Digital Bros S p A : Half year condensed financial statements as of December 31, 2025

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

Please consider that this is an Italian to English translation: the Italian version shall always prevail in case of any discrepancy or inconsistency

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‌Index

BOARD OF DIRECTORS AND CORPORATE GOVERNANCE STRUCTURE 4

DIRECTORS' REPORT 7

1. GROUP ORGANIZATION 7

2. MAIN INTELLECTUAL PROPERTIES OWNED BY THE GROUP 11

3. THE VIDEO GAMES MARKET 13

4. ALTERNATIVE PERFORMANCE RATIOS 15

5. SEASONALITY EFFECTS 16

6. SIGNIFICANT EVENTS DURING THE REPORTING PERIOD 17

7. CONSOLIDATED PROFIT AND LOSS STATEMENT AT DECEMBER 31ST, 2025 19

8. CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31ST, 2025 23

9. FINANCIAL RATIOS 25

10. SEGMENT REPORTING 26

11. INTERCOMPANY AND RELATED PARTY TRANSACTION AND ATYPICAL/UNUSUAL TRANSACTIONS 33

12. TREASURY SHARES 34

13. OPERATIONAL RISKS, FINANCIAL RISKS AND FINANCIAL INSTRUMENTS 35

14. CONTINGENT ASSETS AND LIABILITIES 35

15. SUBSEQUENT EVENTS 35

16. BUSINESS OUTLOOK 36

17. OTHER INFORMATION 37

FINANCIAL STATEMENTS 39

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2025 40

CONSOLIDATED PROFIT AND LOSS STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2025 41

CONSOLIDATED COMPREHENSIVE INCOME STATEMENT AS OF DECEMBER 31, 2025 42

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AS OF DECEMBER 31, 2025 44

EXPLANATORY NOTE45

1. INTRODUCTORY NOTE 47

2. CONSOLIDATION CRITERIA 48

3. INVESTMENTS IN JOINT-VENTURES AND ASSOCIATED COMPANIES 51

4. CONSOLIDATED BALANCE SHEET 54

5. NON-RECURRING ITEMS 72

6. INFORMATION BY OPERATING SEGMENT 73

7. RELATED PARTY TRANSACTIONS 76

8. ATYPICAL OR UNUSUAL TRANSACTIONS 80

STATEMENT PURSUANT TO ART. 154- BIS (5) OF THE T.U.F 80

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BOARD OF DIRECTORS AND CORPORATE GOVERNANCE STRUCTURE

(1)Financial Reporting Manager pursuant to Art. 154 bis of Legislative Decree 58/98

(2)Lead Independent Director

The Shareholders' Meeting held on October 27th, 2023 appointed the Board of Directors and the Board of Statutory Auditors. The terms of the Directors and the Statutory Auditors will expire at the Shareholders' Meeting which will approve the financial statements as of June 30th, 2026. On October 28th, 2024, the Shareholders' Meeting appointed attorney 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.

On October 27th, 2021, the Shareholders' Meeting appointed EY S.p.A., based in Via Meravigli 12, Milan, as auditors of the Group's consolidated annual and half year condensed financial statements and Digital Bros S.p.A. annual financial statements until the approval of the financial statements as of June 30th, 2030.

On March 9th, 2026, the Board of Directors resolved to authorize the publication of Digital Bros Group's Half year consolidated financial statements as of December 31st, 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

1. ‌GROUP ORGANIZATION

   Digital Bros Group ("the Group") develops, publishes and distributes video games on international markets.

   Following the continued downsizing of the distribution activities in the retail channel, the portion of revenues and costs of the Parent Company Digital Bros S.p.A. that was previously classified under the Italian Distribution operating segment is now recognized within the Other Activities operating segment, effective this fiscal year. Comparative figures for the previous fiscal year have been reclassified accordingly. As a result, the Group is currently organized into four operating 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, supported by 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. held the intellectual property rights to the video game Crime Boss: Rockay City, including the related trademark and proprietary technology. During the reporting period, these rights were transferred to 505 Games S.p.A..

   The following internal development studios operate in the Premium Games segment:

   • Kunos Simulazioni S.r.l., a fully owned Italian subsidiary, which developed and published the video games Assetto Corsa and Assetto Corsa Competizione. The team is currently finalizing the development of Assetto Corsa EVO, which was released in Early Access on Steam on January 16th, 2025;

   • Ingame Studios a.s., a Brno-based Czech studio fully owned by the Group, responsible for the development of Crime Boss: Rockay City;

   • Avantgarden S.r.l., a Milan-based Italian development studio fully owned by the Group, specialized in restoring and updating video games released in the past or on obsolete platforms;

   • Supernova Games Studios S.r.l., a Milan-based Italian development studio fully owned by the Group, which is currently developing Assetto Corsa Rally, released in Early Access on Steam on November 13th, 2025;

   • Chrysalide Jeux et Divertissement Inc., a Canadian company in which the Group holds a 75% interest, currently developing the video game Directorate: Novitiate.

   MSE&DB S.L. is an equal joint venture established by the Group together with the Spanish development studio MercurySteam Entertainment S.L.. The joint venture owns the intellectual property rights to the video game Blades of Fire, which was launched during the last fiscal year. On January 23rd, 2026, Digital Bros S.p.A. sold its stake in MSE&DB S.L. to the other shareholder.

   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 players engaged and extend the game's lifecycle.

   Worldwide publishing activities are coordinated by 505 Mobile S.r.l., together with the UK-based subsidiary 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. T Following the completion of the acquisition, the company was rebranded as 505 Go Inc.. 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 505 Mobile and 505 Go! brands are used for worldwide publishing activities in the Free to Play segment.

   Other Activities: residual operating segment that includes the Group's remaining smaller-scale activities, which are aggregated for reporting purposes. It consists of training and professional courses in the video game industry organized by the subsidiary Digital Bros Game Academy S.r.l. and, starting from the current fiscal year, the distribution in Italy of video games and trading cards acquired from international publishers, carried out by the Parent Company, Digital Bros S.p.A..

   The Group also has a 60% stake in the UK-based company Seekhana Ltd..

   Holding: activities mainly consist of HR management, financial planning and business development carried out by the Parent Company, Digital Bros S.p.A. Digital Bros China Ltd., Digital Bros Asia Pacific (HK) Ltd. and 505 Games Japan K.K. support the Holding activities through 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 December 31st, 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.	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

   * Effective January 1, 2026, all activities of the US-based subsidiaries have been transferred to 23586 Calabasas Road, Suite 102, Calabasas, California, U.S.A.

   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.

2. ‌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, 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, was released in Early Access for PC on November 13th, 2025.

   Since launch, the Assetto Corsa franchise has generated over Euro 190 million revenue.

   
   
   

   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 around Euro 40 million revenue.

   
   
   

   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 Puzzle Quest intellectual property is owned by Digital Bros Group.

3. ‌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.

   During the pandemic, the video game market experienced strong growth, accompanied by a significant increase in investment in new productions. This optimism led to a sharp rise in the number of new video game releases. At the same time, consumer behavior became increasingly selective, with players tending to spend most of their time on established titles rather than experimenting with new releases. As a result, although the market has continued to show moderately positive growth in terms of both players and overall revenues, many publishers have found it particularly challenging to meet the sales targets set at the time the investments were made. Consequently, results often fell short of expectations, leading companies to reassess their portfolio strategies and marketing expenditures for their video games.

   Starting in the second half of 2023, the industry entered a rationalization phase that is still ongoing. This period has been characterized by continued project cancellations, studio closures and workforce reductions on a global scale. The market therefore continues to present a high degree of uncertainty, also in light of technological developments related to artificial intelligence, as its potential impact on development models, production costs and competitive dynamics remains difficult to predict.

   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. Revenue is recognized by publishers and developers when a game is added to the platform, based on a predetermined annual fee defined for each product. Additionally, as customers play the games, the platform pays 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 (so-called Downloadable Contents or DLC) are available on digital marketplaces for consumers to buy or download for free.

   Free to Play video games are distributed exclusively in digital format through specific online marketplaces, including the App Store for iPhone and iPad, the Play Store for Android devices in Western market, and various digital platforms serving Far Eastern markets. Certain Free to Play titles are also available on the Sony PlayStation Store, Microsoft's Xbox Live for consoles, as well as on Steam and the 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.

4. ‌ALTERNATIVE PERFORMANCE RATIOS

   The Group relies on specific key performance ratios to facilitate the understanding of the consolidated profit and loss statement and the consolidated statement of financial position. The key performance ratios used in this report are consistent with previous years.

   The following ratios are included in the profit and loss statement:

   • Gross profit: the difference between net revenue and total cost of sales;

   • EBITDA: the difference between gross profit, other income and total operating costs plus other income;

   • EBIT: the difference between EBITDA and total depreciation, amortization and impairment adjustments.

     With respect to the consolidated statement of financial position, the same rationale applies to the net financial position, as detailed in the Explanatory Notes.

     The ratios used by the Group may differ from those adopted by other companies, as they are not defined by any applicable accounting standard and, therefore, may not be fully comparable.

     No reconciliation between the performance indicators presented in the Directors' Report and the consolidated financial statements is required, as the Group's metrics are directly derived from the amounts reported in the consolidated financial statements. The sole exception is the Adjusted Liquidity Ratio, for which appropriate reconciliation is provided.

5. ‌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 Lunar New Year.

   Revenue generated from Free to Play games is generally less subject to seasonal fluctuations compared to Premium Games. Free to Play titles typically produce progressively increasing revenue over time, without significant peaks at launch, except in limited cases involving highly anticipated titles associated with particularly well-established brands. Promotional activities have a material impact on revenue performance. However, unlike Premium Games, such promotions occur more frequently and over shorter intervals, thereby mitigating excessive volatility in revenue across reporting 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.

6. ‌SIGNIFICANT EVENTS DURING THE REPORTING PERIOD

   On October 27th, 2025, the Shareholders' Meeting of Digital Bros S.p.A. approved the Financial Statements for the fiscal year 2024-2025.

   Relationships with Starbreeze and Starbreeze shareholders

   Over 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 revenue 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 no.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. finalized the acquisition of all the assets held by Smilegate Holdings in Starbreeze for Euro 19.2 million. The nominal value of the assets acquired totaled Euro 35.3 million, as detailed below:

     1. a convertible bond of approximately SEK 215 million issued by Starbreeze for a total of Euro

        16.9 million;

     2. a receivable of around SEK 165 million for a consideration of Euro 100 thousand. This credit was included in Starbreeze's restructuring process and provided for repayment based on the terms of payment approved by the Swedish District Court, no later than December 2024;

     3. no. 3,601,083 Starbreeze STAR A shares and no. 6,018,948 Starbreeze STAR B shares, 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 FY2024, different interpretations emerged between the Group and Starbreeze AB concerning the calculation of the earn out from the transfer of PAYDAY2 rights to the Swedish developer and the repayment of some receivables related to different 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 30th, 2024 was released, as no arbitration proceeding is required. The agreement was reflected in the Group's half-year-consolidated financial statements as of December 31st, 2024, with a neutral effect on its net result.

        On May 15th, 2025, Digital Bros submitted an alternative list of candidates for Starbreeze's Board of Directors ahead of the company's Annual General Meeting, which differed from the initial proposal of the Nomination Committee. Following the AGM's approval of this new list and the election of the Group's CFO to Starbreeze's Board, Digital Bros 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 assessment above, the equity investment in the Swedish company was first recognized at fair value as of May 15th, 2025 and its carrying amount 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 in the share price of the Swedish company at the date when significant influence was initially acquired.

     As of December 31st, 2025, the Group recognized an additional write off of Euro 5.7 million in accordance with IAS 28, reflecting the Group's share of Starbreeze's losses and thereby reducing the carrying amount of the associate to zero. The fair value as of the same date amounted to Euro 3.1 million, based on the market price of the Starbreeze shares on Nasdaq Stockholm.

     As of December 31st, 2025, the Group holds no. 87 million Starbreeze A shares and no. 223.4 million Starbreeze B shares, representing 19.11% of the share capital and 37.67% of voting rights.

7. ‌CONSOLIDATED PROFIT AND LOSS STATEMENT AT DECEMBER 31ST, 2025

   	Euro thousand	December 31st, 2025		December 31st, 2024		Change
   1	Gross revenue	69,005	100.0%	43,024	100.0%	25,981	60.4%
   2	Revenue adjustments	0	0.0%	0	0.0%	0	n.m.
   3	Net revenue	69,005	100.0%	43,024	100.0%	25,981	60.4%
   4	Purchase of products for resale	(851)	-1.2%	(343)	-0.8%	(508)	n.m.
   5	Purchase of services for resale	(2,800)	-4.1%	(3,381)	-7.9%	581	-17.2%
   6	Royalties	(14,884)	-21.6%	(10,106)	-23.5%	(4,779)	47.3%
   7	Changes in inventories of finished products	(176)	-0.3%	(1,044)	-2.4%	869	-83.2%
   8	Total cost of sales	(18,711)	-27.1%	(14,874)	-34.6%	(3,838)	25.8%
   9	Gross profit (3+8)	50,294	72.9%	28,150	65.4%	22,143	78.7%
   10	Other income	4,299	6.2%	3,603	8.4%	695	19.3%
   11	Costs for services	(4,906)	-7.1%	(3,976)	-9.2%	(930)	23.4%
   12	Rent and leasing	(291)	-0.4%	(237)	-0.6%	(54)	22.7%
   13	Payroll costs	(15,239)	-22.1%	(13,887)	-32.3%	(1,352)	9.7%
   14	Other operating costs	(605)	-0.9%	(564)	-1.3%	(41)	7.3%
   15	Total operating costs	(21,041)	-30.5%	(18,664)	-43.4%	(2,379)	12.7%
   16	Gross operating margin (EBITDA) (9+10+15)	33,552	48.6%	13,089	30.4%	20,463	n.m.
   17	Depreciation and amortization	(18,678)	-27.1%	(13,115)	-30.5%	(5,563)	42.4%
   18	Provisions	0	0.0%	1,241	2.9%	(1,241)	n.m.
   19	Asset impairment charge	(48)	-0.1%	(1,741)	-4.0%	1,693	-97.2%
   20	Impairment reversal	96	0.1%	131	0.3%	(35)	0.0%
   21	Total depreciation, amortization and impairment adjustments	(18,630)	-27.0%	(13,484)	-31.3%	(5,146)	38.2%
   22	Operating margin (EBIT) (16+21)	14,922	21.6%	(395)	-0.9%	15,317	n.m.
   23	Interest and financial income	892	1.3%	843	2.0%	49	5.9%
   24	Interest and financial expenses	(8,268)	-12.0%	(3,379)	-7.9%	(4,888)	n.m.
   25	Net interest income/(expenses)	(7,376)	-10.7%	(2,536)	-5.9%	(4,840)	n.m.
   26	Profit/ (loss) before tax (22+25)	7,546	10.9%	(2,931)	-6.8%	10,477	n.m.
   27	Current tax	(7,336)	-10.6%	(1,639)	-3.8%	(5,697)	n.m.
   28	Deferred tax	1,818	2.6%	1,080	2.5%	738	68.4%
   29	Total taxes	(5,518)	-8.0%	(559)	-1.3%	(4,959)	n.m.
   30	Net profit/loss	2,028	2.9%	(3,490)	-8.1%	5,518	n.m.
   	attributable to the shareholders of the Parent Company	1,974	2.9%	(3,695)	-8.6%	5,669	n.m.
   	attributable to non-controlling interests	54	0.1%	205	0.5%	(151)	-73.7%
   	Earnings per share:
   33	Basic earnings per share (in Euro)	0.14		(0.26)		0.40	n.m.
   34	Diluted earnings per share (in Euro)	0.13		(0.25)		0.38	n.m.

   Consolidated net revenue as of December 31st, 2025 amounted to Euro 69 million, up 60.4% compared to Euro 43 million reported in the first half of the previous fiscal year.

   In line with the publishing plans, the first half of the fiscal year delivered strong results, supported by the performance of the new titles launched during the period. Following the successful release of the video game Wuchang: Fallen Feathers in the first quarter, the Group launched Assetto Corsa Rally in Early Access on Steam for PC in the second quarter. The release schedule for the second half is expected to be more limited and will include the indie title Nivalis and the release of Blades of Fire on the Steam platform. As a result, revenue in the second half is expected to be driven primarily by back catalogue titles and by targeted promotional initiatives.

   The launch of Assetto Corsa Rally, which leverages the long-standing experience in managing the the Assetto Corsa franchise, reflects the Group's strategy to streamline its publishing portfolio by focusing on a smaller number of productions and prioritizing titles based on proprietary intellectual property, which offer greater visibility and recurring revenue potential over time. The Group believes this medium/long-term approach will strengthen its resilience in a video game market that continues to show significant volatility and uncertainty, as the industry has not yet fully absorbed the distortions created during the pandemic-driven expansion phase.

   The sector is still undergoing a strategic reassessment. Increasing player selectivity together with the related problems of new games to reach the expected volumes have pushed developers and publishers to reassess their priorities and strategies. This has resulted in restructuring across the industry, including project cancellations, studio closures and workforce reductions worldwide. The market therefore continues to face significant uncertainties, also due to the use of artificial intelligence, whose impact on development models, production costs and competitive dynamics remains difficult to predict.

   A breakdown of net revenue by operating segment as of December 31st, 2025 is provided below:

   Net revenue

   Euro thousand	December 31st, 2025	December 31st, 2024	Change €	Change %
   Premium Games	63,868	34,409	29,459	85.6%
   Free to Play	4,765	7,223	(2,458)	-34.0%
   Other Activities	372	1,392	(1,020)	-73.3%
   Total net revenue	69,005	43,024	25,982	60.4%

   As of December 31st, 2025, Premium Games revenue amounted to Euro 63.9 million, compared to Euro 34.4 million of the first half of the previous fiscal year and representing 93% of total revenue. During the reporting period, the Assetto Corsa brand generated revenue of Euro 18.3 million, representing an increase of 40% compared to Euro 13.1 million in the comparative period. This performance was supported by the contribution of the new version Assetto Corsa EVO, released in January 2025, as well as by the new title Assetto Corsa Rally, released on November 13th, 2025. Both titles are currently available in Early Access on Steam and will continue to receive updates until their full release, expected in the next fiscal year.

   The different revenue mix between titles based on the Group's proprietary intellectual property and those developed under co-ownership or long-term agreements reflects the strong performance of Wuchang: Fallen Feathers during the period, which belongs to the second group.

   A breakdown of Premium Games revenue by the type of rights held by the Group as of December 31st, 2025 is provided below compared to the previous fiscal year:

   December 31, 2025

   Publishing agreements 11%

   Owned IPs 34%

   Co-owned IPs and long term agreements

   55%

December 31, 2024

Publishing

agreements 17%

Co-owned IPs and long

term agreements 24%

Owned IPs

59%

Free to Play revenue amounted to Euro 4.8 million, representing a decrease of 34% compared to the first six months of the previous fiscal year. During August, the Group experienced certain technical issues affecting video games published by 505 Go!, which temporarily reduced revenues. These issues were resolved by the end of the first quarter of the current fiscal year and led to the decision to internalize live support activities.

Total revenue was generated almost entirely in foreign markets, while digital sales accounted for 93% of total revenue, consistent with the previous fiscal years.

The total cost of sales increased at a slower pace than revenue, reducing its weight from 34.6% to 27.1% of total revenues. This improvement mainly reflects the different product mix, driven by the higher sales achieved by the Assetto Corsa brand. As a result, gross profit increased by Euro 22,143 thousand, from Euro 28,150 thousand to Euro 50,294 thousand.

Other revenue amounted to Euro 4,299 thousand, increasing by 19.3% compared to Euro 3,603 thousand as of December 31st, 2024. The capitalization of internal studio video game development primarily related to the development of the video game Assetto Corsa EVO and the new video game Assetto Corsa Rally.

The total operating costs increased by 12.7%, also due to higher marketing and advertising costs supporting the launch of Wuchang: Fallen Feathers. Payroll costs amounted to Euro 15,239 thousand, increasing by Euro 1,352 thousand.

As of December 31st, 2025, the EBITDA margin was 48.6% of revenue and amounted to Euro 33,552 thousand, increasing by Euro 13,115 thousand.

Depreciation and amortization amounted to Euro 18,678 thousand, increasing by Euro 5,563 thousand from Euro 13,115 thousand as of December 31st, 2024.

The EBIT margin was positive at Euro 14,922 thousand, significantly improved compared to the negative EBIT at Euro 395 thousand recorded in the first half of the previous fiscal year.

The net interest expense amounted to Euro 7,376 thousand, compared to Euro 2,536 thousand as of December 31st, 2024. Financial expenses include Euro 5,682 thousand relating to the write-off of the equity investment in Starbreeze AB pursuant to IAS 28. Until May 15th, 2025, the equity investment had been measured at fair value, with changes exclusively recognized in the consolidated statement of comprehensive income.

The profit before tax amounted to Euro 7,546 thousand, improved by Euro 10,477 thousand from the Euro 2,931 thousand loss before tax realized in the comparative period.

As of December 31st, 2025, the consolidated net profit amounted to Euro 2,028 thousand, compared to the net loss at Euro 3,490 thousand of the first half of the previous fiscal year.

The net profit attributable to the shareholders of the Parent Company amounted to Euro 1,974 thousand, representing an improvement of Euro 5,669 thousand compared to the first half of the previous fiscal year. Net profit attributable to non-controlling interests amounted to Euro 54 thousand, compared to Euro 205 thousand recorded as of December 31st, 2024.

Basic earnings per share amounted to Euro 0.14 and diluted earnings per share amounted to Euro 0.13, compared to a basic loss per share of Euro 0.26 and a diluted loss per share of Euro 0.25 as of December 31st, 2024.

1. ‌CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31ST, 2025

   Euro thousand		Dec31st, 2025	June 30th, 2025	Change
   	Non-current assets
   1	Property, plant and equipment	5,049	5,459	(410)	-7.5%
   2	Investment properties	0	0	0	0.0%
   3	Intangible assets	95,710	111,234	(15,524)	-14.0%
   4	Equity investments	226	7,159	(6,933)	-96.8%
   5	Non-current receivables and other assets	1,910	2,601	(691)	-26.6%
   6	Deferred tax assets	25,511	23,723	1,788	7.5%
   7	Non-current financial activities	1,439	2,821	(1,382)	-49.0%
   	Total non-current assets	129,845	152,997	(23,152)	-15.1%
   	Current assets
   8	Inventories	1,180	1,356	(176)	-13.0%
   9	Trade receivables	12,669	14,185	(1,516)	-10.7%
   10	Tax receivables	3,090	8,600	(5,510)	-64.1%
   11	Other current assets	3,927	5,706	(1,779)	-31.2%
   12	Cash and cash equivalents	13,513	6,718	6,795	n.m.
   13	Other current financial assets	1,462	0	1,462	n.m.
   	Total current assets	35,841	36,565	(724)	-2.0%
   	TOTAL ASSETS	165,686	189,562	(23,876)	-12.6%
   	Shareholders' equity
   14	Share capital	(5,706)	(5,706)	0	0.0%
   15	Reserves	(9,353)	(9,632)	279	-2.9%
   16	Treasury shares	0	0	0	0.0%
   17	Retained earnings	(100,586)	(98,612)	(1,974)	2.0%
   	Equity attributable to the shareholders of the Parent Company	(115,645)	(113,950)	(1,695)	1.5%
   	Equity attributable to non-controlling interests	(844)	(790)	(54)	6.8%
   	Total net equity	(116,489)	(114,740)	(1,749)	1.5%
   	Non-current liabilities
   18	Employee benefits	(1,177)	(1,109)	(68)	6.1%
   19	Non-current provisions	(1,124)	(1,059)	(65)	6.1%
   20	Other non-current payables and liabilities	0	(4,947)	4,947	-100.0%
   21	Non-current financial liabilities	(732)	(1,221)	489	-40.0%
   	Total non-current liabilities	(3,033)	(8,336)	5,303	-63.6%
   	Current liabilities
   22	Trade payables	(28,971)	(29,636)	665	-2.2%
   23	Tax payables	(2,192)	(1,142)	(1,050)	91.9%
   24	Short term provisions	0	0	0	n.m.
   25	Other current liabilities	(3,656)	(10,838)	7,182	-66.3%
   26	Current financial liabilities	(11,345)	(24,870)	13,525	-54.4%
   	Total current liabilities	(46,164)	(66,486)	20,322	-30.6%
   	TOTAL LIABILITIES	(49,197)	(74,822)	25,625	-34.2%
   	TOTAL NET EQUITY AND LIABILITIES	(165,686)	(189,562)	23,876	-12.6%

   Total non-current assets decrease by Euro 23,152 thousand, mainly due to lower intangible assets and equity investments.

   Intangible assets decrease by Euro 15,524 thousand during the period, mainly reflecting the following movements:

   • decrease of Euro 17,646 thousand due to depreciation and amortization;

   • increase of Euro 6,973 thousand for investments, primarily relating to video games within the Assetto Corsa brand and to a new title under the Puzzle Quest series currently under development;

   • decrease of Euro 4,851 thousand reflecting a reduction in the capitalized cost of the video game Blades of Fire following a revision of the contractually defined variable consideration.

     Equity investments decrease by Euro 6,933 thousand, as a result of the following movements:

   • a decrease of Euro 5,682 thousand related to the write off of the equity investment in Starbreeze AB as of December 31st, 2025, pursuant to IAS 28. T The fair value of the Starbreeze shares at the same date amounted to Euro 3.1 million;

   • a decrease of Euro 1,300 thousand resulting from the disposal of the equity investment in the Spanish joint venture MSE&DB S.L. at nominal value (Euro 5 thousand), following a contractual revision that reduced the royalty rate;

   • an increase of Euro 49 thousand reflecting the fair value of the shares held in Noobz from Poland s.a..

     The net financial position as of December 31st, 2025 is detailed below, as restated by the Group consistently with previous fiscal years:

     Euro thousand		December 31st, 2025	June 30th, 2025	Change
     12	Cash and cash equivalents	13,513	6,718	6,795
     13	Other current financial assets	1,462	0	1,462
     26	Current financial liabilities	(11,345)	(24,870)	13,525
     	Current net financial position	3,630	(18,152)	21,782
     7	Non-current financial assets	1,439	2,821	(1,382)
     21	Non-current financial liabilities	(732)	(1,221)	489
     	Non-current financial liabilities	707	1,600	(893)
     	Total restated net financial position	4,337	(16,552)	20,889

     As of December 31st, 2025, the restated net financial position remained positive at Euro 4,337 thousand, exceeding expectations that had anticipated a net debt position at that date, and improved by Euro 20,889 thousand compared with June 30th, 2025. Excluding the IFRS 16 effect, the restated net financial position was positive at Euro 6,285 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 1,436 thousand, improving by Euro 20,809 thousand from June 30th, 2025, as detailed in the Explanatory Note 21 - Non-current financial liabilities.

2. ‌FINANCIAL RATIOS

   The table below identifies a selection of performance indicators intended to facilitate the analysis of the Group's consolidated financial and economic data:

   Profitability ratios	December 31st, 2025	December 31st, 2024
   ROE (Net profit / Net equity)	1.7%	-3.0%
   ROI (Operating margin / Total assets)	9.0%	-0.2%
   ROS (Operating margin / Gross profit)	21.6%	-0.9%

   Structure ratios	December 31st, 2025	June 30th, 2025
   Net working capital ratio (Current assets / Total assets)	21.6%	19.3%
   Current ratio (Current assets / Current liabilities)	77.6%	51.3%
   Quick ratio (Cash and cash equivalents and Other current assets / Current liabilities)	75.1%	49.4%

   The video game industry is characterized by a specific settlement structure for royalty payables. In many cases, these payables are due only after the Group has collected the related revenue. As a result, a significant portion of current liabilities at the reporting date is not immediately payable. To provide a clearer view of the Group's liquidity position, an adjusted liquidity ratio is presented in the table below. This ratio is calculated as current nonfinancial receivables divided by current non-financial liabilities, adjusted to exclude liabilities that are not due within the first quarter of the fiscal year.

   Euro thousand		December 31st, 2025	June 30th, 2025
   9	Trade receivables	12,669	14,185
   10	Tax receivables	3,090	8,600
   11	Other current assets	3,927	5,706
   	Total current non-financial receivables	19,686	28,491
   22	Trade payables	(28,971)	(29,636)
   23	Tax payables	(2,192)	(1,142)
   24	Short term provisions	0	0
   25	Other current liabilities	(3,656)	(10,838)
   	Total current non-financial liabilities	(34,819)	(41,616)
   	of which is not payable at sight	14,888	14,604
   	Total current non-financial liabilities payable in Q1	(19,931)	(27,012)
   	Adjusted liquidity ratio	98.8%	105.5%

3. ‌SEGMENT REPORTING

   Premium Games

   Reclassified P&L highlights

   Euro thousand		Premium Games
   		December 31st, 2025		December 31st, 2024		Change
   1	Gross revenue	63,868	100.0%	34,409	100.0%	29,459	85.6%
   2	Revenue adjustments	0	0.0%	0	0.0%	0	0.0%
   3	Net revenue	63,868	100.0%	34,409	100.0%	29,459	85.6%
   4	Purchase of products for resale	(826)	-1.3%	(319)	-1.0%	(507)	n.m.
   5	Purchase of services for resale	(1,390)	-2.2%	(1,478)	-4.8%	88	-5.9%
   6	Royalties	(12,020)	-18.8%	(8,085)	-22.3%	(3,935)	48.7%
   7	Changes in inventories of finished products	(124)	-0.2%	(397)	-1.6%	273	-68.8%
   8	Total cost of sales	(14,360)	-22.5%	(10,279)	-29.6%	(4,081)	39.7%
   9	Gross profit (3+8)	49,508	77.5%	24,130	70.4%	25,378	105.2%
   10	Other income	3,503	5.5%	2,825	7.8%	678	24.0%
   11	Costs for services	(3,342)	-5.2%	(1,707)	-4.9%	(1,635)	95.8%
   12	Rent and leasing	(117)	-0.2%	(68)	0.0%	(49)	73.4%
   13	Payroll costs	(10,009)	-15.7%	(8,173)	-25.4%	(1,836)	22.5%
   14	Other operating costs	(294)	-0.5%	(275)	-0.7%	(19)	7.2%
   15	Total operating costs	(13,762)	-21.5%	(10,223)	-31.1%	(3,539)	34.6%
   16	Gross operating margin (EBITDA) (9+10+15)	39,249	61.5%	16,732	47.2%	22,517	n.m.
   17	Depreciation and amortization	(16,851)	-26.4%	(11,263)	-37.7%	(5,588)	49.6%
   18	Provisions	0	0.0%	1,241	0.0%	(1,241)	0.0%
   19	Asset impairment charge	(10)	0.0%	(1,721)	0.0%	1,711	-99.4%
   20	Impairment reversal	0	0.0%	0	0.0%	0	0.0%
   21	Total depreciation, amortization and impairment adjustments	(16,861)	-26.4%	(11,743)	-37.7%	(5,118)	43.6%
   22	Operating margin (EBIT) (16+21)	22,388	35.1%	4,989	9.5%	17,399	n.m.

   As of December 31st, 2025, Premium Games revenue amounted to Euro 63.9 million, compared to Euro 34.4 million of the first half of the previous fiscal year and representing 93% of total revenue. During the reporting period, the Assetto Corsa brand generated revenue of Euro 18.3 million, representing an increase of 40% compared to Euro 13.1 million in the comparative period. This performance was supported by the contribution of the new version Assetto Corsa EVO, released in January 2025, as well as by the new title Assetto Corsa Rally, released on November 13th, 2025. Both titles are currently available in Early Access on Steam and will continue to receive updates until their full release, expected in the next fiscal year.

   The different revenue mix between titles based on the Group's proprietary intellectual property and those developed under co-ownership or long-term agreements reflects the strong performance of Wuchang: Fallen

   Feathers during the period, which belongs to the second group. A breakdown of Premium Games revenue by the type of rights held by the Group as of December 31st, 2025 is provided below compared to the previous fiscal year:

   December 31, 2025

   Publishing agreements 11%

   Owned IPs 34%

   Co-owned IPs and long term agreements

   55%

December 31, 2024

Publishing

agreements 17%

Co-owned IPs and long

term agreements 24%

Owned IPs

59%

A breakdown by revenue type is provided below:

Digital distribution revenue amounted approximately to 93% of the total Premium Games revenue, in line with previous reporting periods.

Digital distribution revenue includes 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 includes proceeds from subscription services, promotional campaigns and minimum guarantee arrangements.

The increase in retail distribution revenue reflects the strong physical sales generated by the video game Wuchang: Fallen Feathers during the reporting period, particularly in the Far East.

Digital distribution revenue as of December 31st, 2025 is detailed below:

The strong growth in Personal Computer revenue reflects the recent product mix (Assetto Corsa EVO, Wuchang: Fallen Feathers and Assetto Corsa Rally), whose revenue is predominantly generated on this platform.

The total cost of sales increased by Euro 4,081 thousand, from Euro 10,279 thousand to Euro 14,360 thousand as of December 31st, 2025.

Gross profit amounted to Euro 49,508 thousand, increasing by Euro 25,378 thousand compared to Euro 24,130 thousand as of December 31st, 2024.

Other revenue amounted to Euro 3,503 thousand, increasing by Euro 678 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 increased by 34.6%, rising by Euro 3,539 thousand compared to the first half of the previous fiscal year. The increase was primarily attributable to higher payroll costs of Euro 1,836 thousand and higher service costs of Euro 1,635 thousand, mainly reflecting increased advertising costs related to the launch of Wuchang: Fallen Feathers.

Depreciation and amortization amounted to Euro 16,851 thousand and increased by Euro 5,588 thousand compared to Euro 11,263 thousand as of December 31st, 2024.

As of December 31st, 2025, EBIT was positive at Euro 22,388 thousand, significantly improved from Euro 4,989 thousand recorded in the first half of the previous fiscal year.

Free to Play

Reclassified P&L highlights

A breakdown of Free to Play revenue by video games is provided below:

Free to Play revenue amounted to Euro 4.8 million, representing a decrease of 34% compared to the first six months of the previous fiscal year. During August, the Group experienced certain technical issues affecting video games

published by 505 Go!, which temporarily reduced revenues. These issues were resolved by the end of the first quarter and convinced the Group to internalize live support activities.

The video game Gems of War generated revenue of Euro 1,316 thousand, representing a decrease of 19% compared to the first half of the previous fiscal year. The title still delivers interesting volumes despite being launched over a decade ago.

Other services refer to live support activities provided to third parties under contracts effective from the second quarter of the current fiscal year.

Cost of sales amounted to Euro 4,274 thousand, increasing by Euro 350 thousand compared to the first half of the previous fiscal year, primarily due to higher royalties of Euro 843 thousand, partially offset by lower purchases of services for resale, totaling Euro 493 thousand. The incidence of royalties on total revenue was 60.1%, compared to 28.4% in the same period of the previous fiscal year, resulting in a significant reduction in gross profit. The decline in revenue generated by 505 Go! titles prevented the contractual minimum guarantee from being achieved, thereby increasing the relative weight of royalties as a percentage of revenue.

Other income amounted to Euro 672 thousand, decreasing by Euro 107 thousand compared to the first half of the previous fiscal year, and primarily reflecting the capitalization of development costs relating to video games currently in production by the Group's subsidiaries. The capitalization of own work during the period mainly related to the video game Puzzle Quest: Immortals, developed by the Australian subsidiary Infinity Plus Two, and the new title Battle Island II, currently in development by the subsidiary DR Studios Ltd, which is also engaged in certain development activities for the Premium Games operating segment.

Total operating costs amounted to Euro 3,289 thousand, decreasing by Euro 900 thousand compared to the first half of the previous fiscal year. The reduction was driven by lower cost for services by Euro 607 thousand and lower payroll costs for Euro 298 thousand.

EBITDA was negative at Euro 2,127 thousand, contracting by Euro 2,015 thousand compared to the negative EBITDA at Euro 112 thousand as of December 31st, 2024.

Depreciation and amortization amounted to Euro 1,319 thousand and included Euro 1,050 thousand related to the depreciation of the video game Puzzle Quest. The remaining portion related to the amortization of the Group's intellectual property rights and to the application of IFRS 16 to the lease agreements of DR Studios Ltd. and the Australian subsidiaries.

EBIT was negative at Euro 3,350 thousand, decreasing by Euro 2,189 thousand compared to negative Euro 1,161 thousand as of December 31st, 2024.

Other Activities

Following the downsizing of retail distribution activities, the revenue and costs of the Parent Company, Digital Bros S.p.A. previously reported under the Italian Distribution operating segment have been reclassified to the Other Activities operating segment from the current fiscal year. Comparative figures as of December 31st, 2024 have been reclassified accordingly.

Reclassified P&L highlights

Revenue from the Other Activities operating sector decreased by Euro 1,020 thousand. Details below:

During the reporting period, all distribution activities were limited to the sales of inventories. As of December 31st, 2025, inventories decreased by Euro 52 thousand.

Other income amounted to Euro 125 thousand and mainly relates to an insurance reimbursement received by the Parent Company for damages to the warehouse located in Trezzano sul Naviglio.

Operating costs amounted to Euro 683 thousand, decreasing by Euro 88 thousand.

EBITDA was negative for Euro 263 thousand, compared to negative Euro 50 thousand as of December 31st, 2024.

Operating loss amounted to Euro 399 thousand, compared to an operating loss of Euro 330 thousand as of December 31st, 2024.

Holding

Reclassified P&L highlights

Total operating costs amounted to Euro 3,307 thousand, decreased by 5%, mainly due to lower payroll costs. EBIT was negative at Euro 3,717 thousand compared to negative EBIT at Euro 3,893 thousand as of December 31st, 2024.

1. ‌INTERCOMPANY AND RELATED PARTY TRANSACTION AND ATYPICAL/UNUSUAL TRANSACTIONS

   All intercompany and related party transactions performed by Group companies were conducted at arm's length.

   Intercompany transactions

   505 Games Ltd. and 505 Games (US) Inc. charged 505 Games S.p.A. for payroll costs and some general expenses related to the workforce involved in video game production and international marketing teams in the Premium Games operating segment.

   505 Go Inc. charged 505 Mobile S.r.l. and 505 Games S.p.A. for payroll costs and general costs related to employees involved in the production and marketing teams for the Free to Play operating segment.

   505 Games (US) Inc. charged 505 Mobile S.r.l. for general costs related to the workforce employed in the Free to Play production and marketing teams.

   Prior to its consolidation, DR Studios Ltd. had entered into development and live support agreements with 505 Games S.p.A. and 505 Mobile S.r.l. for different video games, which remained in force following its acquisition. Subsequent development contracts signed after the acquisition are governed by a framework agreement, under which direct project costs are reimbursed, together with an additional markup. Starting from the current fiscal year, DR Studios Ltd. has provided development services to 505 Go Inc. under a cost-plus arrangement, under which the subsidiary is reimbursed for direct project costs plus an agreed mark-up.

   Digital Bros China Ltd., Digital Bros Asia Pacific Ltd. and 505 Games Japan K.K. charged 505 Games S.p.A. for the costs related to business development activities in the Asian markets.

   Before its acquisition, Kunos Simulazioni S.r.l. had already entered a development contract with 505 Games S.p.A. for the video game Assetto Corsa, which remained unchanged.

   Avantgarden S.r.l. entered a development contract with 505 Games S.p.A. which provides for the reimbursement of direct project costs plus an additional markup.

   Supernova Games Studios S.r.l. entered a development contract with 505 Games S.p.A., which provides for the reimbursement of the direct costs incurred for the project, plus a markup.

   Infinity Plus Two Pty. Ltd. carries out development and live support activities for several video games for the subsidiary 505 Games S.p.A. These services are regulated by a framework agreement under which the Australian company is reimbursed for direct project costs plus a contractual mark-up.

   Ingame Studios a.s. entered a video game development and live support contract with 505 Games S.p.A., which provides for the reimbursement of the direct costs incurred for the project, with a markup.

   Digital Bros S.p.A. charges 505 Games S.p.A. for the direct costs incurred on its behalf, as well as for its share of indirect costs related to coordination activities, including video game acquisitions, financial and legal services, logistics, HR services and IT support provided by the Parent Company.

   Digital Bros S.p.A. charged Digital Bros Game Academy S.r.l. for the cost of administrative, financial, legal and IT services incurred on its behalf and for the rent of the subsidiary's headquarters located in Via Labus, Milan.

   Digital Bros S.p.A. charged Avantgarden S.r.l. for the rent of its headquarters located in Via Tortona, Milan.

   505 Games S.p.A. charged 505 Games Go Inc. for the costs associated with coordinating its game acquisition activities, as well as for administrative, financial, legal, and IT services.

   Rasplata B.V. charged 505 Games S.p.A. for the royalties related to the publishing of Crime Boss: Rockay City, pursuant to the relative publishing agreement.

   Digital Bros S.p.A granted a loan to Rasplata B.V. with quarterly interests.

   Prior to its acquisition, 505 Go Inc. entered into a licensing agreement with Infinite Interactive Pty. Ltd. for the use of the Puzzle Quest brand, which remained unchanged.

   Other minor transactions relate to the financial, legal and general services performed by Digital Bros S.p.A. on behalf of the Group's subsidiaries. The Parent Company also operates a cash pooling service, utilizing intercompany current accounts to manage and transfer both positive and negative balances between Group companies, including the transfer of receivables. These accounts are maintained interest-free.

   Italian subsidiaries transferred tax receivables and payables to the Parent Company, in compliance with domestic tax group arrangements.

   The effects of all intercompany transactions on the consolidated results and financial position as at December 31st, 2025 were fully eliminated.

   Transactions with other related parties

   Related party transactions referred to:

   • the property leased by Matov Imm. S.r.l. to the Parent Company;

   • the property leased by Matov LLC to the subsidiary 505 Games (US) Inc..

   The lease agreement for the U.S. offices in Calabasas expired during the semester and was not renewed.

   Matov Imm. S.r.l. and Matov LLC are owned by Abramo and Raffaele Galante. The effects of related party transactions on the profit and loss statement and on the balance sheet are detailed in paragraph 7 of the Notes.

   Atypical transactions

   During the reporting period, there were no atypical or unusual transactions, as defined by Consob Communication DEM 6064293 of July 28th, 2006, as in the same reporting period of the previous fiscal year.

2. ‌TREASURY SHARES

   As of December 31st, 2025, Digital Bros S.p.A. did not hold any treasury shares and did not carry out any transactions in treasury shares during the reporting period, pursuant to Art- 2428 (2) no. 3 of the Italian Civil Code.

3. ‌OPERATIONAL RISKS, FINANCIAL RISKS AND FINANCIAL INSTRUMENTS

   For a comprehensive overview of the management of operational and financial risks, as well as financial instruments, reference is made to the Directors' Report included in the Consolidated financial statements as of June 30th, 2025, as no significant changes occurred during the reporting period.

4. ‌CONTINGENT ASSETS AND LIABILITIES

   Digital Bros is entitled to 33% of Starbreeze's net revenue from PAYDAY3 sales, up to a cap of USD 40 million as part of the agreement finalized in May 2016 for the transfer of PAYDAY2 rights to the Swedish group. In March 2021, Starbreeze announced a publishing agreement with a major international publisher for the global release of PAYDAY3.

   As of December 31st, 2025 and in line with previous periods, the Group has not recognized any earn-out from PAYDAY3, 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.

5. ‌SUBSEQUENT EVENTS

   No significant subsequent events occurred after the end of the reporting period.

6. ‌BUSINESS OUTLOOK

   On November 13th, 2025, the Group released the new video game Assetto Corsa Rally in Early Access for PC. The release schedule for the second half of the fiscal year includes the highly anticipated indie title Nivalis, which has already generated a significant number of wishlists across major digital platforms, as well as the launch of Blades of Fire on the Steam platform. The video game Assetto Corsa EVO remains available in Early Access on Steam and will continue to be updated with new features and content.

   In the Free to Play operating segment, the internalization of live support activities finalized in the third quarter is expected to have a positive impact on the cost structure. Development activities will continue on the new title of the Puzzle Quest series, with a release window scheduled for the next fiscal year.

   The outlook for consolidated revenue growth in the current fiscal year remains confirmed, supported by the Premium Games segment and partially offset by the expected contraction in the Free to Play operating segment.

   The expected increase in revenue, together with cost reductions resulting from the initiatives implemented in the previous fiscal years, should enable EBIT to be positive at fiscal year-end.

   The Group expects to return to a net financial debt position in the next quarter and until the end of the fiscal year, but significantly lower than what reported as of June 30th, 2025.

   The Group continues to closely monitor developments in the geopolitical environment and international trade tensions, assessing their potential impact on its operations and market dynamics. As of the reporting date and in the absence of further escalation, no significant impact on the Group's activity is expected. Management regularly reviews projects under development in order to promptly take corrective actions should market conditions require it.

7. ‌OTHER INFORMATION

EMPLOYEES

The following table details the number of Group's employees as of December 31st, 2025 with comparative figures as of December 31st, 2024.

The following table breaks down the number of employees working in non-Italian subsidiaries as of December 31st, 2025, with comparative figures as of December 31st, 2024:

The average number of employees for the period is calculated as the arithmetic mean of the number of employees at the end of each month. The table below presents the relevant figures, together with the corresponding comparative data.

The average number of employees of the non-Italian subsidiaries is as follow:

The employees of the Group's Italian companies are contracted under the current Confcommercio national collective employment agreement for the commercial. distribution and services sector. Employees of the three Italian studios - Kunos Simulazioni S.r.l.. AvantGarden S.r.l. and Supernova Games Studios S.r.l. - are contracted under the national collective employment agreement for the mechanical industry.

ENVIRONMENTAL ISSUES

The video game industry has a negligible impact on the environment due to its primarily digital nature.

Most of the products are sold through digital marketplaces and the Group has progressively reduced sales through physical stores. Still, the Group actively monitors any solution that would contribute to further minimizing the effects of its activities on the environment.

The Group updates obsolete equipment whenever possible and ensures all components are recycled appropriately. Documents are stored digitally, with physical printing limited to legal requirements or specific task needs. Consumables such as printer toners are returned to suppliers for proper recycling. Additionally, the Group prioritizes digital communications, such as video conferences, over travel to minimize its impact on the environment and to reduce travel expenses.

SUSTAINABILITY REPORTING

The Group is not yet subject to the reporting obligations introduced by Legislative Decree No. 125 of September 6th, 2024. In light of the growing relevance of sustainability matters for its stakeholders, the Group has voluntarily decided to disclose sustainability information starting from the previous fiscal year. The Sustainability Report as of June 30th, 2024 is available in the Sustainability section of the Company's website.

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Digital Bros Group Half year condensed financial statements as of December 31st, 2025 39

‌Consolidated Statement of Financial Position as of December 31st, 2025