GiG Software reported a 5.4% year-over-year decline in second-quarter revenue to €8.8 million, while adjusted EBITDA fell to €0.8 million as bad debt provisions tied to the insolvency of Richmond Atlantic impacted results.
Underlying recurring revenue, excluding one-off customer insolvencies and lower setup fees, grew 14% year-over-year. Sportsbook revenue rose 6%, offsetting broader declines in the group’s B2C operations. Adjusted EBITDA margin contracted to 9% from 11% a year earlier, reflecting higher costs and reduced revenue visibility.
Total operating expenditure for the trailing 12 months to June fell 3% to €31.4 million, with personnel costs down 4% and marketing expenses down 14%. The company’s gross cash position stood at €3.5 million at mid-year, down from €9.9 million at the end of 2025, as restructuring costs and working capital outflows weighed on liquidity.
Shares of GiG Software dropped 17.68% in early trading, falling from a prior close of $1.73 to $1.42. The stock has traded between $1.23 and $6.61 over the past 52 weeks.
Management highlighted progress on a two-phase cost-reduction program targeting more than €10 million in annualized savings. The first phase, delivering €4.5 million in savings, is complete, while the second phase aims to add €6 million in savings from October. The company’s workforce has been reduced by over 25% since January. Additional cost savings of €1 million annually are expected from the planned 2027 closure of the Spanish Alira platform.
In commercial developments, GiG signed seven new agreements in the quarter, including four contract renewals and three new operators in Alberta. Nine brand launches were completed, bringing the year-to-date total to 13, exceeding the full-year guidance range of 12 to 14. The company also achieved CoreX certification for its Spanish market operations and announced exits from the U.S., Philippines, and a white-label partnership with SkyCity.
The company is advancing an acquisition of an 80% stake in 888AFRICA for €16.4 million, expected to close by the end of September. The deal will add over $50 million in annualized revenue to the combined group. Funding will be phased over 10 months via a convertible debt facility, equity issuance, and additional financing, including €8.5 million in new funding secured in the quarter.
Management reiterated a target for standalone GiG to achieve cash generation by year-end, with a baseline 2027 outlook projecting revenue of €36 million to €37 million and adjusted EBITDA of €8 million to €9 million. The combined group’s indicative 2027 outlook calls for revenue of €85 million to €90 million and adjusted EBITDA of €18 million to €20 million.
