Frontier Developments (FDEV) H1 2026 earnings summary

Executive summary

• H1 revenue increased 26% year-over-year to £59.6m, driven by the strong launch of Jurassic World Evolution 3 and robust CMS portfolio performance.

• Adjusted Operating Profit rose 76% year-over-year to £9.7m, with upgraded guidance to around £100m in revenue and £11m in adjusted profit for the full year.

• Cash balance reached £40.1m at period end, up 47% year-over-year, after a £10m share buyback.

• Player engagement metrics were robust, with a 34% year-on-year increase in active players and a 25% rise in hours played across all titles.

• Profit after tax doubled to £8.0m, and basic EPS rose to 21.4p from 11.4p.

Financial highlights

• Gross profit for H1 FY26 was £38.0m, with a gross margin of 64%, down from 70% in H1 FY25 due to higher royalty-bearing IP sales.

• IFRS Operating Profit was £7.8m, up from £4.5m in H1 FY25; net profit reached £8.0m.

• EBITDA for H1 FY26 was £21.5m, up from £17.4m in H1 FY25.

• Total assets increased to £136.6m as of November 2025, with net assets at £94.2m.

• Cash profit for the Jurassic World Evolution franchise approached £140m across three games; Planet Zoo contributed over £90m in cash profit.

Outlook and guidance

• Full-year revenue guidance raised to around £100m, with expectations to slightly exceed this target and Adjusted Operating Profit around £11m.

• Gross margin for the full year anticipated at 65% or slightly higher.

• OpEx expected to remain stable, with no significant increase in R&D spend planned.

• Pipeline includes a Planet Zoo sequel for FY27 and an unannounced CMS title for FY28.

• Strong December sales post-period, including a record Christmas Day for Jurassic World Evolution 3.