Ten Square Games

Ten Square Games is currently executing a strategic pivot toward a product-line development model, prioritizing the iterative scaling of titles such as Trophy Hunter and Medal Hunter through shared technological infrastructure and rigorous, KPI-driven validation. This approach aims to minimize upfront investment risks by ensuring that new projects only receive significant resource allocation once they meet established cohort maturity and profitability benchmarks. By focusing on these core pillars, the firm seeks to balance sustainable growth with disciplined marketing expenditures.

Financial performance for the first half of 2026 reflects this strategy, characterized by 11.5% year-over-year growth despite a marginal quarter-over-quarter decline in bookings during the second quarter. Profitability metrics have improved, bolstered by the expansion of a direct-to-consumer platform that now contributes 24% of total group bookings. While cash and cash equivalents decreased to PLN 73.1 million by the end of the second quarter, this reduction was primarily the result of a PLN 63.7 million dividend distribution and the final earn-out payment for the Rortos acquisition, rather than operational instability.

The company maintains a capital-light operational framework designed to navigate the complexities of the global mobile gaming market. By leveraging internal data to optimize monetization and user acquisition, the firm continues to stabilize its existing portfolio while maintaining a cautious, data-centric approach to future expansion. Although forward-looking projections remain subject to inherent market uncertainties and risks, the current trajectory emphasizes long-term operational efficiency and a commitment to shareholder returns through consistent dividend policies and strategic asset integration.

Ten Square Games reported a mixed Q3 2025 performance, with bookings up 4.4% quarter‑over‑quarter driven by strong growth in Wings of Heroes, Real Combat Simulator and the new Trophy Hunter launch. However, adjusted EBITDA fell 18.4% QoQ as marketing spend surged, particularly user acquisition costs that rose 57.6 %. Despite the EBITDA dip, net profit climbed 24.3% year‑over‑year and cash flow remained solid, leaving a year‑end cash pool of PLN 107.5 million and an adjusted EBITDA margin hovering around 32% for the first three quarters of 2025.

The company is pursuing a dual‑track strategy that balances core title revitalisation—Fishing Clash, Hunting Clash, and Wings of Heroes—with the launch of new projects such as Real Combat Simulator. Financials from 2024‑25 show a rebound in EBITDA, rising from €23 million to €94 million in Q1‑24, and a net profit margin increase to 28% by Q2‑25. This growth is attributed to robust core game performance and disciplined cost management, while dividend and buyback payouts total €485 million, including a planned €100 million dividend in 2025.

Looking ahead, Ten Square Games plans to expand market reach and strengthen its portfolio through targeted acquisitions and a blend of in‑house development and M&A. Projections for 2026 call for revenue growth to PLN 485 million, with a focus on virtual‑currency monetisation and IFRS 15 deferred‑revenue accounting. The strategy underscores a commitment to shareholder value through durable dividends, disciplined marketing spend, and continued portfolio diversification.

Ten Square Games S.A. demonstrated a strategic pivot toward operational efficiency and profitability during the first quarter of 2025. Despite a 9.2% year-over-year decline in total bookings to PLN 90.5 million and a slight dip in total revenues to PLN 96.7 million, the Group achieved a significant increase in net profit, rising to PLN 27.5 million from PLN 17.9 million in the prior year. This financial performance was primarily driven by a disciplined reduction in operating costs, specifically within marketing and third-party services, alongside the continued growth of the proprietary "TSG Store." By bypassing traditional platform commissions, the direct-to-consumer channel reached a record 19.1% share of total bookings, substantially bolstering adjusted EBITDA to PLN 30.5 million.

The Group’s portfolio performance showed a transition in product lifecycle management. While flagship titles Fishing Clash and Hunting Clash experienced declines in active users and bookings due to reduced user acquisition spending and geopolitical headwinds, the newer title Wings of Heroes saw its share of bookings climb to 8.1%. The Group maintains a robust balance sheet with PLN 431.4 million in total assets and a strong liquidity position, characterized by PLN 172.4 million in cash and equivalents and an absence of external debt. This financial stability supported the approval of a PLN 100 million dividend for the 2024 fiscal year.

Looking ahead, the Group is focusing on long-term player retention and the global launch of Trophy Hunter in mid-2025. Management has aligned internal incentives with these growth objectives through a new 2025–2029 program tied to a cumulative Adjusted EBITDA target of PLN 438 million. Accounting practices remain conservative, particularly regarding the capitalization of development costs post-soft launch and the maintenance of tax provisions related to IP Box relief audits. The geographic scope remains global, with revenue primarily derived from micro-payments and advertisements across its mobile gaming ecosystem.