“The first quarter of 2026 was a period of continued focus on operational efficiency and strategic evolution as we navigated an evolving market landscape. While we faced some headwinds in our top-line revenue, we achieved a significant milestone in our profitability journey, reaching a new record high gross margin of 72.7%,” said Vlad Suglobov, CEO of G5 Entertainment. “Our revenue continues to rest on three main pillars, our largest games: Sherlock, Hidden City, and the Jewels family of games. During the first quarter, we unfortunately saw a sequential decline for all three pillars even though the dynamic varied. Hidden City remained relatively resilient, down 5% both sequentially and year-over-year. Sherlock saw a sequential decline of 9% (-7% YoY). The Jewels family remains the primary challenge to our stabilization efforts, declining 11% sequentially and 23% year-over-year. We believe these dynamics were influenced by being partly priced out of the highly competitive user acquisition market during the high season of October through January. To counteract this “high season” effect in the future, we plan to increase our UA spend throughout the remainder of the year. The G5 Store continues to be our standout success story. It has now officially become our #1 distribution channel by net revenue, surpassing both iOS and Google Play. While our sales on 3rd party mobile stores declined, the G5 Store grew 1.3% sequentially and 18.9% year-over-year. It now accounts for 22.6% of total revenue of the group, up from 16.9% a year ago. The growth of G5 Store and D2C revenue from mobile games that reached 11.0% percent of mobile revenue, up from 5.4% percent in Q4, is the main driver for the new all-time high gross margin of 72.7%. Revenue from 3rd party titles is growing at a healthy pace, and with numerous games already signed and more in negotiation, we are on track to make this a fourth revenue pillar for the group. After 5-6 years of working with the restructured funnel we are reinventing our broader approach to development by utilizing smaller, agile teams to test innovative ideas more frequently and at a lower cost. This “more shots on goal” strategy is expected to reduce our annual development budget while increasing our chances of a breakthrough in today’s difficult market. We remain committed to continuing new game development and remain optimistic that we will again deliver a scalable game.”

January – March 2026

• Revenue for the period was USD 21.7 M (24.4), representing an 11% year-over-year decline.
• Gross margin increased to 72.7 percent (69.7 percent), primarily driven by a significant reduction in commissions paid to distributors, which fell 24% year-over-year, as a consequence of the continued shift toward direct-to-consumer channels.
• EBIT for the period was USD 0.9 M (1.0), resulting in an EBIT margin of 4.0% (4.1%). EBIT was positively impacted by USD 1.1 M (-1.4) by favorable FX revaluations recorded in other income and expenses. Adjusting for the impact from other income and expenses, the EBIT margin would be -1.2% (9.7).
• Earnings per share for the period, before dilution, was USD 0.10 (0.15), a 31% decline year-over-year.
• Cash flow increased to USD 4.2 M (3.1).
• Average Monthly Active Users (MAU) was 3.6 million, a decrease of 13 percent compared to the same period in 2025. Average Daily Active Users (DAU) was 1.1 million, a decrease of 17 percent compared to the same period in 2025. Average Monthly Unique Users (MUU) was 2.6 million a decrease of 12 percent. Average Monthly Unique Payers (MUP) was 98.8 thousand, a decrease of 19 percent while Average Monthly Average Gross Revenue Per Paying User (MAGRPPU) was USD 76.0, an increase of 16 percent compared to the same period last year.