Bragg Gaming Group’s Q4 2025 Earnings Call: Brazil Strategy Shifts, BetCity Migration Delays Undermine Consistency

Date of Call: Mar 19, 2026

Financials Results

• Revenue: EUR 27.7M, up 1.9% YOY; excluding the Netherlands, revenue grew 5.1%
• Gross Margin: 56.5%, reflecting sequential improvements versus 54.7% in Q3 2025

Guidance:

• Full year 2026 revenue expected between EUR 97M and EUR 104.5M.
• Adjusted EBITDA for 2026 expected between EUR 16M and EUR 19M, representing an adjusted EBITDA margin of 16%-18%.
• Expect to achieve positive EBIT by late 2026.

Business Commentary:

Revenue Growth in Focus Markets:

• Bragg Gaming Group's revenue in the USA grew 55% year-over-year, and in Brazil, it increased by 42.1% compared to the same period last year.
• This acceleration is due to the success of their strategic focus on high-margin proprietary casino content.

Overall Revenue Growth Excluding the Netherlands:

• When excluding the Netherlands, Bragg's revenue grew 5.1% year-over-year in Q4 2025.
• This demonstrates continued demand for Bragg's products and services in regulated iGaming markets outside the Netherlands.

Proprietary Content Growth:

• Bragg's proprietary content revenue grew 20.8% year-over-year in Q4 2025, contributing to 15.7% of total revenue.
• The growth in proprietary content is a key driver of Bragg's expanding profitability profile.

Strategic Restructuring and Cost Savings:

• Bragg announced a 12% global workforce reduction, expecting restructuring costs of approximately EUR 1 million in Q1 2026 and anticipated annualized cash savings of approximately EUR 4.5 million.
• This restructuring is aimed at maintaining a resilient financial foundation and driving EBITDA growth.

Growth in Brazil and U.S. Market Penetration:

• Brazil's revenue was up 53.2% for the year, with Bragg on target to see 12.2% of revenues from this jurisdiction in 2026.
• Growth in these markets is supported by Bragg's strong player retention and long-term recurring revenues from fully-owned IP.

Sentiment Analysis:

Overall Tone: Positive

• Management expresses confidence in strategy: 'Our strategy is delivering. We are becoming a more efficient, diversified, and higher-margin business, and we remain confident in our ability to deliver sustainable long-term growth and shareholder value.' They highlight strong growth in key markets (US up 55% YOY, Brazil up 42.1% YOY) and progress towards profitability, stating 'we are well-placed to become a global B2B leader.'

Q&A:

• Question from Julian Catucci (Haywood Securities): Could you confirm the growth in proprietary content and what does the pipeline look like for the year?
  Response: Proprietary content revenue grew to EUR 4.3M in Q4 2025, up from EUR 3.6M in Q4 2024, with a similar cadence of game production expected to continue.

• Question from Julian Catucci (Haywood Securities): Is U.S. market growth being driven largely by proprietary IP?
  Response: Yes, U.S. offerings are primarily proprietary and exclusive content, driving high-margin growth in a rapidly expanding iCasino market.

• Question from Julian Catucci (Haywood Securities): What is the timing of benefits from the cost-saving measures?
  Response: The annualized cash savings of EUR 4.5M from the 12% workforce reduction will start immediately, with a one-time expense of EUR 1M hitting Q1 2026.

• Question from Jack Cordera (Maxim Group): Can you parse out the geographic mix for Netherlands, U.S., and Brazil?
  Response: Brazil revenue exceeded 10% in 2025, with double-digit growth expected in 2026. U.S. is a primary focus for proprietary content. The Netherlands is contracting due to regulatory headwinds.

• Question from Jack Cordera (Maxim Group): If we back out the Netherlands, what is the growth rate for other markets?
  Response: Excluding the Netherlands and the impact of BetCity migration, the underlying business is expected to see very close to double-digit growth.

Contradiction Point 1

Growth Strategy and Focus for Brazil

It involves a contradiction in the company's strategic messaging for Brazil's growth between content aggregation and proprietary content, impacting market expectations and investment focus.

Jack Cordera (Maxim Group) - Jack Cordera (Maxim Group)

2025Q4: Brazil contributed over 10% of revenue in 2025, with double-digit growth expected in 2026, focusing on margin-accretive proprietary content. - Robbie Bressler(CFO)

Can you provide details on the geographic mix for the Netherlands, U.S., and Brazil? - Gianluca Tucci (Awood Securities)

2025Q3: In Brazil, growth is driven by increasing market share through content aggregation, leading to more margin-accretive products. - Robbie Bressler(CFO)

Contradiction Point 2

Timing of the BetCity Migration

It involves a contradiction on the expected timeline for the BetCity platform migration, which impacts financial forecasting and business continuity expectations.

Jack Cordera (Maxim Group) - Jack Cordera (Maxim Group)

2025Q4: The U.S. is expected to maintain steady double-digit growth. The overall business, excluding the Netherlands, is projected to see near double-digit growth in 2026, factoring out BetCity's migration and a tax increase in the Netherlands. - Robbie Bressler(CFO)

How will the Netherlands headwind impact revenue guidance? - Jordan Bender (Citizens)

2025Q3: The migration is expected to occur in the first half of 2026, and plans are being solidified with Entain to ensure a smooth process. - Robbie Bressler(CFO)

Contradiction Point 3

Drivers of U.S. Market Growth

It involves an inconsistent characterization of the primary growth driver for the U.S. market, which can affect investor perception of the market's profitability and sustainability.

Julian Catucci (Haywood Securities) - Julian Catucci (Haywood Securities)

2025Q4: U.S. offerings are primarily proprietary and exclusive content, with no aggregation, resulting in high-margin products. - Robbie Bressler(CFO)

What factors contributed to the record U.S. market performance in Q4, and is proprietary IP the primary driver? - Gianluca Tucci (Awood Securities)

2025Q3: In Brazil, growth is driven by increasing market share through content aggregation... The strategy involves leveraging partnerships... to deliver well-received titles. - Robbie Bressler(CFO)

Contradiction Point 4

Growth and Contribution of Proprietary Content

It involves conflicting statements on the growth trajectory and revenue contribution of proprietary content, which is essential for understanding the company's core business health and future revenue potential.

Julian Catucci (Haywood Securities) - Julian Catucci (Haywood Securities)

2025Q4: Proprietary content revenue in Q4 2025 was EUR 4.3 million, up from EUR 3.6 million in Q4 2024. - Robbie Bressler(CEO)

Could you confirm the growth in proprietary content and provide details on the expected cadence of the content pipeline for the year? - Jordan Maxwell Bender (Citizens JMP Securities, LLC, Research Division)

2025Q2: There is a path to reach the 15% proprietary content revenue target for the full-year 2025. - Matevž Mazij(CEO)

Contradiction Point 5

Growth Outlook and Headwinds for the Netherlands

It involves contradictory statements on the Netherlands' near-term growth and headwind factors, affecting the overall assessment of the company's regional performance and strategic focus.

Jack Cordera (Maxim Group) - Jack Cordera (Maxim Group)

2025Q4: Excluding the Netherlands, the company expects nearly double-digit growth for 2026... factoring out... a tax increase in the Netherlands. - Robbie Bressler(CEO)

How are you addressing the revenue guidance gap due to the Netherlands headwind? - Jordan Bender (Citizens)

2025Q1: The flat annual PAM guidance reflects... not a reversal of Q1 trends. - Robbie Bressler(CEO)