The Swedish publisher with Russian roots, G5 Entertainment, has joined the parade of financial reports and shared the results of the third quarter of 2026. We have highlighted the main points from the document.
Jewels of Rome
- From July to September 2026, G5's revenue continued to decline, falling by 20% compared to last year, amounting to $19.3 million.
- Along with the revenue decline, G5's gross profit also decreased, totaling $14.3 million, which is 16% less than in 2025. However, gross margin reached 74.1%—the highest level in the company's history.
- The drop in revenue was driven by declining performance of G5's key hits. The Jewels series was hit hardest, with its revenue plummeting by 39%. Sherlock's revenue fell by 23%, and Hidden City's by 11%.
- G5 also reminded that it recently conducted significant layoffs. According to the company, it had to spend more than planned on severance pay—around $800,000. However, in the end, G5 expects the layoffs to achieve an annual savings of $14 million.
- Apparently, layoffs at G5 are ongoing. The report states that by the end of the year, the number of employees is expected to stabilize at 450 people—in August, there were 550, and in April, before the layoffs began, there were 830.
- Despite the overall decline, some business segments of the company have grown. For example, the revenue of the G5 Store web shop increased by 15.7% year-over-year.
- The share of advertising revenue in G5's total revenue reached 3.8%, and the share of direct-to-consumer (D2C) revenue on mobile devices rose to 21%.
- The size of G5's game audience also faced issues. By the end of the quarter, Monthly Active Users (MAU) decreased by 14% to 3.2 million people, and Daily Active Users (DAU) dropped by 15% to 0.9 million people. The number of unique paying players fell by 24%—to 84.6 thousand people per month. At the same time, the average gross monthly revenue per paying user (MAGRPPU) grew by 6% to $75.2.