Bragg Gaming Group's Q2 2025: Navigating Contradictions in Revenue Projections, Cost Strategies, and Market Growth

Revenue expectations and market growth, cost structure and margin improvements, U.S. market growth strategy, and proprietary content focus are the key contradictions discussed in Bragg Gaming Group's latest 2025Q2 earnings call.



Revenue Growth and Market Diversification:
- Bragg Gaming Group reported revenue of EUR 26.1 million for Q2 2025, a 4.9% increase year-over-year, with a 21% growth excluding the Netherlands.
- The strategic focus on expanding in growth markets and prioritizing margin-accretive growth, particularly in the U.S. and Brazil, has driven this revenue performance.

Improved Margins and Cost Synergies:
- The company's gross profit grew by 10.8% year-over-year to EUR 13.7 million, with a gross profit margin increase of 280 basis points to 52.7%.
- This improvement is due to the realization of cost synergies and a focus on optimizing margins and cash flow amidst increasing gaming taxes in key markets.

Success in U.S. Market and Proprietary Content:
- Bragg's proprietary content revenue in the U.S. grew by 270% year-on-year, contributing 14.8% of the total revenue in Q2 2025.
- This growth is attributed to strategic partnerships with top operators like Caesars and Hard Rock Digital, and the successful launch of new proprietary content titles.

Leadership and AI Initiatives:
- The company appointed Scott Milford as EVP, Group Content, and Luka Pataky as EVP of AI and Innovation to drive game innovation and AI integration.
- These appointments are part of Bragg's AI-first strategy to leverage AI for hyper-personalization, operational efficiency, and maximized player lifetime value by 2027.