G5 Entertainment AB (SE:G5EN)
:G5EN
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G5 Entertainment AB
(G5EN)
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Rating:61Neutral
Price Target:
kr52.00
▼(-44.92% Downside)
Action:ReiteratedDate:02/19/26
The score is driven by financial stability (strong balance sheet and resilient cash generation) but weighed down by material revenue and margin deterioration and very weak technical momentum. Valuation and a high dividend yield provide support, while the latest earnings call suggests a credible turnaround effort but with near-term profitability and execution risks.
Positive Factors
Very strong, low‑debt balance sheet
A minimal debt position and sizable equity give the company durable financial flexibility. This reduces refinancing risk, supports sustained investment in UA and product initiatives, enables dividends/buybacks, and provides a multi-quarter buffer to execute a turnaround without needing external financing.
Negative Factors
Sustained top‑line decline and margin compression
Multi‑year revenue erosion and sharply lower net margins indicate deteriorating core monetization and weakened operating leverage. Persistent top‑line weakness constrains reinvestment, limits margin recovery even with cost discipline, and raises risk to dividend and buyback sustainability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong, low‑debt balance sheet
A minimal debt position and sizable equity give the company durable financial flexibility. This reduces refinancing risk, supports sustained investment in UA and product initiatives, enables dividends/buybacks, and provides a multi-quarter buffer to execute a turnaround without needing external financing.
Read all positive factors
G5 Entertainment AB (G5EN) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr450.16M
Dividend Yield9.28%
Average Volume (3M)19.19K
Price to Earnings (P/E)23.6
Beta (1Y)0.73
Revenue Growth-14.68%
EPS Growth-29.97%
CountrySE
Employees845
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.29
Shares Outstanding8,383,650
10 Day Avg. Volume17,432
30 Day Avg. Volume19,188
Financial Highlights & Ratios
PEG Ratio-0.32
Price to Book (P/B)1.55
Price to Sales (P/S)0.75
P/FCF Ratio5.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.36
Revenue Forecast (FY)kr847.09M
G5 Entertainment AB Business Overview & Revenue Model
Company Description
G5 Entertainment AB (publ) develops and publishes free-to-play games for smartphones, tablets, and personal computers in Sweden. Its primary portfolio of games includes Hidden City, Jewels of Rome, Sherlock, Jewels of the Wild West, Mahjong Journe...
How the Company Makes Money
G5 Entertainment generates revenue primarily through in-app purchases within its free-to-play games, allowing players to buy virtual goods or enhancements that enhance their gaming experience. The company also earns income from advertisements plac...
G5 Entertainment AB Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: significant operational and top-line challenges (notably the 9% USD revenue decline, a 19% YOY drop in the Jewels portfolio, an operating loss and cash-flow volatility) were contrasted with meaningful positives (record gross margin of 71.6%, record monthly gross revenue per paying user, strong G5 Store traction and growth, rising direct payments/G5 Pay, a healthy cash position and a proposed dividend). Management is investing in user acquisition and new distribution initiatives (G5 Store third-party distribution and G5 Pay) to stabilize and grow revenue, but those investments pressure near-term profitability and results carry execution timing risk. Given the balance of pronounced near-term headwinds and clear strategic progress on margin expansion and new revenue channels, the overall tone is balanced.Positive Updates
Record Gross Margin and Higher ARPPU
Gross margin reached an all-time high of 71.6% (up from 69.1% a year ago). Monthly average gross revenue per paying user hit a record USD 71.7, up 1% sequentially and 9% year-over-year, reflecting higher-quality audience and G5 Store mix.
Negative Updates
Top-Line Decline and Currency Headwind
Revenue declined 9% year-over-year in USD and fell 21% when expressed in SEK to SEK 221 million for the period. Sequential revenue was down 2% in USD. The weakening USD vs SEK materially pressured translated results.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Gross Margin and Higher ARPPU
Gross margin reached an all-time high of 71.6% (up from 69.1% a year ago). Monthly average gross revenue per paying user hit a record USD 71.7, up 1% sequentially and 9% year-over-year, reflecting higher-quality audience and G5 Store mix.
Read all positive updates
Company Guidance
Guidance focused on stabilizing and turning around top-line growth by staying at the higher end of UA investment (increasing UA to 23% of revenue this quarter, up from 17% a year ago and +6 pp vs Q4 2024; management will remain in the 17–22% target bracket’s higher end), scaling the G5 Store and G5 Pay initiatives (G5 Store was 23.4% of gross revenue vs 16% last year, with G5 Store gross revenue +20% YoY and +3% sequentially; directly processed mobile payments rose to 6.4% of mobile net revenue from 3% in Q3), and improving underperforming titles (Jewels family was down 19% YoY in USD and -12% sequentially, with planned fixes by mid‑year or harvesting if not recovered). They reiterated financial discipline—aiming to fund initiatives from operations while remaining debt‑free (cash SEK 216m / USD 23.5m vs USD 25.0m a year ago), highlighted strong unit economics (monthly avg. gross revenue per paying user USD 71.7, +1% q/q, +9% YoY; gross margin a record 71.6% vs 69.1% last year) and cautioned that third‑party G5 Store distribution could be accretive but is likely to be low– to mid‑single‑digit contribution to revenue in 2026 (early launches showed up to +15% incremental mobile revenue for quality titles after one month).G5 Entertainment AB Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
88
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 941.58M | 1.13B | 1.32B | 1.40B | 1.32B |
| Gross Profit | 567.26M | 776.10M | 892.37M | 936.42M | 810.45M |
| EBITDA | 153.46M | 262.10M | 294.70M | 227.20M | 215.57M |
| Net Income | 30.02M | 118.97M | 127.57M | 66.95M | 198.21M |
Balance Sheet | |||||
| Total Assets | 543.98M | 666.71M | 610.15M | 657.88M | 625.79M |
| Cash, Cash Equivalents and Short-Term Investments | 224.78M | 275.54M | 182.33M | 185.49M | 162.16M |
| Total Debt | 1.28M | 1.80M | 1.87M | 2.86M | 12.29M |
| Total Liabilities | 86.95M | 112.39M | 118.75M | 158.15M | 133.38M |
| Stockholders Equity | 457.04M | 554.32M | 491.40M | 499.73M | 492.41M |
Cash Flow | |||||
| Free Cash Flow | 141.24M | 178.17M | 130.85M | 129.15M | 188.41M |
| Operating Cash Flow | 143.30M | 283.33M | 241.16M | 304.76M | 360.63M |
| Investing Cash Flow | -98.10M | -119.32M | -113.25M | -176.66M | -208.53M |
| Financing Cash Flow | -76.16M | -76.64M | -119.48M | -108.62M | -192.34M |
G5 Entertainment AB Technical Analysis
Neutral
94.40
Price Trends
63.24
Negative
76.24
Negative
87.14
Negative
Market Momentum
-1.79
Negative
48.42
Neutral
75.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:G5EN, the sentiment is Neutral. The current price of 94.4 is above the 20-day moving average (MA) of 53.01, above the 50-day MA of 63.24, and above the 200-day MA of 87.14, indicating a neutral trend. The MACD of -1.79 indicates Negative momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 75.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:G5EN.
G5 Entertainment AB Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | kr450.16M | 23.65 | 12.65% | 9.28% | -14.68% | -29.97% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | kr158.97M | 81.39 | -3.04% | 13.12% | -3.51% | -192.91% | |
44 Neutral | kr1.44B | -0.62 | ― | ― | 1.74% | -5214.06% | |
41 Neutral | kr124.50M | -3.85 | ― | ― | 32.83% | 13.34% | |
40 Underperform | kr171.11M | -0.67 | -76.88% | ― | 8.38% | -48.41% |
* Communication Services Sector Average
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G5 Entertainment AB Corporate Events
G5 Entertainment Hit by Revenue Drop and FX Headwinds, Cuts Dividend After 2025
Feb 17, 2026
G5 Entertainment reported weaker results for the fourth quarter and full year 2025, with revenue down 21% in the quarter and 17% for the year in SEK terms, reflecting lower user numbers but stronger monetization per payer. Gross margin improved to...
G5 Entertainment Sets Date for Year-End 2025 Earnings Presentation
Feb 10, 2026
G5 Entertainment AB will publish its fourth-quarter and full-year 2025 financial results on February 17, 2026, with the report released early in the morning and followed by a webcast presentation. Chief executive Vlad Suglobov and chief financial ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.