Bragg Gaming Group Inc. Q1 FY2026 earnings call

Strategic Company Refocus

• Shift from a low-margin third-party content aggregation model to a high-margin, proprietary games-first IP model focused on developing repeatable game franchises, moving away from volume-focused growth
• Evolve core identity from a pure B2B game supplier to an iGaming ecosystem architect, managing the entire player journey from awareness to retention, with continued focus on key geographies including North America, Brazil, and core European markets
• Pursue cross-vertical integration beyond traditional regulated iGaming, leveraging existing platform infrastructure to capture growth in adjacent segments including prediction markets and advanced deposit wagering (ADW), and integrating racing, lottery, and sports betting outcomes into dynamic iGaming experiences
• Complete operational transformation by embedding the proprietary Bragg AI Brain tool to hyper-personalize content, predict player behavior, and reduce content delivery bottlenecks via autonomous code generation

Planned Drayton International Transaction

• The announced acquisition of Drayton International is a critical inflection point for Bragg's growth, immediately adding over 100 additional proprietary game titles, with new content developed monthly by the combined teams
• The transaction enables a more than five-fold expansion of Bragg's U.S. market reach: traditional iGaming is currently limited to 7 U.S. states, while ADW (added via Drayton) is legally available in over 30 states, including large unregulated markets like California, Florida, and Texas
• The acquisition enhances Bragg's technology and AI capabilities, adding proprietary hybrid slot engines linked to live racing data, and strengthens the company's long-term revenue growth and margin profile
• The transaction brings experienced gaming industry leader Matt Davey to Bragg as a significant investor and incoming non-executive chairman; Davey has a 25+ year track record of building and scaling successful gaming businesses, including a recent turnaround at BetMakers Technology Group and founding NYX Gaming Group, which was sold for ~$631 million in 2018
• Bragg plans to launch a refreshed brand to reflect its new games-first focus, with additional details to be released in the near future

Bragg Gaming Group did not break out financial performance for separate product segments in this earnings call. Aggregate Q1 2026 company-wide results are as follows: total revenue was €25.7 million, up 0.6% year-over-year; operating loss was €1.4 million, an 18% improvement from Q1 2025; net loss was €1.2 million (€0.05 per common share), a 55% improvement year-over-year; adjusted EBITDA was €4 million with an adjusted EBITDA margin of 15.7%, down marginally from €4.1 million and 16% in Q1 2025. As of March 31, 2026, the company held €3.4 million in cash and cash equivalents.

• Management affirmed its full year 2026 financial guidance, excluding any impact from the planned Drayton International transaction
• Full year 2026 revenue is projected to be between €97 million and €104.5 million
• Full year 2026 adjusted EBITDA is projected to be between €16 million and €19 million, representing an adjusted EBITDA margin of between 16% and 18%

• The company notes that all forward-looking statements on the call carry inherent risk, with a full explanation of relevant risk factors available in the Q1 2026 earnings presentation, the earnings press release, and other public company filings
• The Drayton International transaction has not yet closed, so all related strategic and financial benefits are contingent on successful completion of the transaction
• No additional operational failures or material risks were discussed in detail during the call

Q: How did the planning process for the Drayton acquisition impact Bragg's Q1 2026 operational and financial results? / A: Management stated that acquisition planning had no impact on Q1 2026 results. The strategic direction that the Drayton transaction supports — a North America-focused, proprietary content-led strategy — has been part of Bragg's long-term plan for an extended period. The deal only complements Bragg's existing trajectory and will align the business to execute on this strategy more effectively after closing.

Q: Will the Drayton acquisition meaningfully boost top-line growth, and what synergies and game overlap exist between Drayton and Bragg's current portfolio? / A: The acquisition accelerates Bragg's transition to a higher-margin, proprietary, games-first business. It adds over 100 proprietary game titles, studios, AI development tools, distribution infrastructure, and access to the large underpenetrated ADW market that is legal in 30+ U.S. states where traditional iGaming is unregulated. Drayton's assets can also be deployed in Bragg's existing markets, and existing Drayton titles are already partially distributed via Bragg's network.

Q: What is the current financial profile of Drayton's assets, and will pro forma financials be released to investors ahead of closing? / A: Drayton's assets currently generate mid-single-digit millions in annual revenue (without synergies) and are already EBITDA-positive, with an attractive valuation relative to precedent industry transactions. The transaction also includes $1 million of excess cash. Bragg sees significant upside to grow Drayton's revenue with Bragg's scale and distribution, and confirmed the transaction is highly aligned with Bragg's focus on U.S.-based proprietary content.