GDEV Inc. (formerly Nexters Inc.) is transitioning its strategy from aggressive, volume-driven user acquisition to a highly disciplined, margin-focused model. This shift is evident in its Q1 2026 results, where revenue grew 2% YoY to $99 million and net profit rose to $17 million, supported by a 13% reduction in selling and marketing expenses. While this selective marketing approach has successfully boosted profitability and average bookings per paying user (ABPPU rose 8% to $97), it has come at the cost of a shrinking active player base, with monthly paying users (MPU) declining by 5% to 269k. GDEV's low valuation multiples (trailing P/E of ~3.4x) and strong net cash position provide a solid floor, but sustainable long-term growth remains unproven. Investors should maintain a Hold stance until the company demonstrates that its core franchises (such as Hero Wars and Island Hoppers) can stabilize their user bases or successfully launch new high-LTV titles.