Don't Nod Entertainment (ALDNE) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached €7.0M, up 3.8x year-over-year, driven by the launch of Bloom & Rage and strong back catalogue sales, including PlayStation Plus integration.

• Net loss narrowed to €20.8M from €42.4M in H1 2024, mainly due to lower asset impairments.

• Major restructuring was completed, reducing headcount by 12% and operational costs by €5M annually, with initial cost savings realized.

• Strategic partnerships were secured, including a new development deal with Netflix for a major IP narrative game and a PlayStation Plus launch.

• Performance plan and operational transformation underway, with full benefits expected in H2 2025.

Financial highlights

• Total operating revenue for H1 2025 was €13.9M, down 5% year-over-year due to lower capitalized production.

• EBITDA economic was negative €2.0M, down €0.7M year-over-year, impacted by lower capitalized production and higher marketing costs; adjusted for non-recurring reorganization expenses, EBITDA was at break-even.

• Operating EBIT (including tax credits) improved to -€21.9M from -€34.5M year-over-year.

• Asset impairments totaled €13.1M for Bloom & Rage, compared to €31.6M in H1 2024 for other titles.

• Cash and equivalents at June 30, 2025, stood at €23.4M, down from €32.9M at year-end 2024.

Outlook and guidance

• Focus shifts to three production lines, with Aphelion (P10) and Project 14 prioritized for release by 2027.

• Cost reduction plans in Paris and Montreal expected to yield €6.1M in annual savings.

• 2026 strategy emphasizes operational agility, technology harmonization, and increased partnership funding.

• Full benefits of the performance plan expected in H2 2025.

• Advanced negotiations for co-production of P14 project ongoing.