Devolver Digital reports further improvement in full-year performance

(Sharecast News) - Devolver Digital reported a further sequential improvement in financial performance for 2025 on Monday, supported by strong second-half trading, as the indie games publisher met its full-year revenue guidance and delivered higher profitability year on year. The AIM-traded group said full-year revenues exceeded $100m, in line with guidance, with second-half performance bolstered by the timing of platform deals and the Steam Publisher Sale in September.

Underlying adjusted EBITDA before impairments is expected to reach a double-digit million US-dollar figure, marginally ahead of market expectations.

The company also flagged an initial unaudited estimate of around $3.5m in impairments related to the underperformance of certain released titles.

Game releases in 2025 maintained high quality standards, with a full-year average Metacritic score of 78.

Notable launches included Monster Train 2 from publisher subsidiary Big Fan, Stronghold: Crusader from subsidiary studio Firefly, and Ball x Pit, which collectively supported front-catalogue revenues.

Lower-cost titles Mycopunk and Look Outside performed ahead of expectations, while System Era continued to contribute, supported by the release of Astroneer's second paid downloadable content, Megatech, in November.

Operating expenses declined slightly compared with 2024, reflecting continued cost discipline.

Devolver said it ended the year with a robust balance sheet, holding approximately $36.4m of net cash as at 31 December, and reiterated its focus on cost management into 2026.

Trading in early 2026 reportedly started strongly, with Quarantine Zone: The Last Check exceeding expectations in its opening weeks and Cult of the Lamb's Woolhaven PDLC receiving strong reviews.

In January, Devolver recorded a first-time milestone with three titles featuring simultaneously in Steam's Global Top 10 Best Sellers list.

"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," said chief executive officer Harry Miller.

"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."

Devolver said the strategic changes introduced over the past three years, including an improved greenlight process, in-house technology development, cost reductions and enhanced store management, continued to support a recovery from the 2023 downturn and provide greater visibility on achieving higher sustainable profitability.

It said it would publish its full-year results for 2025 in April.

At 1012 GMT, shares in Devolver Digital were up 1.96% at 26p.

Reporting by Josh White for Sharecast.com.