Bragg Gaming Group (NASDAQ:BRAG) Releases Earnings Results, Misses Expectations By $0.16 EPS

Bragg Gaming Group (NASDAQ:BRAG) issued its quarterly earnings data on Friday. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of ($0.01) by ($0.16), Zacks reports. The firm had revenue of $22.64 million during the quarter, compared to the consensus estimate of $24.60 million. Bragg Gaming Group had a negative net margin of 7.48% and a negative return on equity of 12.70%.

Here are the key takeaways from Bragg Gaming Group’s conference call:

• Third-quarter revenue fell 23% to EUR 20.6 million, while Adjusted EBITDA declined to EUR 3.0 million from EUR 4.4 million a year earlier. The company attributed most of the decline to the anticipated exit of legacy Netherlands platform contracts, with additional pressure from other markets and Brazil.
• Cash was EUR 2.5 million at quarter-end, and capitalized development spending is exceeding operational cash generation. Management called closing that gap a central priority, while the board and key shareholders said they are prepared to provide balance-sheet flexibility; no specific additional funding amount was disclosed.
• Gross margin improved to 56% from 55% a year ago and 52% in the prior quarter, as Bragg reduced its exposure to lower-margin third-party content. Cost reductions also contributed, with underlying compensation and subcontractor costs down 30% in the quarter and further savings expected.
• Management is prioritizing proprietary content, which it described as its most profitable product, and said proprietary titles deployed in Canada and the U.S. grew 7% year over year. Drayton Studios contributed EUR 0.7 million in revenue and EUR 0.3 million in profit before tax during its first 71 days under Bragg, though executives said it is early and work remains.
• Bragg did not provide 2027 guidance, saying it needs more time to develop an execution plan and set realistic expectations; it expects to update investors in the new year. Management said rebuilding confidence depends on demonstrating cash generation and improved like-for-like performance.

Bragg Gaming Group Price Performance

Shares of NASDAQ BRAG traded down $0.04 during mid-day trading on Friday, reaching $0.64. 79,942 shares of the company traded hands, compared to its average volume of 31,393. Bragg Gaming Group has a fifty-two week low of $0.63 and a fifty-two week high of $2.74. The firm has a market cap of $19.50 million, a PE ratio of -1.78 and a beta of 0.90. The stock has a fifty day simple moving average of $1.15 and a 200-day simple moving average of $1.60.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded Bragg Gaming Group from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Friday, September 25th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, Bragg Gaming Group presently has an average rating of “Hold” and an average target price of $6.00.

About Bragg Gaming Group

Bragg Gaming Group is a business-to-business provider of online gaming content and technology. It supplies online casino operators with games, content aggregation, player account management technology, and turnkey and managed services. The company offers games developed by its in-house studios and content from third-party providers. Its technology helps operators manage and deliver online casino experiences across their platforms. Bragg serves operators in regulated iGaming markets across Europe, North America, and Latin America.