Flexion Mobile (FLEXM) Q2 2025 earnings summary

Executive summary

• Q2 2025 saw underlying business growth in both distribution and marketing, with progress on efficiency and continued expansion in constant currency terms despite FX headwinds.

• New game launches contributed over USD 600k in monthly revenue, and the portfolio outperformed Google Play equivalents, highlighting a shift to alternative markets.

• Strategic partnerships and game signings, including a Top 5 Grossing game and EA's Golf Clash, strengthened the portfolio to 34 games, with four Top 10 grossing titles expected in Q3.

Financial highlights

• Q2 total revenue decreased by 4% year-over-year to GBP 17.1m, but increased by 4% in constant currency (USD).

• Gross profit fell 31% year-over-year to GBP 2.5m, with gross margin dropping from 20% to 15%.

• Adjusted EBITDA declined 104% to GBP -0.05m, and operating result improved to GBP -0.4m from GBP -0.8m.

• Cash and cash equivalents at quarter-end were GBP 13.3m, with no debt.

• H1 2025 revenue decreased 3% to GBP 35.0m, gross profit down 25% to GBP 5.6m, and adjusted EBITDA down 76% to GBP 0.7m.

Outlook and guidance

• Revenue guidance for Q3 is USD 21-24 million, with expectations of improved performance post-summer.

• Strategic positioning in alternative app stores and D2C channels is expected to drive future growth.