Everplay (AIM:EVPL) shares dropped 13% to 224p on Tuesday, despite the video games publisher reporting double-digit profit growth for 2025, as investors looked past stronger margins to focus on flat revenue, lower cash and weakness at astragon.
Revenue for the year held broadly steady at £166 million against £166.6 million a year earlier, while adjusted EBITDA rose 11% to £48.5 million and pre-tax profit climbed 44% to £36.6 million. Gross margin improved to 46% from 41.6%, helped by the exit from astragon’s low-margin physical distribution arm. Excluding that business, group revenue increased 5%.
The indie games developer said new release revenues rose 80% to £41.1 million, supported by launches including Date Everything!, SWORN, Firefighting Simulator: Ignite and LEGO Bluey. But astragon had a tougher year, with revenue down 33% to £29.5 million, and the year-end cash balance fell to £51.9 million from £62.9 million after heavier development spending, acquisitions and dividend payments.
New chief executive Mikkel Weider said FY2026 had started well and that the group was on track to deliver results in line with market expectations. Everplay expects at least 15 new games and apps to launch this year, including Hell Let Loose: Vietnam and Golf With Your Friends 2, with earnings weighted to the second half.