FLEXION'S CORE DISTRIBUTION BUSINESS CONTINUES TO GROW REVENUE IN Q4 BY 6%. TOTAL REVENUE IS DOWN BY 4% DUE TO WEAK CONTRIBUTION FROM INFLUENCER MARKETING.
October-December 2025 performance
· Total revenue decreased by 4% to GBP 21.1m (22.1m)*
· Distribution revenue increased by 6% to GBP 19.3m (18.2m) or by 12% in constant currency (USD)
· Marketing Services Revenue (Audiencly) decreased by 53% to GBP 1.8m (3.8m)
· Total gross profit increased by 9% to GBP 2.4m (2.2m)
· Adjusted EBITDA‡ increased by 114% to GBP 15k (-107k)
· Non-cash impairment losses of GBP 12.2m related to Audiencly
· Amortisation decreased to GBP 0.3m (1.7m)#
· Operating result, including impairment loss of GBP 12.2m, amounted to GBP -12.5m (-1.2m)
· EPS amounted to GBP -18.63 pence (-0.71 pence)
· Operating cash flow amounted to GBP 0.4m (1.6m)
· Cash and cash equivalents increased to GBP 14.2m (13.1m)ß
January-December 2025 performance
· Total revenue decreased by 5% to GBP 72.6m (76.8m)*
· Distribution revenue increased by 1% to GBP 65.9m (65.5m) or by 4% in constant currency (USD)
· Marketing Services Revenue decreased by 41% to GBP 6.7m (11.2m)
· Total gross profit decreased by 30% to GBP 9.8m (13.9m)
· Adjusted EBITDA‡ decreased by 97% to GBP 0.1m (4.2m)
· Operating result, including impairment loss of GBP 12.2m, amounted to GBP -14.6m (-3.0m)
Important events during the quarter
· Project initiated to focus and streamline games marketing services
· Legal dispute settled with developer in line with estimates
Important events after the quarter
· Launch of Seaside Escape, a top 50 grossing game from Microfun Limited, on Google Play
· Signing of Hero Wars: Alliance from Nexters Global Ltd (part of GDEV)
· Signing of a further 2 titles
· As of the date of this report, Flexion has 37 games under contract
* Comparative restated figures for the year-earlier period in brackets.
‡ The Group defines adjusted EBITDA as earnings before interest, tax, depreciation, amortisation, finance costs, impairment losses, foreign exchange gains/losses, corporate acquisitions costs, fair value gains/losses and other exceptional costs.
# The total amortisation of GBP 312,490 (1,734,169) includes GBP 65,959 (1,455,112) related to game distribution rights, GBP 135,877 (129,239) related to Brand, GBP 57,519 (84,146) related to customer relationships, GBP 52,423 (65,672) related to capitalised development costs and GBP 712 (Nil) related to computer software.
Chairman's Statement
I am pleased to report that our core distribution business maintained its growth trajectory through Q4, with revenue increasing 6% year-on-year (12% in constant currency), capped off by growth in our gaming distribution customers. We have successfully signed several new games, including our second title from Microfun, which we officially launched in Q1 2026. Their first title, Gossip Harbour, continues to be a standout performer and is now firmly established as one of our top-tier games. This momentum means we now represent four of the Top 10 grossing titles on Google Play - a clear testament to our market position as we ramp up game sourcing in line with our 2026 targets. As noted in our Q3 report, the number of games we work with is our north star for our success. I am pleased to report that at today's date we are making progress towards that goal at 37 games under contract, which include games pending launch.
As part of our commitment to focus, we have concluded our strategic review of Audiencly. We've decided to fully integrate our influencer marketing capabilities into our core marketing services, allowing us to offer a more unified and powerful User Acquisition (UA) suite to our developer partners. Consequently, we are phasing out all non-gaming operations and will close the Audiencly legal entity in Germany during 2026. While this strategic realignment contributed to a significant decline in marketing services revenue during 2025, it was a necessary step toward focusing the overall business. We have made a £12.2m non-cash impairment charge to our balance sheet related to the acquisition of Audiencly, which explains the negative impact on our Q4 operating result. Excluding the impairment, our operating loss for Q4 narrowed to GBP 273k, with the remaining gap to our positive Adjusted EBITDA of GBP 15k attributable to depreciation and amortisation. I expect the slimmer, integrated teams to generate predictable profitability once the restructuring concludes in Q3 2026.
Beyond restructuring, we are relentlessly focused on internal efficiency and scalability of our service delivery. Every team is currently reviewing their processes to introduce AI to improve quality and speed. I am pleased to see that our cost structure is trending down as our core distribution revenue grows. To keep this momentum, the board has decided to move to Quarterly Trading Updates starting in Q1 2026. This shift will allow our finance team to spend less time on manual reporting and more time on efficiency improvements, while still providing the market with timely updates on our performance KPIs.
Looking at the broader landscape, the market trend continues to validate our strategy. We view the global settlement between Epic and Google as a significant positive for the alternative app store market, effectively separating store access from payment processing. We understand a decision from the US courts may be expected around April 2026 regarding the specific implementation of these changes. In the meantime, this shift is already fuelling demand for our services. Our timely partnership with payment specialist Xsolla puts us in a prime position to capitalise on these changes, and I look forward to sharing more on that in our next update.
Andrew Shen
Chairman
Contacts
Andrew Shen - Chairman, Email: ir@flexionmobile.com
About Us
Flexion brings games to new audiences and markets, helping game developers grow revenue and engagement with minimal cost and risk. With over a decade of expertise in alternative distribution, Flexion works with leading platforms including Amazon, Huawei, Samsung, Xiaomi, and ONE Store. Flexion is listed on Nasdaq First North Growth Market, Shortname: FLEXM.
For more information, visit flexion.games
This information is information that Flexion Mobile 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 2026-03-31 08:00 CEST.
