PlaySide Studios Posts $48.5M Revenue, $7.7M EBITDA Loss in FY25
PlaySide Studios has released its unaudited FY25 results, showing revenues just below guidance and an EBITDA loss within expectations amid restructuring. The company remains optimistic about revenue growth and cost savings in FY26, pending the launch of its new title.
- FY25 revenue slightly below previous guidance at $48.5-49.0 million
- EBITDA loss between $7.2-7.7 million including $1.6 million restructuring costs
- Cash balance steady at $13.4-13.6 million
- Cancellation of smaller titles post-restructure impacted revenue
- Management confident on FY26 growth and cost savings ahead of new game launch
FY25 Financial Performance
PlaySide Studios Limited, a notable Australian video game developer and publisher, has provided an update on its unaudited financial results for the fiscal year ended 30 June 2025. The company reported revenues ranging between $48.5 million and $49.0 million, slightly below its earlier guidance of $50 million to $54 million. This shortfall was primarily driven by the cancellation of several smaller game titles following a company restructure in April.
Original intellectual property (IP) revenues held steady within projections at $16.5 million to $16.8 million, while Work for Hire revenues came in at $32.0 million to $32.2 million, also slightly below prior guidance. The EBITDA loss was reported between $7.2 million and $7.7 million, which includes $1.6 million in restructuring costs, aligning with the previously forecasted loss range of $6 million to $10 million.
Operational Challenges and Industry Dynamics
PlaySide experienced delays in securing new Work for Hire contracts, although it managed to extend some existing agreements and recently secured smaller contracts with new clients. The company highlighted a shift in industry dynamics, noting that many clients are now requesting prototypes or technical demos before committing to larger projects. This cautious approach follows a period of layoffs and underinvestment in content across the sector.
Management views this as a turning point and is actively leveraging these opportunities to broaden its client base. While these smaller contracts are not individually material, they could potentially convert into longer-term engagements, providing a foundation for future growth.
Financial Position and Outlook
Despite the restructuring costs and significant marketing investments for upcoming titles such as Game of Thrones, War for Westeros and MOUSE, P.I. For Hire, PlaySide maintained a healthy cash balance of $13.4 million to $13.6 million at the end of June, comfortably within its guidance range. The company has also successfully reduced overheads, positioning itself to convert successful game launches into sustainable revenue and cash flow growth.
Looking ahead, PlaySide’s management refrained from providing explicit FY26 guidance at this stage, citing the pending launch of MOUSE, P.I. For Hire. However, they expressed confidence in achieving revenue growth and further operating cost savings relative to FY25.
Next Steps for Investors
PlaySide plans to release its audited FY25 results on 27 August and will host an investor webinar on the same day. This event will likely provide more clarity on the company’s strategic direction and financial outlook as it navigates a competitive and evolving gaming industry landscape.
Bottom Line?
PlaySide’s FY25 results reflect a transitional year, but its strategic repositioning and upcoming launches could unlock growth in FY26.
Questions in the middle?
- How will the launch of MOUSE, P.I. For Hire impact PlaySide’s revenue and profitability?
- Can PlaySide successfully convert prototype and demo engagements into long-term Work for Hire contracts?
- What is the company’s strategy to mitigate risks from industry-wide cautious spending?