MAG Interactive (MAGI) Q4 2025 earnings summary

Executive summary

• Crozzle became the second largest game in the portfolio during Q4, driving significant growth and optimism for future scaling, especially as it expands into new markets beyond the U.S.

• QuizDuel had its top-performing year, continued to grow, and remains a key focus for future profitability improvements.

• Over 350 million downloads achieved, highlighting strong global reach and brand presence.

• User acquisition costs surged, nearly matching Q1–Q3 combined, as the company invested heavily in Crozzle's growth.

• Two additional games entered market testing in Q4, with more expected in the first half of the financial year, enabled by a new development platform.

Financial highlights

• Q4 net sales reached 77 MSEK, up from 66 MSEK, representing a 16% year-over-year increase; organic growth in USD was 31%.

• ARPDAU rose 46% year-over-year, reaching 9.5 US cents in Q4, primarily due to Crozzle's high-value users.

• Adjusted EBITDA for Q4 was 5,055 KSEK, down from 20,049 KSEK, with margin impacted by higher user acquisition costs.

• Cash balance ended at 87 million SEK, slightly down from the previous quarter.

• Q4 free cash flow was -2,650 KSEK, down from 9,689 KSEK.

Outlook and guidance

• Focus remains on scaling Crozzle globally, with launches in Sweden and plans for Germany and France soon.

• Targeting quarterly revenues north of SEK 100 million to achieve better profit margins.

• Continued investment in UA expected to temporarily pressure profit margins, with long-term growth anticipated from new and existing games.

• New games are in market testing, with more expected to enter testing in H1, leveraging the new platform for faster launches.

• QuizDuel Team Play and Wordzee platform upgrades are anticipated to boost engagement and revenue.