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Introduction & Market Context
Jumpgate AB (GATE) released its interim report for the second quarter of 2025 on August 28, showing a significant decline in revenue alongside strategic initiatives to secure financing and position the company for future growth. The gaming company’s stock closed at 4.82 SEK before the report, up 0.93% on the day, and has traded between 1.35 SEK and 5.80 SEK over the past 52 weeks.
The company’s financial results reflect ongoing challenges in its core business, with substantial year-over-year declines across key metrics. However, management highlighted several positive developments, including new game releases, strategic partnerships, and successful financing efforts that could improve performance in the second half of the year.
Quarterly Performance Highlights
Jumpgate reported a 39% year-over-year decline in net turnover to 11.3 MSEK for Q2 2025, primarily attributed to the conclusion of a project at its Nukklear studio and the divestiture of Tableflip. Operating profit (EBIT) fell to -1.4 MSEK, representing a 3.0 MSEK deterioration compared to Q2 2024, though showing improvement from the -5.6 MSEK reported in Q1 2025.
As shown in the following financial metrics summary from the presentation:
The company’s profit after financial items deteriorated by 1.7 MSEK year-over-year to -3.7 MSEK. Despite operational challenges, Jumpgate maintained a positive cash flow of 0.6 MSEK, though this represented a 4.4 MSEK decline from the same period last year.
A detailed examination of the profit and loss statement reveals the impact of restructuring efforts and changes in the company’s operational footprint:
The quarterly trend analysis shows the company’s financial performance fluctuations over time, with the recent quarters showing declining revenue but some stabilization in EBIT:
The balance sheet reflects the ongoing financial challenges, with total equity capital declining from 78.7 MSEK in Q2 2024 to 58.8 MSEK in Q2 2025:
Strategic Initiatives
During the quarter, Jumpgate made significant progress on several strategic fronts. The company secured approval for the launch of "Grand Prix of Europe" in July 2025 and established a distribution agreement with THQ Nordic for the title. Additionally, Jumpgate released the 2D platform game "Klaus Lee - Thunderballs" through its Nukklear studio on June 26.
The company has also been actively pursuing public funding opportunities, receiving approvals for 13.3 MSEK in public grants for three new game projects and an additional 1.7 MSEK for prototype development at its Hamburg-based studios. A separate 1.16 MSEK in project financing was secured for a Nintendo Switch version of an unspecified game.
After the quarter’s end, Jumpgate announced several significant developments, including the release of "Ed & Edda: GRAND PRIX - Racing Champions," an extension of its agreement with Professional Bull Riders, and the announcement of "Star Trek: Voyager - Across the Unknown." The company also disclosed that it is developing a remaster of "Sacred 2" and secured a new work-for-hire agreement valued at 5 MSEK for its Funatics studio.
Forward-Looking Statements
Jumpgate’s management presented an optimistic outlook for the second half of 2025, emphasizing three key goals: maintaining tight cost control, signing additional game projects, and supporting successful game releases. The Board of Directors estimated potential future sales from upcoming game releases between 14 MSEK and 51 MSEK, though specific timeframes for these projections were not provided.
The company highlighted its successful financing efforts, securing 16.2 MSEK in loans and 3.3 MSEK through a rights issue with a 46.9% subscription rate. Management also noted positive initial reactions to the "Star Trek: Voyager - Across the Unknown" announcement and projected 8.4 MSEK in revenue from new deals and achieved sales milestones.
As summarized in the key takeaways slide:
While Jumpgate faces significant challenges with declining revenue and continued operating losses, its strategic initiatives and financing efforts provide some foundation for potential improvement. Investors will likely focus on whether the company can translate its new game releases and partnerships into sustainable revenue growth and a path to profitability in upcoming quarters.
Full presentation:
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