G5 Entertainment (G5EN) Q1 2025 earnings summary

Executive summary

• Revenue declined 12% year-over-year to SEK 260.3M, with a 13-15% drop in USD terms, reflecting ongoing market challenges and a shorter quarter.

• Gross margin reached a record 69.8%, driven by rapid G5 Store growth and a higher share of direct-to-consumer sales, now 21% of revenue.

• Cash position hit a record SEK 295M, with zero debt and continued strong cash flow.

• EPS for the quarter was SEK 1.53, down from SEK 4.76 last year, mainly due to SEK-USD exchange rate effects and a SEK 1.3M one-time M&A expense.

• Jewels and Sherlock games contributed 31% and 27% of net revenue, respectively.

Financial highlights

• Revenue: SEK 260.3M (down 12% year-over-year); in USD, down 13-15%.

• Gross margin: 69.8% (up from 68.1% last year).

• EBIT: SEK 10.7M (down from SEK 39M), EBIT margin 4.1%; adjusted EBIT margin 10.2%.

• Cash flow for the period: SEK 33M, down from SEK 71M last year; cash at period end: SEK 295M.

• Monthly average gross revenue per paying user reached $65.4, up 3% year-over-year.

Outlook and guidance

• Focus remains on cost control, operational efficiency, and sustainable growth.

• Plans to return user acquisition spend to the 17%-22% range in coming quarters.

• G5 Store and web shop initiatives expected to further boost gross margin and revenue diversification.

• Strategic hires made to strengthen product development, business expansion, and marketing.

• Expecting global launch of new game, Twilight Land, later this year.