Devolver Dig. S Share Price (DEVO)

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Devolver posted FY25 results recording a modest but encouraging improvement, with revenue growth, margin expansion and stronger cash generation indicating that the business is emerging from a weaker release cycle into a more balanced period of execution. Revenue increased 3.0% to US$107.9m, while Adjusted EBITDA rose 39.4% to US$7.1m....

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So we've had a fairly positive trading update - meeting revenue and beating EBIDTDA guidance. And good momentum into FY26 it seems with the games released so far. And yet... The shares have gone exactly nowhere!

Neva Prologue released tomorrow, which was modestly successful in its first iteration. And Reigns Witcher next week although it doesn't seem to have much traction. Overall to me the slate for this year looks pretty good although not sure any have blockbuster potential.

Question is, when will it translate into better financial performance, and a share price heading the right way?! Valuation seems attractive vs peers in the sector if it can get some momentum.

Thanks SmallHex. Sounds like you know the space pretty well - what do you use to get your estimates of sales etc? SteamDB is the only thing I've come across, but I'm sure there are other platforms out there (eg Playstation Store, Google / Apple store) as well, although relevance would vary depending on the game I'm sure...

You're right re Quarantine Zone - looks to be doing great given it was only released yesterday! Peak users up to 29000 which is the 5th highest of all their games. Ball X Pit you're right also, that hit 35000 peak users so was 4th highest of all their games. I should have mentioned the cult of the lamb expansion pack which is being released in a week or so also, which could prove popular as that game was a strong performer...

Do you have any views on TinyBuild and their slate. Obvs Kingmakers is a bit of a mystery as to what is going on behind the scenes there and when / if it will be release, but at a glance their slate outside that looks pretty good also?

I certainly have views. Quarantine zone is off to an excellent start. It has already in less than 24 hrs has had peak concurrent users of 23800 and is currently the #2 top seller on Stram by revenue. This could of course drop off quickly. The reviews are really good ans all negative reviews refer to bugs which will be easily resolved via patch.

Ball x Pit did and is still doing way better than OK. I estimate about 930k copies sold. It has incredible reviews and getting nominated for awards. Skate Story is also certainly financially successful but nowhere near the other 2. I would say Devo are delighted with the past 3 releases. My only concern is the high guidance of USD $100m revenue for 2025 which they will probably just miss due to the delay of Quarantine Zone till 2026. Saying that Ball x pit certainly beat expectations. I look forward to a Trading update from the company which I expect will be positive and lets see how Quarantine Zone goes over the next few weeks. I think things are looking very good though