Bragg Gaming Group reports revenue of EUR 20.6m in Q3

In the third quarter, Bragg Gaming’s revenue decreased by 23 per cent.

Key takeaways:

• Bragg Gaming Group reported total revenue of EUR 20.6m (US$ 23.4m) for the third quarter of 2026, marking a 23 per cent decrease from EUR 26.8m in the third quarter of 2025.  
• The company posted an operating loss of EUR 3.2m (US$ 3.6m) and an adjusted EBITDA of EUR 3.0m (US$ 3.4m), which was down 33 per cent compared to the third quarter of 2025.  
• Bragg completed the acquisition of Drayton International on July 22, for US$ 9.0m in shares, contributing EUR 0.7m in revenue and EUR 0.3m in pre-tax profit by quarter end.  
• Restructuring and cost-cutting initiatives reduced the global workforce by approximately 27 per cent since the start of the year.

In brief: Bragg Gaming Group has announced its financial results for the third quarter of 2026, posting total revenue of EUR 20.6m, a 23 per cent year-over-year drop. It announced cost-reduction programmes and completed the acquisition of Drayton International.

Press release.- Bragg Gaming Group has announced its financial results for the third quarter of 2026.

Revenue totalled EUR 20.6m (US$ 23.4m) in the third quarter, a decrease of 23 per cent from EUR 26.8m (US$ 31.5m) in the third quarter of 2025. Normalised revenue, which excludes BetCity and Drayton, was EUR 20.0m, a decrease of 12 per cent from EUR 22.7m in the third quarter of 2025, but an increase of 4 per cent from EUR 19.3m in the second quarter of 2026. Revenue from proprietary content deployed in Canada and the United States grew 7 per cent year-over-year, and 21 per cent for the nine months ended September 30, 2026.

Gross margin expanded 155 basis points to 56 per cent from 55 per cent compared to the third quarter of 2025 and 450 basis points from 52 per cent in the second quarter of 2026, reflecting a higher proportion of proprietary content and lower aggregated content volumes.

Operating loss for the third quarter was EUR 3.2m (US$ 3.6m), compared to an operating loss of EUR 1.2m (US$ 1.4m) in the same period of 2025, as the reduction in gross profit exceeded the reduction in operating expenses. Adjusted EBITDA was EUR 3.0m (US$ 3.4m), a decrease of 33 per cent from EUR 4.4m (US$ 5.2m) in the third quarter of 2025, representing an Adjusted EBITDA Margin3 of 15 per cent compared to 17 per cent. The EUR 3.1m reduction in gross profit exceeded approximately EUR 1.6m of operating cost savings delivered in the quarter, with the benefit of the July 2026 programme continuing to phase in.

Third quarter 2026 and recent business highlights

Completed the acquisition of Drayton International: On July 22, 2026, completed the acquisition of Drayton International, a diversified gaming technology and content platform, for US$ 9m satisfied entirely in shares. Drayton has been consolidated from the acquisition date and contributed revenue of EUR 0.7m (US$ 0.7m) and profit before income taxes of EUR 0.3m (US$ 0.4m) in the period from acquisition to quarter end.

Delivered further cost reductions: Salaries and subcontractor costs decreased 30 per cent year-over-year on an underlying basis which excludes exceptional items. Together, the restructuring programmes announced on January 8, 2026 and July 9, 2026 have reduced the global workforce by approximately 27 per cent since the start of the year. Restructuring-related termination costs of EUR 1.1m (US$ 1.2m) were incurred in the quarter and are treated as exceptional.

Brazil market suspension: On September 25, 2026, the President of Brazil signed a provisional measure suspending licensed online betting and online casino gaming, under which licensed operators were required to cease operating from October 6, 2026. The company ceased supplying its licensed Brazilian customers in line with that timetable. The cash impact on the company is limited. Brazilian revenue is predominantly lower-margin aggregated content, so its contribution to gross profit and to cash flow is materially smaller than its contribution to revenue, and in the first month following the cessation of supply the company’s gross profit margin improved, minimising the impact to the Company’s profits.

Announced a leadership transition: On November 6, 2026, subsequent to quarter end, Morten Tonnesen was appointed interim chief executive officer and Matevž Mazij transitioned from chief executive officer to the role of strategic advisor. Tonnesen has previously served as chief operating officer since March 2026.

Morten Tonnesen, interim chief executive officer of Bragg, commented: “The year-over-year revenue decline is concentrated in two things we have been signalling for some time, the customer migrations off our Dutch platform and the move by third-party providers in Brazil to direct integrations with operators. Where we are investing, the direction is the right one. Revenue from our proprietary content deployed in Canada and the United States grew 7 per cent in the quarter and 21 per cent over the nine months. That shift towards our own content, alongside lower aggregated content volumes, is reflected in a gross margin of 56 per cent.

“Our cost reductions have not yet caught up with the revenue we have lost, and closing that gap is the immediate priority. My focus is disciplined execution: bringing investment spend and operating cash generation into better balance, concentrating capacity on proprietary content, and delivering for our operator partners.”

Outlook

The suspension of licensed online gaming in Brazil, described above, took effect after the end of the third quarter. The company is not currently aware of any significant change in the operating conditions that applied during the quarter, other than as described in this news release.

Management is focused on optimising the combined business and integrating the assets acquired with Drayton to strengthen the Company’s content creation and delivery capabilities. Following the leadership transition announced on November 6, under which Morten Tonnesen was appointed interim chief executive officer, management is refining the company’s direction. The near-term focus is disciplined execution, improved balance sheet strength and operating cash flow, and the development and deployment of the company’s technology, content and services, with the objective of driving growth and delivering shareholder value.

Frequently asked questions (FAQs)

• What was Bragg Gaming Group’s revenue for the third quarter of 2026? Revenue totalled EUR 20.6m, a decrease of 23 per cent compared to EUR 26.8m in the third quarter of 2025.  
• What was the operating result for Bragg Gaming Group in Q3 2026? The company recorded an operating loss of EUR 3.2m and an adjusted EBITDA of EUR 3.0m.  
• When was the acquisition of Drayton International completed? The acquisition was completed on July 22, for USD 9.0m satisfied entirely in shares.  
• How did the Brazil market suspension affect Bragg Gaming Group? The impact was limited because Brazilian revenue is predominantly lower-margin aggregated content, resulting in a minor contribution to gross profit and cash flow.