Frontier Developments (LON: FDEV) reported record fiscal 2026 results on September 9, with adjusted operating profit rising 62% to £21.4 million from £13.2 million a year earlier, while revenue grew 16% to £104.8 million.
The Cambridge-based games studio credited the surge to its Jurassic World Evolution franchise, which now accounts for 58% of total revenue — up from 27% in FY25 — after generating £351 million in lifetime revenue across three base games and 23 downloadable content packs. Planet Zoo continued to outperform, delivering a 404% return on investment with £161 million in lifetime revenue and reaching 1 million monthly active users in July 2026. Planet Coaster contributed a steady 14% of revenue over its lifecycle, totaling £140 million.
Creative Management Simulation titles now represent 89% of overall revenue, up from 77% in the prior year, growing 34% year-on-year. Non-CMS offerings, including F1 Manager, fell from 16% to 4% of revenue.
The company also announced a partnership with Walt Disney, disclosed on September 3, with a game target release window in FY29 or later. Several other projects were mapped out: Planet Zoo 2 launches October 13, 2026, with pre-orders described as "very, very positive" and FY27 revenue expected at £25–30 million; Warhammer 40,000: Chaos Gate – Deathwatch follows in FY27 with an estimated £5–10 million contribution; and a new own-IP CMS title establishing another Planet franchise is slated for FY28.
Financially, IFRS operating profit jumped 97% to £25.0 million, driven in part by a £12.8 million surge in tax credits — an 88% increase — benefiting from the UK's Video Games Expenditure Credit regime. Gross profit rose to £69.9 million, while gross operating costs increased just 3% to £62.5 million. Operating margin expanded to 20.4% from 14.6%.
Capital return stepped up materially. A £5 million special dividend — the first in company history — will be paid on October 9, 2026. Total shareholder returns exceeded £25 million in FY26, including £17.5 million deployed toward share buybacks and employee benefit trust purchases since June 2025, when the share-acquisition program began. Total acquired shares now stand at £20.5 million, split between £15.5 million in buybacks and £2.0 million in EBT purchases. Renewal of the buyback authority will be sought at the annual general meeting in October.
The balance sheet strengthened: cash rose to £51.4 million by August 31 from an opening position of £42.5 million, while net assets reached £107.0 million against £95.2 million previously. Total assets grew to £147.1 million. The company trades at a P/E ratio of 9.7, and executives told investors they believe shares remain "significantly undervalued" at current levels.
Looking ahead, management projected gross operating costs to remain in the mid-£60 million range in FY27 and the capitalization rate to hold in the 60–65% range, below the historical 70–80% band. Gross profit margins are expected to recover toward approximately 68%.
