Bragg Gaming Group (BRAG) Q3 2025: Proprietary Content Jumps 35%, U.S. and Brazil Drive Margin Expansion

November 13, 2025 | By EarningsIQ Research

Bragg Gaming’s third quarter marked a strategic inflection, as proprietary content revenue surged and high-growth markets like the U.S. and Brazil drove both top-line and margin gains. The company’s ongoing pivot away from its legacy Netherlands exposure toward diversified, higher-margin geographies is translating into improved profitability and operational leverage. With full-year guidance maintained and a new credit facility in place, Bragg is positioned to accelerate its transformation as it heads into 2026.

Summary

• Margin Acceleration Through Content Shift: Proprietary games now anchor Bragg’s margin profile and recurring revenue base.
• Geographic Diversification Gains Traction: U.S. and Brazil outpace legacy markets, reducing regulatory drag.
• Operational Leverage Emerges: Cost structure optimization and process discipline set up further margin expansion.

Performance Analysis

Bragg Gaming delivered a quarter characterized by solid growth in high-value segments and continued improvement in profitability metrics, despite regulatory headwinds in the Netherlands. Revenue rose modestly, but when excluding the Netherlands—where regulatory changes drove a 22% decline—underlying growth in other markets reached 20% year-over-year. The U.S. and Brazil were standout contributors, now accounting for 22% of total revenue, up from 12% a year ago.

Proprietary content revenue climbed 35% year-over-year, reflecting Bragg’s deliberate pivot to higher-margin, owned intellectual property. This mix shift fueled a 115 basis point gross margin improvement to 54.7%, and adjusted EBITDA grew 9% as margin optimization initiatives took hold. The company’s operational leverage is increasingly evident: process and structure improvements initiated in prior quarters are flowing through to the bottom line, with management signaling further gains ahead.

• Content Mix Transformation: Proprietary content now contributes 16% of total revenue and delivers higher recurring margins.
• Regional Growth Engines: U.S. revenue soared 86% and Brazil 80%, underscoring success in regulated, expanding jurisdictions.
• Legacy Market Drag: Netherlands contraction now less material, with non-Netherlands geographies projected to contribute 68% of 2025 revenue.

Bragg’s results reveal a business in transition, with margin-accretive growth in focus markets more than offsetting legacy market softness. The company’s balance sheet was further strengthened by a new Bank of Montreal credit facility, reducing borrowing costs and supporting ongoing investment.

Executive Commentary

Strategic Positioning

1. Proprietary Content as a Margin Engine

Bragg’s proprietary content—casino games developed in-house or through exclusive partnerships—has become the cornerstone of its growth and profitability strategy. With 35 new games launched year-to-date and 70% of proprietary content revenue coming from titles released before 2025, the company is building a durable, recurring revenue stream with strong player retention. This content now represents 16% of total revenue, with further upside as Bragg expands in regulated U.S. and Brazilian markets.

2. Geographic Diversification and Regulatory Hedging

Bragg is deliberately reducing reliance on the Netherlands, a market facing regulatory headwinds, and shifting its revenue base to higher-growth, less volatile jurisdictions. Non-Netherlands revenue is projected to reach 68% in 2025, up from 51% in 2022. The U.S. and Brazil, where regulatory frameworks are more favorable and iGaming adoption is accelerating, are now the primary engines of growth and margin expansion.

3. Operational Leverage and Cost Discipline

Management’s focus on process and structure optimization is driving incremental margin gains and improved cash conversion. Initiatives launched in Q2 continued through Q3, with SG&A discipline and improved internal efficiencies expected to unlock additional operational leverage in 2026. The company’s new credit facility further enhances liquidity, enabling continued investment in high-margin initiatives while lowering financing costs.

4. Strategic Partnerships and Distribution

Bragg’s aggregation strategy—partnering with top studios and operators—serves as a channel for pushing proprietary content deeper into high-growth markets. Partnerships like Rapid Play in Brazil and bespoke game launches for Hard Rock in the U.S. exemplify this approach, expanding both reach and margin profile.

Key Considerations

Bragg’s third quarter signals a business in strategic transition, with a clear focus on recurring, higher-margin revenue and operational efficiency. The company’s execution in the U.S. and Brazil, coupled with a disciplined approach to cost and capital, sets the stage for continued transformation in 2026.

Key Considerations:

• Content Monetization Trajectory: Sustained investment in proprietary titles is expected to further lift margins and recurring revenue.
• Regulatory Risk Mitigation: Reduced exposure to the Netherlands buffers Bragg against unpredictable regulatory shocks.
• Balance Sheet Strengthening: The Bank of Montreal facility lowers borrowing costs and supports margin-accretive investment.
• Operational Leverage Potential: Ongoing process and structure optimization is expected to yield further profitability gains in 2026.

Risks

Regulatory volatility remains a persistent risk, particularly in legacy markets like the Netherlands, where ongoing operator headwinds could further compress revenue. Execution risk around the migration of major customers, such as BetCity, and the pace of proprietary content adoption in new markets are also material. Macroeconomic uncertainty or delays in regulatory expansion (e.g., U.S. state-level iGaming) could moderate growth trajectories.

Forward Outlook

For Q4 2025, Bragg expects:

• Continued margin expansion as proprietary content and process optimization flow through results.
• Growth in non-Netherlands revenue, further reducing concentration risk.

For full-year 2025, management maintained guidance:

• Revenue between €106 million and €108.5 million
• Adjusted EBITDA between €16.5 million and €18.5 million

Management highlighted several factors that will drive results:

• Ongoing investment in proprietary content, particularly in the U.S. and Brazil
• Further process and structure optimization to unlock operational leverage

Takeaways

Bragg’s Q3 underscores a successful pivot from legacy market exposure toward a diversified, higher-margin business anchored by proprietary content and regulated market expansion.

• Margin Expansion Anchored by Content: Proprietary games are now the engine of both growth and profitability, with recurring revenue dynamics that support long-term value creation.
• Geographic Diversification Reduces Risk: The shift toward the U.S. and Brazil is both accretive and defensive, insulating Bragg from regulatory shocks in mature European markets.
• Operational Leverage Set to Continue: Investors should watch for further margin and cash flow gains as process optimization continues into 2026.

Conclusion

Bragg Gaming’s third quarter confirms the company’s transformation is gaining traction, with proprietary content and high-growth markets driving both top-line and margin improvement. As legacy risks recede and operational leverage builds, Bragg enters 2026 with a more resilient, higher-quality earnings base.

Industry Read-Through

Bragg’s results highlight several sector-wide trends for the iGaming industry: The pivot to proprietary content is increasingly essential for margin enhancement and recurring revenue. Geographic diversification is a critical hedge against regulatory volatility, especially as mature European markets face tightening oversight. U.S. and Brazil are emerging as the most attractive regulated growth markets, with content localization and distribution partnerships proving decisive. Competitors and investors across the iGaming landscape should monitor the balance between aggregation and owned IP, as well as the operational leverage unlocked through disciplined process optimization.

BRAG Consumer Discretionary iGaming Proprietary Content Geographic Diversification Operational Leverage Recurring Revenue