Want to see SE:G5EN full AI Analyst Report?
Top Page
G5 Entertainment AB
(G5EN)
Select Model
Select Model
Rating:63Neutral
Price Target:
kr68.00
▲(9.50% Upside)
Action:Downgraded
Date:08/17/26
Overall score reflects strong balance sheet strength and solid cash generation offset by a weak income statement trend (multi-year revenue decline and near-breakeven operating profitability). Earnings call adds a balanced signal: meaningful cost reductions and improving D2C/Store traction, but continued top-line pressure and rising user-acquisition costs increase execution risk. Technicals are neutral-to-soft and valuation is only moderately supportive given growth and margin headwinds.
Positive Factors
Balance Sheet Strength
Very low leverage (debt-to-equity ~0.2%) materially reduces refinancing and solvency risk. This durable financial flexibility supports multi-month investments in live-ops, marketing, dividends or opportunistic M&A without needing external capital, cushioning cyclical revenue swings.
Negative Factors
Declining Revenue and Compressed Profitability
Lower top-line and thin operating/net margins limit retained earnings available for reinvestment. Margin compression increases sensitivity to rising UA and marketing costs and reduces buffer against softer user engagement, constraining durable growth and resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage (debt-to-equity ~0.2%) materially reduces refinancing and solvency risk. This durable financial flexibility supports multi-month investments in live-ops, marketing, dividends or opportunistic M&A without needing external capital, cushioning cyclical revenue swings.
Read all positive factors
G5 Entertainment AB (G5EN) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr456.94M
Dividend Yield3.21%
Average Volume (3M)11.82K
Price to Earnings (P/E)20.0
Beta (1Y)0.73
Revenue Growth-19.67%
EPS Growth-68.42%
CountrySE
Employees550
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)3.11
Shares Outstanding7,830,000
10 Day Avg. Volume5,575
30 Day Avg. Volume11,823
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)1.55
Price to Sales (P/S)0.75
P/FCF Ratio5.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.32
Revenue Forecast (FY)kr821.36M
G5 Entertainment AB Business Overview & Revenue Model
Company Description
Based in Sweden, G5 Entertainment AB (publ) specializes in creating and distributing complimentary (free-to-play) interactive games designed for mobile devices and desktop computers. Their diverse catalog of popular titles features games such as H...
How the Company Makes Money
G5 Entertainment primarily generates revenue from its digital games through a free-to-play model. Under this model, the games are typically downloaded at no upfront cost, and the company earns money when players make in-app purchases (e.g., buying...
G5 Entertainment AB Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture. Material top-line weakness across core franchises and margin/EBIT deterioration are significant negatives. Offsetting positives include record gross margins, improved ARPPU, strong growth and traction in the G5 Store and third-party distribution, completed cost optimizations with an estimated USD 11m annual run-rate saving, and a healthy cash position. Management is focused on growing D2C distribution, cautious UA deployment, monetization improvements (ads) and advancing a promising soft-launch title, but faces clear execution risk from rising UA costs and natural churn in older games.Positive Updates
Record Gross Margin and Improved ARPPU
Gross margin reached a record 73.1% (up from 70% YoY). Monthly average gross revenue per paying user (MAPRU/ARPPU) set a new record at USD 79, a 15% YoY increase, reflecting stronger monetization of the loyal audience.
Negative Updates
Overall Revenue Decline Across Core Pillars
Total revenue was USD 20.1 million, down 16% YoY and 7% sequentially. All three main pillars declined: Sherlock down 16% YoY and 8% sequentially, Hidden City down 10.5% YoY and 8% sequentially, and the Jewels family declined almost 30% YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Gross Margin and Improved ARPPU
Gross margin reached a record 73.1% (up from 70% YoY). Monthly average gross revenue per paying user (MAPRU/ARPPU) set a new record at USD 79, a 15% YoY increase, reflecting stronger monetization of the loyal audience.
Read all positive updates
Company Guidance
Guidance: management expects to realize an annualized run‑rate reduction of about USD 11.0m after two workforce optimization waves that cut headcount to ~550 (target earlier ~635), with the majority of severance paid but only a partial P&L effect in Q3; the company remains debt‑free with cash of USD 24.4m after paying a USD 1.6m dividend and repurchasing USD 1.0m of shares. Priority is to scale the G5 Store (Q2 growth: +5% q/q, +15% y/y; now 25.5% of group revenue and ~29% of net revenue), expand third‑party distribution (third‑party revenue +100% q/q; 3 launched, 5 signed, 9 in negotiation) and increase ad monetization and direct mobile payments (direct‑processed mobile payments >17% of mobile revenue, up from 11% in Q1). Financial discipline remains central: Q2 reported revenue was USD 20.1m (‑16% y/y, ‑7% q/q) with gross margin at a record 73.1% (vs 70% y/y), monthly gross revenue per paying user USD 79 (+15% y/y), user‑acquisition spend roughly 19–19.5% of revenue (vs 18% a year ago), reported operating loss USD 0.2m (‑1.1% margin) but adjusted EBIT ~USD 0.1m (0.4% margin) while net capitalization impact was +USD 0.1m; UA will be deployed on a case‑by‑case basis to protect margins and fund selective scaling of new titles while older titles (e.g., Jewels) move to “harvest” mode.G5 Entertainment AB Financial Statement Overview
Summary
Income Statement
41
Neutral
Balance Sheet
83
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 836.36M | 941.58M | 1.13B | 1.32B | 1.40B | 1.32B |
| Gross Profit | 557.21M | 567.26M | 776.10M | 892.37M | 936.42M | 810.45M |
| EBITDA | 52.67M | 153.46M | 262.10M | 294.70M | 227.20M | 215.57M |
| Net Income | 23.80M | 30.02M | 118.97M | 127.57M | 66.95M | 198.21M |
Balance Sheet | ||||||
| Total Assets | 570.38M | 543.98M | 666.71M | 610.15M | 657.88M | 625.79M |
| Cash, Cash Equivalents and Short-Term Investments | 262.79M | 224.78M | 275.54M | 182.33M | 185.49M | 162.16M |
| Total Debt | 687.15K | 1.28M | 1.80M | 1.87M | 2.86M | 12.29M |
| Total Liabilities | 109.54M | 86.95M | 112.39M | 118.75M | 158.15M | 133.38M |
| Stockholders Equity | 460.84M | 457.04M | 554.32M | 491.40M | 499.73M | 492.41M |
Cash Flow | ||||||
| Free Cash Flow | 121.10M | 141.24M | 178.17M | 130.85M | 129.15M | 188.41M |
| Operating Cash Flow | 123.13M | 143.30M | 283.33M | 241.16M | 304.76M | 360.63M |
| Investing Cash Flow | -91.71M | -98.10M | -119.32M | -113.25M | -176.66M | -208.53M |
| Financing Cash Flow | -39.71M | -76.16M | -76.64M | -119.48M | -108.62M | -192.34M |
G5 Entertainment AB Technical Analysis
Positive
62.10
Price Trends
63.98
Negative
61.64
Positive
66.84
Negative
Market Momentum
-0.72
Negative
48.12
Neutral
53.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:G5EN, the sentiment is Positive. The current price of 62.1 is above the 20-day moving average (MA) of 62.05, below the 50-day MA of 63.98, and below the 200-day MA of 66.84, indicating a neutral trend. The MACD of -0.72 indicates Negative momentum. The RSI at 48.12 is Neutral, neither overbought nor oversold. The STOCH value of 53.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:G5EN.
G5 Entertainment AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | kr54.58M | 2.84 | ― | ― | -33.33% | ― | |
63 Neutral | kr456.94M | 20.03 | 5.13% | 3.21% | -19.67% | -68.42% | |
63 Neutral | kr3.48B | -1.63 | ― | ― | -13.65% | 72.95% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | kr1.39B | -0.73 | ― | 18.89% | -11.07% | -734.06% | |
54 Neutral | kr222.03M | -22.31 | -3.33% | 17.53% | 4.39% | -6331.67% | |
51 Neutral | kr41.53M | -11.81 | -21.84% | ― | 0.55% | 39.82% |
* Communication Services Sector Average
SE:G5EN
G5 Entertainment AB
62.30
-26.01
-29.46%
SE:QIIWI
Qiiwi Games AB
4.37
1.60
57.76%
SE:MAGI
MAG Interactive AB
8.40
-5.05
-37.55%
SE:SF
Stillfront Group AB
6.40
0.73
12.78%
SE:NITRO
Nitro Games Plc
2.16
0.68
46.24%
SE:EG7
Enad Global 7 AB
15.38
0.82
5.63%
G5 Entertainment AB Corporate Events
G5 Entertainment Sees Revenue Drop but Margin and Direct Sales Strengthen in Q2 2026
Aug 12, 2026
G5 Entertainment reported a 16% year-over-year revenue decline to USD 20.1 million in the second quarter of 2026, with EBIT slipping into a slight loss due to severance costs, while earnings per share fell 18%. Despite lower revenue and reduced us...
G5 Entertainment to present Q2 2026 results on August 12
Aug 5, 2026
G5 Entertainment AB will release its financial results for the second quarter of 2026 on August 12 at 07:00 a.m. CEST and will host a webcast and conference call at 08:00 a.m. CEST the same day. Chief executive Vlad Suglobov and chief financial of...
G5 Entertainment Adjusts Share Capital and Voting Structure After AGM
Jul 31, 2026
G5 Entertainment has reduced its share capital by cancelling 250,000 shares in July, following a decision at its Annual General Meeting on June 15, 2026. After the cancellation, the company has a total of 8,002,200 shares outstanding, comprised of...
G5 Entertainment Launches Limited Share Buyback to Fine-Tune Capital Structure
Jun 16, 2026
G5 Entertainment AB’s board has resolved to initiate a share repurchase program of its ordinary shares under the mandate granted at the 15 June 2026 annual general meeting, aiming to adjust the company’s capital structure over time and...
G5 Entertainment AGM Backs Dividend and Ambitious Share Incentive Plan
Jun 15, 2026
G5 Entertainment’s 2026 Annual General Meeting in Stockholm confirmed continuity in governance, re-electing key board members, appointing Petter Nylander as chairman, and adding Louise Ringström Grandinson to the board. Shareholders als...
G5 Entertainment Corrects AGM Notice, Restores CEO Share Allocation Level
May 25, 2026
G5 Entertainment AB has issued a corrected notice for its Annual General Meeting scheduled for June 15, 2026 in Stockholm, updating details of the CEO’s long-term incentive plan. The maximum number of performance-based shares for the CEO und...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.