PCF Group (PCF) Q1 2025 earnings summary

Executive summary

• Revenue increased to PLN 62,992 thousand for Q1 2025, up from PLN 56,881 thousand in Q1 2024, but the Group posted a net loss of PLN 3,855 thousand compared to a net loss of PLN 864 thousand in Q1 2024.

• Report covers financial and operational results for the first quarter of 2025, highlighting ongoing restructuring and project portfolio adjustments.

• Operating profit swung to a loss of PLN 4,321 thousand from a profit of PLN 3,996 thousand year-over-year, reflecting higher costs and reduced capitalization of development expenses.

• The Group continued to focus on contract game development for major publishers and reduced self-publishing activities due to liquidity constraints.

• Focus on cash flow optimization, new business development, and cost control measures.

Financial highlights

• Q1 2025 revenue: PLN 63.0m, up from PLN 56.9m in Q1 2024.

• EBITDA (adjusted): PLN 1.7m in Q1 2025, unchanged from Q1 2024.

• Net profit: PLN -3.9m in Q1 2025, compared to PLN -0.9m in Q1 2024.

• Operating cash flow was negative at PLN 5,264 thousand, compared to positive PLN 5,405 thousand in Q1 2024.

• Significant write-offs in 2024 led to a net loss of PLN 175.3m for the year.

Outlook and guidance

• Targeting two new work-for-hire (WFH) project signings in 2025.

• Early access release of "Lost Rift" planned for 2025; "Bison" VR game release set for Q4 2025.

• The Group will continue to expand existing business lines, focusing on contract development and cost reduction.

• Performance will depend on securing new work-for-hire contracts, financing, and managing wage and currency risks.

• Further cost optimization and investment cuts planned, with focus on critical projects only.