everplay group (EVPL) H1 2026 earnings summary

Executive summary

• H1 2026 revenues declined 8% year-over-year to £66.9m, reflecting the phasing of major releases into H2 and a strategic exit from low-margin physical distribution.

• Back catalogue revenues remained robust, rising modestly to £64.3m, with over 150 titles contributing.

• H2 sales to date significantly ahead of expectations, driven by record-breaking launches of Hell Let Loose: Vietnam and Wardogs.

• Strategy centers on building first-party IP, nurturing third-party games, disciplined cost control, and both organic and inorganic growth.

• Cash balance stood at £57.1m at period end, with an interim dividend of 1.1p declared.

Financial highlights

• Group revenues decreased 8% to £66.9m in H1, or 5% underlying, due to phasing of major releases to H2.

• Adjusted EBITDA fell to £9.2m (13.7% margin), reflecting lower gross profit and operating deleverage.

• Gross profit dropped 29% to £23.9m; gross margin at 35.7%.

• Adjusted profit after tax was £5.3m; adjusted EPS 3.7p (down 65%).

• Operating cash conversion was strong at 128%, with net book value of capitalised development costs at £65.3m.

Outlook and guidance

• Full-year 2026 revenues and adjusted EBITDA expected to be materially ahead of current market expectations, with brokers raising guidance by 10%.

• Adjusted EBITDA margin anticipated to return to FY 2025 levels in H2.

• Capitalised development expenditure for FY 2026 projected at £35–40m, with similar levels expected for FY 2027.

• Confident in revenue growth for 2027, supported by a strong pipeline of new releases.