PlaySide Studios (PLY) investor relations material

Executive summary

• Revenue for the half-year ended 31 December 2025 was AUD 20.4 million, down 28% year-over-year but exceeding guidance.

• EBITDA improved to AUD 9.5 million from a AUD 3.0 million loss, driven by cost reductions and a AUD 7.8 million Digital Games Tax Offset.

• NPAT swung to a AUD 7.9 million profit from a AUD 5.3 million loss, a 249% increase year-over-year.

• Operating cash flow turned positive at AUD 5.6 million, up from AUD 1.1 million.

• Headcount reduced from 353 to 261 post-restructure, delivering annualized cost savings of AUD 7 million.

Financial highlights

• Revenue: AUD 20.4 million (down 28% year-over-year); Original IP AUD 5.6 million (down 43%), External Projects AUD 14.8 million (down 20%).

• Net cash balance stood at AUD 14 million at period end, up from AUD 13.5 million in June 2025.

• Capitalized development costs increased due to investment in Game of Thrones and Mouse.

• Employee benefits, general/admin, and selling expenses fell significantly year-over-year.

• Secured AUD 6 million in debt financing, backed by a AUD 7.8 million Digital Games Tax Offset claim.

Outlook and guidance

• FY26 revenue expected to exceed the previous year, driven by Mouse's global launch and further cost reductions.

• Guidance to be updated within a month after Mouse's launch, depending on initial performance.

• Positive cashflow forecasts depend on timely launches and revenue from key Original IP titles and new external projects.

• Additional business development hires in the UAE and Germany are expected to boost the project pipeline.

• Directors remain confident in going concern status, but acknowledge material uncertainty if revenue targets are not met.