Atari (ATA) H1 25/26 earnings summary

Executive summary

• Achieved 38% year-over-year revenue growth to €18.9M, driven by new game releases, hardware expansion, and licensing partnerships.

• Acquired 81.7% of Thunderful Group AB, expanding publishing and development capabilities in Europe, with plans to acquire the remaining stake and delist.

• Net loss improved to €6.4M from €8.3M year-over-year, with positive cash flow from operations.

• Completed a capital increase of €14.1M via loan repayment in shares to IRATA LLC, strengthening equity and reducing debt.

• Major new releases included Mortal Kombat: Legacy Kollection, Golden Tee Arcade Classics, and System Shock 2: 25th Year Anniversary Remaster.

Financial highlights

• Revenue rose to €18.9M from €13.7M (+38%); gross margin increased to €14.5M (77%).

• Games revenue up 31% to €15.6M; hardware revenue up 128% to €1.8M; licensing revenue up 44% to €1.4M.

• Operating loss reduced to €2.8M from €6.2M; net loss at €6.4M vs. €8.3M prior year.

• Cash flow from operations positive at €1.8M; net financial liabilities at €57.5M.

• Current operating loss improved to -€1.5M (excluding Thunderful); including Thunderful, -€2.6M.

Outlook and guidance

• Expects stronger second half due to seasonality and new releases.

• Targeting approximately $60M in revenue for FY ending March 31, 2026, with positive operating income and cash flow.

• Plans to continue selective acquisitions and IP portfolio expansion.