We came across a bullish thesis on Bragg Gaming Group Inc. (BRAG) on Substack by Inflexio Research. In this article, we will summarize the bulls’ thesis on BRAG. Bragg Gaming Group Inc. (BRAG)'s share was trading at $4.86 as of May 16th. BRAG’s forward P/E was 476.19 according to Yahoo Finance.

Bragg Gaming reported Q1 2025 results on May 15, showcasing solid fundamentals despite a minor miss relative to consensus, largely due to regulatory headwinds affecting its Betcity/Netherlands segment. Total revenue rose 7.1% YoY, and EBITDA grew 19.7%, with USA revenue up a staggering 338% YoY and 61% QoQ. This surge is driven by proprietary content growth (+62% YoY), supporting the thesis that Bragg has reached an inflection point in its business model. Management is beginning to demonstrate scalable EBITDA growth with only modest increases in capex, suggesting an improving free cash flow profile. While Betcity still represents 16.5% of revenue, its EBITDA contribution is minimal—likely under 7%—and continues to decline amid regulatory changes. Crucially, the risk tied to this customer is fading fast, and Bragg’s market leadership in the Netherlands ensures that any fallout from a potential Betcity departure would likely redistribute to Bragg’s benefit via other clients.

More broadly, Bragg is executing a strategic pivot toward high-margin, high-growth areas, particularly in the U.S. and Brazil, while actively de-risking customer concentration. The company is expanding EBITDA margins 150–200 bps annually and remains on track to achieve 30%+ long-term margins. Though revenue guidance for 2025 appears ambitious, management’s ability to grow profitably and shed low-margin business mitigates this concern. Bragg also boasts strong industry recognition, with numerous nominations across top-tier gaming awards, and continues to secure new clients in emerging markets. With a long-term EBITDA target of $50M, Bragg remains a high-conviction investment, offering significant upside with a potential $20+ stock valuation. For more on iGaming growth and opportunities, take a look at what we found about DraftKings Inc. next.

Bragg Gaming Group Inc. (BRAG) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 3 hedge fund portfolios held BRAG at the end of the fourth quarter which was 4 in the previous quarter. While we acknowledge the risk and potential of BRAG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BRAG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.

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