Digital Bros (DIB) Q4 24/25 earnings summary

Executive summary

• Consolidated revenue for FY 2024-2025 was €93.6 million, down 20.6% year-over-year due to underperformance of new releases.

• EBITDA reached €33.5 million, representing 35.7% of net revenue, but declined 20.7% from the prior year.

• EBIT was negative at €11.5 million, impacted by €8.1 million in video game impairments and €11 million in project cancellations.

• Net loss increased to €10.7 million from €6.2 million year-over-year.

• Net financial debt improved to €16.6 million, down from €24.8 million, aided by a strategic investment review.

Financial highlights

• Gross profit margin rose to 69.3% from 67.6% year-over-year.

• Loss before tax widened to €14.7 million from €5.2 million.

• Basic loss per share was €0.77, up from €0.16 in the prior year.

• Cash flow from operating activities was €32.5 million, with closing net cash at €6.7 million.

Outlook and guidance

• Revenue is expected to grow in FY 2025-2026, with a return to positive EBIT and further improvement in net financial debt.

• Fewer game launches are planned, focusing on titles with better visibility and balanced risk.

• Premium Games segment to drive growth, partially offset by a decline in Free-to-Play.