Second quarter, 1 April - 3o June 2025
- Net sales increased by 59 percent to SEK 43.1 million (27.1), mainly due to increased sales of gaming projects and a larger immersive project.
- EBITDA amounted to SEK -12.4 million (-22.9). The reduced loss is mainly due to increased sales, combined with reduced operating costs.
- EBIT amounted to SEK -12.8 million (-25.5).
- Profit before tax amounted to SEK -13.1 million (-24.8).
- Earnings per share before and after dilution amounted to SEK -0.40 (-1.17).
- Cash and cash equivalents amounted to SEK 3.1 million (3.1) as of June 30, 2025.
First half-year, January 1 - June 30, 2025
- Net sales increased by 53 percent to SEK 88.5 million (57.7). The reason for sales increasing is the same as for the quarter.
- EBITDA amounted to SEK -15.5 million (-44.9). The reason for the reduced loss is the same as for the quarter.
- EBIT amounted to SEK -16.3 million (-50.2).
- Profit before tax amounted to SEK -18.6 million (-48.7).
- Earnings per share before and after dilution amounted to SEK -0.56 (-2.29).
- Cash and cash equivalents amounted to SEK 3.1 million (3.1) as of June 30, 2025.
Significant events during the second quarter
- On April 14, 2025, Goodbye Kansas Studios received a significant order from a new commercial customer for the production of content for a large immersive video installation, a partially new market with interesting business opportunities. The total order value amounts to approximately SEK 20 million and the project will continue until the third quarter of 2025.
- At the Annual General Meeting on April 16, 2025, Per Anders Wärn, Staffan Eklöw, Thomas Lindgren, Naveen Paul and Rajeev Sharma were re-elected to the Board of Directors. Per Anders Wärn was re-elected as Chairman of the Board.
- On June 19, 2025, Goodbye Kansas Studios received a significant order from a new international customer for the production of a game trailer, in-game content, and motion capture for a game project. The total value of the order amounts to approximately SEK 31 million. The project will run until the first quarter of 2026.
Significant events after the period
- On July 2, 2025, Goodbye Kansas Studios received an order from an existing international customer for the production of a new game trailer for a game project. The value of the order amounts to approximately SEK 8 million. The project will run until the fourth quarter of 2025.
- On August 4, 2025, Goodbye Kansas Studios received another large order from an existing international customer for the production of game cinematics for a game project. The value of the order amounts to a total of approximately SEK 29 million. The project has been initiated and will run until the second quarter of 2026.
- Thomas Lindgren has been appointed acting CEO of Goodbye Kansas Group. He will take office on Monday, August 25, succeeding Stefan Danieli. Thomas has been a board member of Goodbye Kansas since 2024 and has extensive experience as both CEO and board member in the gaming industry. He holds a degree in economics and business administration and was previously Chairman of Goodbye Kansas Game Invest, where he was responsible for strategic development and also led the sale of Game Invest to Embracer Group together with management.
CEO comments
Dear shareholders,
After another quarter of strong growth, I can conclude that Goodbye Kansas is on the right track. We report a significant increase in sales compared to the corresponding period last year, a strong improvement in operating cash flow and an improved result, although still negative. We have previously flagged for variations between quarters and increased uncertainty in the market, but we remain fundamentally positive about the company's outlook for the second half of the year and the financial year as a whole. The gaming market continues to drive our sales, but we were also pleased to secure an order for content for an immersive video installation during the quarter, a partly new market for us but where we hope to grow the business in the future. We have also secured some VFX projects, which is positive as it indicates that this segment has also begun its recovery.
Third consecutive quarter with strong sales growth
Sales in the second quarter increased by 59 percent to SEK 43.1 million with improvements in both EBITDA to SEK -12.4 million and operating cash flow, which totaled SEK -10.6 million. Sales are once again primarily driven by gaming projects, but the order for an immersive video installation also had a significant positive impact on sales. We were also able to secure a number of other new large orders during the quarter. Unfortunately, our margins were negatively impacted in the quarter due to some delayed production starts of projects, which caused lower utilization of staff. We have also seen a somewhat negative impact on earnings due to currency effects resulting from fluctuations primarily between SEK and USD. Our sales efforts have continued to yield results also after the quarter, as we have so far secured orders totalling more than SEK 40 million. This will drive continued sales growth in the second half of the year, which is a prerequisite for achieving profitability. Our focused sales work is yielding results in the market, while our production organization is fully focused on delivering quality, efficiency and creative content that lives up to customers' high expectations. Additional orders for ongoing projects as well as new orders from returning customers clearly demonstrate the competence and capability of our production organization.
Continued restrained development for VFX
The VFX market has started to generate some sales volumes, but not yet of substantial size - however, customer activity has increased significantly. We are in concrete dialogues with a number of customers in both North America and the UK, where we believe that we have good opportunities of winning new assignments. Overall, we see significant revenue potential, in projects of various sizes, although more substantial revenues may take another quarter or so to materialize.
At the same time, we continue to make progress in establishing our joint venture with NY VFXWAALA in India. The newly recruited COO is leading intensive recruitment efforts of production staff and we are very pleased with the strong response we have received. An expanded production capacity in Mumbai is crucial for us to be able to meet growing demand and order volume in a tougher competition, with improved margins. Several of the orders received during and after the quarter will be partly produced in our Indian joint venture company.
Outlook
Goodbye Kansas continues to grow and create the pre-conditions for robust profitability, but as this quarter shows, volatility is still relatively high. However, it is important to remember that Goodbye Kansas will be able to achieve positive EBITDA at significantly lower sales levels than has historically been the case thanks to comprehensive restructuring measures. We have previously communicated that uncertainty in the world around us has increased which makes the company's markets more difficult to assess. At the same time we have secured new orders at a good pace and the orders we won during and after the quarter will drive revenues in the second half of this year, and into 2026. In addition, customer demand remains high, and customers have increasingly started to confirm orders earlier in negotiations, even though they do not immediately materialize in signed contracts. Of course, this is fundamentally positive and we are continuously working to formalize all assignments as quickly as possible through signed agreements.
Our offering is niche while the market is substantial, and we are working purposefully to offer services in several market segments with good growth potential, which can be seen through recent orders for immersive videos. We also see increased activity in existing markets going forward, both in the US and Europe. A development that has accelerated this year is gaming companies' strategic shift to increasingly outsource development and production. The gaming market is still considered to be our most important market going forward, but we are confident that VFX services will once again become an important source of revenue for Goodbye Kansas thanks to our strong offering. We also have ambitions regarding the product segment Animation, where we have hopes to win assignments in the future. Projects in animation often have a different and longer distribution over time, which contributes to a good and stabilizing product mix.
A business-driven organization
Goodbye Kansas is in an exciting transition with a strong customer offering, a well-established market position, growth and progressively better results while we also work to realize exciting development opportunities. It was against this background that I announced my intention to resign in late 2024, to hand over to new forces that can lead the company, and today we announced that board member Thomas Lindgren will take over as the company's new CEO. Having worked closely with Thomas during his time on the Board, I am confident that he is the right man to take over the leadership of Goodbye Kansas. Thomas has a solid foundation in the gaming industry, a strong network in the market and well-established personal contacts among many of our customers and has been a fan of Goodbye Kansas for many years. Thomas is ideally placed to drive growth while maintaining cost control, strengthening the market position and at the same time supporting the company's innovation and business development.
With this report, I end my term as CEO of Goodbye Kansas Group - together with the Board, management and all employees, I have had the opportunity to initiate and complete a significant restructuring of the business. The process has been challenging in several respects and not without setbacks, but we have come through this and created a stronger Goodbye Kansas Group that is on the right track, and which has strong potential for profitable growth in several market segments.
Finally, I would like to extend a warm thank you to Goodbye Kansas' customers, investors, partners and employees, and of course wish Thomas the best of luck on the road ahead with Goodbye Kansas.
Stefan Danieli
CEO
Goodbye Kansas Group
For more information, please contact:
Stefan Danieli, CEO, Goodbye Kansas Group
E-mail: stefan.danieli@goodbyekansas.com
Tel: +46 701 981049
Goodbye Kansas Group
Goodbye Kansas Group AB (publ) is a leading supplier of technology-driven visual content and develops solutions for visual effects (VFX), animation, game trailers and In-Game. The Group has some of the world's leading entertainment companies as customers. Goodbye Kansas Group has its head office in Stockholm and is listed on Nasdaq First North Growth Market with Wildeco as Certified Adviser.
This information is information that Goodbye Kansas Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-22 08:00 CEST.
