions and maintain a focus on higher-quality earnings through margin improvement and cash flow generation.