Bragg Gaming Group’s shares plunged 16% yesterday, 13 August, following the withdrawal of the supplier’s guidance for 2026.
The stock, which is down 50% in the past 12 months, closed at $1.50 (£1.10), while the firm said it was reassessing full-year projections primarily due to its $9m acquisition of content platform and games aggregator Drayton International, a deal which completed at the end of July.
A note from Citizens Bank said the near-term outlook is “slightly murky” until Bragg completes the restructuring and integration of Drayton.
As part of its Q2 earnings release, Bragg stated that prior to withdrawing its guidance, and on a standalone basis excluding Drayton, the supplier was “tracking below the low end of the revenue range and at the low end of the adjusted EBITDA range”.
Earlier this year, at the end of the first quarter, bosses anticipated full-year revenue of between €97m and €104.5m, while adjusted EBITDA was set at €16m to €19m.
At the time, Bragg said guidance did not include any potential impacts from the planned acquisition of Drayton. The deal brought in industry veteran Matt Davey to join the board as a non-executive chair.
As for Bragg’s Q2 performance, revenue declined 12% year on year (YoY) to €22.9m, which Citizens attributed to regulatory and supplier changes in Brazil.
Adjusted EBITDA was flat at €3.5m, but it still beat consensus estimates of €2.8m and represented a 15% adjusted EBITDA margin.
Meanwhile, Bragg posted a net loss of €2.9m, as opposed to a positive €1.8m in the first quarter of 2025.
Geographically, revenue increased YoY in Brazil, Czechia, Malta and Belgium, yet the Netherlands tumbled from €6.4m in Q2 2025 to €3.9m. US revenue decreased by a third, from €3m to €2m.
In May, the business announced a shift to an “AI-driven model” alongside its Q1 financial report. The pivot began in January when Bragg cut its global headcount by 12%. Headcount was reduced again in July by 19%.
On the Q2 performance, Matevž Mazij, CEO of Bragg, remarked: “In the second quarter, we continued to execute on our strategy with a focus on profitability and disciplined cost management.
“Despite lower revenue, adjusted EBITDA remained broadly flat and adjusted EBITDA margin expanded, supported by continued progress in reducing our cost base.
“Since quarter end we closed the Drayton transaction, satisfied entirely in shares, and announced a further workforce reduction.
“Integrating Drayton is our primary focus for the remainder of the year. That work is underway across content and technology and remains at an early stage.
“Together with Matt Davey joining as non-executive chairman, our direction is unchanged: a games-first strategy on a lower cost base.”
Davey said in a prepared statement he had invested in Bragg because of its “genuinely valuable” assets and that its licensed footprint across more than 30 markets “took years to build and cannot be quickly replicated”.
“That value is not yet reflected in the company’s financial results and closing that gap will require real change in how the business is structured and operates,” he added.
Meanwhile, Bragg announced Donald Robertson has resigned from the board, effective 13 August, and been replaced by Jordan Gnat.
The post Bragg shares slump after supplier withdraws 2026 guidance first appeared on EGR Intel.
Dual-listed firm reassesses full-year outlook following $9m Drayton acquisition and 12% fall in Q2 revenue
The post Bragg shares slump after supplier withdraws 2026 guidance first appeared on EGR Intel.