G5 Entertainment AB (SE:G5EN)
:G5EN
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G5 Entertainment AB
(G5EN)
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Rating:68Neutral
Price Target:
kr59.00
▼(-37.50% Downside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by financial fundamentals: a very strong balance sheet and solid cash generation offset by weakening revenue and compressed profitability. Valuation is supportive due to a moderate P/E and very high dividend yield, while technical indicators remain soft (below key moving averages and negative MACD). Earnings commentary was mixed, reflecting clear near-term pressure but credible initiatives to stabilize growth and improve economics.
Positive Factors
Balance-sheet strength
Extremely low leverage and a meaningful cash buffer provide durable financial flexibility. This allows the company to fund user-acquisition tests, absorb revenue volatility, sustain capital returns (buybacks/dividends) and avoid refinancing risk through cycles, supporting long-term resilience.
Negative Factors
Top-line decline and FX headwind
Multi-period revenue contraction and adverse currency translation undermine scale benefits and limit operating leverage. A shrinking top line forces either higher marketing reinvestment to stabilize users or acceptance of slower growth, both of which can compress margins and cash returns over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Extremely low leverage and a meaningful cash buffer provide durable financial flexibility. This allows the company to fund user-acquisition tests, absorb revenue volatility, sustain capital returns (buybacks/dividends) and avoid refinancing risk through cycles, supporting long-term resilience.
Read all positive factors
G5 Entertainment AB (G5EN) vs. iShares MSCI Sweden ETF (EWD)
Market Cap
kr470.63M
Dividend Yield9.28%
Average Volume (3M)19.19K
Price to Earnings (P/E)14.3
Beta (1Y)0.69
Revenue Growth-19.83%
EPS Growth-72.63%
CountrySE
Employees845
SectorCommunication Services
Sector Strength97
IndustryElectronic - Gaming & Multimedia
Share Statistics
EPS (TTM)3.28
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)5.11
Revenue Forecast (FY)kr863.66M
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 primarily generates revenue from its free-to-play mobile games through in-app purchases (IAP), where players buy virtual currency, consumable items (e.g., boosters/energy), access to content, or time-saving features. A secondary r...
G5 Entertainment AB Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 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
52
Neutral
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 879.79M | 941.58M | 1.13B | 1.32B | 1.40B | 1.32B |
| Gross Profit | 581.82M | 567.26M | 776.10M | 892.37M | 936.42M | 810.45M |
| EBITDA | 67.58M | 153.46M | 262.10M | 294.70M | 227.20M | 215.57M |
| Net Income | 25.33M | 30.02M | 118.97M | 127.57M | 66.95M | 198.21M |
Balance Sheet | ||||||
| Total Assets | 586.96M | 543.98M | 666.71M | 610.15M | 657.88M | 625.79M |
| Cash, Cash Equivalents and Short-Term Investments | 257.33M | 224.78M | 275.54M | 182.33M | 185.49M | 162.16M |
| Total Debt | 1.02M | 1.28M | 1.80M | 1.87M | 2.86M | 12.29M |
| Total Liabilities | 115.40M | 86.95M | 112.39M | 118.75M | 158.15M | 133.38M |
| Stockholders Equity | 471.56M | 457.04M | 554.32M | 491.40M | 499.73M | 492.41M |
Cash Flow | ||||||
| Free Cash Flow | 119.66M | 141.24M | 178.17M | 130.85M | 129.15M | 188.41M |
| Operating Cash Flow | 144.28M | 143.30M | 283.33M | 241.16M | 304.76M | 360.63M |
| Investing Cash Flow | -93.74M | -98.10M | -119.32M | -113.25M | -176.66M | -208.53M |
| Financing Cash Flow | -80.24M | -76.16M | -76.64M | -119.48M | -108.62M | -192.34M |
G5 Entertainment AB Technical Analysis
Neutral
94.40
Price Trends
55.02
Positive
67.85
Negative
80.11
Negative
Market Momentum
-0.51
Negative
54.10
Neutral
91.54
Negative
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 56.74, above the 50-day MA of 55.02, and above the 200-day MA of 80.11, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 54.10 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | kr470.63M | 14.35 | 12.65% | 9.28% | -19.83% | -72.63% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | kr205.60M | 81.39 | -3.04% | 13.12% | 0.57% | -263.59% | |
60 Neutral | kr1.77B | 17.81 | ― | ― | -15.13% | -602.18% | |
48 Neutral | kr158.10M | -0.28 | ― | ― | -8.48% | -560.82% | |
46 Neutral | kr121.88M | -3.18 | ― | ― | 36.87% | 23.41% | |
45 Neutral | kr185.86M | -0.73 | -76.88% | ― | -8.66% | -91.13% |
* Communication Services Sector Average
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G5 Entertainment AB Corporate Events
G5 Entertainment Calls 2026 AGM with Flexible Voting Options
May 12, 2026
G5 Entertainment AB has called shareholders to its Annual General Meeting, scheduled for June 15, 2026, in Stockholm, with registration beginning earlier that morning. The board is allowing both physical attendance and postal voting, giving invest...
G5 Entertainment Sees Revenue Dip but Margin Gains as Direct Sales and High-Value Users Grow
May 6, 2026
G5 Entertainment reported first-quarter 2026 revenue of USD 21.7m, down 11% year-on-year, but improved its gross margin to 72.7% as commissions to distributors fell 24% thanks to a continued shift toward direct-to-consumer channels. EBIT slipped t...
G5 Entertainment Cuts 180 Jobs in Cost Drive as Revenues Decline
May 6, 2026
G5 Entertainment is cutting about 180 jobs, shrinking its workforce to roughly 635 employees in a bid to align its cost base with current business levels and protect margins amid declining revenue. The restructuring, to be completed in the second ...
G5 Entertainment Releases 2025 Annual Report Detailing Strategy and Financials
Apr 29, 2026
G5 Entertainment AB has published its 2025 Annual Report, outlining its strategic vision, business model, market environment, and operational setup, including the role of its proprietary G5 Store. The report also includes a comprehensive financial...
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...
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.