G5 Entertainment (G5EN) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was SEK 231.6M–232M, down 1.7% sequentially and 11% year-over-year in USD, and 20% year-over-year in SEK, reflecting a seasonally slow quarter but improved over Q1's decline.

• Gross margin reached a record 70.0%, driven by the growth of the G5 Store channel.

• Operating profit (EBIT) was SEK 5.6M (2.4% margin), down 74% year-over-year, mainly impacted by SEK/USD currency fluctuations and increased UA spend; adjusted EBIT margin would be 6.8%.

• Strong cash position at SEK 247M, up from SEK 196M last year, with zero debt and a dividend payout of SEK 8/share (SEK 62.2M total).

• G5 Store revenue grew 38.5% year-over-year and 8–8.4% sequentially in USD, now accounting for 23–23.3% of net revenue.

Financial highlights

• Revenue declined 1.7% sequentially and 11% year-over-year in USD; 20% year-over-year in SEK.

• Gross margin expanded to 70.0% from 67.8% year-over-year.

• EBIT margin was 2.4%, adjusted EBIT margin would be 6.8% excluding FX impact.

• Cash flow before financing activities was SEK 25.7M, up from SEK 6.5M last year; total cash flow was SEK -38.8M, mainly due to dividend payout.

• Net profit for Jan–Jun was SEK 18.8M (EPS SEK 2.40), down from SEK 61.0M (EPS SEK 7.79) year-over-year.

Outlook and guidance

• Focus on sustainable growth, healthy profitability, and delivering new titles, with Twilight Land expected to launch globally in H2 2025.

• Continued improvements to active games and increased UA spend to drive growth; UA spend to remain within 17–22% of revenue.

• First third-party games to be distributed on G5 Store before year-end; technical preparations underway.

• No formal forecasts, but aim for top-line stabilization and future growth through scalability and retention improvements.

• New management hires and operational efficiencies to support future growth.