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VERY GOOD

Frontier Developments Reports Strong FY25 Results, Boosts Profitability and Cash

Why we think this is very good

Frontier Developments has delivered a strong set of results for FY25, with significant growth in profitability and cash generation. The company's focus on its genre-leading Creative Management Simulation (CMS) game franchises has paid off, with these games now accounting for 77% of total revenue. Adjusted EBITDA is expected to be in the range of £8 million to £9 million, a substantial improvement over the prior year's £0.9 million. The company's cash position has also strengthened, growing by £13 million to £42.5 million. While revenue growth was more modest at around 1.5%, the strong profitability and cash generation are positive indicators for the company's future prospects.

Key Points

  • Revenue increased to £90.6 million, with CMS games generating 77% of total revenue
  • Adjusted EBITDA expected to be in the range of £8 million to £9 million, up from £0.9 million
  • Cash grew by £13 million to £42.5 million
  • Frontier to initiate a £10 million share buyback programme
  • Confident in delivering further annual growth in FY26

Summary

The video game developer reports strong financial results, with significant growth in profitability and cash generation, as its genre-leading simulation games continue to perform well.

Frontier Developments has reported strong financial results for the financial year ended 31 May 2025 (FY25). Revenue increased to £90.6 million, with the company's three Creative Management Simulation (CMS) game franchises - Planet Coaster, Planet Zoo and Jurassic World Evolution - generating 77% of total revenue. Profitability grew significantly, with Adjusted EBITDA expected to be in the range of £8 million to £9 million, up from £0.9 million in the prior year. The company's cash position also strengthened, growing by £13 million to £42.5 million. Frontier plans to initiate a £10 million share buyback programme, subject to shareholder approval. The company is confident in its ability to deliver further annual growth in FY26 through its genre-leading game franchises.

Key Dates

21 October 2025
Release of Jurassic World Evolution 3
27 June 2025
General meeting to approve share buyback
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