Jumpgate (GATE) Q1 2025 earnings summary

Executive summary

• Q1 2025 net turnover was 13.6 MSEK, a 17% decrease year-over-year, mainly due to reduced revenues in Nukklear as its main project neared completion and insufficient new projects signed.

• EBIT loss improved to -5.6 MSEK from -7.7 MSEK, and profit/loss after financial items improved to -5.9 MSEK from -10.9 MSEK, reflecting strict cost management.

• Cost savings program reduced operating expenses by 13% year-over-year, and divestment of Tableflip Entertainment was announced.

• Positive cash flow of 0.5 MSEK in Q1 2025, driven by settled invoices and non-cash depreciation.

• The company is positioned for three key game releases in H2 2025, with projected aggregate first-year revenues between 14 MSEK and 51 MSEK.

Financial highlights

• Net turnover for Q1 2025: 13.6 MSEK (Q1 2024: 16.4 MSEK).

• EBIT: -5.6 MSEK (Q1 2024: -7.7 MSEK); net loss after financial items: -5.9 MSEK (Q1 2024: -10.9 MSEK).

• Net profit/loss for the period was -6.1 MSEK.

• Equity at quarter-end was 63.8 MSEK, down from 75.7 MSEK at Q4 2024.

• Cash equivalents at period end: 3.4 MSEK (Q1 2024: 4.1 MSEK).

Outlook and guidance

• Revenue growth expected from three game launches in H2 2025, with projected first-year sales between 14 MSEK and 51 MSEK.

• Externally financed projects and public funding applications could provide up to 30 MSEK in new financing.

• Goals for coming quarters include signing new deals, successful game releases, and leveraging recent cost-cutting measures.