G5 Entertainment AB: Interim Report January - September 2025

"In the third quarter we have seen a sequential increase in USD revenue compared to Q2. It is the first time we have achieved stabilization and even sequential growth in many quarters. It was not by accident, but through systematic work to stabilize the performance of our portfolio during 2025," said Vlad Suglobov, CEO of G5 Entertainment. "Changes that were identified and made to Sherlock during Q1 and Q2 allowed marketing to expand the user acquisition for the game with new energy: Sherlock revenue grew sequentially 2.4% from Q1 to Q2, and then 5.2% from Q2 to Q3. Year-over-year the game has shown -7.3% in Q1, -3.5% in Q2, and 7.9% in Q3. G5 Store continued to support our efforts to turn over the top-line performance with 30% growth in USD terms year-over-year and 6% growth sequentially. Web shop revenue, which is direct payment processing from players on mobile devices, reached 3% of revenue from such mobile platforms (2.6% in Q2). Through our initiative to expand G5 Store through distribution of 3rd party games in addition to our own games, we have signed several deals to bring games from other developers to G5 Store, and we will be releasing the first such game shortly. The gross margin reached a new record of 71.2 percent in Q3, up from 68.8 percent last year, reflecting the continued expansion of our direct-to-consumer channel. Our goal in the following quarters is to achieve sequential top-line growth through (1) the improved performance of our existing games in the portfolio and expansion of user acquisition, (2) new game releases, and (3) continued growth in G5 Store, strengthened by 3rd party game releases. Strategically, we are on the right path. We remain strong financially, our growing direct-to-consumer business gradually expands our gross margins, our product and marketing functions are driving strategic insights that already bring tangible results, and our game development pipeline produces great new game ideas that show strong positive signals in soft launch."

July - September 2025

• Revenue for the period was SEK 228.6 M (269.9), a decrease of 15 percent compared to the same period in 2024 in SEK terms. In USD terms revenue decreased 7 percent year-over-year. Sequentially revenue increased 0.2% in USD terms.
• Gross margin increased to 71.2 percent (68.8 percent), as a larger share of revenue is coming from G5's direct to consumer channel.
• EBIT for the period was SEK 12.6 M (22.9), a decrease of 45%, corresponding to an EBIT-margin of 5.5% (8.5). EBIT was negatively impacted by revaluations related to fx, primarily the USD, recorded in other income and expense amounting to SEK -0.4 M (-0.4). Adjusting for the negative impact from other income and expense the EBIT margin would be 5.7 (8.6) percent. Compared to Q2, EBIT was impacted as user acquisition has been increased from 18% to 21%.
• Net result for the period was SEK 13.4 M (24.5), positively impacted by the finance net of SEK 1.6 M (2.2).
• Earnings per share for the period, before dilution, was SEK 1.73 (3.14).
• Cash flow amounted to SEK 10.4 M (53.3).
• G5 Store gross revenue grew 30% y-o-y and 6% sequentially in USD terms in the quarter.
• Average Monthly Active Users (MAU) was 3.7 million, a decrease of 17 percent compared to the same period in 2024. Average Daily Active Users (DAU) was 1.1 million, a decrease of 17 percent compared to the same period in 2024. Average Monthly Unique Payers (MUP) was 110.7 thousand, a decrease of 15 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 70.8, an increase of 9 percent compared to the same period last year.