Q4 2025 Bragg Gaming Group Inc Earnings Call

March 19, 2026

Speaker #1: Good morning , ladies and gentlemen . Thank you for standing by . My name is Kelvin , and I will be your conference operator today .

Operator: Good morning, ladies and gentlemen. Thank you for standing by. My name is Calvin, and I will be your conference operator today. At this time, I would like to welcome everyone to Bragg Gaming Group's Q4 and Full Year 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Stephen Kilmer, investor relations. Please go ahead.

Speaker #1: At this time , I would like to welcome everyone to Bragg Gaming Group Inc. fourth quarter and full year 2025 Earnings conference Call .

Speaker #1: All lines have been placed on mute to prevent any background noise . After the speakers remarks , there will be a question and answer session .

Speaker #1: If you would like to ask a question during this time , simply press star followed by the number one on your telephone keypad .

Speaker #1: If you would like to withdraw your question , please press star one again . Thank you . I would now like to turn the call over to Steven Killmer , Investor Relations .

Speaker #1: Please go ahead

Speaker #2: Good morning , everyone , and thank you for joining us for Bragg Gaming Group Inc. fourth quarter and full year 2025 earnings call .

Stephen Kilmer: Good morning, everyone, and thank you for joining us for Bragg Gaming Group's Q4 and Full Year 2025 Earnings Call. If you're connected to our online webcast today, you should see our Q4 earnings presentation on your screen, and you should have control to flip the slides yourself as you listen to this call. If you have joined by telephone, please note that you can find our earnings presentation as well as the financial results press release on our website at investors.bragg.group. Please note that certain statements on this call may constitute forward-looking information or future-oriented financial information. A full explanation of risk factors is available on our second slide of our Q4 earnings presentation titled Forward-Looking Statements, as well as in the recently filed press release and other public disclosures.

Speaker #2: If you're connected to our online webcast today, you should see our fourth quarter earnings presentation on your screen. And you should have control to flip the slides yourself as you listen to this call.

Speaker #2: If you have joined by telephone , please note that you can find our earnings presentation as well as the financial results . Press release on our website at investors Please note that certain statements on this call may constitute forward looking information or future oriented financial information A full explanation of risk factors is available on our second slide of our fourth quarter earnings presentation , titled Forward Looking Statements , as well as in the recently filed press release and other public disclosures Disclaims any obligation except as required by law , to update or revise any forward looking statements , whether because of new information , future events or otherwise Any forward looking statements made on this call speak only as of the date of this call On this call , CEO Matt Masek and CFO Robert Bressler will discuss the company's fourth quarter performance , followed by a question and answer session I'd now like to turn the call over to Matt .

Stephen Kilmer: Bragg disclaims any obligation, except as required by law, to update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Any forward-looking statements made on this call speak only as of the date of this call. On this call, CEO Matevž Mazij and CFO Robbie Bressler will discuss the company's Q4 performance, followed by a question-and-answer session. I'd now like to turn the call over to Matevž.

Speaker #3: Thank you , Stephen , and good morning , everyone . Thank you for joining us for Bragg Gaming Group Inc. fourth quarter and full year 2025 earnings call .

Matevž Mazij: Thank you, Stephen, and good morning, everyone. Thank you for joining us for Bragg Gaming Group's Q4 and full year 2025 earnings call. We are Bragg, dual listed on the Nasdaq and Toronto Stock Exchange, and we are a specialist supplier of games and technology to the regulated iGaming market. We create and deliver cutting-edge online casino games, both from our own in-house studios and from top-tier in-demand partner studios. We empower online casino, sports betting, and lottery operators to launch, run, scale, and optimize their apps and websites. Through everything we do, we enhance the end user experience by leveraging advanced analytics and AI to drive engagement and smarter, more efficient iGaming operations.

Speaker #3: We are brag listed on the Nasdaq and Toronto Stock Exchange , and we are a specialist supplier of games and technology to the regulated iGaming market We create and deliver cutting edge online casino games .

Speaker #3: Both from our own in-house studios and from top tier in demand partner studios We empower online casino sports betting and lottery operators to launch run scale and optimize their apps and websites .

Speaker #3: And through everything we do , we enhance the end user experience by leveraging advanced analytics and AI to drive engagement and smarter , more efficient iGaming operations During the fourth quarter , we continued to see double digit growth in our focus markets of the USA , where we saw 55% year over year revenue growth .

Matevž Mazij: During the Q4, we continued to see double-digit growth in our focus markets of the USA, where we saw a 55% year-over-year revenue growth, and in Brazil, which saw revenue growth of 42.1% compared to the same period last year. This acceleration is testament to the success of our strategic focus on high-margin proprietary casino content. Overall revenue growth when factoring out the Netherlands, a jurisdiction which I'll discuss further later in this call, was up 5.1% compared to the Q4 of the last year, demonstrating the continued demand for Bragg's products and services in regulated iGaming markets around the world.

Speaker #3: And in Brazil , which saw revenue growth of 42.1% compared to the same period last year This acceleration is testament to the success of our strategic focus on high margin , proprietary casino content Overall revenue growth when factoring out the Netherlands , a jurisdiction , which I'll discuss further later in this call was up 5.1% .

Speaker #3: Compared to the fourth quarter of last year , demonstrating the continued demand for Bragg's products and services in regulated iGaming markets around the world During the quarter , we continued to expand our US content footprint through the launch of our exclusive and bespoke online casino content with Caesars Entertainment in West Virginia , and we also launched exclusive and aggregated content with several valued clients operating in Brazil and in some cases , other key Latam jurisdictions , including Brazil .

Matevž Mazij: During the quarter, we continued to expand our US content footprint through the launch of our exclusive and bespoke online casino content with Caesars Entertainment in West Virginia, and we also launched exclusive and aggregated content with several valued clients operating in Brazil, and in some cases, other key LatAm jurisdictions, including Brazino777, Blaze, and Superbet Technologies. We continue to be focused on optimizing our cost structure, which allows us to deliver operational leverage, and as Robbie will now go into more detail, we're pleased to be reporting revenue, gross profit, and adjusted EBITDA in line with our expectations for Q4 of this year. I'll be back to discuss some of these points in more detail after you've heard from our Chief Financial Officer, Robbie Bressler, who will now discuss the Q4 financials. Robbie?

Speaker #3: Blaze and Super Technologies We continue to be focused on optimizing our cost structure , which allows us to deliver operational leverage and as Ravi will now go into more detail , we're pleased to be reporting revenue , gross profit , and adjusted EBITDA in line with our expectations for the fourth quarter of this year .

Speaker #3: I'll be back to discuss some of these points in more detail after you've heard from our chief Financial Officer , Robert Bressler , who will now discuss the fourth quarter financials Ravi , thank you Mats in the fourth quarter of 2025 .

Robbie Bressler: Thank you, Matevž. In Q4 of 2025, revenue was EUR 27.7 million, up 1.9% year-over-year. Excluding the Netherlands, revenue grew 5.1%, underscoring continued execution of our diversification strategy and the strength of our high-growth markets. As expected, the Netherlands remains impacted by regulatory changes, with revenue down 4.6% year-over-year. This region now represents a smaller share of total revenue as our business outside the Netherlands accelerates. Much of the underlying growth was led by North America and Brazil, which together accounted for 26% of total revenue, up 13% from a year ago. From a strategic point of view, the quarter reflects clear progress towards our goal of building high margin, more diversified business.

Speaker #3: revenue was €27.7 million , up 1.9% year over year . Excluding the Netherlands revenue grew 5.1% , underscoring continued execution of our diversification strategy and the strength of our high growth markets .

Speaker #3: As expected , the Netherlands remains impacted by regulatory changes with revenue down 4.6% year over year . This region now represents a smaller share of total revenue as our business outside the Netherlands accelerates .

Speaker #3: Much of the underlying growth was led by North America and Brazil , which together accounted for 26% of total revenue , up 13% from a year ago .

Speaker #3: From a strategic point of view , the quarter reflects clear progress towards our goal of building high margin , more diversified business . We continue to shift our revenue mix towards proprietary content , which grew 20.8% year over year in Q4 and remains our best performing margin contributor .

Robbie Bressler: We continue to shift our revenue mix towards proprietary content, which grew 20.8% year-over-year in Q4, and remains our best performing margin contributor. This transition is a key driver of our expanding profitability profile. In Q4 2025, gross profit was essentially unchanged year-over-year to EUR 15.7 million, with gross margin of 56.5%, reflecting sequential improvements versus 54.7% in Q3 2025. Q4 2025 adjusted EBITDA of EUR 4.6 million was also flat year-over-year compared to EUR 4.7 million in Q4 2024, but up sequentially from EUR 4.4 million in Q3 2025. EBITDA margin was 16.5% in Q4 2025. Moving to the balance sheet, we remain focused on maintaining a strong and flexible balance sheet.

Speaker #3: This transition is a key driver of our expanding profitability profile in Q4 2025 . Gross profit was essentially unchanged year over year to €15.7 million , with gross margin of 56.5% , reflecting sequential improvements versus 54.7% in Q3 2025 .

Speaker #3: Q4 2025 adjusted EBITDA of €4.6 million was also flat year over year , compared to €4.7 million in Q4 2020 . Four . But up sequentially from €4.4 million in Q3 2025 .

Speaker #3: EBITDA margin was 16.5% in Q4 2025. Moving to the balance sheet, we remain focused on maintaining a strong and flexible balance sheet.

Speaker #3: As we noted on last quarter's call, we successfully completed our new working capital revolving credit facility with a tier-one Canadian bank.

Robbie Bressler: As we noted on last quarter's call, we successfully completed our new working capital revolving credit facility with a tier one Canadian bank. This facility enhances our liquidity position and supports continued investment in high growth, margin-accretive initiatives and significantly lowers our borrowing costs. Cash and cash equivalents as of December 31, 2025 amounted to EUR 6.7 million. Our strategy is delivering. We are becoming a more efficient, diversified, and a higher margin business, and we remain confident in our ability to deliver sustainable long-term growth and shareholder value. As we move through 2026, we remain very focused on continuing to optimize our product mix and optimize our internal processes and structures and believe there are significant opportunities to refine and improve our margins and cash flow.

Speaker #3: This facility enhances our liquidity position and supports continued investment in high growth , margin accretive initiatives and significantly lowers our borrowing costs . Cash and cash equivalents as of December 31st , 2025 amounted to €6.7 million .

Speaker #3: Our strategy is delivering . We are becoming a more efficient , diversified and higher margin business and we remain confident in our ability to deliver sustainable , long term growth and shareholder value as we move through 2026 .

Speaker #3: We remain very focused on continuing to optimize our product mix and optimize our internal processes and structures, and believe there are significant opportunities to refine and improve our margins and cash flow.

Speaker #3: In that regard , we announced some structural cost changes , including staff reductions in early January designed to secure a resilient financial foundation for 2026 and beyond .

Robbie Bressler: In that regard, we announced some structural cost changes, including staff reductions in early January, designed to secure a resilient financial foundation for 2026 and beyond. As a result of the strategic restructuring, Bragg has reduced approximately 12% of our global workforce. We expect to incur restructuring costs related to this action of approximately EUR 1 million associated with personnel-related termination costs in Q1 of 2026, and we anticipate annualized cash savings from the staff reductions and other restructuring efforts to be approximately EUR 4.5 million. Note that this amount does not include the expected positive impact of our recently announced initiative to utilize AI to drive cost efficiencies and improve operational excellence.

Speaker #3: As a result of the strategic restructuring , Bragg has reduced approximately 12% of our global workforce . We expect to incur restructuring costs related to this action of approximately €1 million associated with personnel related termination costs in the first quarter of 2026 , and we anticipate annualized cash savings from the staff reductions and other restructuring efforts to be approximately €4.5 million .

Speaker #3: Note that this amount does not include the expected positive impact of our recently announced initiatives to utilize AI to drive cost efficiencies and improve operational excellence After securing key hires in 2024 and 2025 , we believe aggressive operational expense reduction and organizational realignment are the final steps to maintain our cash runway drive EBITDA growth and achieve cash profitability Our strategic restructuring is designed to capitalize on our strong foundation and position us extremely well for organic growth and concurrent market consolidation opportunities .

Robbie Bressler: After securing key hires in 2024 and 2025, we believe aggressive operational expense reduction and organizational realignment are the final steps to maintain our cash runway, drive EBITDA growth, and achieve cash profitability. Our strategic restructuring is designed to capitalize on our strong foundation and position us extremely well for organic growth and concurrent market consolidation opportunities. We also believe that Bragg is currently undervalued by the market, and that improving our cash profitability will help address this issue while also making us stronger in meeting consolidation opportunities as they arise. Pulling everything together, we currently anticipate full year 2026 revenue between EUR 97 million and 104.5 million, an adjusted EBITDA of EUR 16 million and 19 million, representing an adjusted EBITDA margin of 16% to 18%. With that, I'll pass the line back to Matt.

Speaker #3: We also believe that Bragg is currently undervalued by the market and that improving our cash profitability will help address this issue , while also making us stronger in meeting consolidation opportunities as they arise .

Speaker #3: Pulling everything together , we currently anticipate full year 2026 revenue between 97 million and €104.5 million , and adjusted EBITDA of €16,000,019 million , representing an adjusted EBITDA margin of 16 to 18% .

Speaker #3: And with that , I'll pass the line back to Matt . Thank you . Ravi . We've been talking about the growing vertical of proprietary casino content .

Matevž Mazij: Thank you, Robbie. We've been talking about the growing vertical of proprietary casino content at Bragg and how we have made it a strategic focus because it is a high-margin product which supports growing gross profit and EBITDA margins. Online casino content that we own also delivers compounding, recurring long-term revenues, and the US market continues to grow. According to H2 Gambling Capital, the US online casino market will grow from around $12.4 billion in 2025 to over $36 billion in 2030, a compound annual growth rate of 24% over the next five years. We have been building our portfolio of games for several years now, and approximately 60% of all proprietary content revenue in the Q4 of 2025 came from our games that we released before 2025.

Speaker #3: Bragg , and how we have made it a strategic focus because it is a high margin product , which supports growing gross profit and EBITDA margins .

Speaker #3: But online casino content that we own also delivers compounding, recurring, long-term revenues, and the US market continues to grow. According to H2 Gambling Capital, this trend is expected to continue.

Speaker #3: The US online casino market will grow from around $12.4 billion in 2025 to over $36 billion in 2030, a compound annual growth rate of 24% over the next five years.

Speaker #3: We have been building our portfolio of games for several years now, and approximately 60% of all proprietary content revenue in the fourth quarter of 2025 came from our games that we released before 2025.

Speaker #3: In 2025 alone , we launched 44 new proprietary casino games . So we're demonstrating longevity Our strong player retention in industry terms , and we are delivering long term recurring revenues from a growing mountain of fully owned IP We are also growing strongly in Brazil , where revenues were up 53.2% for the year , highlighting a successful regulated market entry in 2025 for brag .

Matevž Mazij: In 2025 alone, we launched 44 new proprietary casino games. We're demonstrating longevity, our strong player retention in industry terms, and we are delivering long-term recurring revenues from a growing mountain of fully owned IP. We are also growing strongly in Brazil, where revenues were up 53.2% for the year, highlighting a successful regulated market entry in 2025 for Bragg. We are on target to see 12.2% of revenues coming from this very important jurisdiction now in 2026. Now, I want to briefly remind you why we're talking about our revenue performance in terms of the Netherlands and non-Netherlands. We maintain our pride in being a market-leading iGaming supplier in the Netherlands, a consistently important market for Bragg.

Speaker #3: We are on target to see 12.2% of revenues coming from this very important jurisdiction now in 2026. Now, I want to briefly remind you why we're talking about our revenue performance in terms of the Netherlands and non-Netherlands.

Speaker #3: We maintain our pride in being a market leading iGaming supplier in the Netherlands , a consistently important market for brag , our dominant position has been stable for several years , demonstrated by the significant share of regulated gross gaming revenue that flows through our products and technology .

Matevž Mazij: Our dominant position has been stable for several years, demonstrated by the significant share of regulated Gross Gaming Revenue that flows through our products and technology in this jurisdiction. However, with increasing regulatory and tax headwinds facing our customers in the Netherlands, we're especially interested and proud of the growth we're seeing in regulated markets outside of that jurisdiction, such as United States and Brazil. Our 5.1% quarterly year-over-year growth in other markets shows what we can achieve when factoring out the unusual market conditions currently seen in the Netherlands. Our geographic diversification has consistently improved over the past four years, with non-Netherlands revenue rising from 51% of all revenues in 2022 to approximately 68% of all revenues in 2025. As our industry continues to grow and evolve, we expect to continue this trend of diversified growth.

Speaker #3: This jurisdiction However , with increasing regulatory and tax headwinds facing our customers in the Netherlands , where especially interested and proud of the growth we're seeing in regulated markets outside of that jurisdiction , such as United States and Brazil Our 5.1% quarterly year over year growth in other markets shows what we can achieve when factoring out the unusual market conditions .

Speaker #3: Currently seen in the Netherlands . Our geographic diversification has consistently improved over the past four years , with non Netherlands revenue rising from 51% of all revenues in 2022 to approximately 68% of all revenues in 2025 .

Speaker #3: And as our industry continues to grow and evolve , we expect to continue this trend of diversified growth . Newly regulated jurisdictions such as Finland , which has announced the launch of its regulated iGaming market in January 2027 , offer great potential ahead of companies like Prague , as we have previously communicated .

Matevž Mazij: Newly regulated jurisdictions such as Finland, which has announced the launch of its regulated iGaming market in January 2027, offer great potential ahead of companies like Bragg. As we have previously communicated, we continue to expect one of our customers in the Netherlands, BetCity, to migrate off of the Bragg PAM in first half of 2026. Also, as previously communicated, we expect the impact on the bottom line post-migration next year to be minimal due to the margin profile of that particular customer. Our PAM and full technology and content portfolio remain in strong demand in the Netherlands as well as in regulated jurisdictions around the world. We look in particular to those markets outside of the Netherlands to continue to drive our revenue and margin growth in 2026 and beyond.

Speaker #3: We continue to expect one of our customers in the Netherlands , Pet CT , to migrate off of the Prague Pam in first half of 2026 and also , as previously communicated , we expect the impact on the bottom line Post-migration next year to be minimal due to the margin profile of that particular customer .

Speaker #3: Our Pam and full technology and content portfolio remain in strong demand in the Netherlands , as well as in regulated jurisdictions around the world .

Speaker #3: And we look in particular to those markets outside of the Netherlands to continue to drive our revenue and margin growth in 2026 and beyond, as we have highlighted recently. We're also looking to expand our business diversification beyond just geography. We achieved profitable growth, with the percentage of revenue derived from our proprietary content increasing from 13.3% in the fourth quarter of 2024 to 15.7% in the fourth quarter of 2025.

Matevž Mazij: As we have highlighted recently, we're also looking to expand our business diversification beyond just geography. We achieved profitable growth with the percentage of revenue derived from our proprietary content increasing from 13.3% in Q4 2024 to 15.7% in Q4 2025. This growth was primarily driven by our US content business. This shift is significant because proprietary content is a higher margin product, meaning that even with lower overall revenues in 2026, we still anticipate higher EBITDA and an improved EBITDA margin. Specifically, we're excited about what we see with respect to our future presence in key emerging markets, such as Historical Horse Racing and prediction markets. While I don't wanna give away too much information now, it's no secret that we have been making early and concrete preparations for these launches.

Speaker #3: This growth was primarily driven by our US content business . The shift is significant because proprietary content is a higher margin product , meaning that even with lower overall revenues in 2026 , we still anticipate higher EBITDA and an improved EBITDA margin .

Speaker #3: Specifically , we're excited about what we see with respect to our future presence in key emerging markets , such as historical live racing and prediction markets .

Speaker #3: And, while I don't want to give away too much information now, it's no secret that we have been making early and concrete preparations for these launches.

Speaker #3: In addition, we have completed an important organizational realignment through the appointment of Morten Tonnessen as our new COO and promoted Garrett Morris to Executive VP of Global Content, US and Canada.

Matevž Mazij: In addition, we have completed an important organizational realignment through the appointment of Morten Tønnesen as our new COO and promoted Garrick Morris to Executive VP of Global Content, US and Canada at the start of this month. With Morten driving operational leverage and implementing Bragg's ambitious AI-first company transformation, and Garrick focused on US and global content expansion, we believe we're uniquely positioned to provide the robust iGaming ecosystems required by leading players in the evolving historical and live racing and prediction markets, and that Bragg will stand out as a sole B2B provider operating at the convergence of iGaming, sports, and predictions. In summary, Bragg is well-placed to become a global B2B leader in content, engagement, and infrastructure. Our strategy is clearly focused on delivering sustainable, high margin growth and achieving cash profitability.

Speaker #3: At the start of this month, with Morten driving operational leverage and implementing Bragg's ambitious AI-first company transformation, and Garrett focused on U.S. and global content expansion.

Speaker #3: We believe we're uniquely positioned to provide the robust iGaming ecosystems required by leading players in the evolving market. Historical and live racing and prediction markets, and that Bragg will stand out as a sole B2B provider operating at the convergence of iGaming, sports, and predictions. In summary, Prague is well placed to become a global B2B leader in content engagement and infrastructure.

Speaker #3: Our strategy is squarely focused on delivering sustainable , high margin growth and achieving cash profitability . The key pillars positioning us for a successful 2026 and beyond are proprietary content leadership .

Matevž Mazij: The key pillars positioning us for a successful 2026 and beyond are proprietary content leadership. We continue to expand our portfolio of exclusive fully owned IP, which is a significant margin contributor and provides compounding, recurring long-term revenue. Q4 proprietary content revenue increased 20.8% compared to the same period last year, and currently makes up 15.7% of all revenue when split by product mix. The second pillar is geographic and product diversification. We accelerate growth in high-value regulated markets like the US and Brazil, while expanding our presence into new evolving verticals such as historical and live racing, and prediction markets. Our expansion outside the Netherlands continues its strong trajectory with 76% of our total 2026 revenue projected to come from non-Netherlands markets.

Speaker #3: We continue to expand our portfolio of exclusive , fully owned IP , which is a significant margin contributor and provides compounding , recurring long term revenue .

Speaker #3: Fourth quarter proprietary content revenue increased 20.8% compared to the same period last year , and currently makes up 15.7% of all revenue . When split by product mix The second pillar is geographic and product diversification .

Speaker #3: We accelerate growth in high value regulated markets like the US and Brazil , while expanding our presence into new , evolving verticals such as historical and live racing and prediction markets .

Speaker #3: Our expansion outside the Netherlands continues its strong trajectory with 76% of our total 2026 revenue projected to come from non Netherlands markets . We achieved record fourth quarter 2025 revenue in our key growth markets , including a 55% year over year increase in the United States and 42.1% increase in Brazil .

Matevž Mazij: We achieved record Q4 2025 revenue in our key growth markets, including a 55% year-over-year increase in the United States and 42.1% increase in Brazil. When factoring out the Netherlands contraction, we are pleased to see 5.1% year-over-year revenue growth across our other markets in Q4 2025. The third pillar is operational excellence and AI. Utilizing our Bragg AI Brain Initiative and recent organizational realignment to streamline internal processes, enhance overall efficiency, and deliver operational leverage for a more resilient financial foundation. Having only just announced the Bragg AI Brain Initiative during the first week of 2026, we are already well on our way toward becoming an AI-first company.

Speaker #3: When factoring out the Netherlands contraction , we are pleased to see 5.1% year over year revenue growth across our other markets in fourth quarter 2025 .

Speaker #3: The third pillar is operational excellence and AI . Utilizing our AI brain initiative and recent organizational realignment to streamline internal processes , enhance overall efficiency , and deliver operational leverage for a more resilient financial foundation Having only just announced the brag AI brain initiative during the first week of 2026 , we are already well on our way toward becoming an AI first company The fourth pillar is path to positive Ebit through product mix optimization , geographic diversification , and aggressive operating expense reductions , including a 12% global workforce reduction for an anticipated €4.5 million in annualized cash savings We are focused on achieving our goal of positive Ebit by late 2026 .

Matevž Mazij: The fourth pillar is path to positive EBIT through product mix optimization, geographic diversification, and aggressive operating expense reductions, including a 12% global workforce reduction for an anticipated EUR 4.5 million in annualized cash savings. We are focused on achieving our goal of positive EBIT by late 2026 as we advance further along the path toward net profitability. As we keep our focus on improving product mix, processes, and margins, delivering operational leverage, we expect lower revenue will still drive higher EBITDA in 2026. Specifically, we currently project full year 2026 revenue of between EUR 97 million and 104.5 million, and adjusted EBITDA of between EUR 16 million and 19 million.

Speaker #3: As we advance further along the path toward net profitability , as we keep our focus on improving product mix processes and margins , delivering operational leverage , we expect lower revenue will still drive higher EBITDA in 2026 .

Speaker #3: Specifically, we currently project full-year 2026 revenue of between €97 million and €104.5 million, and adjusted EBITDA of between €16 million and €19 million.

Speaker #3: Finally , before we open up today's call to questions , I would like to personally thank Kent Young for his many contributions to brag and wish him all the best in his future endeavors .

Matevž Mazij: Finally, before we open up today's call to questions, I would like to personally thank Kent Young for his many contributions to Bragg and wish him all the best in his future endeavors now that he has retired from the Bragg board. At the same time, I am excited that we have attracted an iGaming luminary of Thomas Winter's caliber to succeed Kent on the board. Tom's proven track record in the iGaming industry, his strategic vision, and his extensive corporate governance experience will be invaluable as we continue to expand our global footprint and offerings.

Speaker #3: Now that he has retired from the Bragg board at the same time, I am excited that we have attracted an iGaming luminary of Thomas Winters' caliber to succeed Kent on the board. Tom's proven track record in the iGaming industry, his strategic vision, and his extensive corporate governance experience will be invaluable as we continue to expand our global footprint and offerings. I very much look forward to his contributions, and I'm confident that his expertise will help drive our future success. Thank you. Ravi and I are now available to take any questions you may have.

Matevž Mazij: I very much look forward to his contributions, and I'm confident that his expertise will help drive our future success. Thank you. Robbie and I are now available to take any questions you may have.

Speaker #1: Ladies and gentlemen, we will now begin the question and answer session. As a reminder, to ask a question, please press the star button followed by the number one on your telephone keypad.

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder, to ask a question, please press the star button followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. One moment please, for your first question. Your first question comes from the line of Luka Pataky of Haywood Securities. Please go ahead.

Operator: Ladies and gentlemen, we will now begin the question-and-answer session. As a reminder, to ask a question, please press the star button followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. One moment please, for your first question. Your first question comes from the line of Luka Pataky of Haywood Securities. Please go ahead.

Speaker #1: If you would like to withdraw your question , please press star one again . One moment please . For your first question Your first question comes from the line of Jean II of Haywood Securities .

Speaker #1: Please go ahead .

Speaker #3: Hi .

Luka Pataky: All right. Good morning. If I could just ask on proprietary content, could you confirm the growth in this product line? Secondly, what does the pipeline appear to look like for the year from a cadence of content perspective for proprietary content?

Speaker #4: 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 from a cadence of content ?

Speaker #4: Perspective for proprietary content Sure . Thanks for the question . In terms of growth , we were able to achieve more concentration from proprietary content in 2025 .

Robbie Bressler: Sure. Thanks for the question. In terms of growth, we were able to achieve more concentration from proprietary content in 2025, really than we ever have historically. 16.6% is the concentration of revenue we were able to generate from our proprietary content. That totaled to about EUR 4.3 million. Sorry, EUR 4.3 million was our total for Q4 2025. Just to give you a sense of growth, we were at EUR 3.6 million at Q4 2024 and EUR 3.1 million at Q4 2024. Quarterly, our cadence is increasing quite dramatically, and we believe that's a continuing trend that's gonna accelerate our margins through 2026.

Speaker #4: Really, than we ever have historically. So, 16.6% is the concentration of revenue we were able to generate from our proprietary content.

Speaker #4: 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 .

Speaker #4: So, quarterly, our cadence is increasing quite dramatically. And we believe that that's a continuing trend that's going to accelerate our margins through 2026.

Speaker #5: Okay . Thank you for that . Ravi . And , and just on , on the cadence or pipeline of content Development , how does that look for the year ?

Luka Pataky: Okay. Thank you for that, Robbie. Just on the cadence or on a pipeline of content development, how does that look for the year? Should we expect activity in like in line with like historical content development? Are things gonna be a bit accelerated? How's the IP perspective looking?

Speaker #5: Should we expect activity and like In line to like historical content development or are things going to be a bit accelerated ? How's , how's the IP perspective looking

Speaker #4: Yeah , from a , from an investment perspective . So from a cadence of game production , we , we will maintain a very similar cadence .

Robbie Bressler: Yeah. From an investment perspective, from a cadence of game production, we will maintain a very similar cadence. We are looking and utilizing the tools that we have. Matt's talked about AI Brain and other initiatives that we have developed or in development. This really speaks to us not only just producing content, but producing content that's really gonna maximize lifetime values for operators. 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. We know it takes more than that, and we're very focused on that lifetime value maximization through the titles that we offer.

Speaker #4: We are looking and utilizing the tools that we have . And Matt's talked , talked about AI brain and other initiatives that we have developed or in development .

Speaker #4: And this really speaks to us not only just producing content , but producing content that's really going to maximize lifetime values for operators .

Speaker #4: So we , we're , we're conscious and talked about this in the past , how cadence is very important for us to maintain good relationships and be topical for operators .

Speaker #4: But it's , we know it takes more than that . And we're very focused on that lifetime value maximization through the titles that we offer .

Speaker #4: And we're confident that we're going to be able to keep penetrating and increasing our market share in the US .

Robbie Bressler: We're confident that we're gonna be able to keep penetrating and increasing our market share in the US.

Speaker #5: Perfect . Helpful color there . And then just on the US market , it does appear like it was a record for you guys in the fourth quarter .

Luka Pataky: Perfect. Helpful color there. Just on the US market, it does appear like it was a record for you guys in Q4. Is that being largely, like, driven by proprietary IP, or are there other factors that are helping your growth in the US market?

Speaker #5: Is that being largely driven by proprietary IP, or are there other factors that are helping your growth in the US market?

Speaker #4: Yeah , so our US offerings right now , it's it's primarily proprietary , but also exclusive content . We don't do any aggregation .

Robbie Bressler: Yeah. Our US 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. The US market just 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 a bucket. Now, there's always rumblings of changes. 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%. In Pennsylvania, very similar. iCasino up 27%, sports only up 18%.

Speaker #4: So it's all high margin products that are being offered into that market . And the US market just is , is just so ripe for I casino as a reminder , 12% of the US population is under I casino regulation .

Speaker #4: 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 , I casino performance was up 22% year over year .

Speaker #4: Sports was only up 7.5% . And in Pennsylvania , very similar . I casino up 27% . Sports only up 18% . So the growth that is there in the casino market in the US is extremely exciting .

Robbie Bressler: The growth that is there in the iCasino market in the US is extremely exciting, and we are well-positioned to keep penetrating that growth.

Speaker #4: And we are well positioned to keep penetrating that growth

Speaker #5: Okay , okay . Thanks , Ravi . And then just one last one on cost savings . I think you said the charge is going to be about a million .

Luka Pataky: Okay. Thanks, Robbie. Just one last one on cost savings. I think you said the charge is gonna be about EUR 1 million this quarter, Q1. Like, do you expect that to start helping OpEx in Q2? Or how should we be thinking about the timing of the benefits to your operating expense line?

Speaker #5: This quarter . Q1 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 ?

Speaker #4: Yeah , good question . So the the benefits start immediately . The the total amounts of those benefits on an annualized basis is about 4.5 million .

Robbie Bressler: Yeah. Good question. The benefits start immediately. The total amounts of those benefits on an annualized basis is about EUR 4.5 million. Those have all been baked into the guidance that we have provided. We do assume those cost savings in the guidance that we have provided. Correct, the one-time expense will hit Q1 of 2026.

Speaker #4: 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.

Speaker #4: And correct that the one-time expense will hit Q1 of 2026.

Speaker #5: Okay . Thanks , guys . I'll pass the line . Thank you

Operator: Okay. Thanks, guys. I'll pass the line.

Luka Pataky: Okay. Thanks, guys. I'll pass the line.

Robbie Bressler: Thank you.

Speaker #1: Your next question comes from the line of Jack Cordero of Maxim Group . Please go ahead Hi .

Operator: Your next question comes from the line of Jack Codera of Maxim Group. Please go ahead.

Jack Codera: Hi, this is Jack Codera calling in for Jack Brennert. Thanks for taking my question. Just a quick one, kind of wanting to clarify, you know, given your comments on the Netherlands headwinds 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, US, and Brazil? Any commentary there would be helpful.

Speaker #4: This is Jack .

Speaker #6: Calling in for Jack . Thanks for taking my question . Just a quick one , kind of wanting to clarify . You , 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 ?

Speaker #6: US and Brazil? Any commentary there would be helpful.

Speaker #4: Sure . So in terms are you looking more 2025 or 20 2626 .

Robbie Bressler: Sure. Are you looking more 2025 or 2026?

Jack Codera: 2026, kind of on a percentage basis, like, you know, obviously, there's some randomness there, but, you know, any color on kind of where you expect the percentages to land on a full year basis?

Speaker #6: Kind of on a percentage basis , you know , obviously there's some randomness there , but you know , any color on kind of where you expect the percentages to land on a full year basis ?

Speaker #4: Yeah, you know, I think—start with Brazil. Brazil, we were able to achieve significant growth in that market this past 2025 year.

Robbie Bressler: Yeah. You know, 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, you know, exceeded 10%. 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 more pushing more margin accretive products, pushing more of our proprietary content, utilizing our relationship with RapidPlay, which is the local studio we've made an investment in. We're still bullish that Brazil will see good growth. We should be growing in double digits. That product mix is more important to us.

Speaker #4: And the concentration of our revenue for Brazil , you know , exceeded 10% . And we're very happy about that performance . We do think there's lots of opportunity for expansion in Brazil .

Speaker #4: Our focus in Brazil for 2026 is definitely more pushing more margin accretive products . So pushing more of our proprietary content , utilizing our relationship with rapid play , which is the local studio .

Speaker #4: We've made an investment in . So we we're still bullish that Brazil will see good growth . We should be growing in double digits , but that margin .

Speaker #4: Sorry , 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 .

Robbie Bressler: We're very focused on getting more of our revenue coming from more margin accretive products. US as well, 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. As I talked to you before, the US iCasino market is growing very solidly, and we're very well positioned to keep gaining market share as that market grows.

Speaker #4: You know , we see proprietary content , exclusive content for 2026 . Great opportunities . We do think we we should be able to maintain good steady double digit growth in that market .

Speaker #4: And as I talked to you before , the US , I casino market is growing very solidly and we're very well positioned to keep keep gaining market share as that market grows

Speaker #6: Okay . And you know , maybe if I could ask a 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 headwind , you know , if I were to back out the Netherlands percentage , maybe just that percentage on a year over year basis , is there any kind of how do I bridge the gap between growth and other emerging markets versus like Netherlands ?

Jack Codera: Okay. 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 revenue's down slightly, obviously, because of the Netherlands headwind. 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 in other emerging markets versus, like, Netherlands?

Speaker #4: Great question . So if we factor out the Netherlands , we have a few things happening in 2026 . One , we as mentioned that city is rolling off in in Q2 .

Robbie Bressler: Great question. If we factor out the Netherlands, we have a few things happening in 2026. One, as mentioned, BetCity is rolling off in Q2. That does have an impact. Also, two, the Netherlands instituted another tax increase for the year. We are seeing decreases in that market. If we factor out those elements, we do believe, and our guidance implies a growth rate for the rest of our business to be very close to double-digit growth. 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.

Speaker #4: so that does have an impact also to the Netherlands Institute . Another tax increase for the year . So we are seeing decreases in that market .

Speaker #4: But if we factor out those , those elements , we do believe in our our guidance implies a growth rate for the rest of our business to be very close to double digit growth .

Speaker #4: So again , similar story to 2025 where there is macro conditions that are keeping our growth rates under where we would expect our , our , our business to be growing at .

Speaker #4: But underlying that our business in key jurisdictions is growing at a nice , steady rate , which we're extremely excited about

Robbie Bressler: Underlying that, our business in key jurisdictions is growing at a nice steady rate, which we're extremely excited about.

Speaker #6: Okay, that's very helpful. Thanks for taking my questions.

Jack Codera: Okay, that's very helpful. Thanks for taking the question.

Speaker #4: Yep

Robbie Bressler: Yep.

Speaker #1: There are no further questions at this time. And with that, I will now turn the call over to Matt for final closing remarks.

Operator: There are no further questions at this time. With that, I will now turn the call over to Matevž Mazij for final closing remarks. Please go ahead.

Speaker #1: Please go ahead

Speaker #4: Thanks to everyone for joining . Look forward to speaking to you in subsequent quarters . Have a great day .

Matevž Mazij: Thanks, everyone, for joining. Look forward to speaking to you in subsequent quarters. Have a great day.

Speaker #3: Thank you very much

Operator: Thank you very much. Ladies and gentlemen, this concludes today's call. We thank you for participating. You may now disconnect your lines.

Q4 2025 Bragg Gaming Group Inc Earnings Call

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