Starbreeze (STAR) Q1 2025 earnings summary

Executive summary

• Net sales increased 19.5% year-over-year to SEK 67.7 million, driven by PAYDAY 3, PlayStation Plus feature, and work-for-hire revenue.

• Regained full publishing rights to PAYDAY 3, enabling direct platform relationships, faster content releases, and full net revenue retention.

• New CEO appointed, bringing over 20 years of industry experience and a focus on transformation.

• Strategic investor Embracer secured, with SEK 33 million raised in a directed share issue.

• Project Baxter advanced to vertical slice stage, with completion scheduled for Q2 to attract partners.

Financial highlights

• Q1 net sales reached SEK 67.7 million, up SEK 11.1 million year-over-year, with PAYDAY 3 generating SEK 45.4 million in net revenue.

• EBITDA was SEK 15.7 million, down from SEK 48.5 million, but adjusted EBITDA rose SEK 0.6 million year-over-year.

• Net loss of SEK 29.4 million, mainly due to ongoing investments and higher administrative costs.

• Cash flow from operations was SEK -11.7 million, with cash at quarter-end of SEK 130.1 million.

• Cash position increased to SEK 220 million after Q2 inflows, including SEK 95 million from rights issue and settlement.

Outlook and guidance

• Accelerated content development and releases planned for the PAYDAY franchise, with multiple product launches and updates scheduled for Q2.

• Roboquest to launch on PlayStation, expanding reach and expected to rebound in May.

• Focus on establishing PAYDAY as the core and expanding transmedia opportunities.

• Positive discussions with potential partners for Project Baxter, with further engagement expected after vertical slice completion.