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Introduction & Market Context
Gaming content provider Hacksaw AB (HACK) presented its third quarter 2025 results on November 4, showcasing strong financial performance and continued expansion of its game portfolio. The company reported significant year-on-year growth across key metrics despite a slight dip in its stock price following the announcement.
Hacksaw shares closed at €76 on the day of the report, down 0.86% from the previous close, though the stock remains near its 52-week high of €87.50. The minor pullback comes despite impressive financial results, possibly reflecting broader market caution as the company trades at elevated multiples.
Quarterly Performance Highlights
Hacksaw reported substantial growth in Q3 2025, with revenue reaching €52 million, representing a 39% increase year-over-year and 15% growth quarter-over-quarter. The company attributed this performance to an expanding customer base, growing game portfolio, and increased player engagement.
As shown in the following financial highlights chart, both revenue and adjusted operating profit have maintained a strong upward trajectory over the past eight quarters:
Adjusted operating profit (EBIT) rose to €42 million, up 29% from the same period last year and 13% sequentially. The adjusted EBIT margin remained robust at 81%, though slightly below the 82% reported in Q2 2025. According to the company, this minor margin compression primarily relates to the success of third-party studios and increased commercial activities.
Net income reached €39 million, representing a 27% year-on-year increase, while operating cash flow surged to €37 million, up 133% compared to Q3 2024.
Game Portfolio Expansion
A key driver of Hacksaw’s growth has been its accelerating pace of game releases. During Q3 2025, the company launched 12 new in-house developed games and 15 titles from third-party studios on its OpenRGS platform. This brings Hacksaw’s total game portfolio to 268 titles, a 46% increase from the previous year.
The following chart illustrates the consistent growth in both in-house and third-party game releases over recent quarters:
Notable in-house game releases during the quarter included "Invictus," "Eye of Medusa," "Tiger Legends," and "Chaos Crew 3." The company now has six third-party studios active on its proprietary OpenRGS platform, including Ace Roll, Backseat Gaming, and Bullshark Games.
This diversification strategy appears to be paying off, as demonstrated by the broadening revenue base. The top 10 games now account for 45% of gross gaming revenue, down from 60% in Q3 2024, indicating less dependency on individual hit titles.
Operational Performance
Hacksaw reported a 50% year-on-year increase in the average number of daily rounds played during Q3 2025, highlighting growing player engagement across its expanding game portfolio. The company is now live in over 35 locally licensed markets, including Pennsylvania in the United States.
The following chart shows the steady growth in player activity, with the average daily number of rounds played increasing consistently over the past eight quarters:
The company closed 48 new deals during the quarter and continued to expand its workforce, ending Q3 with 228 full-time employees. This operational momentum supports Hacksaw’s ability to maintain its game development pace while expanding into new markets.
Cash Flow and Financial Position
Hacksaw demonstrated exceptional cash generation capabilities in Q3 2025, with free cash flow of €35 million representing a 139% year-on-year increase. The company maintained a strong free cash flow conversion rate of 89%.
The following chart details the company’s cash flow performance compared to the previous year:
Capital expenditure remained modest at €1.9 million (3.6% of revenue), consisting primarily of capitalized development expenses. This controlled spending approach, combined with strong revenue growth, has further strengthened Hacksaw’s balance sheet.
The company ended the quarter with €88 million in cash and cash equivalents, no outstanding financial debt, total assets of €134 million (up 43% year-on-year), and total equity of €112 million (up 36% year-on-year).
Forward-Looking Statements
During the presentation, Hacksaw emphasized its strategy focused on product innovation and increasing monetization to capitalize on market opportunities. While the company did not provide specific numerical guidance for upcoming quarters, CEO Christoffer Källberg characterized Q3 as "a quarter of growth" during the earnings call.
The company reiterated its long-term revenue growth target of over 30% and plans to maintain its game development pace with four new games per month. Hacksaw also remains committed to returning 75% of its net income to shareholders, signaling confidence in its ongoing financial health and strategic direction.
Key risks highlighted include potential market saturation in the competitive iGaming landscape, regulatory changes that could impact operations, currency fluctuations, and challenges in talent acquisition to support continued growth.
The Q3 2025 presentation reinforces Hacksaw’s position as a rapidly growing player in the gaming content space, with strong financial performance and an expanding product portfolio setting a promising trajectory for future growth despite the minor market reaction following the results announcement.
Full presentation:
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