G5 Entertainment (G5EN) Q3 2025 earnings summary

Executive summary

• Revenue stabilized sequentially in Q3, reaching SEK 229M, up 0.2% quarter-over-quarter but down 15% year-over-year in SEK and 7% in USD, reversing a previous declining trend.

• Gross margin hit a record 71.2%, driven by the growth of the G5 Store and direct-to-consumer channels.

• Sherlock led growth with 5.6% sequential and 7.9% year-over-year revenue increase, now accounting for 29% of net revenue.

• EBIT for Q3 was SEK 12.6M, a 45% decrease year-over-year, with EBIT margin at 5.5%; net profit was SEK 13.4M.

• G5 Store revenue grew 30% year-over-year and 6% sequentially, now representing nearly 25% of net revenue.

Financial highlights

• Q3 revenue: SEK 228.6M (down 15% y-o-y); gross profit: SEK 162.8M; gross margin: 71.2% (up from 68.8%).

• EBIT: SEK 12.6M (down from 22.9M y-o-y); EBIT margin: 5.5%.

• Net profit: SEK 13.4M; EPS: SEK 1.73 (down from 3.14 y-o-y).

• Cash position at period end: SEK 247M, with total cash flow for the quarter at SEK 10.4M.

• Monthly average gross revenue per paying user reached a record $70.8, up from $64.9 last year.

Outlook and guidance

• Positive momentum expected in seasonally strong Q4 and Q1, with continued focus on improving active games and expanding profitable user acquisition.

• User acquisition spend increased to 21% of revenue in Q3 and is planned to rise to 25% or higher in Q4 to support growth, especially for Sherlock and Hidden City.

• New games from third-party developers to launch on G5 Store before year-end.

• G5 does not publish formal forecasts.