G5 Entertainment Reports Q3 2025 Earnings and Strategic Growth Plans

G5 Entertainment AB ( (GENTF) ) has released its Q3 earnings. Here is a breakdown of the information G5 Entertainment AB presented to its investors.

G5 Entertainment AB is a Swedish company that develops and publishes high-quality free-to-play games for various platforms, including its own G5 Store, Apple App Store, and Google Play, targeting a broad audience of both experienced and novice players.

In the third quarter of 2025, G5 Entertainment reported a revenue of SEK 228.6 million, marking a 15% decrease compared to the same period in 2024. Despite this decline, the company achieved a sequential increase in USD revenue, attributed to improvements in its game portfolio and marketing strategies. The gross margin rose to a record 71.2%, driven by a higher share of revenue from the direct-to-consumer channel.

Key financial highlights include a 45% decrease in EBIT to SEK 12.6 million and a net result of SEK 13.4 million, positively influenced by finance net. The G5 Store demonstrated robust growth with a 30% year-over-year increase in gross revenue in USD terms. However, user metrics such as Monthly Active Users and Daily Active Users saw a decline of 17% compared to the previous year.

Looking ahead, G5 Entertainment aims to achieve sequential top-line growth by enhancing the performance of existing games, expanding user acquisition, and releasing new games. The company plans to increase its investment in user acquisition to over 25% in the upcoming quarter, supported by the continued growth of the G5 Store and the introduction of third-party games.

Overall, G5 Entertainment remains financially strong, with strategic initiatives in place to drive sustainable growth. The company is focused on leveraging its direct-to-consumer business to expand gross margins and improve the performance of its game portfolio.