Nacon (NACON) H1 25/26 earnings summary

Executive summary

• Revenue for the first half of 2025/26 reached €78.1M, up 1.4% year-over-year, driven by strong new game releases and resilient back catalogue sales.

• EBITDA increased by 18.7% to €33.6M, with margin improving to 43.1% of revenue.

• Operating income rose 30.4% to €4.2M, while net income was €2.5M, impacted by higher amortization and a litigation provision.

• Accessory sales declined 31.7% due to US market headwinds, but new game releases boosted catalogue revenue by 51.2%.

Financial highlights

• Gross margin rose to 69.7% (+3.9 pts), reflecting improved product mix.

• Net financial result was -€2.5M, with average borrowing costs stable at 3%.

• Net debt (excluding IFRS 16 and earn-out): €116.2M; Cash: €16.5M.

• Operating cash flow was €29.9M, with capex stable at €40.1M.

Outlook and guidance

• Second half to feature major game launches in adventure, sports, and racing genres, plus new accessory introductions.

• Accessories segment expected to benefit from new product launches and strong Switch console sales, though US market uncertainty remains.

• Management remains confident in achieving strong growth for FY 2025/26, supported by a robust product pipeline.