GDEV Inc. Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how GDEV Inc. performed this year. Instead of reading dense legal filings, we’ll look at the important facts so you can decide if this company fits your goals.

1. What does this company do?

GDEV Inc. is a mobile and social gaming company. They act as a digital studio that makes money through in-game purchases, where players buy virtual items or currency to level up or customize their experience.

Their flagship game, Hero Wars, drives the entire company. It accounted for most of their $365 million in 2025 revenue. They operate globally with studios in Cyprus, Armenia, Kazakhstan, Lithuania, and Portugal. Their team focuses on keeping games updated and finding new players.

2. How they measure success

Management tracks a few "health" metrics to see if the business is growing:

• Active Players: By the end of 2025, they had about 6.5 million daily players and 14.2 million monthly players.
• Paying Players: About 3.2% of their total players spend money on the game.
• Spending Habits: In 2025, the average paying player spent $48.50 per month. This shows the company is focusing on high-spending players.

3. Business Performance: The Hard Truth

The latest numbers show the company is facing significant challenges.

• Revenue is shrinking: Total sales fell 4% in 2024 to $452 million and dropped another 13% in 2025 to $393 million.
• Fewer paying players: The number of people paying to play Hero Wars dropped 8% in 2024 and 18% in 2025. They now have about 450,000 monthly payers. The company is currently spending 22% less on marketing to focus on a smaller, more "efficient" group of big spenders.
• Heavy reliance on one game: Hero Wars brings in 93% of their total revenue. No other game contributes more than 3%.

4. Key Risks

If you are considering investing, keep these risks in mind:

• The "Whale" Problem: A tiny group of players provides most of the company's money. In 2025, just 10% of paying players generated 88% of all sales. If these "big spenders" leave, revenue will crash.
• Platform Dependency: GDEV relies entirely on Apple, Google, and Facebook. These companies take 15% to 30% of all in-game sales. If these tech giants change their fees or privacy rules, GDEV has no backup plan.
• Economic Sensitivity: In-game purchases are optional. When inflation is high, people have less money to spend, and the company sees lower sales.
• Corporate Complexity: They use complex financial liabilities tied to their future stock price. These fluctuate based on market changes rather than how well the company performs, which makes it hard to determine the company's true value.

Bottom Line: GDEV is trying to squeeze more value out of a smaller player base rather than growing. With 93% of their income tied to one game, it is a high-stakes bet. Before investing, consider whether you are comfortable with a shrinking user base and a business model that relies heavily on a very small group of high-spending players.