GDev Form 20-F: Fiscal Year 2025

Key insights

7 takeaways

01
GDEV Inc. reported a net decrease in cash and cash equivalents to $62.9 million for the fiscal year ended December 31, 2025, down from $111.0 million at the end of 2024.
02
The mobile RPG genre, a core focus for the company, faced a multi-year downward trend with material declines in in-app purchase (IAP) revenue throughout 2025 across Asia, North America, and Europe.
03
The company faces increasing regulatory scrutiny regarding data privacy and consumer protection, specifically receiving inquiries in 2025 from authorities in the UK and Poland concerning cookies, loot boxes, and advertising practices.
04
New state-level privacy legislation, such as the Nebraska Age-Appropriate Online Design Code Act effective January 1, 2026, imposes strict requirements on data collection, targeted advertising, and in-game purchases for users under 18.
05
GDEV Inc. maintains a liquidity position sufficient to cover approximately 1.3 times its annual fixed expenses, excluding marketing and investment costs, even under severe downside scenarios.
06
The company's operations are subject to potential cybersecurity risks and reputational damage due to its historical and geographic associations with Russia, despite efforts to minimize exposure.
07
Strategic risks include the potential for new game releases to cannibalize the player base and revenue of existing titles rather than expanding the overall network size.

Summary

GDEV Inc., a British Virgin Islands-based gaming holding company listed on the Nasdaq, presents its 2025 annual report as an emerging growth company operating under International Financial Reporting Standards. The company’s primary objective is to maintain its position in the mobile and social gaming market by leveraging a data-driven, multi-platform strategy. Despite a challenging fiscal year, the company successfully transitioned its focus from aggressive user acquisition to a more disciplined, high-value model, resulting in an increased Average Bookings Per Paying User of $97.

Financial performance for 2025 reflects a strategic pivot, with total revenue reaching $404.3 million, a 4% decline from the previous year. This dip was largely driven by a deliberate reduction in marketing spend and broader industry headwinds affecting the mobile RPG sector. However, operational efficiency improved significantly, leading to a net profit of $69.3 million, up from $25.5 million in 2024. The company remains heavily reliant on its flagship title, Hero Wars, which accounted for 93% of total revenue. To mitigate this concentration risk, GDEV is actively diversifying its portfolio through the acquisition of studios like Light Hour Games and the development of new titles.

The company faces a complex risk landscape, including intensifying global regulatory scrutiny regarding data privacy, artificial intelligence, and in-game monetization mechanics like loot boxes. Operational vulnerabilities include a reliance on third-party cloud infrastructure and payment processors, as well as potential tax and legal uncertainties stemming from its international footprint and historical ties to Russia. While the company has remediated previous material weaknesses in its internal financial controls and maintains a debt-free status with sufficient liquidity, it remains exposed to market volatility, potential tax challenges, and the ongoing need to navigate fragmented international compliance frameworks.