Digital Bros (DIB) Q2 25/26 earnings summary

Executive summary

• Net revenue for H1 FY2025/26 reached €69 million, up 60.4% year-over-year, driven by strong new title launches and robust performance of proprietary IPs, especially Assetto Corsa EVO, Assetto Corsa Rally, and Wuchang: Fallen Feathers, both in Early Access on Steam.

• Premium Games accounted for 93% of total revenue, with a 40% increase in Assetto Corsa brand revenue and significant contributions from Wuchang: Fallen Feathers.

• EBITDA margin improved to 48.6% (€33.6 million), and EBIT turned positive at €14.9 million, compared to a loss in the prior year.

• Net profit was €2.0 million, reversing a €3.5 million loss in the previous year; EPS was €0.14 (basic).

• Positive net financial position of €4.3 million as of December 31, 2025, a €20.9 million improvement from June 30, 2025, exceeding expectations.

Financial highlights

• Gross profit rose to €50.3 million (+78.7% YoY), with cost of sales as a percentage of revenue dropping from 34.6% to 27.1%.

• Operating costs increased 12.7%, mainly due to higher marketing and payroll expenses.

• EBIT improved to €14.9 million from a €0.4 million loss year-over-year.

• Net interest expense rose to €7.4 million, including a €5.7 million write-off of an equity investment.

• Basic EPS was €0.14, compared to a loss per share of €0.26 in the prior year.

Outlook and guidance

• Revenue growth for FY2025/26 is confirmed, led by Premium Games, with a more limited release schedule in H2 focused on back catalogue and targeted promotions.

• EBIT is expected to remain positive at year-end, with a return to net financial debt in the next quarter, but at a much lower level than June 2025.

• Free to Play segment expected to contract, but cost structure improvements anticipated from internalized live support.

• Management is monitoring geopolitical and market risks but expects no significant impact absent further escalation.