Stock Markets April 28, 2026 02:34 AM

Hacksaw Gaming Tops Q1 Estimates on Robust Margins and Content Momentum

Revenue and adjusted EBIT beat consensus as game activity and catalogue expansion support profitability

By Hana Yamamoto HACK
Hacksaw Gaming Tops Q1 Estimates on Robust Margins and Content Momentum
HACK

Hacksaw Gaming reported first-quarter results that outpaced analyst forecasts, delivering €57.6 million in revenue and €47.4 million in adjusted EBIT. The online gambling operator recorded double-digit year-over-year growth in top-line and game activity, sustained an adjusted EBIT margin above 80%, and finished the quarter with a strong net cash position.

Key Points

  • Hacksaw reported Q1 revenues of €57.6 million, 28% year-over-year growth and 37% in constant currency, beating the €55.1 million consensus.
  • Adjusted EBIT of €47.4 million rose 27% year-over-year and 6% quarter-over-quarter, with an adjusted EBIT margin of 82.4% versus a 79.5% consensus estimate.
  • Content and platform expansion continued: 27 new games released (12 internal, 15 third-party); OpenRGS now hosts nine third-party studios and the total catalogue is 320 titles. These developments impact the online gaming and digital entertainment sectors.

Overview

Hacksaw Gaming posted first-quarter results that exceeded market expectations, with revenues of €57.6 million and adjusted EBIT of €47.4 million. The company's top-line expanded 28% year-over-year and 37% on a constant-currency basis, coming in 5% ahead of the consensus revenue estimate of €55.1 million.

Quarterly and annual performance

Revenue rose 5% from the prior quarter, a notable sequential gain following a period that included a particularly strong comparison to first-quarter 2025 which registered 70% growth. Adjusted EBIT increased 27% compared with the same period a year earlier and climbed 6% quarter-to-quarter, surpassing the consensus adjusted EBIT forecast of €43.8 million by 8%.

Margins and operating metrics

The company sustained an adjusted EBIT margin of 82.4%, higher than the consensus margin estimate of 79.5%. Average daily game rounds were up 27% year-over-year, indicating higher player engagement across Hacksaw's titles.

Content and platform expansion

During the quarter Hacksaw released 27 new games: 12 developed internally and 15 supplied by third-party studios. The firm's OpenRGS platform added one new third-party studio during the period and now hosts nine such studios in total. Hacksaw's aggregate game catalogue reached 320 titles at quarter-end.

Balance sheet and valuation

The company held €176 million in net cash at the end of the quarter. On a valuation basis, Hacksaw trades at 7.7 times EV/EBITDA for fiscal year 2026.

Targets and analyst expectations

Hacksaw has not issued formal guidance for fiscal 2026. The company continues to target long-term objectives that include annual revenue growth above 30% and adjusted EBIT margins in excess of 80%. Management also aims to return at least 75% of net profit to shareholders through dividends or share buybacks.

Analyst consensus for fiscal 2026 projects roughly 30% revenue growth and 27% adjusted EBIT growth, implying an adjusted EBIT margin of about 79.8%.


Implications

The quarter's results underline continued demand for Hacksaw's content and the company's ability to convert that engagement into high-margin earnings. Key performance indicators including game rounds and catalogue expansion support the company's margin profile while the strong net cash position provides balance-sheet flexibility.

Risks

  • No formal fiscal 2026 guidance was provided, which creates uncertainty for investors and market participants relying on explicit forward-looking targets - this affects equity investors and analysts.
  • Strong prior-period comparisons, such as the 70% growth in first-quarter 2025, can make sustaining high growth rates more challenging and may influence quarter-to-quarter performance assessments in the gaming sector.
  • Analyst consensus for fiscal 2026 implies aggressive growth assumptions (30% revenue growth and 27% adjusted EBIT growth); deviations from these estimates could affect valuation multiples and investor sentiment in the online gambling and broader gaming markets.

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