Bragg Revenue Falls 23% in Q3 and Its Interim CEO Sets No New Guidance

Bragg Gaming's first results under interim chief executive Morten Tonnesen show revenue down to €20.6 million and a wider operating loss. Normalised revenue grew on the second quarter, but North American growth slowed to 7%, Brazil has closed since quarter end and the company still gives no outlook figures.

• Bragg Gaming Group reported third-quarter revenue of €20.6 million on 13 November, down 23% from €26.8 million, and an operating loss of €3.2 million, against €1.2 million a year earlier
• Normalised revenue, which excludes the Dutch platform customer BetCity and the newly acquired Drayton International, fell 12% to €20.0 million but rose 4% on the second quarter
• Revenue from proprietary content in Canada and the United States grew 7%, down from 44% growth in the second quarter
• Bragg did not reinstate the 2026 guidance it withdrew in August, saying management is "refining the Company's direction" after the 6 November leadership change
• Bragg stopped supplying licensed Brazilian customers from 6 October, after the quarter closed, and says the cash impact is limited

Bragg's Revenue Falls as the BetCity Migration Completes

Bragg Gaming Group (Nasdaq and TSX: BRAG) said in its third-quarter release that revenue fell 23% to €20.6 million. Stripping out BetCity, whose migration off Bragg's platform is complete, and Drayton, normalised revenue was €20.0 million, down 12% year on year and up 4% from €19.3 million in the second quarter. The gap between reported and normalised revenue a year earlier implies BetCity contributed about €4.1 million in the third quarter of 2025.

Gross margin rose 155 basis points to 56%, and 450 basis points from 52% in the second quarter, which Bragg attributes to more proprietary content and lower aggregated volumes. Adjusted EBITDA fell 33% to €3.0 million from €4.4 million, a 15% margin. Bragg says the €3.1 million fall in gross profit outweighed about €1.6 million of cost savings in the quarter.

Drayton, bought on 22 July for $9.0 million in shares, contributed €0.7 million of revenue and €0.3 million of profit before tax by quarter end. The January and July restructurings have cut the workforce by about 27% this year.

Tonnesen Says Cost Cuts Have Not Caught Up

Morten Tonnesen, chief operating officer since March 2026 and interim chief executive since 6 November, said the decline is concentrated in the migrations off Bragg's Dutch platform and third-party providers in Brazil moving to direct integrations with operators. "Our cost reductions have not yet caught up with the revenue we have lost, and closing that gap is the immediate priority," Tonnesen said.

On Brazil, where the president signed a provisional measure on 25 September suspending licensed online betting and casino gaming, Bragg says its revenue there is mainly lower-margin aggregated content, and that its gross margin improved in the first month after supply stopped. Brazil has since extended the ban.

The Outlook Is a List of Priorities, Not Numbers

The second-quarter release withdrew 2026 guidance because it covered the standalone business, noting Bragg was then tracking below the low end of its revenue range. This release offers no replacement, only the priorities the board set out on 6 November: disciplined execution, balance sheet strength and operating cash flow. It gives no cash balance, and the financial tables it refers to do not appear in the version on Bragg's website.

North America Is Slowing Just as It Has to Carry More

Proprietary content in Canada and the United States is the business Bragg is concentrating on, but growth slowed from 44% in the second quarter to 7%, against 21% over nine months. With BetCity gone and Brazil shut from October, that segment carries more of the fourth quarter. Inspired Entertainment cut its guidance over the same Brazil closure.

Bragg has a cleaner revenue base and a higher margin, but a wider operating loss and no numbers to judge the interim leadership against. The fourth quarter, the first with neither BetCity nor Brazil, is the real test.