GDEV (US:GDEV) Globenewswire·2026-03-05 21:02Core Viewpoint - GDEV Inc. reported a decline in revenue for both the fourth quarter and the full year of 2025, attributed to reduced consumer spending and a strategic shift towards more disciplined marketing efforts aimed at attracting higher-quality users rather than maximizing short-term volume [3][10]. Financial Performance - Fourth Quarter 2025 - Revenue for Q4 2025 was $90 million, down 8% from $98 million in Q4 2024 [2][3]. - Platform commissions decreased by 13% to $18 million, reflecting the overall revenue decline [4]. - Game operation costs increased by 13% to $15 million, primarily due to IT infrastructure investments [4]. - Selling and marketing expenses decreased by 25% to $35 million, indicating improved efficiency in user acquisition [5]. - General and administrative expenses rose to $9 million, a 14% increase from the previous year [6]. - The company recorded a profit of $14 million for the period, a significant increase from $2 million in Q4 2024 [7][8]. - Adjusted EBITDA for Q4 2025 was $15 million, up 66% from $9 million in Q4 2024 [7][8]. - Cash flows from operating activities were positive at $18 million, compared to $5 million in Q4 2024 [9]. Financial Performance - Twelve Months 2025 - Total revenue for the year ended December 31, 2025, was $404 million, a decrease of 4% from $421 million in 2024 [2][10]. - Platform commissions for the year decreased by 7% to $85 million [11]. - Game operation costs increased by $6 million to $57 million, driven by IT investments [11]. - Selling and marketing expenses decreased significantly by $50 million to $159 million, reflecting a more selective marketing strategy [12]. - General and administrative expenses increased to $35 million, up from $32 million in 2024 [13]. - The company achieved a profit of $69 million for the year, compared to $26 million in 2024 [14]. - Adjusted EBITDA for the year was $79 million, an increase of 87% from $42 million in 2024 [14]. - Cash flows from operating activities remained stable at $29 million, unchanged from the previous year [15]. Operational Performance - Bookings in Q4 2025 were $88 million, down 7% from $94 million in Q4 2024 [16]. - Monthly paying users (MPU) decreased by 10% in Q4 2025 compared to the same period in 2024 [17]. - The average booking per paying user (ABPPU) increased by 4% to $106 in Q4 2025 [16]. - The share of advertising revenue as a percentage of total bookings decreased to 5.1% in Q4 2025 from 5.8% in Q4 2024 [18]. - The share of bookings from mobile platforms increased to 58% in Q4 2025, while PC bookings decreased to 42% [19]. - Geographically, the share of bookings from the US and Asia declined, while Europe and Other regions saw an increase [20].