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

Bragg Gaming Group (NASDAQ:BRAG) released its quarterly earnings results on Friday. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.16), Zacks reports. Bragg Gaming Group had a negative return on equity of 12.70% and a negative net margin of 7.48%.

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 Stock Down 6.2%

BRAG traded down $0.04 on Friday, hitting $0.64. 79,940 shares of the company traded hands, compared to its average volume of 32,679. The stock has a market capitalization of $19.50 million, a PE ratio of -1.78 and a beta of 0.90. The company has a 50 day moving average of $1.16 and a 200-day moving average of $1.61. Bragg Gaming Group has a 12-month low of $0.63 and a 12-month high of $2.74.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings cut shares of Bragg Gaming Group from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, September 25th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $6.00.

About Bragg Gaming Group

Bragg Gaming Group Inc. is a business-to-business technology and content provider for the regulated online gaming industry. The company supplies iGaming operators with software, casino games, player-account management technology, sportsbook solutions and related services designed to support online casino and sports betting operations. Bragg’s offerings include its proprietary online gaming platform, which can provide player management, payments, compliance tools, customer engagement features and operator back-office functionality.