GDEV net profit rises to $17M as lower marketing offsets user decline

GDEV (NASDAQ:GDEV) reported higher first-quarter revenue and a substantial increase in net profit, as reduced user-acquisition spending and higher spending per player offset a contraction in its total active paying user base.

The Limassol, Cyprus-based gaming holding company—owner of studios including Nexters, Cubic Games, and Dragon Studios—generated total revenue of $99 million for the three months ended March 31, 2026, marking a 2% increase compared to the same period last year.

Profit net of tax rose to $17 million, up from $12 million in the prior-year quarter, while non-GAAP adjusted EBITDA climbed to $18 million.

The company's improved profitability was primarily driven by structural efficiencies in its cost of revenue.

Selling and marketing expenses decreased 13% year-over-year to $37 million, reflecting a more disciplined approach to player acquisition.

Conversely, general and administrative overhead grew 23% to $10 million, fueled by elevated corporate legal and compliance fees.

Operating cash flow for the period landed at $4 million, down from the $6 million recorded in the first quarter of fiscal 2025.

Total bookings—a key operational metric reflecting the gross amount of digital goods sold—edged up 2% to $83 million.

The expansion was propelled by a shifting monetization profile across its core portfolio, led by the franchise Hero Wars.

Average bookings per paying user (ABPPU) surged 8% year-over-year, indicating higher monetization density among engaged players.

However, this gains-per-user metric occurred alongside a 5% decline in monthly paying users (MPU), signaling tighter overall user retention.

Geographically and structurally, GDEV continued its pivot toward handheld ecosystems.

Mobile platforms accounted for 64% of total quarterly bookings, escalating from 59% in the opening quarter of the prior year, while PC and web-based distributions continued to wind down their relative share of the portfolio.