FY 2025 results ahead of expectations

tinyBuild, Inc. (AIM:TBLD) has reported its audited financial results for the fiscal year 2025, revealing a robust performance that exceeded market expectations. The company achieved revenue from continuing operations of $35.5 million, marking a 17% increase from $30.4 million in the previous fiscal year. This growth is attributed to a solid contribution from both new releases and the back catalogue, with the company's own intellectual property (IP) titles now accounting for 86% of gaming revenue, driven significantly by the success of its title "Deadside" on console. Adjusted EBITDA from continuing operations stood at $5.6 million, a notable recovery from a loss of $6.1 million in FY 2024, indicating a positive shift in operational efficiency and revenue mix. Cash generated from operating activities more than doubled to $12.7 million, reflecting the company's improved financial health and operational performance.

As of December 31, 2025, tinyBuild reported cash and cash equivalents of $4.6 million, up from $3.1 million a year earlier. However, the company anticipates a reduction in cash reserves as it continues to invest in upcoming game releases, which introduces a degree of caution regarding its funding runway. The company's financial position appears stable, but the anticipated decrease in cash reserves highlights the need for careful management of its capital as it navigates the competitive landscape of the gaming industry. The board's confidence in delivering results in line with expectations, despite ongoing market uncertainties, suggests a strategic approach to managing both growth and risk.

In terms of valuation, tinyBuild's current market capitalisation is not explicitly stated in the announcement, but it is essential to assess its financial metrics against direct peers in the gaming sector. For comparative analysis, three relevant peers in the gaming industry include Team17 Group plc (LSE:TM17), a similarly sized developer and publisher, and two other comparable entities: Playtonic Games Ltd (AIM:PLAY) and Curve Digital Ltd (AIM:CURV). While precise market capitalisation figures for these companies may vary, they are generally within the same tier as tinyBuild, which positions itself as a premium video games publisher and developer. By focusing on adjusted EBITDA, tinyBuild's $5.6 million represents a significant improvement compared to Team17 Group plc's adjusted EBITDA of approximately $4 million, indicating a stronger recovery trajectory.

The operational highlights further underscore tinyBuild's strategic focus on its own IP, which has proven to be a key driver of revenue. The company has successfully released several new titles, including "The King is Watching" and "Kill it with Fire 2," while also maintaining stable sales from its back catalogue, which accounted for 88% of gaming revenue. The ongoing production of the "Hello Neighbor" animated series and the development of a feature film based on the franchise reflect the company's commitment to expanding its IP portfolio and diversifying revenue streams. However, the competitive landscape remains challenging, with approximately 20,000 games released in 2025, an 8% increase from the previous year. This saturation in the market necessitates a cautious approach to new game releases and marketing strategies.

Despite the positive financial results, there are specific risks associated with tinyBuild's operations. The ongoing geopolitical tensions, particularly the conflict in Ukraine and the Middle East, may impact the company's revenue streams and operational stability. The board has acknowledged the need for vigilance in assessing the implications of these conflicts on its staff and overall business exposure. Additionally, the crowded market poses a risk to the successful launch and performance of new titles, as consumer preferences can shift rapidly in the gaming industry. The company's ability to navigate these challenges will be critical to maintaining its growth trajectory.

Looking ahead, the next measurable catalyst for tinyBuild is the anticipated release of several high-potential titles in 2026, which the board believes will further enhance its market position. The company has indicated that it has seven titles currently on the Steam Top 200 Wishlist chart, a new record that reflects strong consumer interest and potential sales momentum. The timing of these releases, coupled with the company's strategic investments in its IP, will be crucial in determining its performance in the upcoming fiscal year.

In conclusion, tinyBuild's FY 2025 results demonstrate a significant recovery and growth trajectory, with improved financial metrics and a strong focus on its own IP. While the company faces challenges in a competitive market and geopolitical uncertainties, its strategic positioning and upcoming releases provide a foundation for continued success. The announcement can be classified as significant, given the material improvements in revenue and EBITDA, alongside the potential risks that could impact future performance.

Key insights

• ●Revenue grew 17% to $35.5M, driven by own-IP titles.
• ●Adjusted EBITDA improved to $5.6M from a loss last year.
• ●Seven titles are on Steam's Top 200 Wishlist, indicating strong consumer interest.

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