Ten Square Games (TEN) Q1 2025 earnings summary

Executive summary

• Management is driving strategic transformation with new leadership, focusing on long-term growth, operational efficiency, and product innovation amid increased competition and post-pandemic market changes.

• Emphasis is on improving product leadership, player retention, personalized experiences, and technical enhancements across flagship games.

• Organizational adaptation includes onboarding new talent, enhancing LiveOps frameworks, and addressing competency gaps.

• Early positive effects from these changes are observed, but full financial impact will take more time.

Financial highlights

• Q1 2025 bookings totaled PLN 90.5 million, down 9.5% quarter-over-quarter and 9.2% year-over-year, mainly due to reduced marketing and lower key title performance.

• Adjusted EBITDA for Q1 2025 reached PLN 30.5 million, up 7.5% quarter-over-quarter, with margin improving to 32%.

• Net profit increased 88.1% quarter-over-quarter to PLN 27.5 million, driven by cost discipline and absence of significant one-off events.

• Cash and cash equivalents at quarter-end stood at PLN 172.4 million, with strong operating cash flow of PLN 30.0 million.

• Earnings per share: PLN 4.24 basic (Q1 2024: PLN 2.45).

Outlook and guidance

• Management expects gradual improvement as new features, advanced player segmentation, and personalization are rolled out, but A/B tests and full impact may take weeks or months.

• Focus for Q2 2025 includes stabilizing flagship titles, accelerating new launches like Trophy Hunter and Real Combat Simulator, and further technical improvements.

• Long-term targets include 15% annual adjusted EBITDA growth (2025–2027), with incentive plans tied to performance.

• Preliminary Q2 results will be shared in July, with the full report in August.