Starbreeze (STAR) Q3 2025 earnings summary

Executive summary

• Strategic refocus on PAYDAY as the core franchise, discontinuing Project Baxter to concentrate resources and align with industry trends toward proven IPs and heisting genre expansion.

• Expanded PAYDAY team to 65, with a new manager leading the rebuild of PAYDAY 3's live engagement model and monthly update cadence starting December.

• Partnership with Sidetrack Studios/Games ensures ongoing support for PAYDAY 2, allowing internal focus on PAYDAY 3 and future projects.

• Organizational restructuring for clarity, accountability, and operational efficiency, with cross-functional collaboration and P&L ownership.

• Updated strategy aims to deepen player engagement, strengthen brand equity, and create scalable value.

Financial highlights

• Q3 2025 net sales: SEK 58.4 million (up from SEK 42.7 million year-over-year); nine-month net sales: SEK 179.9 million (up from SEK 139.5 million year-over-year).

• PAYDAY franchise generated SEK 32.6 million in net revenue, nearly flat year-over-year; PAYDAY 3 Q3 sales: SEK 17.7 million (down from SEK 22.9 million); PAYDAY 2 Q3 sales: SEK 14.9 million (up from SEK 11.5 million).

• Work for Hire projects contributed SEK 20 million in the quarter; nine-month work-for-hire: SEK 57.1 million.

• Q3 EBITDA: SEK 19.3 million (down from SEK 21.4 million); nine-month EBITDA: SEK 40.9 million (down from SEK 78.0 million).

• Q3 profit/loss before tax: SEK -285.9 million (vs. SEK -58.5 million), mainly due to a SEK 261.9 million non-cash impairment from Project Baxter.

• Cash and cash equivalents at quarter-end: SEK 135.1 million (down from SEK 249.3 million year-over-year), with positive operating cash flow.

Outlook and guidance

• Measures and investments in PAYDAY expected to positively impact future sales and efficiency, with a focus on live operations, player retention, and platform expansion (UEFN, Roblox).

• Direct costs and administrative expenses are expected to decrease due to cost efficiency and organizational streamlining.

• All PAYDAY 3 revenue will be recognized directly from Q4 onwards, improving transparency.

• Commitment to maintaining cash discipline and operational efficiency.