Devolver Digital (DEVO) H1 2025 earnings summary

Executive summary

• 1H 2025 revenues declined 25% year-over-year, in line with guidance and expectations, despite a tough prior year comparison driven by strong platform deals and back catalogue in 2024.

• New release revenues surged 76% compared to 1H 2024, with strong performance from front catalogue titles and high Metacritic/user reviews.

• At least 8 new titles are planned for 2H 2025, with early sales already positive and a strong release pipeline into 2026.

• The company remains on track to meet FY 2025 guidance, with revenues expected to exceed $100m and adjusted EBITDA in the high single-digit millions.

• Operating costs were reduced by 6% year-over-year, reflecting effective cost control.

Financial highlights

• Revenue for 1H 2025 was $38.8m, down from $51.6m in 1H 2024, a 24.8% decrease.

• Gross profit reached $12.1m, with a margin of 31.3%, up from 29.6% in 1H 2024.

• Adjusted EBITDA was break-even at $0.1m, down from $3.0m in 1H 2024, after non-cash impairments.

• Cash balance at June 2025 was $34.7m, down from $41.6m at FY24.

• Statutory net loss widened to $11.0m from $4.5m in 1H 2024, mainly due to a $6.8m non-cash write-down of deferred tax assets.

Outlook and guidance

• Full year 2025 guidance maintained: revenues expected to exceed $100m, with adjusted EBITDA in the high single-digit millions.

• At least 15 new titles are expected for FY 2025, with 8 or more in 2H 2025.

• Revenues and EBITDA are expected to be significantly weighted to the second half due to timing of major sales and releases, with >65% of signed platform deals recognized in 2H.

• A healthy pipeline of over 30 new titles is scheduled for release through mid-2027.

• Single-digit percentage revenue growth and increased adjusted EBITDA anticipated for 2026.