**Summary of Devolver Digitals Half-Year Results for 2025**
Devolver Digital, Inc., a leading publisher and developer of indie video games, released its unaudited half-year results for the six months ended June 30, 2025. The company reported resilient revenues in line with expectations, despite a strong prior-year comparator. Key highlights include
**Revenue and Performance**
Revenues of $38.8 million, down 24.8% from $51.6 million in the same period last year, primarily due to a high revenue cliff in 1H 2024 from platform deals and back-catalogue sales.
Gross profit margin improved to 31.3% from 29.6% in 1H 2024, driven by higher new release revenue recoupment.
Adjusted EBITDA of $0.1 million, compared to $3.0 million in 1H 2024, reflecting the revenue weighting shift to 2H 2025.
**New Releases and Pipeline**
Released 7 well-received titles in 1H 2025, including *Look Outside*, *Monster Train 2*, and *The Talos Principle: Reawakened*, with high Metacritic scores and positive user reviews.
At least 8 releases planned for 2H 2025, including highly anticipated titles like *BALL x PIT* and *Quarantine Zone*.
A healthy pipeline of over 30 new titles scheduled for release by mid-2027.
**Strategic Highlights**
Strong visibility for 2H 2025supported by signed platform dealsSteam publisher salesand seasonal promotions.
Over 65% of 2025 platform deals expected to be recognized in 2H, compared to 20% in 2H 2024.
Featured in Nintendos Switch 2 reveal event, with three Devolver games showcased, indicating strong indie game support.
**Financial Position and Outlook**
Cash holdings of $34.7 million as of June 30, 2025, down from $41.6 million at year-end 2024, due to continued investment in game development.
On track to meet FY 2025 guidancerevenues over $100 million and Adjusted EBITDA in the high single-digit millions.
Focus on cost control, with adjusted operating expenses down 5.6% year-over-year.
**Challenges and Adjustments**
Recognized a non-cash write-down of deferred tax assets totaling $6.8 million, primarily related to stock options.
Statutory net loss of $11.0 million, compared to a $4.5 million loss in 1H 2024, due to the write-down and revenue timing.
**Future Prospects**
Excited about the potential of Nintendo Switch 2, with several Devolver games launching on the platform in 2025 and 2026.
Continued momentum with strong current trading and a robust release schedule for 2H 2025.
Devolver Digital remains confident in its ability to meet its FY 2025 guidance and is well-positioned for future growth, supported by its diverse portfolio and strategic focus on indie game development and publishing.