GDEV Inc (NASDAQ:GDEV) Q2 Earnings and Revenue Crush Analyst Estimates

GDEV Inc (NASDAQ:GDEV) has reported second-quarter financial results that significantly exceeded analyst expectations, with both revenue and earnings per share comfortably surpassing consensus estimates. The international gaming and entertainment company posted revenue of $120 million for Q2 2025, representing a 13% year-over-year increase and substantially beating the analyst estimate of $91.1 million. Non-GAAP earnings per share came in at $0.90, dramatically outperforming the estimated $0.26.

The market reaction has been notably positive, with shares gaining approximately 13.9% in pre-market trading following the earnings announcement. This strong performance continues a positive trend for the stock, which has gained over 22% in the past week, though it has remained relatively flat over the past month with just a 0.55% increase.

Key Financial Highlights from Q2 2025:

• Revenue growth was primarily driven by increased consumable in-app purchases, though this was partially offset by a decline in advertising bookings • Profit for the period reached $17 million, up from $15 million in Q2 2024 • Adjusted EBITDA showed strong improvement at $22 million, compared to $17 million in the same quarter last year • The company maintains a robust cash position of $93 million, providing flexibility for potential strategic investments

Operational Performance and Challenges:

While the financial metrics showed strength, the company did experience some operational headwinds. Bookings declined to $92 million in Q2 2025 from $108 million in the same period last year, representing a 14% decrease. This decline was primarily attributed to an 18% reduction in monthly paying users, which management attributed to decreased user acquisition spending throughout 2024 and the first half of 2025.

The advertising segment also faced challenges, with bookings from advertising decreasing by 18% year-over-year to $5 million. The company noted that this decline was driven by a global trend of decreasing CPM rates throughout 2024 and 2025.

Platform and Geographic Distribution:

The company's platform mix showed a shift toward mobile, which accounted for 63% of bookings in Q2 2025 compared to 58% in the same period last year. Geographically, the United States remained stable at 34% of bookings, while Europe saw a slight increase to 32% from 29%, and Asia experienced a decrease to 19% from 22%.

First Half 2025 Performance:

For the first six months of 2025, GDEV reported revenue of $217 million, a modest 2% increase from $213 million in the first half of 2024. The company recorded a profit of $31 million for the period, significantly higher than the $9 million reported in the first half of 2024. Adjusted EBITDA for the first half reached $38 million, more than double the $16 million from the same period last year.

Looking Ahead:

While the press release did not provide specific forward guidance, analyst estimates for Q3 2025 project revenue of approximately $102.3 million and earnings per share of $0.54. For the full year 2025, analysts expect revenue of $390.9 million.

The company's strong cash position and improved profitability metrics suggest potential for continued strategic investments in game development and user acquisition, though management indicated they are focusing on efficiency rather than scale in their marketing approach.

For more detailed earnings information and future estimates, readers can review the comprehensive data available through the GDEV earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The author has no position in GDEV stock. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.