Financial Data and Key Metrics Changes - Revenue for Q2 2025 was €26,100,000, representing a 4.9% year-over-year increase, with a 21% growth excluding The Netherlands [6][20] - Gross profit increased by 10.8% year-over-year to €13,700,000, with a gross profit margin of 52.7%, up 280 basis points [6][22] - Adjusted EBITDA for Q2 2025 was €3,500,000, a decrease of 4.3% from the same period in 2024, resulting in an adjusted EBITDA margin of 13.3% [7][22] Business Line Data and Key Metrics Changes - Proprietary content revenue grew by 270% year-over-year, contributing 14.8% of total revenue in Q2 2025, up from 10.8% a year ago [10][24] - The PAM and Turnkey segments generated CAD3.8 million, accounting for 14.6% of total revenue, down from CAD4.9 million or 19.9% in the same period last year [23] - Aggregated content made up 49.4% of revenue, slightly down from 49.6% the previous year [23] Market Data and Key Metrics Changes - In The Netherlands, the company experienced a 17% decline, outperforming the industry which saw a 25% decline [10][22] - The U.S. market showed significant growth, with proprietary content revenue increasing by 270% year-over-year [10][15] - Brazil's iGaming market is projected to grow from US$3.9 billion in 2025 to US$6.1 billion by 2030, with the company expecting Brazil to account for up to 10% of its revenue in 2025 [17] Company Strategy and Development Direction - The company is focusing on margin improvement and cash flow performance over aggressive revenue expansion due to increasing gaming taxes in key markets [7][27] - A strategic shift is underway to reduce reliance on The Netherlands, with projections indicating a decrease in revenue contribution from 49% in 2022 to 32% in 2025 [31] - The company aims to become an AI-first business by 2027, embedding AI into product development and operations to enhance player engagement and operational efficiency [18][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustainable profitable growth despite lower-than-expected top-line growth [28] - The company anticipates continued advancements in predictive analytics and the adoption of generative AI for scalable content creation [33] - Management highlighted the importance of diversifying revenue sources and leveraging proprietary content for profitability [31][43] Other Important Information - The company has made key hires to strengthen its leadership in content development and AI innovation [17][18] - A planned realization of cost synergies is expected to provide €2,000,000 in annualized cash savings [8] Q&A Session Summary Question: Revenue contribution from Hard Rock and Caesars - Management indicated a path to reach the previously mentioned 15% revenue contribution from proprietary content, with optimism about performance in the second half of the year [38][39] Question: Future growth opportunities - Management elaborated that highly accretive growth opportunities lie in proprietary content, with a focus on increasing production capabilities [42][43] Question: FX impact on guidance - There was a slight impact from the euro weakening against the US dollar, but it was not significant [41]

Financial Performance - Second quarter revenue increased by 4.9% year-over-year to EUR 26.1 million (USD 30.6 million)[56] - Factoring out Netherlands contraction, revenue growth was +21%[12] - Adjusted EBITDA for the second quarter decreased by 4.4% year-over-year to EUR 3.5 million (USD 4.1 million)[56] - Gross profit increased by 10.8% year-over-year in Q2[20] - Realized EUR 2 million in annualized synergies[12] Product Mix and Content - Proprietary content revenue increased by 44% year-over-year[12] - Proprietary content accounted for 14.8% of total revenue in 2Q25, up from 10.8% in 2Q24[28] - PAM & Turnkey revenue was EUR 3.8 million, representing 14.6% of total revenue in 2Q25, compared to EUR 4.9 million and 19.9% in 2Q24[28] Market Growth and Strategy - U S revenue grew by 64% and Brazil by 56% in the second quarter[12] - U S online casino market is projected to grow to USD 75 billion+ at maturity[36] - Brazil is projected to contribute approximately 10% of revenue in 2025[39] - Total Netherlands market exposure is projected to reduce to 32% in FY 2025, with BetCity revenue projected at 17%[40]

Core Insights - Expanse Studios has formed a content partnership with Bragg Gaming Group to enhance the distribution of its iGaming content across over 30 regulated markets globally, including the U.S., Canada, Latin America, and Europe [1][2] Company Overview - Expanse Studios specializes in B2B iGaming content, offering a diverse portfolio of over 55 proprietary games, including slots, crash games, and table games [2][5] - Bragg Gaming Group is a leading provider of iGaming content and platform technology, with a portfolio that includes proprietary and exclusive casino titles distributed via the Bragg HUB platform [6] Strategic Importance - The partnership is viewed as a strategic milestone for Expanse Studios, aimed at scaling rapidly in the U.S. and European markets, leveraging Bragg's powerful distribution network [3][4] - The collaboration is expected to create synergies by combining Expanse Studios' high-quality content with Bragg's extensive distribution capabilities, enhancing global reach and offering operators a broader range of engaging iGaming experiences [2][3] Market Focus - The U.S. market is highlighted as a key focus area for Bragg's continued expansion in 2025, with expectations for a positive reception of Expanse Studios' content, particularly its crash games [4]

Group 1 - Bragg Gaming Group Inc. (BRAG) has shown strong year-to-date performance, returning about 20% since the start of the calendar year, outperforming the Consumer Discretionary sector which has returned an average of -1% [4] - The Zacks Consensus Estimate for BRAG's full-year earnings has increased by 650% over the past 90 days, indicating improved analyst sentiment and earnings outlook [4] - Bragg Gaming Group Inc. holds a Zacks Rank of 2 (Buy), suggesting a favorable investment outlook [3] Group 2 - Bragg Gaming Group Inc. is part of the Gaming industry, which includes 40 individual stocks and currently ranks 145 in the Zacks Industry Rank, with an average loss of 2.8% so far this year [6] - Capcom Co., Ltd. (CCOEY), another stock in the Consumer Discretionary sector, has a year-to-date return of 16.3% and also holds a Zacks Rank of 2 (Buy) [5] - Both Bragg Gaming Group Inc. and Capcom Co., Ltd. are noteworthy for their solid performance within the Consumer Discretionary sector [7]

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with value investing being a popular strategy for finding strong stocks in various market conditions [1] - Bragg Gaming Group Inc. (BRAG) is currently highlighted as a stock of interest, holding a Zacks Rank of 2 (Buy) and an A grade for Value [2] Valuation Metrics - The Price-to-Sales (P/S) ratio for BRAG is 1, which is lower than the industry average P/S of 1.27, indicating potential undervaluation [3] - BRAG's Price-to-Cash Flow (P/CF) ratio stands at 9.51, significantly lower than the industry's average P/CF of 30, suggesting a strong cash outlook and undervaluation [4] - Over the past 12 months, BRAG's P/CF has fluctuated between a high of 19.01 and a low of 6.55, with a median of 13.42 [4] Investment Outlook - The combination of the aforementioned metrics suggests that Bragg Gaming Group Inc. is likely undervalued, making it one of the strongest value stocks in the market based on its earnings outlook [5]

Group 1 - Bragg Gaming Group Inc. (BRAG) is outperforming the Consumer Discretionary sector, with a year-to-date return of approximately 17.8%, while the sector has lost an average of 1.4% [4] - The Zacks Rank for Bragg Gaming Group Inc. is 2 (Buy), indicating a positive earnings outlook and strong analyst sentiment, with earnings estimates increasing by 240% in the past quarter [3][4] - The company is part of the Gaming industry, which has an average loss of 4.2% this year, further highlighting BRAG's superior performance [6] Group 2 - Capcom Co., Ltd. (CCOEY) is another Consumer Discretionary stock that has outperformed the sector, with a year-to-date increase of 8.9% and a Zacks Rank of 2 (Buy) [5] - The consensus EPS estimate for Capcom Co., Ltd. has risen by 2.4% over the past three months, indicating a positive trend in earnings expectations [5]

Core Insights - The article emphasizes the importance of value investing, which focuses on identifying undervalued companies in the market [2] - Bragg Gaming Group Inc. (BRAG) is highlighted as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and an A grade in the Value category [3][6] Company Metrics - BRAG has a Price-to-Sales (P/S) ratio of 1.05, which is lower than the industry average of 1.31, indicating potential undervaluation [4] - The company also has a Price-to-Cash Flow (P/CF) ratio of 10.02, significantly lower than the industry average of 28.45, suggesting a solid cash outlook [5] - Historical P/CF values for BRAG have ranged from a low of 6.55 to a high of 19.01, with a median of 13.71 over the past year [5]

Core Viewpoint - Bragg Gaming Group Inc. (BRAG) has experienced a significant decline of 18.3% in its stock price over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal due to increased buying interest [1][2]. Technical Analysis - The hammer chart pattern indicates a potential bottoming out, characterized by a small candle body and a long lower wick, suggesting that selling pressure may be exhausting [3][4]. - This pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, indicating a shift in control from bears to bulls [3][4]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for BRAG, which is a bullish indicator suggesting potential price appreciation in the near term [6]. - The consensus EPS estimate for the current year has increased by 450% over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [7]. - BRAG holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Viewpoint - The article emphasizes the effectiveness of value investing, highlighting Bragg Gaming Group Inc. (BRAG) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][3][6] Company Summary - Bragg Gaming Group Inc. (BRAG) currently holds a Zacks Rank of 2 (Buy) and has received an "A" grade in the Value category, indicating it is among the strongest value stocks available [3][6] - The company has a Price-to-Sales (P/S) ratio of 0.98, which is lower than the industry average of 1.24, suggesting it may be undervalued [4] - BRAG's Price-to-Cash Flow (P/CF) ratio stands at 8.87, significantly lower than the industry's average of 28.31, further indicating its attractive valuation based on cash flow [5] - Over the past 52 weeks, BRAG's P/CF has fluctuated between a high of 19.01 and a low of 6.55, with a median of 14, showcasing its volatility and potential for value [5][6]

Financial Data and Key Metrics Changes - The company reported total revenue of EUR26.2 million for Q3 2024, representing a 15.9% increase year-over-year [15] - Gross profits grew by 18% to EUR14 million, with a gross profit margin of 53.5%, up 99 basis points [15][43] - Adjusted EBITDA increased by 7% to EUR4.1 million, with an adjusted EBITDA margin of 15.6% [16][43] - The company reiterated its full-year revenue guidance of EUR102 million to EUR109 million and adjusted EBITDA guidance of EUR15.2 million to EUR18.5 million [17][44] Business Line Data and Key Metrics Changes - Revenue from Player Account Management (PAM) and Turnkey operations was EUR5.7 million, accounting for 21.8% of total revenue, up from 20.6% in Q3 2023 [18] - Total content revenue was EUR20.5 million, representing 78.2% of total revenue, down from 79.4% in the same period last year [18] Market Data and Key Metrics Changes - The U.S. market saw a 40% increase in proprietary content revenue globally compared to Q3 2023 [17][42] - The company expanded its content distribution in the U.S., launching with Caesars in Pennsylvania and Ontario, and with FanDuel in New Jersey [40] Company Strategy and Development Direction - The Board concluded a strategic review process, determining that ongoing execution of the strategic plan is the best way to maximize shareholder value [9][45] - The company is focusing on expanding its presence in regulated markets, particularly Brazil, with plans to launch its technology suite in January 2025 [25][70] - A regional focus has been adopted for commercial strategy, targeting North America, Latin America, and Europe [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business plan and financial prospects, anticipating sustained double-digit topline growth and expanding bottom-line margins in 2025 [20][45] - The company is preparing for the launch of regulated markets in Brazil, expecting significant revenue opportunities [49][70] Other Important Information - The company has strengthened its executive leadership team to enhance operational focus and drive long-term growth [24] - New product features, such as jackpots and a recommendation engine, have been deployed to differentiate the company in the market [27] Q&A Session Summary Question: What should be expected for Q4 revenue and growth markets for next year? - Management indicated that double-digit growth is achievable, with the U.S. and Brazil identified as key growth markets [47][49] Question: What does enhancing shareholder value entail? - Management clarified that while share repurchases are not a priority, investing in commercialization and talent acquisition is essential for growth [50][52] Question: What factors contributed to the best quarter in the U.S.? - The combination of increased market coverage and improved go-to-market strategies were highlighted as key contributors [55] Question: How is the company planning to capture the Brazilian market? - Management expressed confidence in capturing significant market share post-regulation, leveraging existing relationships and a tailored content portfolio [70] Question: How is crypto affecting the market? - Management noted that while crypto is not widely accepted in regulated gaming, its potential acceptance could increase market size and be beneficial for the company [74][75]