Frontier Developments (FDEV) Trading update summary

Financial performance highlights

• Revenue rose 16% to £104.8m, with CMS games accounting for nearly 90% of total revenue in FY26.

• Achieved record adjusted operating profit of £19.0m, surpassing previous peak years.

• Cash generation matched profit at £19m, with closing cash at £44m after £17.5m invested in share buybacks and EBT share purchases.

• Gross margin declined due to higher royalties from licensed IP, but is expected to rebound with more own-IP releases in FY27.

• Benefited from new Video Games Expenditure Credit, boosting tax credits to £10.7m, with £8–9m expected in FY27.

Franchise and product performance

• Jurassic World Evolution 3 drove strong engagement, generating £46m and will see a major expansion in June 2026, with more content planned for FY27.

• Planet Zoo maintained strong performance with no new content, and Planet Zoo 2 launches October 2026 on multiple platforms.

• Planet Coaster 2 sentiment improved after updates and maintained momentum with a robust FY27 content roadmap.

• Elite Dangerous monetization changes are working, with renewed engagement and more updates planned.

• Warhammer 40,000: Chaos Gate - Deathwatch announced for FY27, expanding the franchise.

Strategic focus and future outlook

• Committed to one new CMS game per year, with a new owned-IP CMS franchise announced for FY28.

• Two major releases planned for FY27: Planet Zoo 2 and Warhammer 40,000: Chaos Gate - Deathwatch.

• Player-first strategy emphasizes nurturing games with content, driving engagement and retention.

• Dedicated nurture team established to optimize content release timing and type, aiming to double total releases in FY27.

• Board confident in delivering FY27 in line with expectations, supported by positive market reception.