Ten Square Games (TEN) Q1 2025 earnings summary

Executive summary

• The company is undergoing strategic transformation with new leadership, focusing on long-term growth, operational efficiency, and product innovation amid increased competition and post-pandemic market changes.

• Emphasis on onboarding new talent, scalable operations, and enhanced LiveOps frameworks to address competency gaps and drive innovation.

• Focus shifted to player retention, personalized experiences, and technical improvements across main products, with early positive effects observed.

Financial highlights

• Q1 2025 adjusted EBITDA reached PLN 30.5 million, up from PLN 27.5 million in Q1 2024, with margin improving to 32%.

• Net profit increased to PLN 27.5 million, up 88.1% quarter-over-quarter and 53% year-over-year, driven by cost discipline and absence of significant one-off events.

• Bookings for Q1 2025 totaled PLN 90.5 million, down 9.5% quarter-over-quarter and 9.2% year-over-year, mainly due to reduced marketing and lower key title performance.

• Cash and cash equivalents at quarter-end stood at PLN 172.4 million, reflecting strong liquidity.

• User acquisition costs decreased 31.1% quarter-over-quarter; general and administrative costs down 5.1%.

Outlook and guidance

• Q2 2025 will focus on stabilizing flagship titles, accelerating new launches, and implementing advanced player segmentation and personalization.

• Long-term targets include 15% annual adjusted EBITDA growth (2025–2027), with incentive plans tied to performance.

• Upcoming dividend of PLN 100 million to be paid in June 2025, reflecting a 16% yield.

• Ongoing A/B tests and segmentation efforts are expected to improve monetization and retention, with full impact anticipated in coming quarters.

• Success in these initiatives may improve performance, but delays or errors could negatively impact results.