Devolver Digital (DEVO) H2 2025 earnings summary

Executive summary

• Achieved strong revenue growth in 2025, with new release revenue tripling year-over-year and EBITDA up 39% compared to the prior year.

• 2025 results in line with consensus, marking the third consecutive year of improvement since 2022.

• 15 titles released in 2025, up from 10 in 2024, with a 94% average Steam user review score and over 20 awards won.

• Returned to positive cash flow in the second half of 2025, with expectations for full-year profitability in 2026 and beyond.

• Maintained a 15% CAGR on revenue since inception, with a focus on expanding internal development and publishing.

Financial highlights

• Revenue reached $107.9m in 2025, up 3% year-over-year; gross profit was $33.1m with a margin of 30.7%.

• Adjusted EBITDA was $7.1m, up 39% year-over-year; adjusted EBITDA margin improved to 6.6%.

• Second half 2025 revenue nearly $70 million, with improved gross margin due to a favorable mix of new releases.

• Net cash at year-end was $36.6m, up $1.9m in 2H 2025; free cash flow generative in H2 2025.

• Operating expenses on an adjusted basis fell 1.1% year-over-year; statutory operating expenses decreased 7.9%.

Outlook and guidance

• Expectation to remain free cash flow positive on an annualized basis in 2026, with timing dependent on major game releases.

• Double-digit revenue and EBITDA growth targeted for 2026, with gross margin goals above 40% and EBITDA margins in the mid-teens over the next 12–18 months.

• Five major first-party franchise releases expected across 2026 and 2027.

• Conservative forecasting approach maintained, aiming to surprise on the upside.

• Net cash forecasted to grow in 2026, with continued revenue and adjusted EBITDA growth expected.