Everplay FY 2026 Interim Results

Everplay’s fiscal year 2026 interim results reflect a strategic transition period characterized by lower first-half revenues and a deliberate weighting toward a robust second-half release schedule. Group revenues for the first half of 2026 reached £66.9 million, an 8% decrease compared to the previous year. This decline was primarily driven by a reduction in new release revenues, as major titles were phased for the second half of the year, alongside a 16% revenue decline at Team17 and a 20% decrease at Astragon. Conversely, the StoryToys division achieved strong momentum, reporting a 43% year-on-year revenue increase to £15.9 million, supported by 18 million total downloads and a 22% rise in active subscribers.

Financial performance metrics indicate a period of investment and operational adjustment. Adjusted EBITDA fell 53% to £9.2 million, with margins contracting to 13.7% as the company increased marketing investment and strengthened central functions ahead of upcoming launches. Gross profit decreased to £23.9 million, impacted by higher amortisation costs and a £1.9 million title impairment. Despite these pressures, the company maintained a solid cash position of £57.1 million and demonstrated strong operating cash conversion of 128%. Capitalised development expenditure rose 14% to £16.4 million, reflecting a strategic focus on long-term first-party intellectual property, which now accounts for approximately two-thirds of development spend.

Looking ahead, the company expects full-year 2026 revenues and adjusted EBITDA to be materially ahead of market expectations. Early performance from second-half releases, specifically Hell Let Loose: Vietnam and Wardogs, has been record-breaking, with both titles achieving significant engagement on Steam. Management remains focused on disciplined cost control and the expansion of its first-party portfolio to drive organic growth into fiscal year 2027.