Aug 13, 2026 earnings call — Margin focus and Drayton acquisition
Revenue was EUR 22.9 million and adjusted EBITDA was EUR 3.5 million; Bragg cut approximately 19% of its workforce targeting approximately EUR 10.5 million annualized savings.
Revenue $0.0B (est $0.0B) · EPS $-0.13 (est $-0.13)
Key quotes
"In the second quarter, there was a 14% reduction in gross compensation costs prior to capitalization compared to Q2 2025."
"This content revenue grew 44% compared to Q2 last year, driven by distribution, quantity, and quality of content."
"With the integration of Drayton into our operations being at the planning stage, we don't have a reasonable basis on which to forecast the combined business for the remainder of the fiscal year."
Analyst Q&A 3
Revenue weakness and Drayton growth
Q (Jordan Bender · Citizens JMP): He asked where the legacy business is seeing revenue pressure beyond the Netherlands, and how Drayton is currently growing and will affect revenue or EBITDA.
A: Management said revenue is trending below the low end of the prior range while EBITDA is within the range at the low end. They named three revenue headwinds: lower low-margin supplier flow in Brazil, regulatory changes in Europe (Croatia) that hit customer acquisition and advertising, and softer work from Wild Streak studio. On Drayton they said it is early, integration is underway, and Drayton brings 5 studio equity investments, 100-plus proprietary game titles, and AI tech that should expand reach and reduce content costs over time.
"On the first question, just to clarify, we're trending below the low end of the range for revenue, but we are trending within the range for EBITDA, but just at the low end of the range." — Robert Bressler (CFO)
New markets (Alberta) and margins/OpEx
Q (Jack Vander Aarde · Maxim Group): He asked whether any new markets or catalysts after prior guidance (for example Alberta) were not included in that guidance, and how gross margin and operating expenses should look going forward.
A: Management said Alberta was always planned and they did not ascribe much growth to that new market. They said their proprietary content serving U.S., Ontario and Alberta is growing strongly — "well over 40% growth" Q2 to Q2. On margins they reserved detailed guidance but said Q2 gross margin had a couple one-offs; if factored out, it's about "55%, 55.7%" and is in line with prior quarters as proprietary content mix improves.
"So we did point out in our press release that our underlying U.S. business, so this is the proprietary content we service both U.S. and Ontario and now Alberta, that's growing at a very good tick where we're well over 40% growth from quarter to quarter, Q2 to Q2, 2026 to 2025." — Robert Bressler (CFO)
Why no guidance and integration milestones
Q (Michael Hickey · StoneX): He asked why management would not give guidance on the combined company and what complexities prevent that, plus timing of cost savings and near-term milestones to show the deal and restructuring are working.
A: Management clarified they did give color on the standalone legacy business: revenue is below the prior range while EBITDA and EBITDA margin are within or toward the upper end of the prior range. They said the complexity is that Drayton includes "5 different interests in 5 different studios" plus a whole infrastructure, so they need time to assess each studio and integration before giving combined guidance. Cost savings should begin to show in Q4 and into 2027; compensation excluding one-offs is down "14%" Q2 to Q2. The near-term milestone focus is integration in North America and growing the iCasino business, where they noted "44%" Q2 to Q2 growth and sequential double-digit growth in the legacy business.
"We effectively bought 5 different interests in 5 different studios, along with a wholly owned infrastructure as well that Drayton holds." — Robert Bressler (CFO)