Atari (ATA) H2 25/26 earnings summary

Executive summary

• Revenue grew 66% year-over-year to €56M, marking the third consecutive year of top-line growth and the highest revenue in over a decade.

• Achieved operational profitability for the first time in several years, with positive current operating income and net income.

• Major acquisitions included Thunderful Group, Implicit Conversions, and Hipster Whale, expanding the portfolio and development capabilities.

• Released 30 games across owned and licensed IPs, and reintroduced cartridge-based hardware with new console editions.

Financial highlights

• Consolidated revenue reached €56.0M, up from €33.6M, with Thunderful contributing €11.8M.

• Gross margin increased to €41.8M (75% of revenue), up from €24.7M (73.5%).

• Current operating income (excluding Thunderful) was €0.9M, compared to a loss of €0.8M prior year.

• Net income (excluding Thunderful) was €0.1M, a turnaround from a €12.6M loss.

• Cash flow from operations was positive at €11.0M.

Outlook and guidance

• Plans to continue retro-focused growth strategy, investing in new releases and leveraging newly acquired studios.

• Continued investment in IP and content, with activity expected to be stronger in the second half of the fiscal year.

• Will consider further acquisitions and minority investments to complement the IP portfolio.