Bragg Gaming Group Inc. Q4 FY2025 earnings call

• USA saw 55% year-over-year revenue growth in the fourth quarter. - Brazil saw revenue growth of 42.1% compared to the same period last year. - Shift towards proprietary content which grew 20.8% in Q4 and is a key margin contributor. - Successfully completed a new working capital revolving credit facility. - Announced structural cost changes including staff reductions with expected annualized cash savings of approximately 4.5 million euros. - Anticipate full year 2026 revenue between 97 million and 104.5 million euro and adjusted EBITDA of 16 million and 19 million euro with an adjusted EBITDA margin of 16 to 18%. - Focus on optimizing product mix, internal processes, and expanding into new verticals like historical and live racing and prediction markets. - Appointed new COO and promoted Executive VP of Global Content.

In the fourth quarter of 2025, revenue was 27.7 million Euro, up 1.9% year over year. Excluding the Netherlands, revenue grew 5.1%. North America and Brazil together accounted for 26% of total revenue, up 13% from a year ago. Proprietary content revenue grew 20.8% year over year in Q4 and remains the best performing margin contributor. Gross profit was essentially unchanged year over year at 15.7 million euro with a gross margin of 56.5%. Q4 2025 adjusted EBITDA was 4.6 million euro, flat year over year but up sequentially from Q3 2025.

• Currently anticipate full year 2026 revenue between 97 million and 104.5 million euro. - Anticipate adjusted EBITDA of 16 million and 19 million euro representing an adjusted EBITDA margin of 16 to 18%.

• Netherlands impacted by regulatory changes with revenue down 4.6% year over year. - Potential impact of customer migration in the Netherlands. - Risks associated with strategic restructuring and workforce reductions.

Q: Good morning. If I could just ask on proprietary content, could you confirm the growth in this product line? And secondly, what does the pipeline appear to look like for the year from a key and so content perspective for proprietary content?

A: In terms of growth, we were able to achieve more concentration from proprietary content in 2025 really than we ever have historically. So 16.6% is the concentration of revenue we were able to generate from our proprietary content. And that totaled to about 4.3 million. And just, sorry, 4.3 million was our total for Q4 2025. Just to give you a sense of growth, we were at 3.6 million at Q4 2024 and 3.1 million at Q4 2024. So quarterly, our cadence is increasing quite dramatically. And we believe that that's a continuing trend that's going to accelerate the margins through 2026. Okay, thank you for that, Robbie. And just on the cadence or pipeline of content development, how does that look for the year? Should we expect activity in, like, in line to, like, historical content development, or are things going to be a bit accelerated? How is the IP perspective looking?

A: From an investment perspective, so from a cadence of game production, we will maintain a very similar cadence. We are looking and utilizing the tools that we have, and Matt's talked about AI, brain, and other initiatives that we have developed or in development. And this really speaks to us not only just producing content, but producing content that's really going to maximize lifetime values for operators. So we're conscious and I've talked about this in the past, how cadence is very important for us to maintain good relationships and be topical for operators. But we know it takes more than that, and we're very focused on that lifetime value maximization through the titles that we offer. And we're confident that we're going to be able to keep penetrating and increasing our market share in the U.S. Perfect. Helpful cover there. And just on the U.S. market, it does appear like it was a record for you guys. in the fourth quarter, is that being largely driven by proprietary IP, or are there other factors that are helping your growth in the U.S. market?

A: Yeah, so our U.S. offerings right now, it's primarily proprietary but also exclusive content. We don't do any aggregation, so it's all high-margin products that are being offered into that market. and the US market is just so ripe for iCasino. As a reminder, 12% of the US population is under iCasino regulation, and that's just a drop in the bucket. Now, there's always rumblings of changes, but even Without new states coming on, the growth rates you're seeing, like in New Jersey as an example, in 2025, iCasino performance was up 22% year over year. Sportsbook was only up 7.5%. And in Pennsylvania, very similar, iCasino up 27%. Sports only up 18%. So the growth that is there in the iCasino market in the U.S. is extremely exciting. And we are well positioned to keep penetrating that growth. Okay, thanks, Robbie. And then just one last one on cost savings. I think you said the charge is going to be about a million this quarter, Q1 2021. Like, do you expect that to start helping OpEx in the second quarter, or how should we be thinking about the timing of the benefits to your operating expense line?

A: Yeah, good question. So the benefits start immediately. The total amounts of those benefits on an annualized basis is about $4.5 million. Those have all been baked into the guidance that we have provided. So we do assume those cost savings in the guidance that we have provided. And correct, the one-time expense will hit Q1 of 2026. Okay. Thanks, guys. I'll pass the line. Your next question comes from the line of Jack Kodera of Maxim Group. Please go ahead. Hi. This is Jack Kodera calling in for Jack Brenner. Thanks for taking my question. Just a quick one, kind of wanting to clarify, you know, given your comments on the Netherlands headwind and, you know, comparatively the large rapid growth in emerging markets, Can you give a bit of color, kind of parse out the geographic mix for Netherlands, U.S., and Brazil? Any commentary there would be helpful.

A: Yeah, I think start with Brazil. Brazil, we were able to achieve significant growth in that market this past 2025 year and the concentration of our revenue for Brazil exceeded 10% and we're very happy about that performance. We do think there's lots of opportunity for expansion in Brazil. Our focus in Brazil for 2026 is definitely pushing more margin accretive products. So pushing more of our proprietary content, utilizing our relationship with Rapid Play, which is the local studio we've made an investment in. So we're still bullish that Brazil will see good growth. We should be growing in double digits, but that product mix is more important to us. So we're very focused on getting more of our revenue coming from more margin accretive products. US as well, you know, we see proprietary content, exclusive content for 2026, great opportunities. We do think we should be able to maintain good steady double digit growth in that market. And as I talked to you before, the USI casino market is growing very solidly. And we're very well positioned to keep gaining market share as that market grows. Okay. And, you know, maybe if I could ask the question a little bit differently, kind of trying to bridge the gap, you know, taking the midpoint of guidance, you know, the revenues down slightly, obviously, because of the Netherlands headwinds. You know, if I were to back out the Netherlands percentage, maybe just that percentage on a year-over-year basis, is there any, like, kind of how do I bridge the gap between, you know, growth and other emerging market sources like the Netherlands?

A: Great question. So if we factor out, so the Netherlands, we have a few things happening in 2026. One, we, as mentioned, that city is rolling off in Q2, so that does have an impact. Also, too, the Netherlands instituted another tax increase for the year, so we are seeing decreases in that market. But if we factor out those elements, we do believe in our guidance implies a growth rate for the rest of our business to be very close to double digit growth. So again, similar story to 2025, where there is macro conditions. that are keeping our growth rates under where we would expect our business to be growing at. But underlying that, our business in key jurisdictions is growing at a nice steady rate, which we're extremely excited about. Okay, that's very helpful. Thanks for taking the question. There are no further questions at this time.