Don't Nod Entertainment : 2025 full-year results

About this update from Don't Nod Entertainment Sa

2025 full-year results | Revenues more than quadrupled to €13.7 million, driven by sales growth and development revenues fueled by the strategic partnership with Netflix | Performance plan: first significant savings on operating expenses | Discussions continue to secure future revenues and ensure business continuity Paris, April 23, 2026 - DON'T NOD, an independent French studio that creates, develops, and publishes video games, today presents its 2025 full-year consolidated results, as approved by the Board of Directors at its meeting today. The Statutory Auditors have completed their audit assignment and are in the process of issuing their reports 1 . The 2025 financial report will be published no later than April 30, 2026. DON'T NOD Chairman and CEO Oskar Guilbert said: "2025 marked an important milestone in DON'T NOD's transformation. Improved operational performance and greater discipline in allocating our resources are beginning to pay off. In what remains a challenging environment for the sector, we have continued to adapt our organization and refocused our investments on our most value-creating projects. We are also actively working to secure our funding and deliver our roadmap within a more selective framework, while maintaining strict vigilance over our financial balances to strengthen the sustainability and efficiency of our business model." ‌1 The financial statements for the year ended December 31, 2025 will be certified without qualification by the statutory auditors and the report will include a paragraph regarding "material uncertainty related to going concern" Consolidated figures in €000 2024 2025 Revenues 3,315 13,696 - incl. development 19 3,848 - incl. sales 3,295 9,848 Capitalized production2 20,623 7,123 Total operating revenues3 23,937 20,818 Other operating revenues 16 22 Total operating expenses (excl. depreciation, amortization, and prov.) (34,912) (38,883) Tax credits 2,430 5,713 Operating EBITDA (including tax credits) 4 (8,528) (12,330) Depreciation and amortization (36,311) (22,454) Deferred/exempt tax (13) (246) Operating EBIT (including tax credits) 5 (44,852) (35,029) Financial income/(expense) 963 (634) Non-recurring income/(expenses) (19,043) 1 Amortization of goodwill (1,385) - Consolidated net income/(loss) (64,317) (35,663) Revenues up more than fourfold DON'T NOD's operating revenues for the 2025 financial year totaled C20.8 million, down 13% on 2024. This decrease reflects: | A significant increase in sales (threefold increase to C9.8 million), driven mainly by the release of Bloom & Rage and its integration into PS+ lineup, as well as the performance of the back catalog; | Development revenues of €3.8 million , mainly related to the delivery of the first milestones for the development of a narrative-driven game based on a major Netflix intellectual property; | Capitalized production limited to €7.1 million , corresponding to the completion of Bloom & Rage and the Lonesome Guild as well as the development costs of the P14 project in the first half of 2025. The production costs for Aphelion (C8.5 million), and for the P14 project in the second half of 2025 (C4.2 million) are not capitalized. Costs ‌2 Costs incurred on co-produced and self-published games up to release ‌3 Revenues + capitalized production ‌4 Operating income + depreciation, amortization and provisions net of reversals + Video game tax credits ‌5 Operating income + Video game tax credits related to P14 did not meet the capitalization criterion related to funding capacity as of the closing date, despite expressions of interest. In line with the objective of securing revenues, the share of revenues in operating revenues rose sharply from less than 14% in 2024 to nearly 66% in 2025. Performance plan and cost optimization DON'T NOD's performance plan, which aims to strengthen its competitiveness and gradually improve its profitability, yielded significant results in 2025, with full-year impact expected in 2026. | In Paris, the reorganization of the studio, the finalization of the employment protection plan (PSE) and budget control generated over C4.5 million in savings in 2025, including C4.0 million in payroll costs (excluding reorganization plan costs). These savings are now expected to reach C5.6 million on a full-year basis. | In Montreal , the realignment of resources on the Netflix project from the end of June 2025 and the reduction in outsourcing expenses resulted in C1.2 million in savings in 2025. Against this backdrop, staff costs6 fell sharply by 12% to C21.8 million in 2025. Excluding non-recurring items related to PSE supporting measures (-C1.9 million), staff costs decreased by 20%. ‌Other operating expenses amounted to C16.6 million, compared to C9.6 million the previous year, representing an increase of C7.0 million. This change primarily reflects the write-off of the P14 project from assets, amounting to C6.5 million 7 , as well as marketing expenses incurred for Bloom & Rage . Meanwhile, structural costs are being streamlined. As such, operating EBITDA including tax credits (French and Canadian) amounted to a C12.3 million loss in 2025, compared to a loss of C8.6 million in 2024. Adjusted for non-recurring expenses related to the PSE and the accounting treatment of the P14 project, operating EBITDA amounted to C4.0 million loss, illustrating the ongoing recovery trajectory. Depreciation, amortization and provisions amounted to C22.5 million, including a partial impairment of Bloom & Rage assets of C13.1 million (with no cash impact). As such, operating EBIT including tax credits amounted to a C35.0 million loss in 2025, compared to a loss of C44.9 million in 2024. Non-recurring income and expenses for 2025 were immaterial7 compared to a C19.0 million expense in 2024. ‌6 Group average full-time equivalent: 248 at 12/31/2025 vs. 312 at 12/31/2024 ‌7 This is now recognized as an operating expense rather than an non-recurring expense in accordance with accounting standard reforms effective since January 1, 2025. Net income Group share was a loss of C35.7 million in 2025, an improvement over the previous financial year. Financial structure ASSETS (in €000) 2024 2025 LIABILITIES (in €000) 2024 2025 Fixed assets 28,021 4,555 Shareholders' equity & other equity 55,731 19,888 Inventories & work in progress - - Provisions 4,923 3,294 Trade receivables 812 2,154 Borrowings 1,648 360 Other receivables 6,673 8,315 Trade payables 1,738 1,742 Cash and cash equivalents 32,875 15,463 Other payables 4,340 5,202 TOTAL 68,380 30.487 TOTAL 68,380 30.487 DON'T NOD generated negative free cash flow8 of C15.9 million in 2025, an improvement of C6.1 million compared to 2024, and C8.5 million after adjusting for restructuring expenses (-C2.4 million). Cash flows from investing activities fell sharply to -C7.1 million (vs. -C18.8 million) and primarily reflect accounting decisions related to the asset review. As a result, DON'T NOD limited its cash burn to C17.4 million in 2025 (vs. C21.9 million in 2024), despite C2.4 million in non-recurring items related to restructuring expenses. As of December 31, 2025, the Group cash & equivalents amounted to C15.4 million, compared to C32.9 million a year earlier, with C19.9 million in shareholders' equity and non-significant gross financial debt (C0.4 million). Given cash and cash equivalents available as of December 31, 2025, and the cash flow forecast, the company's ability to continue operations depends partly on securing external financing to cover business operation and project development needs. This represents material uncertainty regarding the company's ability to continue as a going concern beyond January 31, 2027. As such, DON'T NOD is actively pursuing its negotiations aimed at strengthening its financial structure to secure funding for the P14 project. The company may also implement additional measures to control operating expenses. ‌8 See the cash flow statement in the appendix Roadmap confirmed and future projects DON'T NOD continues to execute its roadmap focused on consolidating fundamentals, securing future revenues and preserving its unique identity built on recognized narrative excellence. | Aphelion , a sci-fi action-adventure game, is scheduled for release on April 28, 2026 on PC (Steam), Xbox Series X|S and PlayStation 5. This new IP, developed in collaboration with the European Space Agency (ESA), will be available from day one on Game Pass in Xbox Play Anywhere. | The development of a narrative game in partnership with Netflix , based on a major intellectual property, is progressing according to contractual commitments. This collaboration illustrates DON'T NOD's positioning as a storytelling specialist for major intellectual properties and its ambition to explore new formats. | Discussions are ongoing regarding the co-production of the P14 project to secure its development. In a challenging environment, DON'T NOD is approaching the coming months with enhanced financial discipline and an optimized cost structure. The company is actively pursuing efforts to secure the necessary financing to continue its operations while maintaining its efforts to adapt its cost base. Changes to the Board of Directors Julien Bares has expressed his wish to resign from his position as a Director representing Tencent Holdings Limited, a shareholder of DON'T NOD, effective March 31, 2026. Tencent Holdings Limited has not exercised its right to propose the appointment of a new Director as of this date. To ensure the proper functioning of its governance, the Board of Directors has decided to co-opt Abrial Da Costa as an independent Director to replace Julien Bares. This appointment strengthens the Board's expertise in the video game industry. DON'T NOD Board of Directors Oskar Guilbert, Chairman of the Board and CEO Kostadin Dimitrov Yanev, Director Abrial Da Costa, independent Director Nicolas Viénot, independent Director About DON'T NOD DON'T NOD is an independent French publisher and developer with studios in Paris and Montréal creating original narrative games in the adventure (Life is Strange TM , Tell Me Why TM , Twin Mirror TM ), RPG (Vampyr TM , Banishers: Ghosts of New Eden TM ), and action (Remember Me TM ) genres. The studio is internationally renowned for unique narrative experiences with engaging stories and characters and has worked with industry leading publishers: Square Enix, Microsoft, Bandai Namco Entertainment, Focus Entertainment and Capcom. DON'T NOD creates and publishes its own IPs developed in-house such as Harmony: The Fall of Reverie TM , Jusant TM and Lost Records: Bloom & Rage TM as well as using its knowledge and experience to collaborate with third-party developers whose editorial visions parallel the company's own. Step into the studio's immersive and innovative universe at dont-nod.com DON'T NOD (ISIN code: FR0013331212 - ALDNE) is listed on Euronext Growth Paris DON'T NOD Oskar GUILBERT Chief Executive Officer Agathe MONNERET Chief Financial Officer [email protected] ACTUS finance & communication Corinne PUISSANT Analyst/Investor relations Tel: 33 (0)1 53 67 36 77 - [email protected] Amaury DUGAST Press relations Tel: 33 (0)1 53 67 36 74 - [email protected] APPENDIX - Simplified cash flow statement En K€ 2024 2025 Gross operating cash flow (7,732) (6,558) Change in working capital cash flow 4,456 (2,271) Cash flow from operating activities (3,276) (8,829) Cash flow from investing activities (18,757) (7,120) Free Cash-Flow (22,033) (15,949) Cash flow from financing activities 131 (1,339) Opening cash and cash equivalents 54,795 32,872 Closing cash and cash equivalents 32,872 15,458 Change cash and cash equivalents (21,923) (17,415)

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