Flexion Mobile (FLEXM) Q4 2024 earnings summary

Executive summary

• Achieved second-best quarterly revenue at GBP 21.9m in Q4 2024, with adjusted EBITDA of GBP 1.3m and gross profit of GBP 3.6m.

• Annual revenue grew 9% to GBP 76.5m, gross profit up 27% to GBP 14.8m, and adjusted EBITDA up 33% to GBP 5.0m for 2024.

• Signed and launched major titles including War Machines, War Robots, Gossip Harbor, and Candy Crush Solitaire; new agreement with Electronic Arts post-quarter.

• Strategic focus on larger, higher-revenue games and D2C service offering, with strong industry partnerships and regulatory tailwinds.

Financial highlights

• Q4 revenue down 7% year-over-year to GBP 21.9m, but up 23% sequentially from Q3.

• Q4 gross profit down 14% year-over-year to GBP 3.6m; adjusted EBITDA down 17% to GBP 1.3m.

• Q4 operating result at GBP -0.1m, impacted by GBP 3.2m in accounting adjustments and higher amortisation.

• Q4 EPS at 1.62 pence (vs. 4.72 pence prior year); operating cash flow GBP 1.8m.

• Year-end cash and equivalents at GBP 13.1m, with no debt.

Outlook and guidance

• Expecting Q1 2025 sales in the range of USD 21–24m, with most newly signed games launching by end of Q1.

• Anticipates continued margin pressure in 2025 due to launch of larger, lower-margin games, but confident in long-term growth from D2C and regulatory changes.

• Strong sales pipeline and new partnerships, including with Electronic Arts, to drive future growth.