11 Bit Studios (11B) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached 17.5m PLN, up 14.21% year-over-year, driven by last year's releases, business development, and a mix of own games (67%) and publishing (33%).

• EBITDA was 2.21m PLN, but the company posted an operating loss of 2.37m PLN and a net loss of 6.37m PLN, mainly due to higher amortization and negative FX differences.

• Operating costs increased significantly due to higher royalties, license payments, depreciation, and marketing expenses.

• High foreign exchange costs impacted results, with over 80% of revenue in USD and a 6% decline in the dollar's value.

• Cash and equivalents at quarter-end were 69.5m PLN, up 6.18% from year-end 2024.

Financial highlights

• Sales revenue: 17,503,440 PLN (Q1 2025), a 14.21% increase year-over-year.

• EBITDA: 2,212,556 PLN (Q1 2025); operating loss: -2,369,179 PLN; net loss: -6,373,618 PLN.

• Operating costs rose 30% year-over-year to 221 million, mainly from royalties, licenses, and increased depreciation.

• Amortization/depreciation rose to 4.58m PLN (Q1 2025) from 0.91m PLN (Q1 2024), reflecting new game launches.

• Foreign exchange costs totaled 4.25m PLN, reflecting currency volatility.

Outlook and guidance

• Confident that 2025 results will surpass 2024, supported by upcoming releases and strong wishlists for new titles.

• Key 2025 launches: The Alters (June), Moonlighter 2 (summer), Death Howl (2025).

• No risk seen for delays in the release of The Alters, which is nearly complete and on track.

• Plans to release two to three titles per year, focusing on quality over quantity.

• Long-term strategy focuses on new IPs, platform game development, and publishing expansion.