GDEV Inc. (NASDAQ:GDEV) saw a year-on-year drop in bookings from both its in-app purchases and advertising, during the second quarter fiscal 2026. Consequently, the quarterly revenue figure of $94 million was down 22% compared to Q2 FY25. On the flip side, SG&A expenses and costs related to platform commissions were lower relative to the corresponding period last year. Along with other factors, the lower cost base helped GDEV report $20 million in net profit, up from $17 million in the second quarter of 2025.
Copyright: artush / 123RF Stock Photo
Breaking down the expenses, selling and marketing costs came down by 38% compared to the same quarter last year, clocking in at $33 million. It reflects on management's continued focus on deploying an efficient approach for its user acquisition initiatives. The approach is based on a more targeted performance marketing across certain channels that lead to durable high-value users, instead of broader campaigns for near-term benefits.
The reported quarter marked a turnaround related to the equity accounted ******* ociates. These contributed a $2 million profit share, which was a reversal from a $2 million loss share in Q2 FY25. Most notably, cash flows from operating activities turned from negative $10 million in Q2 FY25 to positive $10 million in the reported period.
Several operating metrics weakened during the reported quarter. Monthly paying users dropped by 23% year-over-year, along with a 15% decline for the entire first half. This was the major underlying reason for a sluggish performance in bookings, which stood at $73 million and $156 million for the second quarter and first half of the year, respectively. These fell short in comparison to $92 million and $173 million recorded in the corresponding periods last year. GDEV also said the decline in first-half platform commissions was driven by lower revenues recognized from PC platforms, while PC's share of bookings fell to 36% from 39%.
#million #lower
Copyright: artush / 123RF Stock Photo
Breaking down the expenses, selling and marketing costs came down by 38% compared to the same quarter last year, clocking in at $33 million. It reflects on management's continued focus on deploying an efficient approach for its user acquisition initiatives. The approach is based on a more targeted performance marketing across certain channels that lead to durable high-value users, instead of broader campaigns for near-term benefits.
The reported quarter marked a turnaround related to the equity accounted ******* ociates. These contributed a $2 million profit share, which was a reversal from a $2 million loss share in Q2 FY25. Most notably, cash flows from operating activities turned from negative $10 million in Q2 FY25 to positive $10 million in the reported period.
Several operating metrics weakened during the reported quarter. Monthly paying users dropped by 23% year-over-year, along with a 15% decline for the entire first half. This was the major underlying reason for a sluggish performance in bookings, which stood at $73 million and $156 million for the second quarter and first half of the year, respectively. These fell short in comparison to $92 million and $173 million recorded in the corresponding periods last year. GDEV also said the decline in first-half platform commissions was driven by lower revenues recognized from PC platforms, while PC's share of bookings fell to 36% from 39%.
#million #lower
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