AI Summary
Bragg Gaming Group has released preliminary results indicating growth in revenue and Adjusted EBITDA for 2025, with expectations to maintain this upward trajectory into 2026 despite regulatory challenges. The company's focus on high-margin proprietary content and AI efficiency initiatives positions it well for continued profitability.
Sentiment Rationale
Revenue and margin growth against regulatory challenges suggests resilient financial performance, similar to competitors with robust growth despite challenges.
Trading Thesis
Buy BRAG as growth in revenues and margins supports bullish outlook for 2026.
Market-Moving
- Expect continued growth in proprietary content revenue as it increased 70% in Q4 2025.
- Regulatory challenges in the Netherlands could impact revenue expectations for 2026.
- The company's AI initiatives may provide significant cost savings and EBITDA growth.
- Positive preliminary results may lead to stock price appreciation ahead of formal reporting.
Key Facts
- BRAG expects Q4 2025 revenues of EUR 27.7 million, up 1.8% year-on-year.
- Full-year 2025 revenue anticipated at EUR 106.1 million, a 4.0% increase.
- High-margin proprietary content revenue surged 70% in Q4 2025 versus Q4 2024.
- 2026 revenue forecasted between EUR 97.0 million to EUR 104.5 million.
- Bragg aims for EBITDA growth through AI-driven cost efficiencies and new market entries.
Companies Mentioned
- International Game Technology (IGT): IGT operates in a competitive landscape impacting BRAG's market share and pricing.
- DraftKings Inc. (DKNG): As a sports betting leader, DraftKings’ movements could influence investor sentiment on BRAG.
Corporate Developments
This news falls under 'Corporate Developments' as it highlights Bragg's financial outlook and strategic initiatives amidst market challenges, which are crucial for investor consideration and confidence.