TinyBuild FY 2025 revenue rises 17% on strong new releases & back catalogue

Overview

• US indie video games publisher's FY 2025 revenue grew 17% yr/yr, driven by new releases

• Adjusted EBITDA turned positive, reflecting improved revenue mix and lower operating costs

• Company granted stock options and restricted stock awards to employees post-period end

Outlook

• Board says company is on track to deliver results at least in line with expectations

• Company highlights a strong pipeline of high-potential games for 2026

• Company notes ongoing market uncertainty and is monitoring macroeconomic and geopolitical risks

Result Drivers

• NEW RELEASES & BACK CATALOGUE - Co said revenue growth was driven by solid contributions from new game releases and a stable performance from its back catalogue, with 'Deadside' and 'Hello Neighbor' among key titles

• OWN-IP FOCUS - Increased share of revenue from own-IP titles, primarily due to the success of 'Deadside' on console, with own-IP reaching 86% of gaming revenues

• COST CONTROL & PORTFOLIO OPTIMISATION - Adjusted EBITDA improvement attributed to a more favourable revenue mix and lower operating costs, including reduced software development spending and impairment charges

Company press release: ID:nRSS2958Xa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Tinybuild Inc is GBp9.60, about 53.6% above its March 18 closing price of GBp6.25

• The stock recently traded at 125 times the next 12-month earnings vs. a P/E of 4,106 three months ago

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