G5 Entertainment (G5EN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was SEK 221 million, down 21% year-over-year and 9% in USD, with sequential declines of 2-3% in USD terms.

• Gross margin reached a record 71.6%, driven by G5 Store expansion and direct-to-consumer sales.

• EBIT was SEK -6.0 million, down from SEK 32.8 million last year, impacted by FX and higher user acquisition costs.

• Hidden City grew 8.3% sequentially, while Sherlock and Jewels family saw sequential and annual declines.

• Strategic focus on stabilizing revenue, expanding G5 Store, and launching new games and third-party distribution.

Financial highlights

• Q4 gross margin: 71.6% (up from 69.1%); Q4 revenue: SEK 221.1M (down 21% YoY); cash position at quarter-end: SEK 216.2M.

• EBIT margin: -2.7% (down from 11.8%); adjusted EBIT margin: 0.8% (down from 9.6%).

• Monthly average gross revenue per paying user: $71.7, up 9% year-over-year.

• User acquisition spend was 22.6%–23% of revenue, up from 17% last year.

• Proposed dividend of SEK 2.0 per share; share buybacks of SEK 2.7M in Q4 and SEK 13.1M for the year.

Outlook and guidance

• Focus on improving Jewels family, expanding G5 Store, and launching new games, with at least one new external game in Q1 2026.

• User acquisition spend to remain at the high end of the 17%-22% revenue range.

• Twilight Land closed after failing metrics; team reassigned to new initiatives.

• New agile teams formed to test innovative game concepts; one title in final scalability testing.

• No formal forecasts published; focus on stabilizing revenue and expanding new revenue streams.