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Devolver DigitalAnnouncement

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RNS Number : 2161S  Devolver Digital, Inc.  09 February 2026

 

 

9 February 2026

 

Devolver Digital, Inc.

("Devolver", the "Group" or the "Company")

Trading Update

FY 2025: Another sequential Improvement in financial performance owing to
strong H2 trading

 

Devolver Digital, Inc. (AIM: DEVO), an award-winning digital publisher and
developer of indie video games, announces a trading update for the financial
year ended 31(st) December 2025.  All financial figures relate to that period
unless otherwise stated.

2025 full year performance showed improvement over 2024 with growth in both
revenues and Adjusted EBITDA(1). Revenue performance in 2H 2025 was strong and
in-line with expectations, bolstered by the timing of platform deals and the
Steam Publisher Sale in September, resulting in management meeting guidance of
more than US$100m in full year revenues. Underlying Adjusted EBITDA
pre-impairments is expected to reach USD double-digit millions, marginally
higher than consensus expectations, while an initial unaudited estimate of
impairments for released title underperformance is c. $3.5 million.

New games released in 2025 maintained very high-quality levels with a
full-year average Metacritic score of 78. Notable successes such as Monster
Train 2 released by publisher subsidiary Big Fan, Stronghold: Crusader
released by subsidiary studio Firefly, and recent sensation Ball x Pit all
garnered high-quality scores and user reviews and collectively bolstered front
catalogue revenues. Lower cost titles Mycopunk and Look Outside garnered
favourable user reviews and performed ahead of expectations. System Era also
continued making a solid contribution, with Astroneer releasing its second
PDLC Megatech in November 2025.

Devolver has continued its disciplined approach to cost control, with FY25
operating expenses falling slightly compared to FY24. The Board remain
committed to delivering efficiencies across the Group, with a continued focus
on cost management going into 2026. Devolver has a robust balance sheet with
c.US$36.4 million net cash as of 31 December 2025.

2026 has started strongly with Quarantine Zone: The Last Check exceeding
expectations in the first weeks of its release, and Cult of the Lamb's highly
anticipated PDLC Woolhaven receiving rave reviews. Notably, Devolver recorded
a historic milestone in January with three titles (Woolhaven, Cult of the Lamb
and Quarantine Zone: The Last Check) all featuring in the Steam(2) Global Best
Sellers Top 10 list, the first time in Devolver's history.

Harry Miller, Chief Executive Officer at Devolver, said: "We are pleased to
have delivered revenues that grew year-over-year, in a gaming market that was
flat overall, and met our guidance in 2025, driven by a string of successful
new launches by Devolver and its subsidiary companies. And seeing three
Devolver titles ranking in Steam's Top 10 Global Best Sellers is a huge
historic milestone for us.

An overall solid portfolio performance, coupled with sustained operating cost
control, resulted in another year of steady improvement in both revenues and
Adjusted EBITDA. Additionally, a very strong early start to 2026 gives us good
momentum to deliver further profit improvement this year.

The calculated strategies that we began 3 years ago, including an improved
greenlight process, in-house developed technologies, cost cutting, improved
store management, among others, continue to lead us out of the trough of 2023.
The continued adoption and maturation of these strategies, along with cycling
through products initiated prior to such efforts, give us visibility to
reaching higher sustainable profitability in the coming years."

The Group will announce its results for the year ended 31 December 2025 in
April 2026.

 

-ENDS-

 

Notes:

1.    Adjusted EBITDA ("EBITDA") makes the following adjustments: it
excludes: 1) stock compensation (share-based payment) expenses and revaluation
of contingent consideration; 2) one-time expenses and other non-recurring
items; 3) amortisation of IP (but does not exclude amortisation of capitalised
software development costs), and; 4) impairments of goodwill and acquired
IP.  Title performance impairments are included in Adjusted EBITDA.

2.    Steam is the world's largest one-stop-shop platform for gamers to
buy, store and play video games.

 

About Devolver Digital

 

Devolver is an award-winning video games publisher in the indie games space
with a balanced portfolio of third-party and own-IP. Devolver has an emphasis
on premium games and has published more than 135 titles, with more than 30
titles in the pipeline scheduled for release over the next three years.
Devolver has in-house studios developing first-party IP titles and a
complementary publishing brand. Devolver is registered in Wilmington,
Delaware, USA.

 

Enquiries:

 

 Devolver Digital, Inc.                                                                      ir@devolverdigital.com

 Harry Miller, Chief Executive Officer

 Graeme Struthers, Chief Operating Officer

 Daniel Widdicombe, Chief Financial Officer

 Zeus (Nominated Adviser and Joint Broker)                         +44 (0)20 3829 5000

 David Foreman / Kieran Russell (Investment Banking)

 Ben Robertson (Equity Capital Markets)

 Panmure Liberum (Joint Broker)

 Dru Danford (Investment Banking)                                 +44 (0)20 3100 2000

 Rupert Dearden (Corporate Broking)

 FTI Consulting (Communications)                                                     devolver@fticonsulting.com

 Jamie Ricketts / Dwight Burden / Valerija Cymbal / Usama Ali                   +44 (0)20 3727 1000

 

 

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