Digital Bros (DIB) Q1 25/26 earnings summary

Executive summary

• Net revenue for Q1 FY2026 more than doubled year-over-year to €45.5 million, driven by the successful launch of Wuchang: Fallen Feathers and growth in the Assetto Corsa brand.

• Premium Games accounted for 95% of total revenue, with significant contributions from co-owned IPs and long-term publishing agreements.

• The Group reported a consolidated net profit of €4.7 million, reversing a €2.3 million loss in the prior year period, despite a €4.9 million write-off on Starbreeze AB.

• EBITDA margin rose to 48.3% (€22.0 million), up from 27.5% (€5.9 million) year-over-year.

• EBIT improved to €13.2 million from a negative €1.4 million in the previous year.

Financial highlights

• Gross margin: 67.6% of revenue, up from 64.5% year-over-year.

• Basic earnings per share were €0.32, compared to a loss of €0.16 per share a year earlier.

• Net financial position was positive at €4.9 million, an improvement of €21.5 million from June 30, 2025.

• Digital sales represented 92% of total revenue, with nearly all revenue generated in foreign markets.

• Operating costs increased 12.7%, mainly from higher marketing and advertising for new launches.

Outlook and guidance

• Fewer new game launches are expected in the current fiscal year, with a focus on predictable demand and balanced risk.

• Assetto Corsa Rally is set for Early Access release in November 2025, with Nivalis and a new Blades of Fire version scheduled for the second half.

• Free to Play segment is expected to contract, but cost structure improvements will be realized from Q3.

• Consolidated revenues are projected to grow, led by Premium Games, with EBIT expected to remain positive.

• The Group anticipates a return to net financial debt in the next quarter, but at lower levels than June 2025.