Bragg Pulls 2026 Outlook as Revenue Slides 12% in Q2 

Bragg Gaming Group (NASDAQ, TSX: BRAG) has withdrawn its 2026 guidance after second-quarter revenue fell 12%, with the company acknowledging its standalone business had been tracking below the bottom of its previous revenue forecast.

Revenue fell to €22.9 million ($26.1 million) during Q2 from €26.1 million ($30.6 million) a year earlier. Adjusted EBITDA remained broadly flat at €3.5 million ($4 million).

Bragg recorded a net loss of €2.9 million ($3.3 million), widening from €1.8 million ($2.1 million) during Q2 2025.

The company attributed the decision to pull its full-year outlook to uncertainty following its recent acquisition of Drayton International. However, CFO Robbie Bressler confirmed during an earnings call that Bragg had already been tracking below the low end of its revenue guidance before the deal.

“We are seeing more pressure on revenue,” Bressler said. “With our cost-cutting measures, we have been able to keep our EBITDA margin within what we had thought the business would be performing at.”

Brazil, Croatia Weigh on Growth

Bressler pointed to several factors behind the revenue pressure, including Brazil, where suppliers increasingly bypass Bragg to integrate directly with operators.

“When the market opened in Brazil, there were a lot of suppliers who were not set up to supply the market, and we were able to be utilized as a vehicle for them to supply their content into the market. This has softened… These headwinds are decreasing what we are seeing in terms of growth in Brazil,” he said.

Regulatory changes in Croatia had also proved “much more impactful than previously thought,” particularly restrictions around customer acquisition and advertising.

The weaker areas contrasted sharply with North America. Revenue from Bragg’s proprietary content in the US and Canada increased 44% year-on-year and 25% from Q1.

CEO Matevž Mazij described proprietary content as Bragg’s “most profitable product” and the US as its “most important market.”

Bragg is betting that the $9 million acquisition of Drayton, completed last month entirely in shares, can accelerate that strategy. 

Drayton gives Bragg interests in five game studios, more than 100 proprietary titles, and exposure to the US advanced deposit wagering market, which Mazij noted operates in more than 30 states compared with seven for traditional iGaming.

Year of Upheaval at Bragg

The results come during a period of significant upheaval at Bragg. The company announced another 19% reduction in its global workforce in July, following an earlier restructuring in January.

Together, the cuts are expected to generate approximately €10.5 million ($12.1 million) in annualized savings. Bressler said compensation costs were already down 14% year-on-year, although the full benefit should become more visible from Q4 and into 2027.

“We’ve done the work and we’ve taken out the cost,” Bressler said. “We’re by no means done in terms of optimizing and seeing where more costs can come out.”

The restructuring follows Mazij’s failure to win re-election to the board at June’s AGM, although he remains the company’s CEO. The subsequent Drayton transaction brought gaming investor Matt Davey in as non-executive chairman.

Davey said the restructuring undertaken so far is “a start, not a destination,” with Bragg’s near-term progress to be judged principally on cash generation.