Everplay says 2026 results to be materially ahead of expectations; shares jump

Everplay, a video game group, announced on Tuesday that its second half of 2026 performance is likely to significantly surpass market expectations. The company's initial projections for FY26 revenue stood at £175.2 million and adjusted EBITDA at £50.7 million. However, Everplay revealed that its newly released titles, Hell Let Loose: Vietnam and Wardogs, are exceeding sales and player expectations, breaking records in both categories.

First-half revenue for Everplay declined by 8% to £66.9 million from the previous £72.4 million, or 5% excluding the exit from Astragon’s low-margin physical distribution business. This dip was attributed to the strategic phasing of major releases towards the second half of the year. Adjusted EBITDA also dropped to £9.2 million from £19.2 million, with an adjusted EBITDA margin of 13.7%, reflecting the heavy investments made in preparation for the upcoming H2 releases.

Despite the downturn, back catalogue revenues continued to show resilience, growing modestly to £64.3 million from £63.5 million across more than 150 titles. The company's capitalised development expenditure increased by 14% to £16.4 million, distributed across 20% more titles than the previous year, with 65% tied to first-party intellectual property. Everplay maintained a robust financial position with £57.1 million in cash reserves and declared an interim dividend of 1.1 pence per share.

The company's management reaffirmed its commitment to the development of new titles for the second half of the year and projected that full-year adjusted EBITDA margin would be broadly aligned with 2025 levels. Furthermore, Everplay announced an increase in its stake in Super Media Group, the owner of Wardogs developer Bulkhead, to 28%. The company expects to invest capitalised development spending ranging from £35-40 million for 2026 and a similar range for 2027.