G5 Entertainment (G5EN) Q2 2025 earnings summary

Executive summary

• Revenue declined 1.7% sequentially in USD and 11% year-over-year, with Q2 2025 revenue at SEK 231.6M; gross margin reached a record 70% driven by G5 Store growth.

• EBIT was SEK 5.6M (2.4% margin), down 74% year-over-year, mainly due to SEK -10M FX revaluations; adjusted EBIT margin would be 6.8%.

• G5 Store now accounts for 23% of net revenue, up from 15% a year ago, and its revenue grew 38.5% year-over-year and 8.4% sequentially in USD.

• Cash position at SEK 247M, up from SEK 196M last year, despite SEK 62.2M dividend payout.

• Net result was SEK 6.9M, with EPS of SEK 0.88; cash flow was SEK -38.8M, mainly due to dividend payout.

Financial highlights

• Revenue for Jan–Jun 2025 was SEK 492.0M, down 16% year-over-year; gross profit SEK 343.8M, down 14%.

• Gross margin for Jan–Jun was 69.9% (up from 67.9%); EBIT for the period was SEK 16.4M (3.3% margin).

• 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.

• Cash flow before financing activities was SEK 25.7M, up from SEK 6.5M last year.

• Dividend payout of SEK 62.2M (SEK 8 per share), same as last 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.

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

• Disciplined UA spend to remain within 17%-22% of revenue.

• No formal forecasts, but focus on top-line stabilization and future growth through scalability and retention.