Frontier Developments (FDEV) H2 2026 earnings summary

Executive summary

• Record FY26 financial performance driven by a strategic focus on CMS games, with revenue up 16% to £104.8 million and adjusted operating profit up 62% to £21.4 million year-over-year.

• Leadership changes included Jo Cooke stepping up as CEO, a new CMO joining, and the founder transitioning to a non-executive director role, with no change in strategic direction.

• Strong roadmap of new CMS content and games, including major releases and a new Disney partnership.

• Focus remains on nurturing franchises, player engagement, and long-term value creation.

Financial highlights

• FY26 revenue reached £104.8 million, up 16% year-over-year, the second highest ever, driven by Jurassic World Evolution 3 and strong portfolio performance.

• Adjusted operating profit hit a record £21.4 million, up 62% year-over-year, with a margin just over 20%.

• Gross margin declined to 66.7% from 69.9% due to higher licensed IP mix.

• Cash at year-end was £44 million, rising to £51.4 million by August 2026, aided by a one-off tax credit.

• Share buybacks and EBT purchases totaled £20.5 million since June 2025.

Outlook and guidance

• Planet Zoo 2 launches next month, with expectations for gross margin to rise to around 68% in FY27.

• Warhammer 40,000: Chaos Gate - Deathwatch scheduled for FY27, and a new Planet franchise for FY28.

• Plans to maintain an average cadence of one new CMS game per year.

• Tax credits expected to normalize to £8–9 million in FY27.

• Ongoing investment in technology, talent, and player engagement to sustain growth.