GDEV Reports Improved Operating Cash Flow Amid Cost Discipline
In Q2 FY2026, GDEV Inc. (NASDAQ:GDEV) reported a revenue decline of 22% year-over-year to $94 million due to weaker in-app purchases and advertising bookings. However, the company improved its net profit by reporting $20 million compared to $17 million in Q2 FY25, driven largely by reduced SG&A expenses and platform commission costs. Marketing efficiency was a key factor behind GDEV's performance improvement; selling and marketing costs dropped 38% year-over-year. The company shifted its focus toward targeted high-value user acquisition instead of broad campaigns for short-term gains. Additionally, operating cash flow turned positive at $10 million compared to negative $10 million in the prior year. Despite these improvements, GDEV faced challenges with weaker player engagement and a 23% decline in monthly paying users YoY. This led to lower bookings of $73 million for Q2 FY26 versus $92 million last year. The PC platform's contribution also declined slightly from 39% to 36%. Institutional interest remains low, with only five hedge funds holding positions as per the latest filings.
Tickers: $GDEV
Topics: marketing efficiency operating cash flow revenue decline user engagement