Key Points
- Revenue for Q2 fell by 12% YoY to €22.9m, with Netherlands revenue dropping 14% and no growth seen in Brazil, even as revenue in North America proprietary content increased 44%.
- Full-year guidance ranging between €97m and €104.5m was pulled back after the Drayton acquisition was finalised, though it was already behind the lower end even before this happened.
- Workforce cuts in two batches accounting for around 31% of global employees are aiming at saving €10.5m per year, and the financial results will be most visible starting Q4 2026.
Bragg Gaming Group announced €22.9m in second-quarter sales on 13 August, down 12% from €26.1m in the corresponding quarter last year, and instantly scrapped its financial forecasts for 2026. In isolation, the two pieces of information make a very simple story about a company under strain. But behind that lie some more complicated details.
Adjusted EBITDA held at €3.5m despite the revenue decline, and the adjusted EBITDA margin rose to 15% from 13% in the same quarter of 2025, a 212-basis-point expansion. Shares climbed 5.53% to $2.48 following the announcement. Markets, it seems, read the margin story rather than the revenue headline.
Where Revenue Fell, and Where It Did Not?
The revenue decline has a clear anatomy. Netherlands revenue dropped 14% as operators completed migrations away from Bragg’s legacy platform contracts, a process the company had anticipated but could not speed up. Brazil went flat quarter-on-year after a 33% surge in Q1, as several operators shifted towards direct supplier integrations, removing Bragg from that part of the revenue chain.
North America was the opposite picture. Revenue from proprietary content in Canada and the US grew 44% year-on-year and 25% compared with Q1 2026. That figure carries weight because it represents Bragg’s highest-margin segment gaining ground at the same moment its lower-margin European platform business is contracting. The company confirmed that 81% of its revenue now comes from games and content services, with platform and turnkey solutions making up the balance.
Loss from operations improved to €1.9 million from €2.3 million last year due to a reduction in operating costs which more than compensated for the effect of revenues on gross profit. Loss from net income increased to €2.9 million from €1.8 million while loss per share increased to €0.11 from €0.07. The improvement in margins was attributed to savings on salary expense and bad debt expense.
Guidance Was Already Broken Before Drayton Closed
Most reporting has framed the guidance withdrawal as a consequence of the Drayton acquisition creating financial uncertainty. That explanation is accurate, but the company’s own disclosure adds a second reason that has received less attention. Bragg stated in its official results announcement that on a standalone basis, excluding Drayton entirely, it was already tracking below the low end of its revenue guidance range and at the low end of its adjusted EBITDA range. The previous guidance had called for revenue between €97m and €104.5m, with adjusted EBITDA between €16m and €19m. Drayton’s completion gave management the formal occasion to withdraw the outlook, but the standalone business had already missed its own floor.
New non-executive chair Matt Davey offered no timeline for when new guidance would arrive: “The restructuring executed this year is a start, not a destination. Progress will be measured in cash generation in the short term, and revenue growth over time, and the Board will hold the business to that standard.”
Davey, founder of Tekkorp Capital, built NYX Gaming Group from a small operator into one of the more significant content aggregators in European iGaming before selling it to Scientific Games for approximately $631m in 2018. He now holds around 10.09% of Bragg’s shares through Tekkorp. The size of that personal stake means his financial interests sit directly alongside those of the shareholders who have been most vocal about Bragg’s performance.
Thirty Percent of the Workforce Gone, €10.5m in Targeted Savings
Bragg’s cost programme has run in two stages. The January 2026 restructuring cut approximately 12% of the global workforce and was expected to generate €4.5m in annualised savings, at a one-time restructuring cost of around €0.7m. A second round announced on 9 July went further, removing approximately 19% of remaining headcount and targeting an additional €6m in annual savings. Combined, the two rounds are expected to produce roughly €10.5m in annualised cost reductions. Investing.com’s analysis of the Q2 results notes the full benefit of the July cuts will not be visible until Q4 2026 and into 2027, after one-time severance costs clear the income statement.
These cuts sit against a complicated governance backdrop. At the 18 June AGM, 55.67% of shareholders voted against re-electing CEO Matevž Mazij to the board, forcing him to offer his resignation as a director under Bragg’s majority voting policy. He has remained as chief executive throughout. Mazij also reduced his personal stake in the business from 17.7% to 13.55% earlier this year, citing urgent personal financial circumstances, a move that added to shareholder frustration with the company’s share price performance over the previous 12 months.
What the Drayton Acquisition Actually Unlocks?
Completed on 22 July for $9m, paid entirely through 4.5 million newly issued shares, the Drayton deal brings five gaming studios, technology and distribution assets, and equity stakes in several licensed operations. Its most strategically significant element is access to advance deposit wagering, an online horse-racing betting model that operates across more than 30 US states, compared with the seven states where traditional online slots are currently regulated. For a supplier that grew North American proprietary content revenue by 44% this quarter, ADW represents a route to a substantially wider US market without waiting for broader iGaming legalisation.
Alongside the Drayton completion, Bragg entered Alberta’s newly regulated iGaming market on 13 July with more than 80 titles across multiple operators. CFO Robbie Bressler described Alberta as a strategically important milestone on the Q2 earnings call, and said results from that market should begin contributing within a few months. Bragg also signed an agreement to power Belgian operator 711’s new online sportsbook, combining Kambi’s Turnkey Sportsbook with Bragg’s Fuze engagement technology, and supported Super Technologies’ expansion into regulated Greek iGaming through its Superbet brand, supplying Remote Game Server titles and HUB aggregation.
Expert Analysis
Bragg’s Q2 results lay out a business managing a controlled transition rather than a straightforward decline. The European platform business is shrinking by design as legacy contracts expire, producing short-term revenue pressure that restructuring savings partially offset but cannot yet replace. North American proprietary content is growing at a rate that points to a more profitable revenue base ahead, but its current scale is not sufficient to cover what the Netherlands and Brazil have given up. The guidance withdrawal is defensible given the Drayton integration, though the admission that the standalone business had already slipped beneath its own revenue floor removes any ambiguity about the underlying performance. Q3 2026 will be the first quarter with Alberta contributing a full period of revenue, the July workforce cuts fully embedded, and the Drayton studios beginning to feed into the content pipeline. That combination will either confirm the margin expansion thesis or expose how much of Q2’s improvement was structural rather than a product of one-off cost movements.
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