GiG Software (GIG) Q2 2026 earnings summary

Executive summary

• Announced and completed the acquisition of an 80% stake in 888AFRICA for €16.4 million, marking a strategic shift towards high-growth African iGaming markets and adding immediate scale and cash generation.

• Delivered €8.8 million in revenue and €0.8 million in adjusted EBITDA for Q2 2026, with underlying recurring revenue up 14% year-on-year.

• Achieved 13 brand launches year-to-date, surpassing full-year guidance, and signed seven new commercial agreements.

• Implemented over €10 million in annualized cost savings, with a 25% reduction in FTEs and further reductions expected from strategic exits and restructuring.

• Strategic reset focused on core profitable markets, cost discipline, and sustainable standalone growth for 2027.

Financial highlights

• Q2 2026 revenue was €8.8 million, down from €9.3 million in Q2 2025, mainly due to the insolvency of a major customer and lower setup fees.

• Adjusted EBITDA for Q2 2026 was €0.8 million (9% margin), compared to €1.0 million (11% margin) a year ago.

• Underlying recurring revenue grew 14% year-on-year; sportsbook revenue up 6% year-on-year.

• Trailing 12-month revenue up 7% versus prior period; gross profit margin remained high at 95%.

• Operating expenditure for the trailing 12 months fell 3% to €31.4 million, with personnel and marketing costs down 4% and 14% respectively.

Outlook and guidance

• Combined group revenue post-888AFRICA acquisition expected between €44 million and €48 million for 2026, with adjusted EBITDA between €5 million and €7 million.

• Standalone business (excluding 888AFRICA) projected to be cash generative by year-end, with further cost savings and platform migration benefits in 2027.

• For 2027, underlying business baseline revenue expected at €36–37 million and EBITDA at €8–9 million; combined group revenue could reach €85–90 million and EBITDA €18–20 million.

• Integration of 888AFRICA from Q4 2026 expected to accelerate cash flow and strengthen the balance sheet.

• Combined group expected to be cash flow positive on a quarterly basis post-integration.