G5 Entertainment (G5EN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $19.3M, down 19.7% YoY and 4.0% QoQ; net result rose to $2.3M from $1.4M, and EPS to $0.31 from $0.18.

• Record gross margin of 74.1%, improved EBIT and G5 Store growth supported profitability as established games declined.

Financial highlights

• Reported EBIT was $1.9M versus $1.3M, with a 9.8% margin versus 5.5%; adjusted EBIT was $2.0M versus $1.4M, with a 10.6% margin versus 5.7%.

• Q3 gross profit was $14.3M versus $17.1M; gross margin rose to 74.1% from 71.2%.

• 9M revenue declined 16% to $61.1M; net profit increased to $3.6M from $3.2M, while EBIT was $2.5M versus $2.9M.

• 9M gross profit was $44.8M versus $50.9M; gross margin rose to 73.3% from 70.3%.

• EBIT included $0.8M severance, a $0.3M social-security fee release and positive $0.3M FX effects; net capitalization impact was -$0.9M.

Outlook and guidance

• Workforce optimization was substantially complete; annualized run-rate savings were estimated at $14M, with staffing expected to stabilize near 450 by year-end.

• The new game remained in soft launch with strong short- and medium-term metrics; further iterations are needed to establish long-term performance and scalability.

• Priorities included growing G5 Store distribution, direct payments and advertising, alongside financial discipline, cash-flow generation and zero debt.

• Focus remained on stabilizing and optimizing Sherlock and Hidden City; Jewels and The Secret Society moved to Harvest Mode.

• UA spend was expected to remain within the previously communicated 18%–22% of revenue range unless the outlook changes.