Bragg Gaming Group (NASDAQ:BRAG) reported nearly flat first-quarter revenue and a narrower loss while outlining a strategic shift tied to its planned transaction with Drayton International, which management said would accelerate the company’s move toward proprietary gaming content, artificial intelligence and expanded U.S. distribution.
Chief Executive Officer Matevž Mazij said Bragg is evolving from what he described as a legacy model of supplying games and technology to regulated iGaming markets into a “higher margin, proprietary games first, AI-driven model.” He said the company is seeking to reduce reliance on lower-margin aggregation volume and third-party content while focusing on proprietary intellectual property, repeatable game franchises and player engagement across the full funnel.
First-quarter results show modest revenue growth, narrower loss
Chief Financial Officer Robbie Bressler said Bragg generated first-quarter 2026 revenue of EUR 25.7 million, up 0.6% from the prior-year period. The company reported an operating loss of EUR 1.4 million, an 18% improvement from the first quarter of 2025.
Net loss for the quarter was EUR 1.2 million, or EUR 0.05 per common share, which Bressler said represented a 55% improvement from the same period last year. Adjusted EBITDA was EUR 4 million, compared with EUR 4.1 million a year earlier. Adjusted EBITDA margin was 15.7%, down slightly from 16% in the first quarter of 2025.
Bragg ended the quarter with EUR 3.4 million in cash and cash equivalents as of March 31, 2026.
Bressler said management remains focused on optimizing product mix, internal processes and company structure, adding that Bragg sees “significant opportunities to refine and improve” margins and cash flow.
Company reaffirms 2026 guidance
Bragg reaffirmed its full-year 2026 outlook, with expected revenue between EUR 97 million and EUR 104.5 million and adjusted EBITDA between EUR 16 million and EUR 19 million. That range implies an adjusted EBITDA margin between 16% and 18%.
Bressler said the guidance does not include any impact from the planned Drayton transaction.
Drayton deal expected to add content and U.S. reach
Mazij said the planned transaction with Drayton would represent a “critical inflection point” for Bragg’s growth trajectory. He said the deal would add more than 100 titles to Bragg’s portfolio, with additional games expected to be developed by the companies’ respective content teams.
Management said Drayton would also bring game studios, aggregation technology, distribution capabilities, AI tools and proprietary mechanics, including hybrid slot engines linked to live racing data.
A central part of management’s rationale for the transaction is access to advance deposit wagering, or ADW, distribution. Mazij said traditional iGaming is currently limited to seven U.S. states, while ADW is available in more than 30 states. He said that could translate into a greater than fivefold expansion of Bragg’s U.S. market reach.
In response to an analyst question, Mazij described the ADW market as a “sleeping giant” and said the legal framework has existed for decades, but that it had only recently become technically possible to deliver what he called a high-fidelity, slot-style experience through that model. He cited California, Florida and Texas as examples of states where traditional online slots remain unregulated but ADW is available.
Bressler said the assets being acquired currently generate “mid-single digit million” revenue, before synergies, and are EBITDA positive. He also said the transaction includes $1 million of excess cash.
Leadership changes tied to transaction
Mazij said the Drayton transaction would bring Matt Davey to Bragg as a significant investor and non-executive chairman. Davey is currently founder and chairman of Tekkorp Capital, which invests in companies across the global gambling sector.
Mazij cited Davey’s more than 25 years of experience in digital media, sports, entertainment, leisure and gaming, as well as government and regulatory roles. He also pointed to Davey’s prior leadership at NYX Gaming Group, which was sold to Scientific Games in 2018 for approximately $631 million, and said Davey had overseen more than 10 mergers and acquisitions and helped raise more than $2 billion in debt and equity capital during his career.
Mazij said Davey’s experience is “uniquely fitting” for Bragg’s planned evolution into a games-first business.
Management says acquisition did not affect first-quarter performance
During the question-and-answer portion of the call, Maxim Group analyst Jack Vander Aarde asked whether planning for the acquisition affected Bragg’s first-quarter results or the momentum of the existing business.
Bressler said the transaction had no impact on the quarter. He said Bragg’s North American and content-focused direction had already been in place and that the Drayton deal complements that strategy.
Mazij said the transaction is expected to increase Bragg’s exposure to proprietary content and intellectual property, strengthen AI and personalization capabilities, improve the company’s long-term margin profile and revenue mix, and accelerate growth in North America, particularly in the United States.
In closing remarks, Mazij said Bragg had “executed well” in the first quarter and called the Drayton acquisition a strategic step as the company seeks to become a proprietary games-first, AI-driven ecosystem architect.
About Bragg Gaming Group (NASDAQ:BRAG)
Bragg Gaming Group is a business-to-business supplier of online gaming content, technology and platform solutions. The company develops and distributes a mix of proprietary, third-party and licensed casino games, including video slots, table games and live dealer experiences. Its core offering centers on a scalable gaming platform designed to support operator integration, player management and advanced analytics.
Bragg’s technology stack features its flagship ORYX Gaming platform, which provides a centralized hub for game aggregation, platform services and regulatory compliance tools.
