The Swedish publisher and mobile game developer G5 Entertainment released its financial report for the second quarter of 2026. It was not a very positive period for the company, marked by a decline in revenue and mass layoffs. However, there were also some positive aspects.
Hidden City
- According to G5, its gross profit for April-June 2026 was $14.7 million, which is a 12% decrease compared to the previous year.
- Meanwhile, the gross margin reached a record high of 73.1%.
- G5's revenue fell by 16% to $20.1 million.
- Several flagship games of the company encountered a noticeable decline. Specifically, the revenue from the Jewels series dropped by 29.5%, Sherlock by 16.4%, and Hidden City by 10.5%. After careful consideration, G5 decided to halt active investments in Jewels and move the series into a "harvest mode."
- G5’s revenue from games developed by third-party studios doubled, but the exact amount is not specified.
- The G5 Store's online sales increased by 14.8% over the quarter compared to last year.
- The share of G5's revenue from direct-to-consumer (D2C) sales on mobile devices continued to grow. In January-March, it was 11%, and in April-June, it rose to 17.2%.
- The MAU (Monthly Active Users) of G5 games fell by 9% to 3.5 million people, and the DAU (Daily Active Users) decreased by 15% to 1 million people. There were 20% fewer unique paying players—90.7 thousand per month. However, the average gross monthly revenue per paying user (MAGRPPU) increased by 15% to $79.
- The staff of G5 significantly reduced from 830 people in April to 550 people in August. Notably, the company initially planned to let go of only 180 employees, but after analyzing its project portfolio, decided to dismiss an additional 100 specialists.