Via Tortona, 37 - 20144 Milan, Italy VAT number 09554160151
Share Capital: Euro 6.024.334,80 of which Euro 5.706.014,80 subscribed Milan Companies House no. 290680-Vol. 7394 Chamber of Commerce no. 1302132
This report is available on the Company's website https://www.digitalbros.com Investor Relations / Financial Documents section
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Index
BOARD OF DIRECTORS AND CORPORATE GOVERNANCE STRUCTURE 4
DIRECTORS' REPORT 6
GROUP ORGANIZATION 6
MAIN INTELLECTUAL PROPERTIES OWNED BY THE GROUP 10
THE VIDEO GAMES MARKET 12
SEASONALITY EFFECTS 14
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD 15
CONSOLIDATED PROFIT AND LOSS STATEMENT AT SEPTEMBER 30TH, 2025 17
CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30TH, 2025 20
SEGMENT REPORTING 22
CONTINGENT ASSETS AND LIABILITIES 30
SUBSEQUENT EVENTS 30
BUSINESS OUTLOOK 31
Consolidated balance sheet as of September 30th, 2025 36
Consolidated profit and loss statement as of September 30th, 2025 37
Consolidated comprehensive income statement as of September 30th, 2025 38
Consolidated statement of changes in equity as of September 30th, 2025 40
EXPLANATORY NOTES42STATEMENT PURSUANT TO ART. 154- BIS (5) OF THE T.U.F 52
BOARD OF DIRECTORS AND CORPORATE GOVERNANCE STRUCTURE
Board of DirectorsMember | Office | Role | Committees | ||
Risk & Control | Remuneration | Nomination | |||
Carlotta Ilaria D'Ercole | Director | I | M | M | P |
Veronica Devetag Chalapuka | Director | NE | |||
Abramo Galante | Chairman and CEO | E | |||
Davide Galante | Director | NE | |||
Raffaele Galante | CEO | E | |||
Susanna Pedretti | Director | I | M | P | M |
Stefano Salbe (1) | Director | E | |||
Laura Soifer (2) | Director | I | P | M | M |
Dario Treves | Director | E | |||
E: Executive Director | P: President of the Committee |
NE: Non-Executive Director | M: Member of the Committee |
I: Independent Director | CEO: Chief Executive Officer |
(1)Financial Reporting Manager pursuant to Art. 154 bis of Legislative Decree 58/98
(2)Lead Independent Director
Board of Statutory AuditorsName | Office |
Maria Pia Maspes | Statutory auditor |
Pietro Piccone Ferrarotti | Statutory auditor |
Paolo Villa | Chairman |
Andrea Serra | Substitute statutory auditor |
Stefano Spiniello | Substitute statutory auditor |
The Shareholders' Meeting held on October 27th, 2023 appointed the Board of Directors and the Board of Statutory Auditors. The terms of office of the Directors and the Statutory Auditors will expire on the date of the Shareholders' Meeting which will approve the financial statements as of June 30th, 2026. On October 28th, 2024, the Shareholders' Meeting appointed Veronica Devetag Chalaupka as a non-executive Director, who will remain in charge with the current Board of Directors until the approval of the financial statements as of June 30th, 2026.
On October 27th, 2023, the Shareholders' Meeting appointed Abramo Galante as Chairman of the Board of Directors. On November 9th, 2023, the Board of Directors appointed Abramo Galante and Raffaele Galante as Chief Executive Officers, granting adequate powers of attorney.
The Board of Directors held on August 7th, 2007 appointed the Executive Director Stefano Salbe as Financial Reporting Manager pursuant to Art. 154 bis of Legislative Decree 58/98 with appropriate powers.
Auditors EY S.p.A.On October 27th, 2021, the Shareholders' Meeting appointed EY S.p.A., based in Via Meravigli 12, Milan, as auditors of the Group consolidated annual and half year financial statements and Digital Bros S.p.A. annual financial statements until the approval of the financial statements as of September 30th, 2030.
Other informationOn November 13th, 2025, the Board of Directors resolved to authorize the publication of Digital Bros Group's Interim Report as of September 30th, 2025.
Digital Bros S.p.A. is incorporated and operating in Italy. The Company is listed on the Euronext STAR segment of the Euronext Milan market operated by Borsa Italiana S.p.A..
DIRECTORS' REPORT
GROUP ORGANIZATION
Digital Bros Group ("the Group") develops, publishes and distributes video games on international markets. The Group is organized into five operational business segments:
Premium Games: activities primarily involve the acquisition of intellectual property rights for video games from developers to distribute them primarily on digital marketplaces such as Steam, Sony PlayStation Network, Microsoft Xbox Live, Epic Game Store, etc..The Group develops video games either directly, through its internal development studios, or working with independent teams. In the case of video games developed by external studios, the Company secures global rights either through long-term exclusive licensing agreements or via perpetual acquisitions.
The brands used for worldwide publishing are 505 Games and 505 Pulse.
During the reporting period, Premium Games activities were carried out by the subsidiary 505 Games S.p.A., which coordinates this operating segment, with the support of 505 Games Ltd. and 505 Games (US) Inc..
The subsidiary 505 Pulse S.r.l. publishes indie video games, i.e. titles with smaller development budget.
The Dutch company Rasplata B.V. owns the intellectual property, together with the brand and the technology used for the development of the video game Crime Boss: Rockay City.
The following internal development studios operate in the Premium Games segment:
the Italian company Kunos Simulazioni S.r.l., fully owned by the Group, which developed and published the video games Assetto Corsa and Assetto Corsa Competizione. The team is now finalizing the development of the video game Assetto Corsa EVO, which was released in Early Access on Steam on January 16th, 2025;
the Czech company Ingame Studios a.s. a Brno-based studio fully owned by the Group, in charge of the development of Crime Boss: Rockay City;
the Italian company Avantgarden S.r.l., a Milan-based development studio fully owned by the Group;
the Italian company Supernova Games Studios S.r.l., a development studio based in Milan and fully owned by the Group that is developing the new video game Assetto Corsa Rally;
the Canadian company Chrysalide Jeux et Divertissement Inc., held at 75% by the Group, which is currently developing the video game The Directorate: Novitiate.
The Group established an equal joint venture, MSE&DB SL, together with the Spanish development studio MercurySteam Entertainment S.l.. The Spanish joint venture owns the intellectual property of the video game Blades of Fire, launched during the last fiscal year.
Free to Play: activities involve developing and publishing video games and/or applications that are distributed for free on digital marketplaces and monetized through in-app purchases. Free to Play video games typically present lower technical complexity compared to Premium titles, but when successful, they tend to enjoy a longer life cycle. Following their launch, Free-to-Play games require ongoing maintenance and updates to keep the users' interested, increase the players retention and extend the game's longevity.Worldwide publishing activities are coordinated by 505 Mobile S.r.l., together with the U.S.-based 505 Mobile (US) Inc., which provides consultancy services to other Group companies and the UK-based DR Studios Ltd., which develops Free to Play video games.
The Australian companies 505 Games Australia Pty Ltd., Infinite Interactive Pty. and Infinity Plus Two Pty own the intellectual properties for the video games Puzzle Quest and Gems of War, for which they provide live support.
In July 2022, 505 Games Mobile S.r.l. acquired 100% of D3Publisher of America Inc., an American publisher of Free to Play video games, including spin-offs of the Puzzle Quest series. The company was then rebranded 505 Go Inc. after the acquisition was finalized. As part of the streamlining of the Group's corporate structure, the activities previously carried out by 505 Mobile (US) Inc. are now performed by the subsidiary 505 Go Inc., while 505 Mobile (US) Inc. has been placed into liquidation.
The brands 505 Mobile and 505 Go! are used for worldwide publishing activities in the Free to Play segment.
Italian Distribution: consists of the distribution in Italy of video games purchased from international publishers and trading cards. The Italian Distribution activities are carried out by the Parent Company, Digital Bros S.p.A.. Other Activities: all remaining activities fall under the Other Activities operating segment for reporting purposes. This segment includes training and professional courses related to the video game industry carried out by the subsidiary Digital Bros Game Academy S.r.l..The Group also has a 60% stake in the UK-based company Seekhana Ltd..
Holding: activities consist of management of HR, financial planning and business development carried out by the Parent Company. Digital Bros China Ltd., Digital Bros Asia Pacific (HK) Ltd. and 505 Games Japan K.K. support the Holding activities with the business development in the Asian markets. Digital Bros Holdings Ltd. was not active during the period.All the above-mentioned companies are fully owned, except for the 60% held in Seekhana Ltd and the 75% held in Chrysalide Jeux et Divertissement Inc..
The organization chart for operating companies as of September 30th, 2025 was as follows:
During the reporting period, the Group operated in the following locations:
Company
Address
Activity
AvantGarden S.r.l.
Via Tortona, 37 Milan
Offices
Chrysalide Jeux et Divertissement Inc. (1)
300 Rue Saint Paul - Bureau 410, Quebec City, Canada
Offices
Digital Bros S.p.A.
Via Tortona, 37 Milan
Offices
Digital Bros S.p.A.
Via Boccaccio 95, Trezzano sul Naviglio (Milan)
Logistics
Digital Bros Asia Pacific (HK) Ltd.
33-35 Hillier Street, Sheung Wan, Hong Kong
Offices
Digital Bros China (Shenzhen) Ltd.
Wang Hai Road, Nanshan district, Shenzhen, 518062,
China
Offices
Digital Bros Game Academy S.r.l.
Via Labus, 15 Milan
Offices
DR Studios Ltd.
403 Silbury Boulevard, Milton Keynes, U.K.
Offices
Game Entertainment S.r.l.
Via Tortona, 37 Milan
Offices
505 Games S.p.A.
Via Tortona, 37 Milan
Offices
505 Games Australia Pty Ltd.
333 Collins Street, South Melbourne Victoria, Australia
Offices
505 Games Japan K.K.
Jimbocho, 2-11-15, Kandajimbocho Chiyoda-ku, Tokyo,
Giappone
Offices
505 Games Ltd.
403 Silbury Boulevard, Milton Keynes, U.K.
Offices
505 Games (US) Inc.
5145 Douglas Fir Road, Calabasas, California, U.S.A.
Offices
505 Go Inc.
5145 Douglas Fir Road, Calabasas, California, U.S.A.
Offices
505 Pulse S.r.l.
Via Tortona, 37 Milan
Offices
Ingame Studios a.s.
Moravské náměstí 249/8, Brno, Czech Republic
Offices
Kunos Simulazioni S.r.l.
Via degli Olmetti 39, Formello (Rome)
Offices
Infinite Interactive Pty Ltd.
333 Collins Street, Melbourne Victoria, Australia
Offices
Infinity Plus Two Pty Ltd.
333 Collins Street, Melbourne Victoria, Australia
Offices
505 Mobile S.r.l.
Via Tortona, 37 Milan
Offices
Rasplata B.V.
Churchill-laan 131 2, Amsterdam, Netherlands
Offices
Seekhana Ltd.
403 Silbury Boulevard, Milton Keynes, U.K.
Offices
Supernova Games Studios S.r.l.
Via Tortona, 37 Milan
Offices
The companies have been fully consolidated using the line-by-line consolidation method, with recognition of the share of equity and profit or loss of the reporting period attributable to non-controlling interests.
MAIN INTELLECTUAL PROPERTIES OWNED BY THE GROUP
First launched in 2014, Assetto Corsa is a car racing simulator, developed by the internal studio Kunos Simulazioni S.r.l..
Assetto Corsa faithfully recreates the performance and the driving experience of real cars, replicating tyre grip, aerodynamic impact, engine parameters as well as different weather conditions. Nearly one hundred cars are available to choose from, reproduced in collaboration with the most prestigious automotive manufacturers, and that can be driven on legendary circuits including Silverstone, Monza, Nürburgring-Nordschleife, Barcelona, Brands Hatch, Spa Francorchamps. All circuits are recreated using Laser Scan technology so that each bump, curb and slope is a perfect match to the real counterpart. Assetto Corsa can be played in fully customizable single player and multiplayer modes including quick races, race weekends and free practice sessions, qualifying session and race day.
Launched in 2018, Assetto Corsa Competizione is the official video game for GT World Challenge and the official Esport video game for FIA Motorsport Games.
The second version of Assetto Corsa, Assetto Corsa EVO is currently in development. The video game launched in Early Access for personal computers in January 2025.
A new spin-off for the video game, Assetto Corsa Rally, currently under development by the subsidiary Supernova Games Studios, is scheduled for release in Early Access for PC on November 13, 2025.
Since launch, the Assetto Corsa franchise has generated revenues of around Euro 180 million.
Developed by the Czech studio Ingame Studios S.r.l., Crime Boss: Rockay City is a first-person shooter video game, set in the thriving metropolis of Rockay City during the Nineties. Find a few familiar faces there too: from the charismatic Travis Baker (Michael Madsen) and his team (Michael Rooker, Kim Basinger, Danny Glover and Damion Poitier) to rival gang bosses (Danny Trejo and Vanilla Ice). Play as Baker as he builds his empire using strategy, cunning and a little fire power to carry out heists and take territory from rival gangs. Winning the turf war won't be easy though: rival gangs will try to take the city for themselves, and Sheriff Norris (Chuck Norris) will stop at nothing to bring all criminals to justice. Stealing everything from cash and drugs, through to priceless artifacts is more fun with accomplices: jump into the co-op multiplayer and take on thrilling hits and heists with up to four players.
Crime Boss: Rockay City launched exclusively for personal computers on Epic Games Store on March 28th, 2023. Console versions were released in June 2023. A new PC version launched on Steam in June 2024.
Developed by the Polish studio One More Level, Ghostrunner is a first-person cyberpunk action slasher videogame set in a grim dystopic future. Players assume the role of an android ninja ascending the Dharma Tower, an ominous neon tower built by the Architect, who died mysteriously years ago, and representing the last bastion of humanity, torn by violence, poverty, and class inequality. Players must fight their way to the top of the structure to bring down the tyrannical Keymaster and avert humanity's extinction.
Since its launch in October 2020, Ghostrunner became a successful title, selling over one million copies worldwide. The game is available on all platforms. The second version, Ghostrunner 2 launched in the second quarter of FY2024
Developed by the Australian studio Infinity Plus Two acquired by the Group in January 2021, Gems of War is a Free to Play puzzle-RPG video game first launched in 2014 and available on mobile, Steam, console and Nintendo Switch.
Embark on an epic journey across the realms Krystara where heroes can take on a world of adventure unlike any other: battle enemies matching gems to power and cast spells, and matching skulls to smite the enemies. Then take the spoils of war and forge a mighty empire.
Since its launch, Gems of War has generated revenues exceeding Euro 39 million.
Developed by the Australian studio Infinity Plus Two acquired by the Group in January 2021, Puzzle Quest 3 is an all-new instalment to the globally renowned puzzle-RPG franchise. The first version launched in 2007, with successful spin-offs published by the newly acquired 505 Go Inc..
Puzzle Quest 3 is a Free to Play videogame available on mobile, Personal Computer and console.
The game's intellectual property is owned by Digital Bros Group and it is used for the videogame published by the American 505 Go Inc..
THE VIDEO GAMES MARKET
The video game market is a key segment of the entertainment industry, alongside movies, books, magazines, and toys. These sectors share common characteristics, brands, features, and intellectual properties, contributing to a dynamic and interconnected entertainment landscape.
The growth achieved by the video game industry during the pandemic generated widespread optimism, prompting many competitors to initiate new productions and significantly increase the average investment per game. As a result, an unprecedented and unexpected number of new video games were launched on the market, making it harder to meet the expected volume and revenue targets. Because of this, many companies were forced to reassess their strategies regarding portfolio investments and marketing expenditures to adapt to this competitive scenario. Starting from the second half of 2023, the market has seen waves of layoffs, studio closures, and project cancellations. As of the reporting date, such a situation remains unresolved.
The video games market value chain is as follows:
The COVID-19 pandemic further accelerated the decline of retail distribution, which has now become marginal and has been almost entirely supplanted by digital distribution channels.
Developers
Developers create and design video games, usually based on original ideas, a successful brand, a movie, sports simulations etc.. It has become increasingly common for highly successful video games to be adapted into movies, TV series, cartoons, and other media.
Developers generally retain intellectual property rights, but they may transfer their rights to publishers for a limited period of time, which is defined contractually. Publishers play therefore a key role in this value chain, contributing to the production of video games, creating a player community, and managing its distribution across their global commercial networks.
In some cases, developers may choose to publish and market the game independently. However, this approach significantly increases the financial and operational risks for these players.
Publishers
The publisher is responsible for the launch of the video game, defining its global commercial strategy, overseeing product positioning and packaging, bearing all the related risks, while sharing instead all opportunities from the game success with the developer. Publishers typically finance the development process and often acquire the game's intellectual property either permanently or for a set period, including licensing rights for sequels.
Console manufacturers
The console manufacturer designs and produces the hardware used for playing video games. Sony manufactures the PlayStation, Microsoft the Xbox and Nintendo the Nintendo Switch. Console manufacturers often also operate as video game publishers.
The key marketplaces that sell console video games are Sony's PlayStation Store, Microsoft's Xbox Live and Nintendo's eShop. Steam is the global leader in the digital distribution of video games for personal computers. More recently, the US company Epic Games Inc. launched its Epic Games Store for PC.
The digitalization of the market has driven both Microsoft (with Xbox Game Pass) and Sony (with PlayStation Now) to develop digital platforms where players can access an entire library of video games for a predefined period by paying a subscription fee, rather than purchasing individual titles. Revenues for publishers and developers are recognized when a game is added to the platform, based on a predetermined annual fee defined for each product. Additionally, as end consumers play the games, the platform provides an incremental fee to the publishers based on user engagement.
Digital distribution has extended the video game's lifecycle. Video games' availability is no longer limited to their launch on the retail channel, but rather they remain available on marketplaces for longer, thus generating a continuous revenue stream, which can be significantly influenced by promotional campaigns. The video games' life cycle can also be extended by releasing additional chapters and content after the official launch of the main game. The additional features (the so-called DLC, or Downloadable Contents) are available on digital marketplaces for consumers to buy or download for free.
Free to Play video games are only available in digital format on the following marketplaces: the App Store for iPhone and iPad, the PlayStore for Android for Western markets and a number of different marketplaces for Far Eastern markets. Some Free to Play video games are also available on Sony PlayStation Store, Microsoft's Xbox Live for console, Steam and Epic Games Store for PC.
The video game industry does not appear to be materially impacted by the current changes and developments in international tariff policies.
SEASONALITY EFFECTS
Market seasonality is heavily influenced by the release of highly anticipated and popular video games. The launch of a successful title in a specific period can lead to significant revenue volatility across quarters. Sales are often concentrated in the first few days following the game's release, especially when the launch is supported by targeted marketing and promotional campaigns.
The digitalization of the market has contributed to a more stable revenue stream for publishers across quarters. Unlike physical retail cycles, digital marketplaces recognize revenue at the time of the end consumer's purchase, thereby reducing the impact of seasonal sales fluctuations.
Promotional campaigns on digital marketplaces play a crucial role in boosting revenue during specific periods. Publishers strategically align their marketing efforts with peak consumer spending seasons, such as Christmas in European markets, Black Friday in the U.S., and the Chinese New Year.
Revenues from Free-to-Play games tend to be less affected by seasonal fluctuations compared to Premium Games. Free-to-Play titles typically generate steadily increasing revenue over time, without significant spikes at launch, except in rare cases involving highly anticipated titles with exceptionally well-known brands. The impact of promotions on revenue performance is significant; however, unlike Premium Games, these promotions occur much more frequently and are spread over shorter intervals, preventing excessive revenue volatility across different quarters.
The minimal contribution of physical distribution sales to total consolidated revenue has significantly reduced the volatility of net working capital, enabling more linear net financial position trends.
SIGNIFICANT EVENTS DURING THE REPORTING PERIOD
No significant events occurred during the period.
Relations with StarbreezeOver the past fiscal years, Digital Bros Group and Starbreeze group ("Starbreeze") have entered multiple different transactions, summarized below.
In May 2016, the Group sold back the PAYDAY2 co-publishing rights to Starbreeze against a payment of USD 30 million and an earn-out of USD 40 million as 33% of the net revenues from the future video game PAYDAY3.
In January and February 2020, the Group conducted the following transactions:
on January 15th, 2020, Digital Bros S.p.A. acquired 18,969,395 Starbreeze STAR A shares held by Swedish company Varvtre AB for a consideration of around SEK 25.8 million, at a price of SEK 1.36 per share;
on February 26th, 2020, Digital Bros S.p.A. completed the acquisition of all of the assets held by Smilegate Holdings in Starbreeze for a price of Euro 19.2 million. The assets acquired have a nominal value of Euro 35.3 million, as detailed below:
a convertible bond of approximately SEK 215 million issued by Starbreeze for a total of Euro
16.9 million;
a receivable of around SEK 165 million for a consideration of Euro 100 thousand. This credit fell under the Starbreeze restructuring process and provided for repayment based on the terms of payment approved by the Swedish District Court and no later than December 2024;
no. 3,601,083 Starbreeze STAR A shares and no. 6,018,948 Starbreeze STAR B shares for a total amount of Euro 2.2 million.
On July 19th, 2023, the Company requested the full conversion of the convertible bond, which resulted in the issuance of no. 148.3 million Starbreeze B shares.
During the last months of the previous fiscal year, different interpretations emerged between the Group and Starbreeze AB about the calculation of the earn out from the transfer of PAYDAY 2 rights to the Swedish developer and the repayment of receivables related to other contracts between the two groups.
On February 27th, 2025, the Group reached a settlement agreement with the Swedish developer, resolving all outstanding matters. Consequently, the Provision for Starbreeze arbitration costs accrued as of June 30, 2024 was released, as no arbitration proceeding is required. The agreement was reflected in the Group's half-year-consolidated financial statements with a neutral effect on its net result.
Ahead of Starbreeze AB's Annual General Meeting on May 15th, 2025, the Group submitted an alternative list of candidates for the company's Board of Directors, differing from the proposal initially presented by the Nomination Committee. Following the AGM's approval of the Group's list and the election of the Group's CFO to Starbreeze's Board, the Group determined that it had acquired significant influence over the Swedish company as of that date.
The assessment was based on the following IAS 28 indicators:
representation on the investee's board of directors or equivalent governing body;
participation in policy-making processes, including decisions on dividends and other distributions.
As a result of the above, the equity investment was recognized at fair value as of May 15th, 2025 and the carrying amount was subsequently reduced as of June 30th, 2025 to reflect the Group's share of Starbreeze AB's losses for the period. At the same reporting date, the carrying amount was further adjusted to reflect the high volatility of the share price of the Swedish company at the date when significant influence was initially acquired.
As of September 30th, 2025, the Group recognized an additional Euro 4.9 million write off in accordance with IAS 28, bringing the carrying value of the associate to Euro 0.8 million. The fair value of Starbreeze shares as of September 30th, 2025 would be Euro 5.2 million.
As of September 30th, 2025, the Group still holds no. 87 million Starbreeze A shares and no. 223.4 million Starbreeze B shares, representing 19.11% of the share capital and 37.65% of voting rights.
CONSOLIDATED PROFIT AND LOSS STATEMENT AT SEPTEMBER 30TH, 2025
Euro thousand
September 30th, 2025
September 30th, 2024
Change
1
Gross revenue
45,457
100.0%
21,478
100.0%
23,979
n.m.
2
Revenue adjustments
0
0.0%
0
0.0%
0
n.m.
3
Net revenue
45,457
100.0%
21,478
100.0%
23,979
n.m.
4
Purchase of products for resale
(704)
-1.5%
(173)
-0.8%
(531)
n.m.
5
Purchase of services for resale
(1,506)
-3.3%
(1,774)
-8.3%
268
-15.1%
6
Royalties
(12,421)
-27.3%
(4,765)
-22.2%
(7,656)
n.m.
7
Changes in inventories of finished products
(84)
-0.2%
(913)
-4.3%
829
-90.8%
8
Total cost of sales
(14,715)
-32.4%
(7,625)
-35.5%
(7,090)
93.0%
9
Gross profit (3+8)
30,742
67.6%
13,853
64.5%
16,889
n.m.
10
Other income
2,127
4.7%
1,742
8.1%
385
22.1%
11
Costs for services
(3,163)
-7.0%
(2,058)
-9.6%
(1,105)
53.7%
12
Rent and leasing
(128)
-0.3%
(94)
-0.4%
(34)
35.5%
13
Payroll costs
(7,321)
-16.1%
(7,272)
-33.9%
(49)
0.7%
14
Other operating costs
(305)
-0.7%
(260)
-1.2%
(45)
17.3%
15
Total operating costs
(10,917)
-24.0%
(9,684)
-45.1%
(1,233)
12.7%
16
Gross operating margin (EBITDA) (9+10+15)
21,952
48.3%
5,911
27.5%
16,041
n.m.
17
Depreciation and amortization
(8,716)
-19.2%
(7,317)
-34.1%
(1,399)
19.1%
18
Provisions
0
0.0%
0
0.0%
0
n.m.
19
Asset impairment charge
0
0.0%
(27)
-0.1%
27
n.m.
20
Impairment reversal
0
0.0%
0
0.0%
0
0.0%
21
Total depreciation, amortization and impairment adjustments
(8,716)
-19.2%
(7,344)
-34.2%
(1,372)
18.7%
22
Operating margin (EBIT) (16+21)
13,236
29.1%
(1,433)
-6.7%
14,669
n.m.
23
Interest and financial income
756
1.7%
456
2.1%
300
65.7%
24
Interest and financial expenses
(5,717)
-12.6%
(1,129)
-5.3%
(4,588)
n.m.
25
Net interest income/(expenses)
(4,961)
-10.9%
(673)
-3.1%
(4,288)
n.m.
26
Profit/ (loss) before tax (22+25)
8,275
18.2%
(2,106)
-9.8%
10,381
n.m.
27
Current tax
(3,902)
-8.6%
(68)
-0.3%
(3,834)
n.m.
28
Deferred tax
309
0.7%
(161)
-0.7%
470
n.m.
29
Total taxes
(3,593)
-7.9%
(229)
-1.1%
(3,364)
n.m.
30
Net profit/loss
4,682
10.3%
(2,335)
-10.9%
7,017
n.m.
attributable to the shareholders of the Parent Company
4,586
10.1%
(2,302)
-10.7%
6,888
n.m.
attributable to non-controlling interests
96
0.2%
(33)
-0.2%
129
n.m.
Earnings per share:
33
Basic earnings per share (in Euro)
0.32
(0.16)
0.48
n.m.
34
Diluted earnings per share (in Euro)
0.31
(0.16)
0.47
n.m.
Consolidated net revenue as of September 30th, 2025 amounted to Euro 45.5 million, more than doubling the Euro
21.5 million reported in the first quarter of the previous year.
The first quarter of FY2026 benefitted from the successful launch of Wuchang: Fallen Feathers, released during the month of June 2025, together with the revenue growth of the Assetto Corsa brand.
A breakdown of net revenue by operating segment as of September 30th, 2025 is provided below:
Net revenueEuro thousand
September 30th, 2025
September 30th, 2024
Change €
Change %
Premium Games
43,220
16,989
26,231
n.m.
Free to Play
2,102
3,453
(1,351)
-39.1%
Italian Distribution
79
909
(830)
-91.3%
Other Activities
56
127
(71)
-56.0%
Total net revenue
45,457
21,478
23,979
n.m.
Premium Games revenue amounted to Euro 43.2 million, increasing from Euro 17 million realized in the first quarter of the last fiscal year and representing 95% of total revenue. The Assetto Corsa brand generated Euro 6.4 million during the reporting period, a 9% increase compared to Euro 5.8 million as of September 30th, 2024. The brand benefitted from the launch of the new version Assetto Corsa EVO, in development by the internal studio Kunos Simulazioni. The new title is available in Early Access on Steam ahead of the full game release.
The significant volumes generated by Wuchang: Fallen Feathers in the quarter drove the increase in the revenue share from co-owned IPs and long-term publishing agreements, which were 72% of the total Premium Games revenue.
A breakdown of Premium Games revenue by the type of rights held by the Group as of September 30th, 2025 is provided below compared to the previous fiscal year:
September 30, 2025
Publishing
agreements 9%
Owned IPs
19%
Co-owned IPs and long
term agreements 72%
September 30, 2024
Publishing agreements 15%
Owned IPs 56%
Co-owned IPs and long term agreements
29%
Free to Play revenue amounted to Euro 2.1 million, down by 39.1% compared to the first quarter in the previous fiscal year. The subsidiary 505 Go! experienced some technical issues during the month of August, which temporarily reduced its revenue streams. Such difficulties were resolved during the quarter.
Revenue was generated almost entirely in foreign markets. Digital sales accounted for 92% of total revenue, in line with the last fiscal years.
The cost of sales went from Euro 7,625 thousand (35.5% of revenue) to Euro 14,715 thousand (32.4% of revenue), reflecting the different product mix. The incidence of royalties on revenues increased from 22.2% to 27.3%, due to the lower contribution of revenues from owned IPs, which typically carry lower royalty rates. As a result, gross profit represented 64.5% of revenue, going from Euro 13,853 thousand to Euro 30,742 thousand.
Other revenue amounted to Euro 2,127 thousand, up 22.1% compared to Euro 1,742 thousand as of September 30th, 2024. The capitalization of internal studio video game development included the development of the video game Assetto Corsa EVO by the subsidiary Kunos Simulazioni S.r.l and the new video game Assetto Corsa Rally, in development by the subsidiary Supernova Games Studio S.r.l..
Total operating costs increased by 12.7% compared to Euro 9,684 thousand in the first quarter of the last fiscal year. The increase was mainly attributable to higher marketing and advertising costs supporting the launch of Wuchang: Fallen Feathers. Payroll costs remained largely unchanged compared to September 30th, 2024.
As of September 30th, 2025, the EBITDA margin was 48.3% of revenue and amounted to Euro 21,952 thousand, increasing by Euro 16,041 thousand.
Depreciation and amortization amounted to Euro 8,716 thousand, up by Euro 1,399 thousand from Euro 7,317 thousand as of September 30th, 2024.
The EBIT margin was positive at Euro 13,236 thousand, significantly improved compared to the negative EBIT at Euro 1,433 of the first quarter of the previous fiscal year.
The net interest expense amounted to Euro 4,961 thousand, compared to Euro 673 thousand as of September 30th, 2024. Financial expenses include Euro 4.895 thousand relating to the write offs of the equity investment in Starbreeze AB in accordance with IAS 28, reflecting Digital Bros' share of the losses recognized by the associate in the quarter. Until May 15th, 2025, the equity investment had been valued at fair value with changes recognized in the consolidated statement of comprehensive income, as the Group did not consider having significant influence over the Swedish company prior to that date.
The profit before tax was at Euro 8,275 thousand, improved by Euro 10,381 thousand from the Euro 2,106 thousand loss before tax realized as of September 30th, 2024.
As of September 30th, 2025, the consolidated net profit amounted to Euro 4,682 thousand, compared to the net loss at Euro 2,335 thousand of the first quarter in the last fiscal year.
The net profit attributable to the shareholders of the Parent Company amounted to Euro 4,586 thousand, improved by Euro 6,888 thousand compared to the previous reporting period. The net profit attributable to non-controlling interest amounted to Euro 96 thousand, compared to the net loss at Euro 33 thousand as of September 30th, 2024.
The basic earnings per share were at Euro 0.32 and the diluted earnings per share amounted to Euro 0.31, compared to Euro 0.16 loss per share as of September 30th, 2024.
CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30TH, 2025
Euro thousand
September 30th, 2025
June 30th, 2025
Change
Non-current assets
1
Property, plant and equipment
5,019
5,459
(440)
-8.1%
2
Investment properties
0
0
0
0.0%
3
Intangible assets
105,980
111,234
(5,254)
-4.7%
4
Equity investments
2,381
7,159
(4,778)
-66.7%
5
Non-current receivables and other assets
2,254
2,601
(347)
-13.4%
6
Deferred tax assets
23,995
23,723
272
1.1%
7
Non-current financial activities
2,861
2,821
40
1.4%
Total non-current assets
142,490
152,997
(10,507)
-6.9%
Current assets
8
Inventories
1,272
1,356
(84)
-6.2%
9
Trade receivables
8,069
14,185
(6,116)
-43.1%
10
Tax receivables
5,424
8,600
(3,176)
-36.9%
11
Other current assets
4,730
5,706
(976)
-17.1%
12
Cash and cash equivalents
16,290
6,718
9,572
n.m.
13
Other current financial assets
0
0
0
n.m.
Total current assets
35,785
36,565
(780)
-2.1%
TOTAL ASSETS
178,275
189,562
(11,287)
-6.0%
Shareholders' equity
14
Share capital
(5,706)
(5,706)
0
0.0%
15
Reserves
(9,378)
(9,632)
254
-2.6%
16
Treasury shares
0
0
0
0.0%
17
Retained earnings
(103,198)
(98,612)
(4,586)
4.7%
Equity attributable to the shareholders of the Parent Company
(118,282)
(113,950)
(4,332)
3.8%
Equity attributable to non-controlling interests
(886)
(790)
(96)
12.2%
Total net equity
(119,168)
(114,740)
(4,428)
3.9%
Non-current liabilities
18
Employee benefits
(1,154)
(1,109)
(45)
4.0%
19
Non-current provisions
(1,059)
(1,059)
0
0.0%
20
Other non-current payables and liabilities
(4,947)
(4,947)
0
0.0%
21
Non-current financial liabilities
(946)
(1,221)
275
-22.6%
Total non-current liabilities
(8,106)
(8,336)
230
-2.8%
Current liabilities
22
Trade payables
(32,753)
(29,636)
(3,117)
10.5%
23
Tax payables
(1,240)
(1,142)
(98)
8.6%
24
Short term provisions
0
0
0
n.m.
25
Other current liabilities
(3,737)
(10,838)
7,101
-65.5%
26
Current financial liabilities
(13,271)
(24,870)
11,599
-46.6%
Total current liabilities
(51,001)
(66,486)
15,485
-23.3%
TOTAL LIABILITIES
(59,107)
(74,822)
15,715
-21.0%
TOTAL NET EQUITY AND LIABILITIES
(178,275)
(189,562)
11,287
-6.0%
Total non-current assets decrease by Euro 10,507 thousand during the reporting period, mainly due to a reduction in intangible assets and equity investments.
Intangible assets decrease by Euro 5,254 thousand as a result of Euro 8,196 thousand depreciation and impairment charges and investments for Euro 2,942 thousand, mainly related to video games under the Assetto Corsa and Puzzle Quest brands.
Equity investments decrease by Euro 4,777 thousand, primarily due to a Euro 4,894 thousand write off of the equity investment in Starbreeze AB. As of September 30th, 2025, the carrying amount of the investment in Starbreeze is at Euro 0.8 million in accordance with IAS 28, compared with a fair value of Euro 4.8 million.
The net financial position as of September 30th, 2025 is detailed below, as restated by the Group consistently with previous fiscal years:
Euro thousand
September 30th, 2025
June 30th, 2025
Change
12
Cash and cash equivalents
16,290
6,718
9,572
13
Other current financial assets
0
0
0
26
Current financial liabilities
(13,271)
(24,870)
11,599
Current net financial position
3,019
(18,152)
21,171
7
Non-current financial assets
2,861
2,821
40
21
Non-current financial liabilities
(946)
(1,221)
275
Non-current financial liabilities
1,915
1,600
315
Total net financial position
4,934
(16,552)
21,486
As of September 30th, 2025, the Group's restated net financial position was positive at Euro 4,934 thousand, improving by Euro 21,486 thousand compared to Euro 16,552 thousand as of June 30th, 2025. The Group expects to be able to meet its current liabilities through the projected future cash flow. The restated net financial position, excluding the impact of IFRS 16, was positive at Euro 7,120 thousand.
The net financial position prepared in accordance with the "Guidelines on disclosure requirements under the Prospectus Regulation" issued by the European Securities and Markets Authority (ESMA), was positive at Euro 2,073 thousand, improving by Euro 21,446 thousand from June 30th, 2025.
SEGMENT REPORTING
Premium Games
Reclassified P&L highlights
Euro thousand
Premium Games
September 30th, 2025
September 30th, 2024
Change
1
Gross revenue
43,220
100.0%
16,989
100.0%
26,231
n.m.
2
Revenue adjustments
0
0.0%
0
0.0%
0
0.0%
3
Net revenue
43,220
100.0%
16,989
100.0%
26,231
n.m.
4
Purchase of products for resale
(704)
-1.6%
(165)
-1.0%
(539)
n.m.
5
Purchase of services for resale
(766)
-1.8%
(810)
-4.8%
44
-5.5%
6
Royalties
(11,025)
-25.5%
(3,786)
-22.3%
(7,239)
n.m.
7
Changes in inventories of finished
products
(30)
-0.1%
(273)
-1.6%
243
-89.0%
8
Total cost of sales
(12,525)
-29.0%
(5,034)
-29.6%
(7,491)
n.m.
9
Gross profit (3+8)
30,695
71.0%
11,955
70.4%
18,740
n.m.
10
Other income
1,605
3.7%
1,332
7.8%
273
20.5%
11
Costs for services
(2,416)
-5.6%
(839)
-4.9%
(1,577)
n.m.
12
Rent and leasing
(49)
-0.1%
(6)
0.0%
(43)
n.m.
13
Payroll costs
(4,743)
-11.0%
(4,310)
-25.4%
(433)
10.0%
14
Other operating costs
(159)
-0.4%
(121)
-0.7%
(38)
31.3%
15
Total operating costs
(7,367)
-17.0%
(5,276)
-31.1%
(2,091)
39.6%
16
Gross operating margin (EBITDA) (9+10+15)
24,933
57.7%
8,011
47.2%
16,922
n.m.
17
Depreciation and amortization
(7,794)
-18.0%
(6,397)
-37.7%
(1,397)
21.8%
18
Provisions
0
0.0%
0
0.0%
0
0.0%
19
Asset impairment charge
0
0.0%
0
0.0%
0
0.0%
20
Impairment reversal
0
0.0%
0
0.0%
0
0.0%
21
Total depreciation, amortization and impairment adjustments
(7,794)
-18.0%
(6,397)
-37.7%
(1,397)
21.8%
22
Operating margin (EBIT) (16+21)
17,139
39.7%
1,614
9.5%
15,525
n.m.
Premium Games revenue amounted to Euro 43.2 million, increasing from Euro 17 million realized in the first quarter of the last fiscal year and representing 95% of total revenue.
The Assetto Corsa brand generated Euro 6.4 million during the reporting period, a 9% increase compared to Euro
5.8 million as of September 30th, 2024. The brand benefitted from the launch of the new version Assetto Corsa EVO, in development by the internal studio Kunos Simulazioni. The new title is available in Early Access on Steam ahead of the full game release.
The significant volumes generated by Wuchang: Fallen Feathers in the quarter drove the increase in the revenue share from co-owned IPs and long-term publishing agreements, which were 72% of the total Premium Games revenue.
A breakdown of Premium Games revenue by the type of rights held by the Group as of June 30th, 2025 is provided below compared to the previous fiscal year:
September 30, 2025
Publishing
agreements
9%
Owned IPs
19%
Co-owned IPs and long
term agreements 72%
September 30, 2024
Publishing agreements 15%
Owned IPs 56%
Co-owned IPs and long term agreements
29%
A breakdown by revenue type is provided below:
Euro thousand | September 30th, 2025 | September 30th, 2024 | Change | |
Retail distribution revenue | 3,085 | 274 | 2,811 | n.m. |
Digital distribution revenue | 39,697 | 15,715 | 23,982 | n.m. |
Sublicensing revenue | 438 | 975 | (537) | n.m. |
Services revenue | 0 | 25 | (25) | |
Total Premium Games revenue | 43,220 | 16,989 | 26,231 | n.m. |
Digital distribution revenue amounted approximately to 92% of the total Premium Games revenue, in line with previous reporting periods.
Digital distribution revenue included transactional income from the sale of video games to players through digital marketplaces, as well as buyout revenue, which relates to the transfer of intellectual property rights and associated content to these platforms. Buyout revenue also includes proceeds from subscription services, promotional campaigns, and minimum guarantee arrangements.
The increase in retail distribution revenues reflects the strong physical sales of the video game Wuchang: Fallen Feathers during the quarter.
Digital distribution revenue as of September 30th, 2025 is detailed below:
Euro thousand | September 30th, 2025 | September 30th, 2024 | Change | |
Console | 14,469 | 7,766 | 6,703 | 86.3% |
Personal Computer | 24,648 | 7,297 | 17,351 | n.m. |
Mobile | 580 | 652 | (72) | -11.0% |
Total digital distribution revenue | 39,697 | 15,715 | 23,982 | n.m. |
The total cost of sales increased by Euro 7,491 thousand, from Euro 5,034 thousand to Euro 12,525 thousand as of September 30th, 2025.
Gross profit amounted to Euro 30,695 thousand, increased by Euro 18,740 thousand compared to Euro 11,955 thousand as of September 30th, 2024.
Other revenue amounted to Euro 1,605 thousand, slightly increasing by Euro 273 thousand. The capitalization of internal studio video game development included the development of the video game Assetto Corsa EVO by the subsidiary Kunos Simulazioni S.r.l and the new video game Assetto Corsa Rally, in development by the subsidiary Supernova Games Studio S.r.l..
Total operating costs were up 39.6%, increasing by Euro 2,091 thousand compared to the first quarter in the previous fiscal year. Such increase was mainly driven by an increase in costs for services for Euro 1,577 thousand due to higher advertising costs related to the launch of Wuchang: Fallen Feathers.
Depreciation and amortization amounted to Euro 7,794 thousand and increased by Euro 1,397 thousand compared to Euro 6,397 thousand as of September 30th, 2024.
As of September 30th, 2025, EBIT was positive at Euro 17,139 thousand, significantly improved from Euro 1,614 thousand EBIT of the first quarter of the previous fiscal year.
Free to Play
Reclassified P&L highlights
Euro thousand | Free to Play | ||||||
September 30th, 2025 | September 30th, 2024 | Change | |||||
1 | Gross revenue | 2,102 | 100.0% | 3,453 | 100.0% | (1,351) | -39.1% |
2 | Revenue adjustments | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
3 | Net revenue | 2,102 | 100.0% | 3,453 | 100.0% | (1,351) | -39.1% |
4 | Purchase of products for resale | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
5 | Purchase of services for resale | (740) | -35.2% | (964) | -27.9% | 224 | -23.2% |
6 | Royalties | (1,396) | -66.4% | (979) | -28.4% | (417) | 42.7% |
7 | Changes in inventories of finished products | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
8 | Total cost of sales | (2,136) | -101.6% | (1,943) | -56.3% | (193) | 10.0% |
9 | Gross profit (3+8) | (34) | -1.6% | 1,510 | 43.7% | (1,544) | n.m. |
10 | Other income | 522 | 24.9% | 410 | 11.9% | 112 | 27.4% |
11 | Costs for services | (264) | -12.6% | (633) | -18.3% | 369 | -58.3% |
12 | Rent and leasing | (7) | -0.4% | (19) | -0.6% | 12 | -62.2% |
13 | Payroll costs | (1,342) | -63.8% | (1,572) | -45.5% | 230 | -14.7% |
14 | Other operating costs | (21) | -1.0% | (24) | -0.7% | 3 | -12.6% |
15 | Total operating costs | (1,634) | -77.7% | (2,248) | -65.1% | 614 | -27.3% |
16 | Gross operating margin (EBITDA) (9+10+15) | (1,146) | -54.5% | (328) | -9.5% | (818) | n.m. |
17 | Depreciation and amortization | (661) | -31.4% | (585) | -16.9% | (76) | 13.0% |
18 | Provisions | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
19 | Asset impairment charge | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
20 | Impairment reversal | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
21 | Total depreciation, amortization and impairment adjustments | (661) | -31.4% | (585) | -16.9% | (76) | 13.0% |
22 | Operating margin (EBIT) (16+21) | (1,807) | -85.9% | (913) | -26.5% | (894) | 97.8% |
A breakdown of Free to Play gross revenue by video game is provided below:
Euro thousand | September 30th, 2025 | September 30th, 2024 | Change | |
505 Go Inc. | 1,050 | 2,336 | (1,286) | -55.1% |
Gems of War | 675 | 812 | (137) | -16.9% |
Puzzle Quest 3 | 107 | 172 | (65) | -37.8% |
Other products | 270 | 133 | 137 | n.m. |
Total Free to Play revenue | 2,102 | 3,453 | (1,351) | -39.1% |
Free to Play revenue amounted to Euro 2.1 million, down by 39.1% compared to the first quarter in the previous fiscal year. The subsidiary 505 Go! experienced some technical issues during the month of August, which temporarily reduced its revenue streams. Such difficulties were resolved during the quarter.
The video game Gems of War generated Euro 675 thousand revenue, down 16.9% compared to the first quarter in the past fiscal year. The title still delivers interesting volumes despite being launched over a decade ago.
The cost of sales amounted to Euro 2,136 thousand, up Euro 193 thousand compared with the previous fiscal year, primarily due to higher royalties of Euro 417 thousand, partially offset by lower purchase of services for resale, totaling Euro 224 thousand. The incidence of royalties on total revenues was 66.4% (compared with 28.4% in the same period of the previous year), resulting in a significant contraction of gross profit. The contraction in the revenues from 505Go! products did not allow the contractual minimum guarantee to be met, thereby increasing the weight of royalties as a percentage of revenues.
Other income amounted to Euro 522 thousand, increased by Euro 112 thousand compared to September 30th, 2024, reflecting the video games currently in production by the Group's subsidiaries. The capitalization of own work included the video game Puzzle Quest: Immortals by the Australian subsidiary Infinity Plus Two and the new title Battle Island II in development by the subsidiary DR Studios Ltd, which is also involved in some development activities for the Premium Games operating segment.
The total operating costs amounted to Euro 1,634 thousand, decreasing by Euro 614 thousand compared to the first quarter of the last fiscal year. The reduction was driven by lower cost for services by Euro 369 thousand and lower payroll costs by Euro 230 thousand.
EBITDA was negative at Euro 1,146 thousand, down by Euro 818 thousand compared to the negative EBITDA at Euro 328 thousand as of September 30th, 2024.
Depreciation and amortization amounted to Euro 661 thousand and included Euro 440 thousand related to the depreciation of the video game Puzzle Quest. The remaining amounts related to the IFRS 16 application to the rental agreements for DR Studios Ltd. and the Australian companies, as well as the depreciation of the Group's intellectual properties for the reporting period.
EBIT amounted to negative Euro 1,807 thousand, decreased by Euro 894 thousand compared to negative Euro 913 thousand as of September 30th, 2024.
Italian Distribution
Reclassified P&L highlights
Euro thousand | Italian Distribution | ||||||
September 30th, 2025 | September 30th, 2024 | Change | |||||
1 | Gross revenue | 79 | 100.0% | 909 | 100.1% | (830) | -91.3% |
2 | Revenue adjustments | 0 | 0.0% | 0 | 0.0% | 0 | n.m. |
3 | Net revenue | 79 | 100.0% | 909 | 100.0% | (830) | -91.3% |
4 | Purchase of products for resale | 0 | 0.0% | (8) | -0.9% | 8 | n.m. |
5 | Purchase of services for resale | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
6 | Royalties | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
7 | Changes in inventories of finished products | (54) | -68.8% | (640) | -70.5% | 586 | -91.5% |
8 | Total cost of sales | (54) | -68.8% | (648) | -71.3% | 594 | -91.6% |
9 | Gross profit (3+8) | 25 | 31.2% | 261 | 28.7% | (236) | -90.6% |
10 | Other income | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
11 | Costs for services | (20) | -24.9% | (45) | -4.9% | 25 | -56.1% |
12 | Rent and leasing | (7) | -9.3% | (7) | -0.8% | 0 | 75.0% |
13 | Payroll costs | (140) | -178.5% | (141) | -15.5% | 1 | -0.6% |
14 | Other operating costs | (12) | -15.7% | (13) | -1.5% | 1 | -7.4% |
15 | Total operating costs | (179) | -227.0% | (206) | -22.6% | 27 | -13.1% |
16 | Gross operating margin (EBITDA) (9+10+15) | (154) | -195.9% | 55 | 6.0% | (209) | n.m. |
17 | Depreciation and amortization | (36) | -45.4% | (36) | -4.0% | 0 | 0.0% |
18 | Provisions | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
19 | Asset impairment charge | 0 | 0.0% | (27) | -2.9% | 27 | n.m. |
20 | Impairment reversal | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
21 | Total depreciation, amortization and impairment adjustments | (36) | -45.4% | (63) | -6.9% | 27 | -43.1% |
22 | Operating margin (EBIT) (16+21) | (190) | -241.2% | (8) | -0.9% | (182) | n.m. |
The Italian Distribution revenue decreased by Euro 830 thousand, from Euro 909 thousand to Euro 79 thousand as of September 30th, 2025. Breakdown by revenue type is provided below:
Euro thousand | September 30th, 2025 | September 30th, 2024 | Change | |
Distribution of console video games | 52 | 313 | (261) | -83.4% |
Distribution of trading cards | 27 | 596 | (569) | -95.5% |
Total Italian Distribution revenue | 79 | 909 | (830) | -91.3% |
During the reporting period, all distribution activities were limited to the sales of inventories, with purchase of products for resale almost nil. As of September 30th, 2025, inventories decreased by Euro 54 thousand.
The total operating costs amounted to Euro 179 thousand, down by Euro 27 thousand, mainly driven by lower costs for services.
EBITDA was negative at Euro 154 thousand, compared to negative EBITDA at Euro 55 thousand as of September 30th, 2024. EBIT was negative at Euro 190 thousand compared to negative EBIT at Euro 8 thousand as of September 30th, 2024.
Other Activities
Reclassified P&L highlights
Euro thousand | Other Activities | ||||||
September 30th, 2025 | September 30th, 2024 | Change | |||||
1 | Gross revenue | 56 | 100.0% | 127 | 100.0% | (71) | -56.1% |
2 | Revenue adjustments | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
3 | Net revenue | 56 | 100.0% | 127 | 100.0% | (71) | -56.1% |
4 | Purchase of products for resale | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
5 | Purchase of services for resale | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
6 | Royalties | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
7 | Changes in inventories of finished products | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
8 | Total cost of sales | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
9 | Gross profit (3+8) | 56 | 100.0% | 127 | 100.0% | (71) | -56.1% |
10 | Other income | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
11 | Costs for services | (19) | -34.2% | (34) | -27.0% | 15 | -44.2% |
12 | Rent and leasing | (2) | -3.3% | 0 | -0.2% | (2) | n.m. |
13 | Payroll costs | (107) | -190.8% | (138) | -108.2% | 31 | -22.5% |
14 | Other operating costs | (11) | -19.0% | (11) | -8.5% | 0 | n.m. |
15 | Total operating costs | (139) | -249.1% | (183) | -143.8% | 44 | -23.8% |
16 | Gross operating margin (EBITDA) (9+10+15) | (83) | -149.1% | (56) | -43.8% | (27) | 49.8% |
17 | Depreciation and amortization | (10) | -17.8% | (93) | -72.8% | 83 | -89.2% |
18 | Provisions | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
19 | Asset impairment charge | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
20 | Impairment reversal | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
21 | Total depreciation, amortization and impairment adjustments | (10) | -17.8% | (93) | -72.8% | 83 | -89.2% |
22 | Operating margin (EBIT) (16+21) | (93) | -167.0% | (149) | -117.4% | 56 | -37.5% |
Total revenue of the Other Activities operating segment decreased by Euro 71 thousand, while the operating costs decreased by Euro 44 thousand. EBITDA was negative at Euro 83 thousand compared to the negative EBITDA at Euro 56 thousand as of September 30th, 2024. The EBIT margin was negative at Euro 93 thousand compared to Euro 149 thousand as of September 30th, 2024.
Holding
Reclassified P&L highlights
Euro thousand | Holding | ||||||
September 30th, 2025 | September 30th, 2024 | Change | |||||
1 | Gross revenue | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
2 | Revenue adjustments | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
3 | Net revenue | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
4 | Purchase of products for resale | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
5 | Purchase of services for resale | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
6 | Royalties | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
7 | Changes in inventories of finished products | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
8 | Total cost of sales | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
9 | Gross profit (3+8) | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
10 | Other income | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
11 | Costs for services | (444) | 0.0% | (507) | 0.0% | 63 | - 12.6% |
12 | Rent and leasing | (63) | 0.0% | (62) | 0.0% | (1) | 0.5% |
13 | Payroll costs | (989) | 0.0% | (1,111) | 0.0% | 122 | -11.0% |
14 | Other operating costs | (102) | 0.0% | (91) | 0.0% | (11) | 12.4% |
15 | Total operating costs | (1,598) | 0.0% | (1,771) | 0.0% | 173 | -9.8% |
16 | Gross operating margin (EBITDA) (9+10+15) | (1,598) | 0.0% | (1,771) | 0.0% | 173 | -9.8% |
17 | Depreciation and amortization | (215) | 0.0% | (206) | 0.0% | (9) | 4.3% |
18 | Provisions | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
19 | Asset impairment charge | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
20 | Impairment reversal | 0 | 0.0% | 0 | 0.0% | 0 | 0.0% |
21 | Total depreciation. amortization and impairment adjustments | (215) | 0.0% | (206) | 0.0% | (9) | 4.3% |
22 | Operating margin (EBIT) (16+21) | (1,813) | 0.0% | (1,977) | 0.0% | 164 | -8.3% |
The total operating costs amounted to Euro 1,598 thousand, decreased by 9.8%, mainly due to lower payroll costs.
EBIT was negative at Euro 1,813 thousand compared to the negative EBIT at Euro 1,977 thousand as of September 30th, 2024.
CONTINGENT ASSETS AND LIABILITIES
Digital Bros is entitled to 33% of Starbreeze's net revenue from PAYDAY 3 sales, up to a cap of USD 40 million as part of the agreement finalized in May 2016 for the transfer of PAYDAY 2 rights to the Swedish group. In March 2021, Starbreeze announced a publishing agreement with a major international publisher for the global release of PAYDAY 3.
After the launch of PAYDAY 3 in September 2023, differing interpretations of contractual definitions emerged between the Group and Starbreeze, especially after having received the initial earn-out calculation by the Swedish developer
As of September 30th, 2025 and in line with previous periods, the Group has not recognized any earn-out from PAYDAY 3, in accordance with the calculation methods defined in the settlement agreement with Starbreeze and based on the game's performance. No earn-out recognition is expected in the short term. Further details are provided in the "Relations with Starbreeze" section of this Report.
As of September 30th, 2025, the Group has not recognized deferred tax assets on approximately Euro 4.7 million of tax losses incurred by some of its subsidiaries, as these losses were considered non-recoverable under the applicable local tax legislation and in light of the Group's strategic plan.
SUBSEQUENT EVENTS
On October 27th, 2025, the Shareholders' Meeting of Digital Bros S.p.A. approved the Financial Statements for the fiscal year 2024-2025.
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Digital Bros S.p.A. published this content on November 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on November 14, 2025 at 11:26 UTC.
