Everplay Group Plc

FY2025 group revenue was GBP 166 million, broadly flat year-on-year, or 5% up excluding physical distribution. Adjusted EBITDA increased 11% to GBP 48.5 million, and adjusted EBITDA margin improved to 29%, up 3.1 points. Gross profit rose 10% to GBP 76.3 million and gross margin increased to 46%, up 4.4 points; adjusted EPS increased 7% to 25.7p. The company ended the year with GBP 51.9 million in cash and declared a total dividend of 2.9p per share, or GBP 4.2 million. For 2026, management said adjusted EBITDA should be in line with current market expectations, and capex on capitalized development costs is forecast at GBP 45 million.

Mikkel Weider said his first months at the company left him more optimistic than expected, describing the business as stronger than hoped, with a strong culture, a good back catalog, and a portfolio that reduces dependence on any single launch. He emphasized a strategy centered on first-party IP, selective M&A, more cross-promotion, stronger tech/AI usage, and better monetization through evergreen titles and DLC. He was upbeat on the pipeline, citing more than 10 new games in 2026 and saying the company is well positioned to grow, especially as AI and discoverability make publishing more valuable.

Rashid Varachia highlighted that revenue was flat at GBP 166 million but grew 5% excluding physical distribution, with gross profit up 10% to GBP 76.3 million and gross margin up to 46% due largely to exiting physical distribution and avoiding a material impairment. He noted adjusted EBITDA of GBP 48.5 million, adjusted EPS of 25.7p, and cash of GBP 51.9 million, while also pointing to GBP 33.3 million of capitalized development costs and a FY2026 forecast of GBP 45 million as investment rises behind first-party IP. He also said the company paid its first dividend and remains cash generative, while no immediate share buyback plans are in place.

Analysts asked about capital allocation, and management said M&A remains a priority because the business is cash generative, but share buybacks have no immediate plan despite the weak share price; the board will keep reviewing the issue. On AI, Mikkel argued it will not eliminate the need for publishers, but will empower small teams and increase the value of discoverability and marketing, which he said favors everplay’s model. On rising development costs, Rashid said the increase is intentional and tied to future growth, especially first-party IP and projects like Wardogs and larger franchise investments, while the amortization policy remains conservative at 2 years with 30% in month 1.