Bragg Gaming Group (BRAG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 4.9% year-over-year to EUR 26.1 million, with 21% growth excluding the Netherlands and proprietary content revenue up 44% year-over-year, driven by U.S. and LatAm expansion.

• Strategic focus shifted to margin and cash flow optimization, with EUR 2 million in annualized cost synergies realized and improved cost structure.

• Adjusted EBITDA was EUR 3.5 million, down 4.3% year-over-year, reflecting higher compensation costs.

• Leadership team strengthened with key hires in AI and content, and new initiatives launched to drive AI-first transformation and product innovation.

• Positive cash flow of EUR 2.6 million in Q2 2025, reversing a EUR 0.7 million outflow from the prior year.

Financial highlights

• Gross profit increased 10.8% year-over-year to EUR 13.7 million, with gross margin up 280 bps to 52.7%.

• Adjusted EBITDA: EUR 3.5 million (-4.3% YoY); margin: 13.3%.

• Cash and equivalents: EUR 4.2 million as of June 30, 2025.

• Operating loss widened to EUR 2.3 million from EUR 1.2 million YoY; net loss improved to EUR 1.8 million from EUR 2.4 million.

• Basic and diluted loss per share improved to EUR 0.07 from EUR 0.10 YoY.

Outlook and guidance

• Full-year 2025 revenue guidance revised to EUR 106–108.5 million; adjusted EBITDA EUR 16.5–18.5 million, reflecting higher gaming taxes and market softness.

• Adjusted EBITDA margin at midpoint within 0.5% of previous guidance; target of 20% margin in H2 2025.

• Expect higher adjusted EBITDA margins in H2 2025 versus H1, supported by product mix optimization and cost controls.

• Focus on margin-accretive product mix, cash generation, and proprietary content pipeline.