BRAG · Bragg Gaming Group Inc.

Bragg Gaming Group Inc. delivered modest revenue growth of 0.6% to €25.7 million in Q1 2026, driven by strong performances in Brazil (up 33.3% YoY following market regulation) and the Netherlands (up 3.5% from a fixed PAM agreement with Entain), offset by a 12.1% US revenue decline due to one-off prior-year project revenue with Caesars. Games and content revenue remained stable at €20.3 million or 79% of total, reflecting sustained investment in proprietary content and technology innovation. Gross margin contracted 54 basis points to 55.5%, attributed to higher-mix third-party aggregation revenue at 48.9% of total. Operating loss improved to €1.4 million from €1.7 million, aided by lower SG&A expenses, while net loss halved to €1.2 million or €0.05 per share. Cash burn intensified with operating cash flow of €1.6 million but €3.4 million in investing (primarily intangible additions) and €1.2 million financing outflows, reducing cash to €3.4 million from €6.7 million year-end. Strategic restructuring cut 12% of workforce, incurring €0.7 million costs but targeting €4.5 million annualized savings to boost EBITDA margins toward profitability. Management reaffirmed FY2026 guidance of €97-104.5 million revenue and €16-19 million Adjusted EBITDA (16-18% margin), excluding the pending Drayton acquisition announced concurrently, which aims to enhance content leadership with Matthew Davey joining as Non-Executive Chairman. Key wins include PAM extensions in Croatia and Greece launches, positioning for Finland's 2027 liberalization, alongside AI initiatives for cost reduction.