BRAG — Bragg Gaming Group Inc.

Summary of Bragg Gaming Group Q3 2025 Earnings Call

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%.
• Adjusted EBITDA: EUR 4.4 million, up 9% year-over-year; adjusted EBITDA margin rose to 16.6%.
• Proprietary Content Revenue: Increased by 35% year-over-year, contributing to 16% of total revenue.
• Geographic Revenue Distribution: North America and Brazil accounted for 22% of total revenue, up from 12% a year ago.

2. Strategic Updates and Business Highlights

• Continued strong growth in the U.S. (86% year-over-year) and Brazil (80% year-over-year).
• Successful launch of 35 new proprietary casino games in 2025, with a focus on high-margin products.
• Secured a Tier 1 credit line with the Bank of Montreal, enhancing liquidity and reducing borrowing costs.
• Ongoing optimization of cost structure to improve operational leverage.

3. Forward Guidance and Outlook

• Maintained 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 efficiencies into 2026.
• Expecting 68% of total revenue to come from non-Netherlands markets in 2025.

4. Bad News, Challenges, or Points of Concern

• Revenue from the Netherlands declined by 22% year-over-year due to regulatory changes, impacting overall growth.
• The company expects a customer, BetCity, to migrate off their platform in H1 2026, though the financial impact is projected to be minimal.
• Increasing SG&A expenses noted, with ongoing efforts to optimize structures and processes to manage costs.

5. Notable Q&A Insights

• Analysts inquired about the growth trajectory of proprietary content and its impact on margins; management expressed confidence in continued growth and margin improvement.
• Concerns raised about the increase in SG&A expenses; management acknowledged the need for ongoing optimization.
• Discussion on the impact of BetCity's migration highlighted the potential for resource redeployment to mitigate losses.
• Management emphasized the importance of cash flow generation and improving cash conversion ratios, despite ongoing amortization and depreciation affecting reported income.

Overall, Bragg Gaming Group demonstrated resilience in its growth strategy, particularly in high-potential markets outside the Netherlands, while also addressing challenges related to regulatory impacts and cost management.