Frontier Developments PLC (AIM:FDEV) jumped 13% to a 10-month high of 310p after the video games developer uploaded an upbeat trading update and buoyant outlook.
The AIM-listed company said revenues in the year to end-May rose 25% to £90.6 million, in line with May's upgraded guidance as its three big game franchises - Planet Coaster, Planet Zoo and Jurassic World Evolution - generated 77% of total turnover.
Underlying profit (adjusted EBITDA) was said to be within a range of £8-9 million, as the higher revenue was combined with lower operating costs and a £3.5 million gain on the sale of the publishing rights for a Foundry game, Stranded: Alien Dawn.
With cash growing £13 million to £42.5 million, a £10 million share buyback programme is being launched.
On the outlook, with Jurassic World Evolution 3 will be released on 21 October and the board is "confident in Frontier's ability to deliver further annual growth in FY26 through nurturing and expanding our genre-leading game franchises".
Analysts at Shore Capital said: "FDEV continues to perform well against an uncertain and crowded backdrop, and ongoing development support across the wider franchises appears to be sustaining consumer engagement.
"While the smaller portfolio compared to some of the other listed UK peers creates a more lumpy revenue performance and title risk, we believe the recent work by management has allowed for a focused and efficient model, which should support organic investment for future launches.
"We continue to view the group as undervalued, trading at less than 1x revenue, with a resized operational model, an improving profit base, and a sufficient cash-led balance sheet to fund further growth."