Record-breaking gross margin and growth of G5 Store — highlights from G5 Entertainment's quarterly report
The period for publishing quarterly reports continues. Now, G5 Entertainment has shared its financial results for July through September 2025.
Sherlock
- G5's revenue has fallen again. Compared to last year, its revenue dropped by 15% to 228.6 million Swedish kronor ($23.85 million).
- The gross profit also decreased by 12% to 162.8 million Swedish kronor ($17 million).
- Despite the revenue decline, G5 achieved the highest gross margin in the company's history at 71.2%. The company explained this by the growth in revenue from direct-to-consumer (D2C) sales. Currently, D2C accounts for the majority of the company's income.
- At the same time, its operating margin shrank from 8.5% to 5.5% due to increased user acquisition costs and currency exchange fluctuations.
- The G5 Store's web shop continued to increase its revenue, earning 30% more this quarter than the same period last year.
- The number of paying users in G5 games has decreased. Their average number dropped by 15% to 110.7 thousand people per month. However, the average gross monthly revenue per paying user (MAGRPPU) increased by 9% to $70.8.
Although the quarter presented mixed results for the company, G5 remains optimistic and believes it is on the right path. The company hopes to increase its revenue through the release of new games, improving the efficiency of existing ones, and further developing G5 Store. Notably, it recently began signing contracts with third-party developers seeking to publish their projects in the web shop. The first such game is set to debut in the G5 Store "soon."