Ten Square Games (TEN) Q1 2026 earnings summary

Executive summary

• Growth driven by new game development, expansion of existing titles, and a strict validation model for new projects, with iterative testing and scaling for new releases like Medal Hunter and two prototypes entering market tests.

• Bookings for Q1 2026 reached PLN 98.4 million, up 3% sequentially and 9% year-over-year, marking the third consecutive quarter of growth, led by Trophy Hunter and Wings of Heroes alongside stable core titles.

• Core games Fishing Clash and Hunting Clash remain profit drivers, while new titles like Trophy Hunter and Medal Hunter are being scaled, with Real Flight Simulator and Wings of Heroes showing strong performance.

• Monetization strategies for new titles are being refined, focusing on long-term player engagement and improved margins through D2C platform expansion, especially in the U.S.

• Marketing investment increased, with marketing expenses up 7.9% quarter-over-quarter to PLN 32.4 million, supporting growth titles.

Financial highlights

• Q1 2026 revenues: PLN 98.6 million, up from PLN 96.7 million in Q1 2025, with bookings and profitability rising sequentially.

• Adjusted EBITDA for Q1 2026 was PLN 18.9 million, maintaining cost discipline and up from PLN 18.5 million in Q4 2025.

• Net profit for Q1 2026 was PLN 13.6 million, up 16% quarter-over-quarter but down from PLN 27.5 million in Q1 2025.

• Cash and equivalents at quarter-end were PLN 137.2 million, with strong operating cash flow of PLN 19.2 million.

• Dividend of PLN 10.00 per share for 2025, totaling PLN 63.7 million, to be paid in May 2026.

Outlook and guidance

• Continued investment in marketing for new titles, with expected medium- to long-term returns and break-even for Trophy Hunter possible in Q3 2026.

• Global launch of Medal Hunter accelerated, with content and scaling plans dependent on user retention KPIs and launch planned for late Q2 2026.

• Main titles remain the financial foundation, while growth titles are expected to drive future bookings.

• D2C platform expansion and ongoing market tests for new prototypes may influence future growth and margins.

• Focus on validating new prototypes and expanding the portfolio with commercially viable projects.