Trading Update - FY26 Revenue & Profit Upgraded

Trading Update

Revenue and Profit Upgraded

Frontier Developments plc (AIM: FDEV) ("Frontier", the "Group" or the "Company"), a leading developer and publisher of video games based in Cambridge, UK, today provides a trading update and upgraded guidance for the 12 months ending 31 May 2026 ("FY26").

The success of Jurassic World Evolution 3, combined with strong ongoing sales across Frontier's other games, has increased the Board's expectations for FY26 revenue to approximately £103 million, above previous guidance. Cumulative sales revenue for Jurassic World Evolution 3 is ahead of Jurassic World Evolution 2 over an equivalent post‑launch period, including through the release of new content. In the last month, delays beyond Frontier's control have impacted the release of further content for the game. Frontier is working hard to resolve these matters and return to its planned content roadmap.

The Board now expects FY26 Adjusted Operating Profit* of approximately £16 million, significantly ahead of previous guidance. This upgrade reflects higher-than-anticipated tax credits following a transition from the Video Games Tax Relief regime to Video Games Expenditure Credits, together with stronger-than-expected revenue performance and continued cost discipline.

Frontier continues to be highly cash generative, with cash at the end of April 2026 growing to £44.9 million (31 May 2025: £42.5 million), despite an investment of £15.4 million in share buyback programmes during the period. The net cash increase of £2.4 million over the 11 months to date represents an operating cash inflow of £17.8 million, excluding buybacks.

During the period, Frontier acquired 3,947,854 shares through two share buyback programmes, resulting in a 10% reduction in total voting rights and a corresponding 11% enhancement to earnings per share for FY27 and beyond.

A post‑year‑end trading update is expected to be provided on Wednesday 10 June 2026. Analysts and investors wishing to join a video call on the day should contact IR@frontier.co.uk.

Jo Cooke, Chief Executive Officer, commented:

"I am delighted with Frontier's performance in FY26. The success of Jurassic World Evolution 3 and the enduring appeal of our games underline the creativity of our teams and the depth of talent across the studio. Since stepping into the CEO role earlier this year, I have been encouraged by the strength of our established CMS portfolio and the clarity of our long‑term strategy as we continue to build enduring relationships with our players."

* Adjusted Operating Profit is a non‑IFRS measure used by Frontier to assess underlying financial performance. It excludes non‑cash development cost accounting adjustments (capitalisation, amortisation, and impairment), non‑cash share-based payment charges, non-operating items such as restructuring costs, and recognises the full benefit of tax credits and R&D expenditure credits in the period to which they relate.