07:53 AM EDT, 08/14/2025 (MT Newswires) -- Bragg Gaming Group ( BRAG ) , a content and technology provider to the online gaming industry, on Thursday reported a wider operating loss in the second quarter even as revenues rose. The company revised lower its full-year guidance.

For Q2, Bragg reported an operating loss of 2.3 million euros compared with a loss of 1.2 million euros a year earlier. Revenues came in at 26.1 million euros, up from 24.9 million euros.

The company previously anticipated double-digit growth in revenue and adjusted EBITDA for 2025 driven by a strategic focus on expanding in regulated markets, growing proprietary and exclusive content portfolio, and continuing momentum in growth markets such as the U.S. and LatAm.

But Bragg revised the guidance to reflect higher gaming taxes and market softness in the Netherlands and headwinds in Brazil, as well as broader market conditions impacting key regulated markets. The company now anticipates full year 2025 revenue between 106.0 million and 108.5 million euros and Adjusted EBITDA of 16.5 million to 18.5 million euros.

Bragg said this change reflects a "deliberate shift toward higher-quality earnings". It added: "The company is prioritizing margin and cash generation over lower-margin revenue, and synergies realized post-quarter end to become a leaner operation put the company on track to move Adjusted EBITDA Margin a few percentages higher in the second half of the year compared to the first half of the year."

CEO Matevz Mazij said: "In our 2024 strategic review, we identified cash flow, integration and margin as key priorities and value drivers for Bragg Gaming Group ( BRAG ). In Q2 we began to focus on integration and optimization. We identified and actioned key areas where we have now optimized our cost structure and have implemented strategies to leverage synergies from acquisitions such as Spin Games and Wild Streak Gaming.

"Specifically, we have realized EUR 2 Million in annualized synergies from the business, unlocking improved margins for the second half of 2025. Our leadership conducted a comprehensive review of the business to ensure cash flow and margin remain central to all decisions, supported by Bragg's strong underlying cash generation and margin profile.

"While our top-line growth may appear modest, I want to be clear about our strategic focus. With increasing gaming taxes being implemented in key markets like Brazil, The Netherlands, and Romania, we're prioritizing improved margin and cash flow performance over aggressive revenue expansion. That said, we believe that there are substantial, highly accretive growth opportunities ahead for this business. We intend to pursue these opportunities methodically, with a focus on both margins and cash flow.

"In terms of content and markets, proprietary content is growing in the U.S. and LatAm. While market conditions in The Netherlands remain challenging with the igaming market gross gaming revenue down 25% this year, Bragg is still outperforming the market, despite these factors coming into play.

"With this focus on margin and cash flow we have also revised our revenue expectations for the year, while forecasting an improved Adjusted EBITDA Margin for the second half of 2025. We are prioritizing high margin opportunities versus low margin revenue.

"We've also enhanced our leadership team with two transformational key hires, firstly adding Luka Pataky as our new EVP of AI and Innovation. Luka's appointment comes as we launch an initiative to drive an all encompassing AI-first cultural and technology based change at Bragg.

"In addition, experienced iGaming industry executive Scott Milford also joins us as our EVP of Group Content, and will propel the next phase in the growth of our online casino content.

In summary, we are focused on driving cash flow, integration, and margin, and positioning Bragg for sustainable, profitable growth. The actions taken in Q2 position us to achieve a 20% Adjusted EBITDA Margin target in the second half of 2025."

BRAG was down 5.7% on the TSX on Wednesday.