Bragg Gaming Group has withdrawn its 2026 financial guidance after reporting lower second-quarter revenue, citing limited visibility following its acquisition of Drayton International and the early stage of integration planning.
The iGaming content and technology provider generated €22.9 million in revenue during the three months ended June 30, 2026, representing a 12% decline compared with €26.1 million in the same period a year earlier. The company attributed the decrease mainly to changes in its European platform business and operator integration trends in Brazil.
Revenue from the Netherlands declined 14% year-on-year as customers moved away from legacy platform agreements. Brazilian revenue remained stable compared with the second quarter of 2025, although some operators shifted toward direct supplier integrations.
Bragg’s proprietary content business in Canada and the United States delivered stronger results during the period. Revenue from that segment increased 44% year-on-year and rose 25% compared with the first quarter of 2026.
Cost Reduction Improves Margins Despite Lower Revenue
While revenue declined, Bragg reported improved operating efficiency following restructuring measures introduced earlier in the year.
Adjusted EBITDA remained at €3.5 million, unchanged from the second quarter of 2025. The company’s adjusted EBITDA margin increased to 15% from 13%, representing a 212-basis-point improvement. Bragg attributed the margin expansion to lower compensation expenses following workforce reductions and changes in bad debt provisions.
Operating loss narrowed to €1.9 million from €2.3 million a year earlier as reduced operating expenses offset the impact of lower revenue. Net loss, however, increased to €2.9 million compared with €1.8 million in the prior-year period. The company reported a loss of €0.11 per share, compared with €0.07 per share in the second quarter of 2025.
Bragg implemented its first restructuring program in January, reducing its global workforce by approximately 12% and targeting around €4.5 million in annualized savings. A further workforce reduction announced in July cut approximately 19% of employees and is expected to provide an additional €6 million in annualized cash savings. Combined savings from both measures are expected to reach approximately €10.5 million.
Bragg CEO Matevž Mazij said the company continued focusing on profitability and cost management during the quarter.
Drayton Acquisition Changes Financial Outlook
Bragg completed its acquisition of Drayton International on July 22 for US$9 million, with the transaction completed entirely through the issuance of company shares. Drayton is a gaming technology and content platform that expands Bragg’s existing operations.
Following the acquisition, Bragg withdrew its previously issued 2026 revenue and adjusted EBITDA guidance because management does not yet have enough operating history for the combined business.
Before withdrawing guidance, Bragg was tracking below the lower end of its projected revenue range on a standalone basis. The previous outlook had anticipated full-year revenue between €97 million and €104.5 million, with adjusted EBITDA between €16 million and €19 million.
Matt Davey became Bragg’s non-executive chairman following completion of the Drayton transaction. Davey, founder and chairman of Tekkorp Capital and former builder of NYX Gaming Group, said in a press release that the company’s restructuring process would continue beyond the initial cost reductions.
“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 added that Bragg’s assets include proprietary content growth in North America, platform technology and a licensed presence across more than 30 regulated markets.
New Partnerships And Market Expansion Continue
Alongside restructuring efforts, Bragg continued expanding its commercial footprint.
According to NEXT.io, the company signed an agreement with Belgian operator 711 to provide technology for its new online sportsbook. The arrangement combines Kambi’s Turnkey Sportsbook with Bragg’s Fuze engagement technology.
Bragg also supported Super Technologies’ expansion into Greece through its Superbet brand by supplying Remote Game Server content and HUB aggregation services.
In July, Bragg entered Alberta’s regulated iGaming market at launch, making more than 80 titles available through multiple operators in the province.
The company also completed a private placement connected with the Drayton transaction. A total of 751,445 subscription receipts issued at US$1.73 were converted into common shares and warrants, releasing approximately €1.1 million in escrowed funds. Bragg also renewed its revolving credit facility with a Canadian financial institution.
Bragg announced a board change alongside its financial update. Donald Robertson resigned from the board effective August 13, 2026, while Jordan Gnat was appointed as a director on the same date.
Management said the immediate focus for the remainder of 2026 will be integrating Drayton, aligning technology and product plans, and establishing the future operating structure of the enlarged company.