GDEV Q2 and First Half 2025 Financial Results

Key insights

7 takeaways

01
GDEV reported a Q2 2025 revenue of $120 million, a 13% year-over-year increase, primarily driven by a change in revenue recognition accounting for consumable in-app purchases.
02
Despite revenue growth, total bookings declined by 14% in Q2 2025 to $92 million and by 20% in the first half of 2025 to $173 million, largely due to an 18–22% drop in monthly paying users (MPU).
03
Net profit for the first half of 2025 reached $31 million, up from $9 million in the same period of 2024, while Adjusted EBITDA for the same period rose to $38 million from $16 million.
04
Operating cash flow turned negative in 2025, recording a loss of $10 million in Q2 and $4 million for the first half of the year, compared to positive cash flows of $11 million and $12 million respectively in 2024.
05
Selling and marketing expenses for the first half of 2025 were reduced by 14% to $95 million as the company shifted its strategy from scaling user acquisition to prioritizing efficiency.
06
The share of advertising in total bookings fell to 5.9% in Q2 2025 from 6.2% in Q2 2024, a decline attributed to a global downward trend in CPM rates.
07
Average bookings per paying user (ABPPU) increased by 5% year-over-year in Q2 2025, reaching $93 compared to $88 in the same period of 2024.

Summary

GDEV Inc. reported its unaudited financial and operational results for the second quarter and first half of 2025, highlighting a period of revenue growth alongside a strategic shift toward operational efficiency. The company achieved $120 million in revenue for the second quarter, a 13% year-over-year increase, and $217 million for the first half of the year. This growth was primarily driven by refinements in revenue recognition processes regarding in-app purchases, which offset declines in current-period bookings and advertising revenue.

Profitability metrics showed significant improvement, with net profit reaching $17 million in the second quarter and $31 million for the first half of 2025. Adjusted EBITDA rose to $22 million for the quarter and $38 million for the half-year, reflecting a 30% increase in the second quarter compared to the same period in 2024. Despite these gains, cash flows from operating activities turned negative, totaling $10 million in outflows for the second quarter and $4 million for the first half, largely due to reduced bookings and increased marketing expenditures.

Operational data indicates a contraction in user engagement, with monthly paying users (MPU) declining by 18% in the second quarter and 22% in the first half of 2025. This downturn is attributed to a deliberate reduction in user acquisition spending throughout 2024 and early 2025 as the company prioritized efficiency over scale. While the geographic distribution of bookings remained relatively stable, with the United States and Europe serving as primary markets, the company observed a global trend of declining advertising CPM rates, which negatively impacted the share of advertising revenue. These results reflect the company’s ongoing efforts to optimize its franchise portfolio and IT infrastructure across its international gaming operations.