G5 Entertainment (G5EN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue was SEK 221 million, down 21% year-over-year and 9% in USD, with stabilization in Hidden City and Sherlock, but continued weakness in the Jewels family.

• Gross margin reached a record 71.6%, driven by G5 Store expansion and direct-to-consumer sales.

• EBIT was SEK -6.0 million for Q4, with EBIT margin at -2.7% (adjusted 0.8%), impacted by FX and higher user acquisition costs.

• Cash position at quarter-end was SEK 216 million ($23.5 million), debt-free, with sequential decline due to working capital and FX effects.

• Strategic focus on stabilizing revenue, expanding G5 Store, launching new games, and third-party distribution.

Financial highlights

• Q4 gross margin: 71.6% (up from 69.1%); full-year gross margin: 70.6% (up from 68.4%).

• Q4 EBIT: SEK -6.0M (down from SEK 32.8M); EBIT margin: -2.7% (adjusted 0.8%).

• Q4 revenue: SEK 221.1M (down 21% YoY); full-year revenue: SEK 941.6M (down 17% YoY).

• Monthly average gross revenue per paying user (MAGRPUU): $71.7, up 9% YoY.

• User acquisition spend was 22.6%-23% of revenue, up from 17% last year.

Outlook and guidance

• Focus on stabilizing Jewels family, expanding G5 Store, and launching new games, including third-party titles.

• User acquisition spend to remain at the higher end of the 17%-22% revenue range.

• Board proposes a dividend of SEK 2.0 per share (~SEK 15 million), about 52% of net profit.

• No formal forecasts published; focus on new games and revenue streams.

• Twilight Land closed after failing long-term metrics; team reassigned.