Interim report
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JANUARY - JUNE 2026 Interim Report G5 Entertainment AB
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INTERIM REPORT JANUARY - JUNE 2026 April -June 2026 • Revenue for the period was USD 20.1 M (24.0), representing a 16% year-over-year decline compared to the same period in 2025. • Gross margin increased to 73.1% (70.0%) as a larger share of revenue was coming from G5’s direct-to-consumer channels. • EBIT for the period was USD -0.2 M (0.6). The quarter was negatively impacted by severance payments amounting to USD 0.8 M (0.0) and positively impacted by fx revaluations of USD 0.5 M (-1.0) reported as other income and expense. Adjusting for fx and severance payments the EBIT would be USD 0.1 M (1.6) corresponding to an EBIT margin of 0.4% (6.8%). • Net result for the period was USD 0.6 M (0.7), positively impacted by the finance net of USD 0.8 M (0.2). • Earnings per share before and after dilution amounted to USD 0.08 (0.09), an 18% decline year-over-year. • Cash flow before financing activities was USD 0.7 M (2.2). The company maintained a strong liquidity position with USD 24.4 M in cash and cash equivalents at the end of the quarter. • G5 Store gross revenue increased 14.8% year-over-year and 4.6% sequentially, reflecting continued progress in direct-to-consumer initiatives. • Average Monthly Active Users (MAU) declined 9% year-over-year to 3.5 million, while Average Daily Active Users (DAU) decreased 15% year-over-year to 1.0 million. Similarly, Average Monthly Unique Users (MUU) saw a 10% reduction, totaling 2.4 million. Average Monthly Unique Payers (MUP) declined 20% year-over-year to 90.7 thousand. However, this was significantly offset by a robust increase in monetization quality; Average Monthly Gross Revenue per Paying User (MAGRPPU) rose by 15% year-over-year to USD 79.0 (up from USD 68.9). This substantial growth in MAGRPPU highlights the increasing concentration of high-value users and the continued effectiveness of our monetization strategies. KUSD Apr-Jun 2026 Apr-Jun 2025 Change % Jan-Jun 2026 Jan-Jun 2025 Change % Jul 25- Jun 26 Jan-Dec 2025 Change % Revenue 20,098 23,967 -16% 41,812 48,340 -14% 89,306 95,834 -7 % Commission to distributors 1 -3,324 -4,803 -31% -7,04 4 -9,673 -27% -16,268 -18,897 -14% Royalty to external developers 2 -2,074 -2,381 -13% -4,272 -4,885 -13% -8,630 -9,243 -7 % Gross profit 14,700 16,783 -12% 30,496 33,782 -10% 64,408 67,694 -5% Gross margin 73.1% 70.0% 72.9% 69.9% 72.1% 70.6% Operating costs excluding costs for user acquisition -11,017 -11,818 -7 % -21,727 -24,141 -10% -44,700 -47,113 -5% EBIT excluding costs for user acquisition 3,683 4,965 -26% 8,769 9,641 -9% 19,708 20,581 -4% EBIT margin before costs for user acquisition 18% 21% 21% 20% 22% 21% Costs for User acquisition 3 -3,910 -4,373 -11% -8,121 -8,052 1% -18,377 -18,309 0% Costs for User acquisition as percentage of revenue -19% -18% -19% -17% -21% -19% EBIT -227 593 -138% 648 1,589 -59% 1,331 2,272 -41% EBIT-margin (%) -1.1% 2.5% 1.5% 3.3% 1.5% 2.4% Earnings per share before dilution 0.08 0.09 -18% 0.18 0.24 -24% 0.33 0.39 -15% Cash Flow before financing activities 656 2,199 4,874 5,310 3,864 4,300 Cash and cash equivalents 24,419 25,967 24,419 25,967 24,419 23,480 1 Variable costs paid to distributors. Main stores have the following fees: Apple App Store, Google Play, Amazon Appstore etc. have a fee of 30 percent, Microsoft Store has 12 percent, G5 Store has single digit percent. 2 Royalties to external developers are costs to third party developers when there is a contractual obligation to pay royalty. 3 User acquisition is a marketing cost for acquiring new users. The costs are fully variable and are spent on advertising campaigns that are targeted at acquiring loyal players. The campaigns can be stopped at a very short notice. FINANCIAL KEY RATIOS 2 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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Comment from the CEO: Right-sizing the organization amid record gross margin In the second quarter of 2026 we executed the decisions taken in the first quarter as we worked to bring the organization size in line with the realities of a challenging market, while at the same time continuing to make strategic progress on G5 Store, third-party game distribution, direct payment processing, and new games. Our gross margin increased to a new record level of 73.1% (70.0%), driven by continued growth of the G5 Store and a growing share of revenue we process directly. The percentage of revenue from our players on mobile devices that we process directly went from 11.0% in the first quarter to 17.2% in the second quarter. The redundancies we communicated with the Q1 report and the ones identified later were completed during and after the quarter, taking the workforce from approx. 830 at the beginning of the quarter to around 550 as of the beginning of August. These numbers include a second wave of optimizations we have identified as necessary after a further review of the portfolio and the projects being run across the company. Severance in the quarter totaled USD 0.8 M, related to both the initial and the second wave of redundancies, and we expect an additional USD 0.15 M of severance in the third quarter. As communicated with the first quarter, we expected a run-rate decrease of USD 6.2 M. With the additional redundancies already made in Q2 and early Q3, the total run-rate decrease on an annualized basis will be USD 11 M. We continued our efforts to bring the team to the right size given the decline in top-line revenue, in order to protect our margins. We experienced certain difficulties in portfolio performance during the quarter. After positive development in the last few quarters, in Q2 Hidden City declined 10.5% year-over-year and 8.0% sequentially; its performance suffered due to new functionality that had negative effects, but we have since taken measures and it is now gradually trending back. Sherlock declined 16.4% year-over-year and 7.6% sequentially; the game did not perform strongly in the period and revenue fell, though we are working on stabilizing it with some success. Jewels declined 29.5% year-over-year and 11.2% sequentially. While experiments we ran on the Jewels family of games produced certain improvements, they are not enough to restore the games’ scalability in this difficult market, and we cannot justify investing further in the attempt With the additional redundancies made in Q2 and early Q3 we expect a total run- rate decrease on an annualized basis of USD 11 M. 3 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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There is potential for better ad monetization and we will continue working on increasing its percentage in our revenues. We are excited about the dynamics of G5 Store and the progress we are making in third-party game distribution there. We believe we can achieve higher direct revenue processing and generate more ad revenue, which will continue to increase our Gross Margin, and we remain cautiously optimistic about our remaining new game. However, we recognize that it is likely that in the foreseeable future we will continue to face both top-line and bottom-line pressure. I would like to thank our team for its resilience and hard work through a difficult quarter, and our players and shareholders for their continued trust as we bring the organization in line with the realities of the market. August 12, 2026 Vlad Suglobov, CEO, co-founder to change them. We are therefore putting Jewels into what we call Harvest Mode, to maximize the profit from the long tail of sales, which we hope will be very long. One of the two new games we entered the quarter with, continued evolving in the Scalability phase. It shows strong short-term metrics but still requires work on long-term metrics as we gather more data on how players behave after longer periods of time spent in the game. We continue to be cautiously optimistic about this game given the strength of its short-term metrics, but we also recognize that it will require more iterations and more time in Soft Launch before it can be proven scalable in the current difficult market environment. The other new game we entered the quarter with was discontinued, after careful consideration of the market reality and the progress we had been making. There are other new games and initiatives being considered. Distribution of third-party games on G5 Store is going well. We launched 3 new games in the quarter and of the games in negotiations during the second quarter 5 have been signed. As of now, the negotiations are underway on 9 more games. Given the growing interest we have from developers, we foresee a continued stream of games to be signed and released on G5 Store. While third-party games revenue grew almost 100% sequentially in the quarter, G5 Store overall grew 15% year-over-year and 5% sequentially, negatively affected by the setback in revenue development of our main titles. We have made progress in adding more advertising monetization to our portfolio: ad revenue reached 2.3% of total revenue (1% last year, 1.4% last quarter). EBIT (MUSD)Revenue (MUSD) Distribution of third-party games on G5 Store is going well. Third-party games revenue grew almost 100% sequentially in the quarter, G5 Store overall grew 15% year-over-year and 5% sequentially. Development funnel 1. PRE-PRODUCTION 2. PRODUCTION OF SOFT LAUNCH VERSION 3. SOFT LAUNCH – ENGAGEMENT TEST 4. SOFT LAUNCH – MONETISATION TEST 5. SOFT LAUNCH - SCALABILITY TESTING 6. PREPARATION FOR GLOBAL LAUNCH 1 Iteration 13 Iterations Q1 Q2 Q3 Q4 2016 2018 2020 2022 2024 2026 180 160 140 120 100 80 60 40 20 0 Q1 Q2 Q3 Q4 2016 2018 2020 2022 2024 2026 30 25 20 15 10 5 0 -5 4 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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April - June Revenue and gross profit Revenue for the second quarter amounted to USD 20.1 million (24.0), a decline of 16%. Cost of revenue decreased to USD 5.4 million (7.2), resulting in a Gross Profit of USD 14.7 million (16.8). The Gross Margin remained strong at 73.1% (70.0%), primarily driven by a higher share of sales through direct-to-consumer channels like the G5 Store. Cost of revenue primarily consists of platform distribution commissions, with most distributors charging up to 30% of gross revenue. Exceptions include Microsoft Store, which applies a 12% commission, and G5 Store, where commission fees are in the single-digit percentage range, reflecting third-party payment processing costs. Cost of revenue also includes royalties payable to external developers, which decreased by 13% year-over-year, in line with lower revenue levels from licensed games. Operational Costs Research and Development expenses were USD 7.5 million (6.7). R&D was impacted by severance payments of USD 0.6 M (0.0). After the redundancies are completed the company expects quarterly savings of USD 2.2 M. Sales and Marketing expenses declined to USD 5.3 million (5.7), as the company maintained competitive user acquisition efforts. Excluding costs for user acquisition sales and marketing expenses amounted to USD 1.3 million (1.3), unchanged from previous year. S&M was impacted by severance of USD 0.1 M (0), the company expects a quarterly run-rate decline of USD 0.3 M from the redundancies. General and Administrative costs remained flat at USD 2.7 million (2.7). G&A was impacted by redundancies of USD 0.1 M, the company expects a quarterly run rate decline of USD 0.3 M from the redundancies. Other operating income and other operating expenses together amounted to USD 0.5 million (-1.0), primarily driven by currency effects on operational assets and liabilities. EBIT Earnings before interest and taxes (EBIT) amounted to USD -0.2 million, (0.6). Amortization increased to USD 2.5 million (2.4). Capitalization of intangible assets amounted to USD 2.5 million (2.3), capitalization increased temporarily in the first and second quarter due to reallocation of staff from non-capitalizable projects to capitalizable projects. Capitalization will decrease with the staff reductions. Capitalization and amortization combined resulted in a net positive impact of USD 0.1 million on EBIT, an improvement from the USD 0.0 million negative impact recorded in the same period last year. Net profit Finance net impacted the result with USD 0.8 million (0.2), primarily impacted by fair value revaluation of long-term investments. Taxes impacted the period with USD -0.05 million (-0.10). Net Result for the period amounted to USD 0.6 million (0.7). Earnings per share for the quarter, both before and after dilution, amounted to USD 0.08 (0.09). Own/licensed revenue (MUSD) share own games (%) Active, MUSD Licensed, MUSD Harvest, MUSD Own games, % Gross Margin (%) EBIT (MUSD) | EBIT-margin (%) EBIT margin, adjusted WD & fxEBIT, adjusted WD & fx Costs in % of revenue Administration Sales and marketing Research and development %MUSD 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 -0.5 -1.0 % 16 14 12 10 8 6 4 2 0 -2 -4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2026 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2026 80 70 60 50 40 30 20 10 0 75 70 65 60 55 50 45 40 20242023202220212020201920182017 2025 2026 MUSD 75 70 65 60 55 50 % 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2026 5 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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Operational metrics F2P Q2’26 Q2 ’25 Change Average DAU (mn) 1.0 1.2 -15% Average MAU (mn) 3.5 3.8 -9% Average MUU (mn) 2.4 2.7 -10% Average MUP (thousands) 90.7 113.8 -20% Average MAGRPPU (USD) 79.0 68.9 15% For detailed definitions of the operational metrics see the glossary on page 16 of the report. January – June Revenue and gross profit Revenue declined 14 percent compared to the same period in 2025. Revenue amounted to USD 41.8 M (48.3). The group’s cost of revenue was USD 11.3 M (14.6). Gross profit amounted to USD 30.5 M (33.8), a decrease of 10 percent compared to the same period in 2025. Gross margin was 72.9 percent (69.9). Operating Costs Operating costs, excluding fx movements, decreased 6 percent compared to the same period in 2025. User acquisition remained stable at USD 8.1 M (8.1). Excluding costs for user acquisition the operating costs amounted to USD 21.7 M (24.1). The operational costs were impacted by capitalization of USD 5.3 M (4.5) depreciation and amortization of USD 5.1 M (5.0) and write-downs of USD 0.0 M (0.0). Other operating income and expense impacted the period positively with USD 1.7 M (-2.4), primarily attributed to exchange rate differences on operational assets and liabilities related to balance sheet items in the parent company. EBIT EBIT was USD 0.6 M (1.6) and the EBIT-margin was 1.5 percent (3.3) for the period. Net profit Net profit was affected by financial items with USD 1.0 M (0.4), primarily related to fair value adjustments related to long-term investments. Tax affected the result with USD -0.3 M (-0.2) corresponding to an effective tax rate of 17 percent (9). Net profit amounted to USD 1.4 M (1.8) corresponding to earnings per share before dilution of USD 0.18 (0.24). Cash flow During the second quarter of 2026, the group generated cash flow before changes in working capital of USD 3.0 million (3.0). Taxes paid during the period amounted to USD 0.4 million (0.4). Changes in working capital only marginally impacted the cash flow and amounted to USD 0.0 million, compared to USD 1.7 million in the same period last year. As a result, total Cash flow from operating activities decreased to USD 3.0 million (4.7). Investing activities resulted in a net outflow of USD 2.3 million (2.5). This primarily reflects capitalized development expenses of USD 2.5 million (2.3), slightly offset by divestments of long-term investments. Financing activities were impacted by dividend and repurchases, financing activities amounted to USD -2.6 M (-6.7). Net cash flow for the period was USD -1.9 million (-4.5). For the interim period of 2026, the Group generated cash flow before changes in working capital of USD 6.0 million (7.0). Taxes paid during the period totaled USD 0.7 million (0.4). Changes in working capital contributed positively to cash flow by USD 3.3 million (3.0). As a result, cash flow from operating activities amounted to USD 9.4 million (10.1). Investing activities resulted in a net cash outflow of USD 4.6 million (4.8). This primarily reflected capitalized development expenses of USD 5.3 million (4.6), partly offset by proceeds from the divestment of long- term investments. Financing activities were primarily impacted by dividend payments USD 1.6 M (6.5) and share repurchases of USD 1.4 M (0.2), resulting in a net cash outflow of USD 3.0 million (6.7). Net cash flow for the period amounted to USD 1.8 million (-1.5). Available cash as of June 30, 2026, stood at USD 24.4 million (26.0 million as of June 30, 2025). Financial position The publishing strategy is to have a portfolio of different games in order to maximize the potential and reduce risk. Multiple games are developed at any given point in time, some of these games become very successful and extremely profitable, some of these games do not become big breakthroughs but pay for themselves and are stable earners over a long period of time, while the majority of games that go into production will be cancelled at an early stage as the market potential is not significant enough. As the majority of games that are produced are cancelled during the soft launch, the company does not capitalize development expenses on games until they reach global launch. Capitalized development expenses for unsuccessful games will be written down. Development for games only released in soft launch will be expensed as they are incurred. Over time, the company expects write-offs and expenses to be more than compensated for by the revenue and profits produced by successful games in the portfolio. Capitalized development expenses at the end of the period amounted to USD 19.2 million (18.7). The group maintains a rigorous evaluation process for these assets; impairment needs are assessed quarterly, with a comprehensive review of all input parameters performed annually. For the interim period of 2026, no write-offs were recorded (zero write-offs in the prior year period as well). Consolidated equity totaled USD 47.6 million (49.1), equivalent to USD 6.41 per share (6.39). The equity-to-asset ratio stood at 81% (80%). Cash on hand was USD 24.4 million (26.0). Other long- and short-term debt relates solely to IFRS 16 lease obligations. 6 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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Parent company The parent company revenue has performed in line with the group. The parent company is the counterpart for all application stores where G5 sells its products. The costs consist mainly of payments to one of the subsidiaries in Malta, which holds the rights to the games in the portfolio and is also where the senior management overseeing the games and studios is based. Over time, the transactions should generate a surplus for the parent company, but during shorter periods some imbalances may occur. As for the group, the financial position of the parent company is solid. Other disclosures Outlook G5 Entertainment does not publish forecasts. Risk assessment G5 Entertainment is, like all companies, exposed to various kinds of risks in its operations. Among the most notable are risks related to the dependency on certain strategic partners, delays in the release of new games, currency exchange risks, changes in technology, dependency on key employees, and tax as well as political risks due to the multinational nature of the group’s operations. Risk management is an integral part of G5 Entertainment’s management. Related-party transactions During the period no significant related-party transactions have taken place except the ongoing transactions highlighted in the annual report 2025. Revenue breakdown by geography Second Quarter 2026 Europe 29% North America 60% Asia 5% ROW 6% Cash Position (MUSD) Presentation currency Effective January 1, 2026, G5 Entertainment has changed its presentation currency for the consolidated financial statements from Swedish Krona (SEK) to US Dollars (USD). As the company’s operations and the majority of its revenue are denominated in USD, this transition reduces the impact of currency volatility on reported results and provides a more accurate reflection of the Group’s underlying financial performance and development. Prior year comparatives have been restated in USD at the historical exchange rates applicable to those periods to ensure meaningful year-over-year analysis. The parent company financial statements continue to be presented in SEK. Upcoming report dates Interim report Jan-Sep 2026 November 4, 2026 Teleconference On August 12th, 2026 at 08.00 CET, CEO Vlad Suglobov and CFO Stefan Wikstrand will present the interim report in a conference call. For dial-in details please visit: https://corporate.g5.com/investors/calendar Forward-looking statements This report may contain statements concerning, among other things, G5 Entertainment’s financial position and performance as well as statements on market conditions that may be forward-looking. G5 Entertainment believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions. However, forward- looking statements involve inherent risks and uncertainties and actual results or outcomes may differ materially from those expressed. Forward- looking statements relate only to the date they were made and, other than as required by applicable law, G5 Entertainment undertakes no obligation to update any of them in light of new information or future events. Inquiries Vlad Suglobov, CEO investor@g5.com Stefan Wikstrand, CFO +46 76 0011115 35 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2023 2024 2025 2026 7 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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The Board of Directors and the CEO declare that the interim report provides a true and fair overview of the Parent Company’s and the Group’s operations, financial position and results of operations as well as describing the material risks and uncertainties facing the Parent Company and other companies in the Group. Stockholm Aug 12th, 2026 Petter Nylander Chairman of the Board Jeffrey Rose Board member Louise Ringström Grandinson Board member Joel Fashingbauer Board member Vlad Suglobov CEO, Board member Assurance Note: G5 Entertainment AB (publ) is required to make the information in this interim report public in compliance with the Swedish Securities Market Act. The information was submitted for publication on August 12th, 2026 at 07.00. This interim report has not been subject to review by the company´ s auditors. This report is published in Swedish and English. In the event of any difference between the English version and the Swedish original, the Swedish version shall prevail. 8 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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KUSD Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 Net turnover 20,098 23,967 41,812 48,340 89,306 95,834 Cost of revenue -5,398 -7,1 84 -11,316 -14,558 -24,898 -28,140 Gross profit 14,700 16,783 30,496 33,782 64,408 67,694 Research and Development expenses -7, 460 -6,693 -15,210 -13,626 -29,785 -28,201 Sales and Marketing expenses -5,254 -5,722 -10,820 -10,689 -23,300 -23,169 General and administrative expenses -2,738 -2,749 -5,471 -5,481 -10,759 -10,768 Other operating income 525 0 1,653 0 1,653 0 Other operating expenses 0 -1,027 0 -2,398 -886 -3,283 Operating result -227 593 648 1,589 1,331 2,272 Financial income 847 237 1,000 446 1,336 781 Financial expenses -4 -12 -9 -22 -229 -241 Operating result after financial items 616 817 1,639 2,013 2,438 2,812 Taxes -47 -104 -276 -177 97 195 Net result for the period 569 713 1,363 1,835 2,536 3,008 Attributed to: Parent company's shareholders 569 713 1,363 1,835 2,536 3,008 Earnings per share Weighted average number of shares (thousands) 7,510 7,735 7,576 7,735 7,639 7,749 Weighted average number of shares after dilution, (thousands) 7,510 7,735 7,576 7,735 7,639 7,749 Earnings per share (USD) before dilution 0.08 0.09 0.18 0.24 0.33 0.39 Earnings per share (USD) after dilution 0.08 0.09 0.18 0.24 0.33 0.39 INCOME STATEMENT - GROUP STATEMENT OF COMPREHENSIVE INCOME - GROUP KUSD Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 Net result for the period 569 713 1,363 1,835 2,536 3,008 Other Comprehensive income Items that should not be reclassified to the income statement Fair value changes in value of equity instruments that are measured at fair value through other comprehensive income 522 -187 1,508 -235 848 -896 Items that later can be reversed in profit Foreign currency translation differences -560 -3,243 -2,178 1,527 814 4,519 Total other comprehensive income for the period -38 -3,430 -670 1,292 1,662 3,623 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 532 -2,717 694 3,127 4,198 6,631 Attributed to: Parent company’s shareholders 532 -2,717 694 3,127 4,198 6,631 9 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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BALANCE SHEET - GROUP KUSD Jun 30 2026 Jun 30 2025 Dec 31 2025 Fixed assets Intangible fixed assets Capitalized development expenses (Note 2) 19,210 18,707 18,853 Intangible assets 268 275 284 19,478 18,982 19,137 Tangible fixed assets Equipment 565 734 746 565 734 746 Long term Investments 1,457 4,316 2,822 Deferred tax receivable 15 15 15 Total non-current assets 21,516 24,048 22,719 Current assets Accounts receivable 1,213 1,922 1,728 Tax receivable 902 148 700 Other receivables (Note 3,4) 103 135 250 Prepaid expenses and accrued income 8,049 8,876 9,263 Short-term investments 2,734 0 926 Cash and cash equivalents 24,419 25,967 23,480 Total current assets 37,420 37,048 36,346 Total assets 58,935 61,095 59,066 KUSD Jun 30 2026 Jun 30 2025 Dec 31 2025 Equity Total shareholders' equity 47,617 49,077 49,625 Long-term liabilities Deferred tax liabilities 835 165 951 Long-term liabilities Total long-term liabilities 835 165 951 Current liabilities (Note 5) Short-term liabilities 71 162 139 Accounts payable 4,094 5,096 3,639 Other liabilities 860 706 532 Tax liabilities 173 611 0 Accrued expenses 5,286 5,278 4,179 Total current liabilities 10,483 11,853 8,490 Total equity and liabilities 58,935 61,095 59,066 10 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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CHANGES IN SHAREHOLDERS’ EQUITY - GROUP KUSD Share capital Other capital contribution Other reserves Profit/loss brought forward Share holders’ equity Shareholders’ equity 2025-01-01 84 -23,271 7,492 65,951 50,256 Net result for the year 3,008 3,008 Revaluation long-term investments -896 -896 Other comprehensive income 4,519 4,519 Total comprehensive income 0 0 3,623 3,008 6,631 Dividend -6,510 -6,510 Repurchase of shares -1,381 -1,381 IFRS2 - Employee share schemes 629 629 Total transactions with the owners recognized directly in equity 0 -1,381 629 -6,510 -7,262 Shareholders’ equity as of 2025-12-31 84 -24,652 11,744 62,449 49,625 Shareholders’ equity 2026-01-01 84 -24,652 11,744 62,449 49,625 Net result for the period 1,363 1,363 Revaluation long-term investments 1,508 1,508 Other comprehensive income -2,178 -2,178 Total comprehensive income 0 0 -670 1,363 694 Dividend -1,563 -1,563 Repurchase of shares -1,421 -1,421 IFRS2 - Employee share schemes 283 283 Total transactions with the owners recognized directly in equity 0 -1,421 283 -1,563 -2,701 Shareholders’ equity as of 2026-06-30 84 -26,073 11,357 62,249 47,617 11 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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KUSD Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 Cash flow from operating activities Profit after financial items 616 817 1,639 2,013 2,438 2,812 Adjusting items not included in cash flow 2,799 2,589 5,088 5,377 11,424 11,713 3,415 3,407 6,727 7,390 13,862 14,525 Taxes paid -419 -403 -669 -379 -608 -318 Cash flow before changes in working capital 2,996 3,003 6,058 7,011 13,254 14,208 Cash flow from changes in working capital Change in operating receivables 471 592 1,618 2,470 1,666 2,519 Change in operating liabilities -486 1,065 1,760 614 -1,263 -2,408 Cash flow from operating activities 2,981 4,660 9,435 10,096 13,657 14,319 Investing activities Investment in fixed assets 9 0 -30 -29 -216 -214 Capitalized development expenses -2,546 -2,329 -5,277 -4,523 -10,199 -9,444 Long term investments 212 -132 746 -235 621 -360 Cash flow from investing activities -2,325 -2,461 -4,561 -4,787 -9,793 -10,019 CASH FLOW STATEMENT - GROUP KUSD Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 Financing activities Lease financing -42 -18 -67 -34 -113 -80 Dividend -1,563 -6,510 -1,563 -6,510 -1,563 -6,510 Repurchase shares -982 -217 -1,421 -217 -2,585 -1,381 Cash flow from financing activities -2,587 -6,745 -3,051 -6,761 -4,261 -7,971 Cash flow -1,931 -4,545 1,822 -1,451 -397 -3,671 Cash at the beginning of the period 26,644 29,410 23,480 24,981 25,967 24,981 Cash flow -1,931 -4,545 1,822 -1,451 -397 -3,671 Exchange rate differences -295 1,103 -884 2,437 -1,152 2,170 Cash at the end of the period 24,419 25,967 24,419 25,967 24,419 23,480 12 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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Note 1 Accounting principles G5 Entertainment’s consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS). This report was prepared for the group in accordance with the IAS 34 Interim Financial Reporting and the Annual Accounts Act. The accounting and calculation principles used in the report for the group are identical to those used in the Annual Report 2025. The interim report is on pages 1–16, and pages 1–8 are thus an integrated part of this financial report. Note 2 Capitalized development expenses KUSD Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 At the beginning of the period 19,156 18,744 18,853 19,074 18,707 19,074 Investments 2,546 2,330 5,277 4,525 10,198 9,445 Write-offs 0 0 0 0 0 0 Amortization -2,492 -2,367 -4,920 -4,892 -9,695 -9,666 Net change during the period 54 -37 357 -367 503 -221 Currency exchange differences 0 0 0 0 0 0 At the end of the period 19,210 18,707 19,210 18,707 19,210 18,853 Note 3 Other receivables Other receivables mainly consist of input VAT and other tax receivables. Note 4 Pledged assets and contingent liabilities G5 Entertainment has no pledged assets. G5 Entertainment does not have any contingent liabilities. Note 5 Fair value G5 group has long and short term financial instruments that are accounted for at fair value. The carrying amount for financial instruments correspond to fair value. 13 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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KSEK Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 Net turnover 187,872 231,632 386,266 491,904 835,932 941,570 Cost of revenue -146,159 -182,032 -302,769 -397,121 -646,258 -740 ,61 0 Gross profit 41,714 49,600 83,497 94,783 189,674 200,960 Research and development expenses -567 -155 -954 -351 -1,797 -1,193 Sales and Marketing expenses -37,852 -44,015 -76 , 4 83 -84,751 -175,270 -183,538 General and administrative expenses -5,073 -5,858 -9,673 -13,515 -19,730 -23,572 Other operating income 5,405 0 14,158 0 14,158 0 Other operating expenses 0 -6,679 0 -13,452 -9,109 -22,561 Operating result 3,626 -7,108 10,545 -17,285 -2,073 -29,903 Financial income 10,803 157,565 20,818 161,993 168,320 309,495 Financial expenses 0 0 0 -46 -1,985 -2,031 Operating result after financial items 14,429 150,457 31,363 144,662 164,261 277,560 Taxes -988 0 -2,642 1,033 2,114 5,789 Net result for the period 13,440 150,457 28,720 145,694 166,376 283,349 KSEK Apr-Jun 2026 Apr-Jun 2025 Jan-Jun 2026 Jan-Jun 2025 Jul-Jun 25/26 2025 Net result for the period 13,440 150,457 28,720 145,694 166,376 283,349 Items that later can be reversed in profit Revaluation long-term investments 4,611 -577 13,025 1,197 7,691 -4,137 Other comprehensive income 4,611 -577 13,025 1,197 7,691 -4,137 Total comprehensive income for the period 18,051 149,880 41,746 146,891 174,067 279,212 INCOME STATEMENT – PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME – PARENT COMPANY 14 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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KSEK Jun 30 2026 Jun 30 2025 Dec 31 2025 Fixed assets Intangible fixed assets 2,613 2,613 2,613 Financial fixed assets Shares in group companies 118 118 118 Financial assets 14,182 41,050 25,988 Total fixed assets 16,913 43,781 28,719 Current assets Account receivables 11,765 18,283 15,919 Receivables from group companies 110,554 72,013 104,072 Tax receivables 6,990 4,094 7,508 Other receivables 204 468 1,411 Prepaid expenses and accrued income 66,242 75,803 73,053 Short term investment 26,619 0 8,530 Cash and cash equivalents 152,731 142,171 140,502 Total current assets 375,103 312,833 350,995 Total assets 392,016 356,613 379,714 BALANCE SHEET – PARENT COMPANY KSEK Jun 30 2026 Jun 30 2025 Dec 31 2025 Restricted equity Share capital 928 928 928 Non-restricted equity Share premium reserve 41,934 52,431 55,163 Profit/Loss carried forward 286,344 21,106 1,877 Net result for the period 28,720 145,694 283,349 Total equity 357,927 220,160 341,318 Current liabilities Accounts payable 26,614 29,982 31,779 Tax liability 0 0 0 Liability to group companies 0 98,120 0 Other liability 5,140 4,661 3,104 Accrued expenses 2,334 3,692 3,513 Total current liabilities 34,089 136,454 38,396 Total equity and liabilities 392,016 356,613 379,714 15 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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Financial statement Cost of revenue consists of direct expenses incurred in order to generate revenue from the company’s games. This primarily includes commission to distributors and royalties to external developers. Research and Development expenses primarily consist of salaries, bonuses and benefits for the company’s developers. In addition, research and development expenses include outside services, as well as allocated facilities and other overhead costs. Costs associated with maintaining the company’s computer software and associated infrastructure are expensed as incurred. Development costs that are directly attributable to the design and testing of the company’s identifiable and unique games are recognized as intangible assets, and amortized within research and development expense over a 24-month period. Sales and Marketing expenses primarily consist of user acquisition expenses and related software. Sales and marketing also includes salaries, bonuses, and benefits for the company’s sales and marketing staff, as well as consulting fees. In addition, sales and marketing expenses include general marketing, branding, advertising and public relations costs. General and Administrative expenses primarily consist of salaries, bonuses, and benefits for the company’s executive, finance, legal, information technology, human resources and other administrative employees, as well as support staff. It also includes outside consulting, legal and accounting services, insurance as well as facilities and other overhead costs not allocated to other areas across the business. In addition, general and administrative expenses include all of the company’s depreciation expenses. Glossary Use of key ratios not defined in IFRS The G5 Group’s accounts are prepared in accordance with IFRS. See page 13 for more information on accounting principles. Only a few key ratios are defined in IFRS. As of the second quarter 2017, G5 is applying the Alternative Performance Measures issued by ESMA (European Securities and Markets Authority). Briefly, an alternative key ratio is a financial measurement of historical or future earnings development, financial position or cash flow, not defined or specified in IFRS. To assist Group Management and other stakeholders in their analysis of the Group’s performance, G5 is reporting certain key ratios not defined by IFRS. Group Management believes that this information will facilitate an analysis of the Group’s performance. This data supplements the IFRS information and does not replace the key ratios defined in IFRS. G5’s definitions of measurements not defined in IFRS may differ from definitions used by other companies. All of G5’s definitions are included below. EBIT excluding costs for user acquisition consists of reported EBIT adjusted for costs for user acquisition. Operational terms Monthly Active Users (MAU) is the number of individuals who played a G5 game in a calendar month. An individual who plays two different games in the same month is counted as two MAUs. Numbers presented in the report are the average of the three months in any given quarter. Daily Active Users (DAU) is the number of individuals who played a G5 game in a day. An individual who plays two different games in the day is counted as two DAUs. Numbers presented in the report are the average of the three months in any given quarter. Monthly Unique Payers (MUP) is the number of individuals who made a payment in a G5 game at least once during a calendar month. An individual who pays in two G5 games is counted as one MUP. Numbers presented in the report are the average of the three months in any given quarter. Monthly Unique Users (MUU) is the number of individuals who played a G5 game at least once during a calendar month. An individual who plays two different games during the month is counted as one MUU. Numbers presented in the report are the average of the three months in any given quarter. Monthly Average Gross Revenue Per Paying User (MAGRPPU) is the average gross revenue received from a Monthly Unique Payer during a calendar month. MAGRPPU is calculated by dividing the gross revenue during the calendar month by the number of Monthly Unique Payers in the same calendar month. The numbers presented in the report are the average of the three months in any given quarter. Portfolio definitions Active Games are the games G5 owns and is actively supporting through its development and marketing capacity. Licensed Games are games that G5 license from 3rd party developers and thereby act as a publisher. Licensed games are not split into active and harvest games. Harvest Games are games that G5 owns but are not profitable to run as active games. The games are technically supported by a central team. About G5 Entertainment G5 Entertainment AB (publ) (G5) develops and publishes high quality free-to-play games for G5 Store, Apple App Store, Google Play, Microsoft Store, Amazon Appstore etc. The games are easy to learn and targeted at the widest audience of experienced and novice players. G5’s portfolio includes a number of popular games like Jewels of Rome®, Sherlock Hidden Match-3 cases, Hidden City, Mahjong Journey®, Homicide Squad®, The Secret Society® Wordplay: Search Word Puzzle™ and Jewels of the Wild West™. G5 Entertainment AB (publ) is listed on Nasdaq Stockholm since 2014. 16 G5 ENTERTAINMENT AB - JANUARY - JUNE 2026
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G5 Entertainment AB (publ) NYBROGATAN 6, 5TH FLOOR 114 34 STOCKHOLM | SWEDEN PHONE: +46 84 11111 5 E-MAIL: CONTACT@G5.COM Org.nr. 556680-8878 WWW.G5.COM