With the business potentially at an important milestone, we thought we'd take a closer look at Bragg Gaming Group Inc.'s (TSE:BRAG) future prospects. Bragg Gaming Group Inc. operates as an iGaming content and technology solutions provider serving online and land-based gaming operators with its proprietary and exclusive content. On 31 December 2024, the CA$137m market-cap company posted a loss of €5.1m for its most recent financial year. Many investors are wondering about the rate at which Bragg Gaming Group will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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According to the 6 industry analysts covering Bragg Gaming Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of €1.2m in 2026. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 119% is expected, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Bragg Gaming Group's growth isn’t the focus of this broad overview, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

View our latest analysis for Bragg Gaming Group

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 9.0% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Bragg Gaming Group, so if you are interested in understanding the company at a deeper level, take a look at Bragg Gaming Group's company page on Simply Wall St. We've also compiled a list of key factors you should further examine:

1. Valuation: What is Bragg Gaming Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Bragg Gaming Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bragg Gaming Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.