GDEV reports rising profits despite 22% revenue decline

GDEV reported its Q2 2026 financial results, showing a divergence between declining revenue and increasing profitability. The gaming publisher's revenue fell 22% year-over-year to approximately $94 million, driven largely by a 21% decrease in bookings to $73 million and a 23% drop in monthly paying users.

Despite the top-line decline, net income rose to $20 million compared to $17 million in the same period last year. This growth in profit was supported by a 38% reduction in selling and marketing expenses, reflecting a more selective user acquisition strategy. Operating cash flow also saw a significant turnaround, moving from a negative $10 million in Q2 2025 to a positive $10 million in Q2 2026.

Additionally, GDEV reached an agreement to sell the mobile game ‘Island Hoppers’ for up to $5 million, which included the recognition of $2.1 million in deferred revenue.