Flexion Mobile (FLEXM) Q4 2025 earnings summary

Executive summary

• Core distribution business grew revenue by 6% year-over-year in Q4 2025, or 12% in constant currency, driven by new game signings and strong performance from top-tier titles.

• Total revenue for Q4 decreased by 4% year-over-year to GBP 21.1m, mainly due to a 53% drop in marketing services revenue.

• Strategic review led to the integration and phase-out of non-gaming operations in Audiencly, resulting in a GBP 12.2m non-cash impairment charge.

• Excluding the impairment, Q4 operating loss narrowed to GBP 273k, with positive adjusted EBITDA of GBP 15k.

• The company now has 37 games under contract, including several new top-tier titles.

Financial highlights

• Q4 2025 total revenue: GBP 21.1m (down 4% year-over-year); distribution revenue: GBP 19.3m (up 6%); marketing services revenue: GBP 1.8m (down 53%).

• Q4 gross profit: GBP 2.4m (up 9% year-over-year); gross profit margin increased to 11%.

• Adjusted EBITDA for Q4: GBP 15k (up from -107k); operating result: GBP -12.5m (includes GBP 12.2m impairment).

• EPS for Q4: -18.63 pence (vs. -0.71 pence prior year).

• FY 2025 total revenue: GBP 72.6m (down 5%); gross profit: GBP 9.8m (down 30%); adjusted EBITDA: GBP 0.1m (down 97%).

• Cash and cash equivalents at year-end: GBP 14.2m (up from GBP 13.1m); no interest-bearing liabilities.

Outlook and guidance

• Restructuring and integration of marketing services expected to conclude in Q3 2026, aiming for predictable profitability.

• Board to move to quarterly trading updates starting Q1 2026 to improve efficiency.

• Market trends, including the Epic-Google settlement, are expected to boost demand for alternative app store services.