Frontier Developments (FDEV) H2 2025 earnings summary

Executive summary

• Strategic focus on CMS (creative management simulation) games and core franchises led to significant financial momentum, with revenue up £1.3 million to £90.6 million and adjusted operating profit up £8.6 million to £13.2 million year-over-year.

• Cash increased by £13 million to £42.5 million, and a share buyback program was initiated, with over half of the £10 million target completed to enhance shareholder value.

• Core franchises (Planet Zoo, Jurassic World Evolution, Elite Dangerous, Planet Coaster) delivered strong results, with Planet Coaster 2 sentiment improving ahead of a monetisation reboot.

Financial highlights

• Revenue reached £90.6 million, up from £89.3 million year-over-year, with gross profit rising to £63.3 million and a 70% gross margin.

• Adjusted operating profit rose to £13.2 million, a significant year-over-year increase from £4.6 million.

• Trading profit before publishing rights sale was £9.3 million, a swing from a prior loss.

• Net profit reached £16.4 million, a turnaround from a £21.5 million loss in the prior year.

• Cash at year-end was £42.5 million, up from £29.5 million.

Outlook and guidance

• Confident in delivering further growth in FY26, targeting revenue above £90.6 million, with potential to break £100 million depending on Jurassic World Evolution 3 performance.

• Roadmap includes Jurassic World Evolution 3 in FY26 and two unannounced CMS games in FY27 and FY28, with a commitment to launch one major CMS game per year.

• Guidance for gross margin in FY26 is mid-60s (65-66%), expected to decrease due to product mix.

• Platform subscription deals not included in guidance, representing potential upside.