G5 Entertainment (G5EN) ABGSC Investor Days summary

Key business highlights

• Focus on casual free-to-play puzzle and adventure games for tablets, smartphones, and PCs, targeting a female audience aged 35+.

• North America is the largest market, accounting for 63% of 2024 revenue, with Asia and Europe also significant.

• G5 Store, launched in 2020, now represents 24.7% of net revenue, with strong year-over-year growth and lower processing fees than third-party stores.

• Strategic shift to direct-to-consumer distribution, reducing store fees and increasing control over pricing and user experience.

• Portfolio approach emphasizes development of own games, with over 73% of net revenue from proprietary titles and a balanced mix of active, licensed, and harvest games.

Financial performance and capital allocation

• Q3 2025 revenue was SEK 229M, with a record gross margin of 71.2% and record MAGRPPU of $70.8.

• Operating profit (EBIT) was SEK 12.6M, with margin impacted by FX movements and increased user acquisition spend.

• Strong balance sheet with SEK 247.2M in cash at period end; total of SEK 695M repaid to shareholders through dividends and buybacks.

• Continued focus on operational efficiency, cash flow generation, and maintaining zero debt.

Strategic initiatives and outlook

• Positive momentum expected into Q4 and Q1, with increased user acquisition to 25% of gross revenue to drive growth.

• Fourteen new game iterations in Q3, with one title showing record early engagement; Twilight Land in late-stage soft launch.

• Expansion of G5 Store, including web shop and third-party game launches, expected to further boost gross margin.

• Ongoing development funnel with structured pre-production to global launch process for new games.

• Additional revenue streams anticipated from third-party publishing and other strategic opportunities.