Sweden's G5 Entertainment Q1 revenue falls 11%

G5 Entertainment AB (publ)

06/05/2026 06:16

Overview

Sweden mobile game developer's Q1 revenue fell 11% yr/yr as main titles declined

Gross margin reached record 72.7%, driven by shift to direct-to-consumer channels

Q1 EPS dropped 31% yr/yr; company plans increased user acquisition spend

Outlook

Company plans to increase UA spend throughout the remainder of the year

Result Drivers

MAIN GAME DECLINES - Revenue from Sherlock, Hidden City, and the Jewels family of games fell sequentially and year-over-year, with the Jewels family seeing the steepest drop; co attributed this to being priced out of user acquisition during the high season

DIRECT-TO-CONSUMER SHIFT - Growth of the G5 Store and direct-to-consumer revenue increased gross margin to a record 72.7%, mainly by reducing distributor commissions

Company press release: ID:nMFN8Pqh2h

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Gross Margin
72.70%


Analyst Coverage

Wall Street's median 12-month price target for G5 Entertainment AB (publ) is SEK230.00, about 331.5% above its May 5 closing price of SEK53.30

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)