PlaySide Studios (PLY) H2 2025 earnings summary

Executive summary

• Revenue declined 25% year-over-year to $48.7m, driven by a 45% drop in Original IP revenue and a 7% decrease in Work for Hire revenue, despite record H1 work for hire and increased investment in original IP projects like MOUSE and Game of Thrones.

• EBITDA swung to a $7.5m loss from a $17.5m profit in the prior year, with NPAT at a $12.1m loss versus $11.3m profit previously, fully accounting for restructuring costs.

• Major restructuring in April 2025 reduced headcount from 363 to 260, incurring $1.7m in costs and expected to save $5m annually, with a focus on three core IPs: Game of Thrones, MOUSE, and Dumb Ways to Die.

• Raised $6.6m in capital, bringing pro forma cash to $16m, to support upcoming launches and maintain balance sheet strength.

• Several high-profile game launches and project completions, including Civilization VII - VR and Kill Knight.

Financial highlights

• Original IP revenue fell to $16.7m (down 45% year-over-year), impacted by absence of major license fees.

• Work for Hire revenue was $32.0m, down 7% year-over-year, with a record first half but weaker second half.

• Ended FY25 with $13.5m in cash, down $24m from prior year, mainly due to $22m in marketing and development for future titles.

• Net operating cash outflow of $7.3m, compared to $18.1m inflow last year.

• Identified at least $5m in operating cost savings for FY26.

Outlook and guidance

• FY26 revenue expected to exceed FY25, with lower operating costs following restructuring and MOUSE as a major revenue driver.

• No explicit revenue guidance for MOUSE until launch, but post-launch revenues will be weighted to the second half.

• Actively negotiating new AAA work for hire contracts, with a broader and more diversified pipeline.

• Dumb Ways to Die and Game of Thrones: War for Westeros to see increased activity and marketing in FY26.