Hacksaw's Strategic Expansion and Financial Momentum: A High-Growth Play in the iGaming Sector

The iGaming industry is undergoing a seismic shift. As regulators adapt to the digital age and consumer demand for immersive, mobile-first entertainment surges, the sector is no longer a niche corner of the tech world but a mainstream battleground for innovation. Enter Hacksaw AB (HACK.ST), the Swedish B2B technology platform that has positioned itself at the intersection of gaming, technology, and regulatory agility. With a post-IPO valuation of $2.3 billion and a recent Q2 revenue surge of 52.9% year-over-year to €45.4 million, Hacksaw is not just surviving—it's thriving in a landscape where many peers are struggling to scale.

The IPO: A Masterclass in Liquidity and Credibility

Hacksaw's June 2025 IPO on Nasdaq Stockholm was a textbook case of strategic execution. By selling existing shares rather than issuing new ones, the company avoided dilution while unlocking liquidity for early stakeholders. The offering, priced at SEK 77 per share, raised $404 million—$26 million above its initial target—and attracted over 16,000 new shareholders. This democratization of ownership, particularly among retail investors in Scandinavia, has cemented Hacksaw's public profile.

The first-day trading performance—up 10.4% to SEK 85.01—was a testament to market confidence. Yet, as of July 29, 2025, the stock's year-to-date return of 0.71% lags behind the OMX Stockholm 30 index's 4.82%. This underperformance is not a red flag but a signal of patience. Hacksaw's business is built for long-term compounding, not short-term volatility.

Financials: Profitability Meets Scalability

Hacksaw's Q2 2025 results underscore its ability to balance rapid growth with disciplined cost management. Revenue growth of 52.9% to €45.4 million was driven by a 72% increase in daily game rounds and the launch of 11 new in-house titles. Operating profit rose 38.6% to €34.8 million, with an EBIT margin of 84% in 2024 (up from 83% in 2023). These metrics are rare in a sector where many companies trade at a loss for growth.

The company's margins have dipped slightly to 76.7% from 84.5%, due to higher licensing costs and personnel expenses. But this is a calculated trade-off. Hacksaw is investing in third-party studio software to enhance its RGS platform and expanding its workforce to support global operations. The net profit margin of 67.30% on a trailing twelve-month basis remains enviable, particularly for a company scaling into new markets.

Strategic Expansion: Building a Global RGS Ecosystem

Hacksaw's proprietary Real Game System (RGS) is its crown jewel. This modular, cloud-based platform allows for rapid game development and distribution, enabling Hacksaw to adapt to regulatory changes in real time. For example, its expansion into Italy and the UK—two of Europe's most lucrative iGaming markets—has been accelerated by RGS's flexibility. Partnerships with LiveScore Group and Daznbet have further extended its reach, introducing Hacksaw's slots and instant-win games to millions of new users.

The company's OpenRGS™ initiative, which licenses its technology to third-party studios, is a strategic masterstroke. By monetizing its platform as a service, Hacksaw is creating a flywheel effect: more studios using RGS means more games for operators, which in turn drives higher demand for Hacksaw's own titles. This dual-revenue model—direct sales to operators and platform-as-a-service—positions Hacksaw to dominate the B2B iGaming stack.

Risks and Rewards: Navigating the iGaming Maze

No investment is without risk. The iGaming sector is heavily regulated, with jurisdictions like the UK and Malta tightening licensing requirements. Hacksaw's reliance on third-party studios and its expansion into new markets could expose it to compliance challenges. Additionally, the company's stock has underperformed broader indices, suggesting skepticism about its ability to sustain growth.

Yet, these risks are manageable. Hacksaw's in-house legal and compliance teams are among the most experienced in the industry, and its technology-first approach allows it to adapt quickly to regulatory shifts. The recent IPO, while not a capital-raising event, has bolstered its credibility with regulators and investors alike.

The Long-Term Play: A Compelling Investment Case

For investors with a multi-year horizon, Hacksaw offers a rare combination of profitability, scalability, and technological differentiation. Its RGS platform is a moat in a sector where commoditization is a constant threat. The company's focus on high-margin slots and instant-win games—segments with lower volatility than live dealers—further strengthens its balance sheet.

The stock's valuation, while elevated at a forward P/E of 12x (based on 2025 estimates), is justified by its growth trajectory. Hacksaw is projected to exceed €200 million in annual revenue by 2026, with EBIT margins stabilizing in the mid-80s. For context, its peers in the iGaming sector trade at 15x-20x forward P/E, suggesting Hacksaw is undervalued relative to its growth potential.

Conclusion: Betting on the Next Phase

Hacksaw AB is not just a company—it's a blueprint for how to succeed in the iGaming sector. Its post-IPO momentum, coupled with a robust financial model and a visionary expansion strategy, makes it a compelling long-term play. While the stock's short-term performance may test patience, the fundamentals are undeniably strong. For investors willing to ride the wave of digital gaming's evolution, Hacksaw represents a high-conviction opportunity in a sector poised for explosive growth.