Financial

Quarterly Report: Three Months Ended 31 March 2026

Summary

The quarterly report for the first quarter of 2026 demonstrates that 11 Bit Studios achieved a 13.5 % increase in revenue, reaching PLN 19.8 million (EUR 4.67 m), largely driven by the commercial success of proprietary titles such as Frostpunk 2 and The Alters, and the publishing hit Death Howl. Despite this top‑line growth, operating profit swung to a loss of PLN 5.48 m (EUR 1.29 m) from a profit in the same period last year, primarily due to a sharp rise in depreciation and amortisation expenses (PLN 11.36 m versus PLN 4.58 m). EBITDA, however, improved to PLN 5.88 m (EUR 1.39 m), supported by a significant increase in finance income, largely from exchange‑rate gains and fair‑value movements on financial instruments. Cash generation remained robust; net cash from operating activities rose to PLN 15.43 m (EUR 3.64 m), while investing cash outflows increased to PLN 6.40 m, resulting in a net cash inflow of PLN 8.67 m (EUR 2.04 m). Liquidity, however, weakened slightly as cash and cash equivalents fell by 24 % to PLN 52.5 m, driven by higher short‑term bond holdings and lower bank balances. Trade receivables grew markedly to PLN 14.26 m, accompanied by a higher allowance for credit losses reflecting ageing receivables. The balance sheet shows modest increases in property, plant and equipment (to PLN 21.40 m) and intangible assets (to PLN 261.56 m), driven by new machinery investments and development work in progress. Deferred tax assets rose to PLN 7.93 m, while liabilities increased marginally to PLN 0.82 m. The company’s contract liabilities declined as advances for Frostpunk 2 add‑ons were settled, indicating progress in monetising its IPs. Geographically, the company’s revenue is heavily weighted toward the United States (≈ 77 % of total sales), exposing it to exchange‑rate risk as the Polish złoty strengthens against the U.S. dollar. Management highlighted upcoming DLC releases and continued investment in new IPs as key growth drivers, while noting the need to manage depreciation impacts on operating profitability.

From the report

NERAMEY 1bit StUdIos QUARTERLY REPORT FOR THE THREE MONTHS ENDED 31 MARCH 2026 11 BIT STUDIOS S.A. C @ ANNUAL REPORT OF 11 BIT STUDIOS S.A. FOR 2024

Polish and English versions, the Polish version shall prevail. FINANCIAL HIGHLIGHTS PLN EUR 1 Jan– 1 Jan– 1 Jan– 1 Jan– 31 Mar 2026 31 Mar 2025 31 Mar 2026 31 Mar 2025 Revenue 19,802,487 17,503,440 4,668,306 4,182,623 Depreciation and amortisation (11,361,988) (4,581,735) (2,678,514) (1,094,852) Operating profit (5,478,082) (2,369,179) (1,291,422) (566,139) EBITDA 5,883,906 2,212,556 1,387,092 528,712 Profit before tax (3,160,443) (6,007,273) (745,054) (1,435,498) Net profit/(loss) (2,783,072) (6,373,618) (656,091) (1,523,040) Net cash from operating activities 15,425,173 5,256,567 3,636,383 1,256,109 Net cash from investing activities (6,396,756) (3,467,485) (1,507,993) (828,590) Net cash from financing activities (359,680) (397,231) (84,792) (94,922) Total net cash flows 8,668,737 1,391,851 2,043,598 332,597 * EBITDA is defined as operating profit/(loss) before depreciation and amortisation PLN EUR 31 Mar 2026 31 Dec 2025 31 Mar 2026 31 Dec 2025 Total assets 262,866,790 268,804,564 61,282,881 63,596,793 Non-current assets 175,417,606 176,030,895 40,895,605 41,647,360 Current assets 87,449,184 92,773,669 20,387,276 21,949,433 Equity 233,638,615 236,421,687 54,468,834 55,935,289 Non-current liabilities 2,975,874 3,291,493 693,774 778,738 Current liabilities 26,252,301 29,091,384 6,120,273 6,882,766

Non-current assets 175,417,606 176,030,895 40,895,605 41,647,360 Current assets 87,449,184 92,773,669 20,387,276 21,949,433 Equity 233,638,615 236,421,687 54,468,834 55,935,289 Non-current liabilities 2,975,874 3,291,493 693,774 778,738 Current liabilities 26,252,301 29,091,384 6,120,273 6,882,766 The financial highlights presented in the tables below have been translated into the euro at the rates specified below. • Items of the statement of comprehensive income and statement of cash flows have been translated using the exchange rates calculated as the arithmetic means of the EUR/PLN mid rates quoted by the National Bank of Poland for the last day of each month in the reporting period. The exchange rates were as follows: 4.2419 EUR/PLN for the period from 1 January to 31 March 2026 and, from 1 January to 31 March 2025, 4.1848 EUR/PLN. • Items of assets, equity and liabilities in the statement of financial position have been translated using the EUR/PLN exchange rates quoted by the National Bank of Poland for the last day of the reporting period. Exchange rates were as follows: 4.2894 EUR/PLN as at 31 March 2026, 4.1839 EUR/PLN as at 31 March 2025 and 4.2267 EUR/PLN as at 31 December 2025. QUARTERLY REPORT OF 11 BIT STUDIOS FOR THE FIRST QUARTER OF 2026 (all amounts in PLN unless stated otherwise) 2

Polish and English versions, the Polish version shall prevail. CONTENTS FINANCIAL HIGHLIGHTS ..........................................................................BŁĄD! NIE ZDEFINIOWANO ZAKŁADKI. INTERIM CONDENSED FINANCIAL STATEMENTS..................BŁĄD! NIE ZDEFINIOWANO ZAKŁADKI. INTERIM STATEMENT OF COMPREHENSIVE INCOME .......BŁĄD! NIE ZDEFINIOWANO ZAKŁADKI. INTERIM STATEMENT OF FINANCIAL POSITION.....................BŁĄD! NIE ZDEFINIOWANO ZAKŁADKI. INTERIM STATEMENT OF CHANGES IN EQUITY ......................BŁĄD! NIE ZDEFINIOWANO ZAKŁADKI. INTERIM STATEMENT OF CASH FLOWS .......................................BŁĄD! NIE ZDEFINIOWANO ZAKŁADKI. QUARTERLY REPORT OF 11 BIT STUDIOS FOR THE FIRST QUARTER OF 2026 (all amounts in PLN unless stated otherwise) 3

Polish and English versions, the Polish version shall prevail. CONDENSED INTERIM FINANCIAL STATEMENTS 11 BIT STUDIOS S.A. FOR THE THREE MONTHS ENDED 31 MARCH 2026 PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS QUARTERLY REPORT OF 11 BIT STUDIOS FOR THE FIRST QUARTER OF 2026 (all amounts in PLN unless stated otherwise) 4

Polish and English versions, the Polish version shall prevail. INTERIM STATEMENT OF COMPREHENSIVE INCOME Note 1 Jan– 1 Jan– 31 Mar 2026 31 Mar 2025 (unaudited) (unaudited) Revenue 1.1 19,802,487 17,503,440 Other operating income 1.3 5,778 1,162,715 Total operating income 19,808,265 18,666,155 Depreciation and amortisation 1.2 (11,361,988) (4,581,735) Raw materials and consumables used (166,448) (151,878) Services 1.2 (8,615,805) (10,344,798) Salaries, wages and employee benefits 1.2 (3,967,349) (4,644,727) Taxes and charges (851,616) (915,682) Other operating expenses 1.3 (323,141) (396,514) Total operating expenses (25,286,347) (21,035,334) Operating profit (5,478,082) (2,369,179) Finance income 1.4 3,846,192 531,156 Finance costs 1.4 (122,413) (4,387,181) Share in profit/(loss) of associate 2.5 (1,406,140) 217,931 Profit before tax (3,160,443) (6,007,273) Income tax expense 1.5 377,371 (366,345) NET PROFIT (2,783,072) (6,373,618) Earnings per share: Basic 1.6 (1.15) (2.64) Diluted 1.6 (1.15) (2.64) NET PROFIT (2,783,072) (6,373,618) Other comprehensive income - - TOTAL COMPREHENSIVE INCOME (2,783,072) (6,373,618) QUARTERLY REPORT OF 11 BIT STUDIOS FOR THE FIRST QUARTER OF 2026 (all amounts in PLN unless stated otherwise) 5

Pages: 58
Words: 17,272
Type: Financial

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