Thunderful Group (THUNDR) Q1 2025 earnings summary

Executive summary

• Strategic restructuring and cost-saving measures largely completed, resulting in a more focused and cost-efficient organization and shifting focus to stability and upcoming game launches.

• Net revenue grew 7% year-over-year to SEK 62.0 million in Q1 2025, with transactional sales remaining steady.

• Adjusted EBITDA improved to SEK -9.2 million from SEK -29.4 million, with non-recurring restructuring costs of SEK 1.0 million.

• EBIT improved to SEK -65.7 million from SEK -153.9 million, mainly due to fewer write-downs and significant impairment charges of SEK 29.4 million.

• Key objective is to achieve positive cash flow and long-term commercial sustainability.

Financial highlights

• Net revenue reached SEK 62.0 million in Q1 2025, up 7% year-over-year.

• Adjusted EBITDA improved to SEK -9.2 million from SEK -29.4 million year-over-year.

• EBIT improved to SEK -65.7 million from SEK -153.9 million, with impairment charges of SEK 29.4 million.

• Cash flow from operations was SEK -12.3 million, a significant improvement from SEK -157.0 million; available liquidity at quarter-end was SEK 83.1 million.

• Investments in game development and publishing licenses totaled SEK 27.9 million, down 35% year-over-year.

Outlook and guidance

• Focus on stabilizing the publishing segment and preparing for multiple game launches in 2025, including Vampire's Fall II, Lost in Random: The Eternal Die, and Islanders New Shores.

• Ongoing efforts to extend co-development contracts into 2026 and beyond.

• Expectation to catch up on delayed co-development project revenue after release.

• The financial plan's success is highly dependent on the commercial performance of upcoming game releases.