MindArk (MNDRK) Q2 2025 earnings summary

Executive summary

• Revenue and operating profit declined year-over-year in Q2 2025 due to reduced activity in Entropia Universe and negative currency effects, but both improved significantly compared to Q1 2025, with revenue up 33% sequentially and a return to positive operating profit.

• Major product launches included the new planet ARIS and the release of Entropia Universe on Steam after the quarter, expected to drive future growth.

• Strategic focus on technological innovation, including AI-driven localization (49 languages), onboarding improvements, and interplanetary teleportation, aims to enhance user acquisition and retention.

Financial highlights

• Q2 2025 turnover was 22.1 MSEK, down from 26.8 MSEK year-over-year, but up 33% from Q1 2025.

• Operating profit for Q2 was 2.4 MSEK (5.4 MSEK in Q2 2024); profit before tax was 5.9 MSEK (5.7 MSEK in Q2 2024).

• H1 2025 turnover was 38.7 MSEK (47.5 MSEK in H1 2024); operating profit for H1 was -2.5 MSEK (6.6 MSEK in H1 2024).

• Cash and cash equivalents including short-term investments stood at 25.6 MSEK at quarter-end.

• No interest-bearing liabilities reported.

Outlook and guidance

• Launch on Steam and improved onboarding are expected to accelerate user growth and revenue recovery in H2 2025.

• Continued investment in AI and global localization to support long-term profitability and market expansion.