GiG Software has released its Q2 2026 financials, showing a year-over-year revenue decline and a larger operating loss. The company also announced plans to acquire a majority stake in 888AFRICA, pending regulatory approval
GiG Software, a B2B iGaming technology provider, has published its financial results for the second quarter of 2026 and disclosed an agreement to acquire a controlling stake in 888AFRICA. The developments come as the company faces a challenging revenue environment and seeks to expand its presence in the African online gambling market.
Q2 2026 Financial Performance
For the second quarter of 2026, GiG Software reported revenue of EUR 8.8 million ($10.25 million), representing a 5% decrease compared to the same period in 2025. The company attributed the decline to the insolvency of Richmond Atlantic and a reduction in non-recurring revenue streams. Adjusted EBITDA for the quarter was EUR 0.8 million ($0.93 million), with a margin of 9%. Operating loss nearly doubled year-over-year, reaching EUR 6.9 million ($8.04 million), primarily due to a one-off bad debt provision of EUR 3 million ($3.49 million). As of June 30, GiG Software held EUR 3.5 million ($4.08 million) in cash and cash equivalents.
First Half Results and Cost Measures
In the first half of 2026, GiG Software generated EUR 17.8 million ($20.73 million) in revenue, down from EUR 18.4 million in the prior-year period. Adjusted EBITDA for H1 was EUR 1 million ($1.16 million), compared to EUR 1.4 million in H1 2025. The company completed a previously announced annualized cost savings program totaling EUR 4.5 million ($5.24 million) during Q2, renewed four contracts, and signed three new agreements. Additionally, GiG Software reported nine brand launches in key markets, reflecting ongoing efforts to streamline operations and focus on core business areas.
Acquisition of 888AFRICA
GiG Software has entered into an agreement to acquire an 80% stake in 888AFRICA, described as a profitable and fast-growing African B2C operator. The proposed acquisition is valued at EUR 16.4 million ($19.1 million) and will be funded through a combination of equity and convertible debt with existing shareholders. The transaction remains subject to shareholder and regulatory approvals. If completed, GiG Software expects the deal to enhance its full-year 2026 results, projecting revenue between EUR 44 million and EUR 48 million ($51.25–55.91 million) and adjusted EBITDA of EUR 5–7 million ($5.82–8.15 million). The company anticipates that integrating 888AFRICA will help it achieve positive cash flow and strengthen its position in the African market.
Leadership Perspective and Market Context
GiG Software CEO Richard Carter stated that the company’s actions to reset its cost base and pursue the 888AFRICA acquisition are intended to create a more focused and resilient business. He characterized the acquisition as transformational for GiG Software’s long-term strategy. The move comes as other gambling regulators and operators globally are also adapting to evolving market conditions and regulatory scrutiny, as seen in initiatives like the VGCCC’s Strategy 2029 in Victoria aimed at addressing gambling-related harm.
Understanding adjusted EBITDA is important when evaluating operator performance. Adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a non-GAAP financial metric that excludes certain one-time or non-operational items. It is commonly used in the gambling industry to provide a clearer picture of ongoing operational profitability, especially when companies face unusual expenses or revenue fluctuations. However, adjusted EBITDA does not represent net profit and should be considered alongside other financial indicators for a complete assessment of a company’s financial health.
