Bragg Gaming narrows net loss by 55% as global "games-first" pivot accelerates

Bragg Gaming Group (NASDAQ:BRAG) reported first-quarter 2026 results that highlighted a strategic shift toward high-margin proprietary content and international diversification.

While overall revenue growth remained modest, the company achieved a significant reduction in its net loss and announced a transformative acquisition aimed at solidifying its footprint in the North American and global iGaming markets.

Gaming reported total revenue of €25.7 million ($29.7 million) for the quarter ended March 31, 2026, a slight 0.6% increase over the prior-year period.

The company’s financial health showed marked improvement, with its net loss narrowing by 55% to €1.2 million ($1.4 million).

Adjusted EBITDA held steady at €4 million ($4.6 million), maintaining a resilient 15.7% margin despite ongoing investments in new markets and technology.

Geographic performance was a tale of two trajectories.

In Brazil, revenue surged 33.3% as Bragg aggressively onboarded new providers to meet high demand in the newly regulated market.

Conversely, total U.S. revenue fell 12.1%, though management emphasized that this was due to "one-off" revenue from a 2025 project with Caesars Entertainment.

Stripping out that event, U.S. recurring revenue actually grew 7.1%, driven by the expansion of Bragg's high-margin proprietary game titles.

The earnings release coincided with the announcement of a binding agreement to acquire Drayton International, a diversified gaming technology and content platform.

The deal is expected to bring over 100 developed titles into the Bragg ecosystem and provide a "five-fold expansion" of its U.S. market reach by unlocking Advanced Deposit Wagering (ADW) markets in more than 30 states.

As part of the transaction, industry veteran Matt Davey will join Bragg’s board as Non-Executive Chairman.

Bragg also confirmed a strategic restructuring that included a 12% workforce reduction earlier this year, a move intended to streamline operations ahead of the Drayton integration.

Despite these changes, the company reiterated its full-year 2026 guidance, expecting revenue between €97 million and €104.5 million with adjusted EBITDA of €16 million to €19 million.