Ten Square Games Q2 2025 Financial Results Presentation

Key insights

6 takeaways

01
Ten Square Games reported a 10% quarter-over-quarter decline in Q2 2025 bookings, driven by a strategic reduction in user acquisition spending and intensive A/B testing.See it on page 19
02
Despite the revenue contraction, the company achieved a 5% year-over-year increase in adjusted EBITDA for the first half of 2025.See it on page 19
03
The company maintains a strong liquidity position with PLN 83.4 million in cash, even after distributing a PLN 100 million dividend and a PLN 14.7 million earnout payment to Rortos shareholders.See it on page 20
04
The new title 'Trophy Hunter' has outperformed existing portfolio benchmarks, becoming a primary focus for scaling alongside 'Real Combat Simulator'.See it on page 11
05
Management is prioritizing a turnaround strategy that emphasizes product team transformation and the expansion of the direct-to-consumer TSG Store to diversify revenue.See it on page 24
06
The company is utilizing a disciplined marketing model that ties acquisition spending directly to the projected lifecycle profitability of specific user cohorts to ensure sustainable growth.See it on page 39

Summary

Ten Square Games experienced a 10% quarter-over-quarter decline in bookings during the second quarter of 2025, a result primarily attributed to a strategic reduction in user acquisition spending and rigorous A/B testing cycles. Despite this contraction, the company demonstrated financial resilience, achieving a 5% year-over-year increase in adjusted EBITDA for the first half of 2025. This stability is bolstered by the successful launch of Trophy Hunter, which has surpassed existing portfolio benchmarks, signaling potential for future growth as the company refines its product depth and user segmentation strategies.

The company maintains a robust liquidity position, holding PLN 83.4 million in cash at the close of the quarter. This financial standing remains secure even after accounting for significant capital outflows, including a PLN 100 million dividend distribution and a PLN 14.7 million earnout payment to Rortos shareholders. Current operational priorities center on a comprehensive turnaround strategy that emphasizes product team transformation and the scaling of emerging titles such as Trophy Hunter and Real Combat Simulator. Furthermore, the expansion of the direct-to-consumer TSG Store serves as a key pillar in the company’s efforts to diversify revenue streams and enhance long-term monetization.

Management continues to employ a disciplined, cumulative marketing model that ties acquisition expenditures directly to the projected lifecycle profitability of specific user cohorts. By prioritizing sustainable growth over aggressive short-term spending, the company aims to stabilize its portfolio performance. Looking ahead, the strategic focus remains on balancing in-house development with potential acquisitions to ensure long-term viability within the competitive mobile gaming landscape, while maintaining a cautious approach to market volatility and forward-looking projections.