Bragg Gaming Group reported second quarter 2026 revenue of €22.9 million, down 12% from €26.1 million a year earlier, and withdrew its full-year 2026 guidance after closing the acquisition of Drayton International on 22 July.
Adjusted EBITDA was flat at €3.5 million. The margin rose to 15.4% from 13.3%, a gain of 212 basis points, because costs came out faster than revenue fell.
Revenue down, margin up
Gross profit fell to €11.8 million from €13.7 million, with gross margin at 51.7% against 52.7% in Q2 2025. Operating loss narrowed to €1.9 million from €2.3 million. Net loss widened to €2.9 million, or €0.11 per share, from €1.8 million and €0.07 per share a year earlier. Cash was €3.3 million at 30 June.
First half revenue was €48.5 million, down 6% from €51.6 million, with adjusted EBITDA flat at €7.5 million.
Chief Executive Matevž Mazij said the quarter was run to a different priority than growth.
“In the second quarter, we prioritized margin and cash flow performance over aggressive revenue expansion, which underpins our renewed group-wide strategy.”
Chief Financial Officer Robbie Bressler put the same point in figures.
“We absorbed a EUR 3.2 million reduction in revenue and delivered the same absolute adjusted EBITDA.”
Where the revenue went
Netherlands revenue fell 14% as legacy turnkey platform contracts rolled off. Brazil was flat against Q2 2025, with operators moving to direct supply integrations and lower-margin distribution revenue declining. Croatia was hit by regulatory tightening on advertising and customer acquisition, which management said was more disruptive than expected. The Wild Streak Gaming studio also saw softer trends.
The declines sit inside a European results season where operators are re-cutting their market maps. Entain reported first half growth while starting a phased exit from central and eastern Europe, a market Bragg supplies.
North America carries content growth
Proprietary content revenue in North America grew 44% year on year and 25% sequentially, driven by Ontario and the Alberta launch, where Bragg went live on day one with more than 80 titles. Bressler pointed to a US iCasino market he put at €97 billion at maturity, with only 12% of the US population currently in a regulated market. Regulated share is the constraint on both sides of the supply chain: unlicensed operators took 77% of US online gross gaming revenue in 2025.
On the commercial side, Bragg signed a definitive agreement with Dutch and Belgian operator 711 for a Belgian sportsbook powered by Kambi and the Fuze engagement toolset, entered the regulated Greek market with Super Technologies through its remote game server and hub aggregation, and completed a content launch with bet365 in the UK.
Guidance withdrawn after Drayton close
Bragg pulled its 2026 guidance outright, saying it has no reasonable basis on which to forecast the combined business following the Drayton close. On a standalone basis before the deal, the company was tracking below the low end of its revenue range and at the low end of its adjusted EBITDA range, while tracking toward the upper end of the implied margin range.
Drayton International cost US$9 million, paid entirely in 4,500,000 common shares, with selling shareholders locked up for 24 months and 25% released at 12, 15, 18 and 24 months. The deal brings equity interests in multiple licensed game studios, proprietary content for the Bragg Hub and player account management platforms, and entry into the US advance deposit wagering market for horse racing. Bragg says the advance deposit wagering technology extends its addressable reach from 7 US states to more than 30.
Alongside the close, 751,445 subscription receipts issued at US$1.73 converted into common shares plus non-transferable warrants exercisable at US$2.16 for 36 months.
Headcount cut by 19%
On 9 July, Bragg announced a reduction of roughly 19% of its global workforce. The move is set to deliver €6.0 million in incremental annualised savings and, combined with a January 2026 restructuring, €10.5 million in total. Management expects the benefit to show materially in Q4 2026 and more fully in 2027, with one-time severance costs still running through the P&L in the interim. Gross compensation costs before capitalisation were already down 14% year on year in the quarter.
Board changes
Matt Davey, founder and chairman of Tekkorp Capital and holder of about 10.09% of Bragg’s shares, became non-executive chairman on 22 July, taking over from Holly Gagnon, who stays on as a director. Donald Robertson resigned from the board with immediate effect. Jordan Gnat, co-founder of Boardwalk Capital and previously at Playmaker Capital, Fox Bet, The Stars Group and Scientific Games, joined and took part in the private placement.
Bragg shares rose 5.53% to US$2.48 after the results, within a 52-week range of US$1.97 to US$4.56.
The next test is whether the restructuring savings arrive on schedule in Q4 and whether Drayton’s content and advance deposit wagering assets convert into revenue quickly enough to offset the Netherlands roll-offs and the Brazilian shift to direct integrations. With €3.3 million of cash and a current ratio of 0.94, Bragg has limited room to fund a slower integration than planned. Guidance for the combined business has not been reinstated, and management gave no date for when it will be.
Source: Bragg Gaming Group
