BRAG — Bragg Gaming Group Inc.

Bragg Gaming Group Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Revenue: EUR 26.8 million, up 2% year-over-year; excluding the Netherlands, revenue grew 20%.
• Gross Profit: EUR 14.7 million, a 5% increase year-over-year; gross margin improved to 54.7%, up 115 basis points.
• Adjusted EBITDA: EUR 4.4 million, up 9% year-over-year; adjusted EBITDA margin increased to 16.6%, up 100 basis points.
• Proprietary Content Revenue: Grew 35% year-over-year, contributing to 16% of total revenue.
• Geographic Revenue Diversification: Non-Netherlands revenue projected to account for 68% of total revenue in 2025.

2. Strategic Updates and Business Highlights

• Continued strong performance in the U.S. and Brazil, with year-over-year revenue growth of 86% and 80%, respectively.
• Launched 35 new proprietary casino games in 2025, with significant contributions from games released prior to the year.
• Secured a Tier 1 credit line with the Bank of Montreal, enhancing liquidity and reducing borrowing costs.
• Focus on optimizing cost structure and operational processes to drive future profitability.

3. Forward Guidance and Outlook

• Maintaining full-year 2025 revenue guidance of EUR 106 million to EUR 108.5 million and adjusted EBITDA guidance of EUR 16.5 million to EUR 18.5 million.
• Anticipated continued growth in proprietary content and operational leverage into Q4 and beyond.
• Positive outlook for the U.S. online casino market, expected to grow from USD 10 billion in 2025 to over USD 30 billion by 2030.

4. Bad News, Challenges, or Points of Concern

• Netherlands Revenue Decline: Revenue in the Netherlands decreased by 22% year-over-year due to regulatory changes, impacting overall revenue growth.
• Customer Migration: Anticipated migration of BetCity off the Bragg PAM in H1 2026, although expected to have a minimal impact on the bottom line.
• Amortization Costs: Significant development and acquisition-related amortization continue to affect reported operating income.

5. Notable Q&A Insights

• Cost Structure: Management acknowledged the need for continued optimization of SG&A expenses and operational processes to enhance margins.
• Proprietary Content Growth: Confidence expressed regarding the growth trajectory of proprietary content, particularly in the U.S. market, which is expected to drive better margin performance.
• Market Share in Brazil: Bragg is gaining market share in Brazil, with a strategy to increase revenue from margin-accretive products.
• Operating Income Concerns: Management noted that high amortization and depreciation costs are impacting operating income, but emphasized positive cash flow generation from operations.

Overall, Bragg Gaming Group demonstrated solid growth in key markets while facing challenges in the Netherlands. The company remains focused on strategic initiatives to enhance profitability and diversify revenue streams.