Last close As at 05/08/2026
GBP0.16
— 0.00 (0.00%)
Market capitalisation
GBP78m
Research: Consumer
At IPO, Devolver Digital had already built a strong brand as a developer-led indie games publisher. What investors should take from the FY25 results is the more recent emergence of a robust games production line that maximises profitability, while retaining at its core a defining developer-led creative philosophy. We maintain our forecasts and our fair value of 36p per share.
| Year end | Revenue ($m) | EBITDA ($m) | PBT ($m) | EPS ($) | EV/EBITDA (x) | P/E (x) |
|---|---|---|---|---|---|---|
| 12/24 | 104.8 | 5.1 | (2.2) | 0.01 | 21.0 | 29.5 |
| 12/25e | 107.6 | 4.9 | (3.1) | (0.02) | 21.8 | N/A |
| 12/26e | 108.3 | 11.8 | 4.6 | 0.01 | 9.1 | 42.2 |
| 12/27e | 115.1 | 14.3 | 8.5 | 0.01 | 7.5 | 22.7 |
Helped by 15 new releases (FY24: 10), FY25 revenues rose 3% y-o-y to $107.9m with front catalogue sales of $37.9m (FY24: $11.9m), over 35% of which was from in-house IP. Back catalogue revenues were $68.9m, down 24% y-o-y as the effect of previous blockbuster releases continues to wash through. Operating leverage led to a 39% y-o-y rise in adjusted EBITDA to $7.1m (FY24: $5.1m), with tight cost control and lower amortisation reducing operating expenses by 7.9%. The reported loss for the period of $16.0m was significantly affected by non-cash items, as reflected in the FY25 positive operational cash inflow of $31.8m (FY24: $23.8m). Continued significant investment in the year saw closing net cash fall slightly to $36.6m (FY24: $41.6m) although H225 was free cash flow positive despite c $21m of investment. FY26 started strongly with a record three Devolver games in the Steam global top ten bestsellers list. Management expects revenue, adjusted EBITDA and year-end net cash to all continue to grow in FY26, underpinned by three major first party titles, STARSEEKER: Astroneer Expeditions, Serious Sam: Shatterverse and Stronghold Unreal.
Management’s investment and strategic refresh of recent years is paying dividends: (i) new releases are up (to critical acclaim with over 20 awards and 50 further nominations in FY25); (ii) more than 30 titles are in the pipeline and scheduled for release over the next three years; (iii) there has been significant investment in expandable games; (iv) over 40% of FY25 revenues were from new SKUs; and (v) campaign strategies are increasingly data-driven. This progress was achieved with tight cost control in a market that has yet to return to growth. The impressive release pipeline will re-invigorate the back catalogue, at which point Devolver will be creating even greater shareholder value.
Our fair value assessment of 36p per share is a blend of our discounted cash flow analysis that suggests 32p per share and our cash returns-based analysis that suggests 40p per share.
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London │ New York │ Frankfurt
20 Red Lion Street
London, WC1R 4PS
United Kingdom
Research: Industrials
Solid State’s trading update signalled that trading remained strong in Q426 and, as a result, FY26 revenues will be at least £150m (vs £145m consensus). PBT is also expected to be ahead of the £7.2m consensus figure, with outperformance driven across all three divisions. Fundamentally, the company’s outlook is also positive, supported by its exposure to defence and secure communications, together with the cover from a £106.5m open order book at end-March (30 November 2025: £97.0m), although lengthening component lead times, linked to AI-driven demand and geopolitical disruption, introduce some risk to delivery timing.