Interim Report: January - March 2026

G5 Entertainment’s interim report for the first quarter of 2026 details a period of strategic transition characterized by a focus on operational efficiency, direct-to-consumer distribution, and portfolio management. The company reported revenue of USD 21.7 million, an 11% year-over-year decline, while achieving a record gross margin of 72.7%. This margin expansion was primarily driven by a 24% reduction in distributor commissions as the company successfully shifted toward its proprietary G5 Store, which has become the group’s leading distribution channel by net revenue.

Financial performance remained stable despite top-line headwinds, with EBIT reaching USD 0.9 million, representing a 4% margin. While operating costs excluding user acquisition were reduced by 13%, the company increased its investment in user acquisition to USD 4.2 million, or 19% of revenue, to combat competitive market pressures. Earnings per share declined 31% year-over-year to USD 0.10. The company maintained a robust liquidity position with USD 26.6 million in cash and cash equivalents and generated USD 4.2 million in cash flow before financing activities.

Operational metrics reflected a decline in user volume, with Monthly Active Users (MAU) falling 13% to 3.6 million and Daily Active Users (DAU) dropping 17% to 1.1 million. However, monetization quality improved significantly, as Average Monthly Gross Revenue per Paying User (MAGRPPU) rose 16% to USD 76.0. The company is currently restructuring its development pipeline, moving toward smaller, agile teams to test innovative concepts more frequently. To ensure long-term financial health, the company initiated a staff reduction of approximately 180 employees, expected to lower annual run-rate costs by USD 6.2 million. Moving forward, the company remains focused on scaling two new titles currently in development while continuing to optimize its existing portfolio.