Digital Bros Q1 FY2025-2026 Results

Key insights

7 takeaways

01
Digital Bros reported Q1 FY2025-2026 revenue of Euro 45.5 million, more than doubling the Euro 21.5 million recorded in the same period last year.See it on page 2
02
Profitability shifted significantly with EBITDA reaching Euro 21.9 million (48.3% margin) and EBIT turning positive at Euro 13.2 million, compared to a negative Euro 1.4 million in the prior year.See it on page 3
03
The Premium Games segment generated 95% of total revenue, with 72% of that segment driven by co-owned intellectual properties and long-term publishing agreements.See it on page 3
04
Net profit reached Euro 4.7 million for the quarter, despite absorbing a Euro 4.9 million write-off related to an equity investment in Starbreeze AB.See it on page 3
05
Growth was primarily fueled by the launch of 'Wuchang: Fallen Feathers' and the continued performance of the 'Assetto Corsa' brand.See it on page 2
06
The Free to Play segment declined by 39.1% due to technical issues, though the company reports these have since been resolved.See it on page 3
07
Future strategy focuses on a lower-risk profile with fewer, more predictable launches, including upcoming titles 'Assetto Corsa Rally', 'Nivalis', and 'Assetto Corsa EVO'.See it on page 4

Summary

Digital Bros Group reported strong financial growth for the first quarter of fiscal year 2025-2026, ending September 30, 2025. The company achieved consolidated revenue of Euro 45.5 million, more than doubling the Euro 21.5 million reported in the same period of the previous year. This performance was primarily driven by the successful launch of the video game Wuchang: Fallen Feathers and continued growth within the Assetto Corsa brand.

Profitability metrics showed significant improvement, with EBITDA reaching Euro 21.9 million, representing 48.3% of revenue, compared to Euro 5.9 million in the prior year. The company recorded a positive EBIT of Euro 13.2 million, a sharp turnaround from the negative Euro 1.4 million EBIT reported in the first quarter of the previous fiscal year. Net profit for the period stood at Euro 4.7 million, despite a Euro 4.9 million write-off related to an equity investment in Starbreeze AB. The group’s net financial position also improved by Euro 21.5 million during the quarter.

The Premium Games segment remains the core driver of the business, accounting for 95% of total revenue. Within this segment, co-owned intellectual properties and long-term publishing agreements contributed 72% of revenue. Conversely, the Free to Play segment experienced a 39.1% decline due to temporary technical issues, which have since been resolved.

Looking ahead, the company has confirmed its full-year expectations for revenue growth and positive EBIT. The business strategy focuses on a more balanced risk profile with fewer, more predictable game launches. Upcoming releases include Assetto Corsa Rally and Nivalis, alongside ongoing development for the Assetto Corsa EVO title. The group continues to operate globally with a workforce of 287 employees across multiple international markets.