The Board of Directors of Digital Bros Group approve d
the Draft Financial Statements as of June 30 th
, 202
6
CONSOLIDATED F
ULL YEAR
RESULTS
FOR
THE F
Y2026
:
•
REVENUE
OF
EURO
108.5
MILLION
(+15.8%)
•
EBITDA
OF
EURO
54.2
MILLION
(50
% OF REVENUE
) •
EBIT
POSITIVE
AT EURO
5.1
MILLION
• NET
LOSS
OF
EURO
6.5
MILLION
•
NET FINANCIAL POSITION POSITIVE AT EURO 3.3 MILLION
THE
NEXT FISCAL YEAR BUDGET SHOWS REVENUE DECLINE AND EBIT
GROWTH
DIVIDEND
PROPOSAL
OF EURO
0.21
PER SHARE
✓
Consolidated revenue
of
Euro
108 .
5
million,
up
15.8
%
from
Euro
93.6
million
in the
previous fiscal year, driven by the performance of Wuchang: Fallen Feathers and the different versions of Assetto Corsa ✓
EBITDA
of
Euro
54.2
million
, representing 50% of revenue and increasing by Euro
20.8 million
(+62.1%)
✓
Positive
EBIT
of
Euro
5.1
million
,
improving
by Euro 16.7 million despite
Euro 18.7
million in
write
-
offs
of discontinued projects under development and impairment
losses
✓ Net
loss
of
Euro
6.5
million
compared
to a
net
loss
of
Euro
10 .
7
million
in the previous
fiscal year
✓
Positive N
et financial
p
osition
of
Euro
3.3
million
(
Euro
5.5 million net of the IFRS16
effect
), above expectations and
improving
by Euro 20 million compared to the net debt at Euro 16.5 million as of June 30 th
, 2025
✓ C onsolidated revenue expected to decline in the next fiscal year and to be
concentrated
in the second half, but
EBIT
expected
to improve
together with
the N
et financial
position at fiscal year -
end ✓
Net profit
of Digital Bros S.p.A.
of Euro 10.3 million, proposed dividend of Euro
0.21
per share
2
Milan,
September
2 4 th , 202 6 -
The Board of Directors of Digital Bros Group (DIB:MI) , a
video
games
company
listed
on the
Euronext STAR
Milan (ISIN: IT0001469995) and
part of
the FTSE Italia Small Cap index , today approved the
Draft
consolidated f
inancial Statements for the fiscal year 202 5 -
202 6
(July 1
st ,
202 5
–
June 30
th ,
202 6
)
and the
Draft
financial statements for Digital Bros S.p.A.
.
Digital Bros Group’s key consolidated results for the fiscal year 202 5 -
202 6
, together with prior year comparatives, are
as follows:
Euro thousand
June 30
th ,
202 6
June 30
th ,
202 5
Change
Change %
Gross
revenue
108 ,
455 93
, 620
14 ,
835 15
.
8% Gross operating margin (EBITDA) 54 , 220 33 , 457 20 , 763 62 .
1% Operating margin (EBIT) 5 , 119 (11 ,
540)
16 ,
659 n.m.
Profit / (loss) before tax (2 ,
466)
(14 ,
654)
12 ,
188 -
83 .
2% Net profit / (net loss) (6 ,
489)
(10 ,
704)
4 , 215 -
39 .
4% •
Consolidated revenue
at
Euro
108.5
million
, up
15.8
% ;
•
EBITDA
at
Euro
54.2
million
, increasing by Euro 20.8 million ;
•
EBIT
positive
at
Euro
5.1
million,
improved
by Euro
16.7
million
despite Euro 18.7 million asset impairment charges, of which Euro 17.
6
million
in write offs related to the cancellation of projects under development and Euro 1 million in
impairment losses
;
•
Loss
before tax
of
Euro
2.5
million
, improved by Euro 12.2 million ;
• Net
loss
of
Euro
6.5
million
,
reduced
by Euro 4.
2
million
.
RESULTS BY OPERATING SEGMENT
Consolidated revenue
amounted to Euro 108.5 million as of June 30 th , 2026, up 15.8%.
Revenue
was supported by the launch of Wuchang: Fallen Feathers in the first quarter and the release of Assetto Corsa Rally in Early Access for PC in the second quarter. Back catalogue sales also remained particularly healthy throughout the fiscal year.
The release of Assetto Corsa Rally is consistent with the Group’s strategy of focusing its publishing portfolio on a smaller number of properties, prioritising titles based on fully owned intellectual properties with greater visibility and the potential to generate recurring revenues over time.
This strategic focus is particularly relevant in a videogame market that remains characterised by significant volatility and uncertainty and continues to adjust following the exceptional expansion experienced during the pandemic period.
Players have become increasingly selective towards new releases and continue to devote a significant share of the
ir time
and spending to established titles, making the commercial performance of new games less predictable.
These market
dynamics have led developers and publishers globally to reassess their strategies and cost structures, resulting in project cancellations, studio closures and workforce reductions across the industry.
The Group has also been affected by these trends and has continued to adapt its portfolio and operating structure accordingly.
A
breakdown
of net revenue by operating segment
as of
June 30
th ,
202 6
is provided below:
Euro thousand
June 30
t h , 202 6
June 30
t h , 202 5
Change
Change %
Premium Games
98,182
78,789
19,393
24.6%
Free to Play
9,261
12,688
(3,427)
-
27.0%
Other Activities
1,012
2,143
(1,131)
-
52.8%
Total net revenue
108,455
93,620
14,835
15.8%
As of June 30 th
, 2026,
Premium Games revenue amounted to Euro 98.2 million, compared to Euro 78.8 million of the p revious fiscal year and represented 91% of total revenue.
Revenue generated by the
different
Assetto Corsa
games
amounted to Euro 33.6 million, up 5% from Euro 32 million as of June 30 th , 2025.
This p
erformance benefited from the strong sales of
products
released in previous fiscal years (Assetto Corsa and Assetto Corsa Competizione), together with the contribution from Assetto Corsa EVO, released in the previous fiscal year, and the new Assetto Corsa Rally. The se latter are currently available in Early Access
on Steam
only
and will receive further updates ahead of their full releases, scheduled for the next fiscal year.
3
A breakdown of Premium Games revenue by the type of rights as of June 30 th
, 2026
is provided below compared to the previous fiscal year:
Revenue generated by videogames based on the Group’s fully owned intellectual properties (Owned IPs)
accounted for
77% o
f Premium Games revenues. This reflects the strong performance of Wuchang: Fallen Feathers, together with the
contribution
of the Assetto Corsa franchise. Revenues
generated by
Wuchang: Fallen Feathers ,
previously
classified
under
co -
owned intellectual properties and long -
term agreements
,
were
reclassified
as Owned IP
revenues
following
the acquisition of the videogame’s intellectual property rights
from
the Chinese developer Chengdu Lingze Technology Co. Ltd.
finalized during the third quarter of the fiscal year.
Free to Play revenue amounted to Euro 9.3 million, down 27%.
During the month of
August 2025,
certain
technical
issues affecting the videogames published by the Group’s subsidiary 505 Go Inc. temporarily impacted revenue.
Although the issues were promptly resolved, the
operating
segment was unable to recover the revenue
contraction
during the remainder of the fiscal year.
Digital revenue
accounted
for approximately 94% of total revenues, broadly in line with the levels
of the
recent fiscal
years.
International markets
accounted for 99% of total revenues.
Total
c ost of sales was limited to 20.3% of revenue,
compared to
30.7%
of revenue in the previous fiscal year. The improvement reflects a more favourable product mix, with a significantly higher contribution from fully o
wned
IPs ,
which
present negligible
royalt
ies . As a result, the
gross profit
increased by 33.1% to Euro 86
.4 million
, compared to
Euro 64
.9 million
in the previous fiscal year.
Other revenues
amounted to Euro 8
.2 million
, a decrease of 16.3%.
The c
apitalised internal development costs primarily related to Assetto Corsa EVO and Assetto Corsa Rally.
O
perating costs
decreased by 2.1% despite the revenue growth. The
limited
number of new releases resulted in a significant reduction in advertising costs, with marketing activities more selectively targeted towards specific markets, such as China for Wuchang: Fallen Feathers,
and specific
consumer
audiences and media channels for Assetto Corsa EVO and Assetto Corsa Rally.
Payroll costs increased by 2.3%, mainly reflecting the recognition of the
variable
remuneration as of June 30 th , 2026, which was not recognised in the previous fiscal year.
P
ayroll costs
benefited from
a reduction of the Group’s average workforce by 19 employees.
T he
EBITDA margin
increased to 50% of revenues, with EBITDA amounting to Euro 54
.2 million
, up Euro 20 .8
million
from Euro 33
.5 million
as of June 30 th , 2025.
Depreciation and amortization amounted to Euro 30
.5 million
, increasing by Euro 3
.8 million
compared to the previous fiscal year .
The Group decided to discontinue the
development
of
some videogames
,
Directorate: Novitiate
, Armed Fantasia and the sequel to the Free to Play game Battle Island,
after
multiple
attempts to revise their gameplay. The decisions followed a thorough review of the
potential
of each
product
in consideration of changing market conditions and the additional investment required to complete development to bring the games to the market.
As a result, the Group reported non -
cash asset impairment of Euro 18
.7 million
, including
Euro 17
.6 million
in
write
-
offs relating to the discontinued projects and
Euro
1 million
in
impairment losses
on videogames for which impairment testing
indicated
that the present value of expected future cash flows was below the carrying amount of the related assets , to reflect lower sales expectations.
EBIT
was positive at Euro 5
.1 million
, significantly improved compared to the negative EBIT of
Euro 11
.5
million
of the
previous fiscal year.
Owned IPs
77% Co
-
owned IPs
and long term
agreements
7%
Publishing
agreements
16% June 30, 2026
Owned IPs
52% Co
-
owned IPs
and long term
agreements
29%
Publishing
agreements
19% June 30, 2025
4
The net interest expense amounted to Euro 7
.6 million
, compared to Euro 3
.1 million
as of June 30 th , 2025. The other financial expenses include Euro 5
.7 million
relating to the
write down
of the carrying amount of the investment in Starbreeze to zero to align to
IAS 28
.
The loss before tax amounted to Euro 2
.5 million
, improved by Euro 12
.2 million
from the loss before tax of Euro 14 .7
million
in the previous fiscal year.
The consolidated net loss amounted to Euro 6
.5 million
, compared to the net loss of
Euro 10
.7 million
as of June 30 th ,
2025. The
net loss attributable to the shareholders of the Parent Company amounted to Euro 6
.5 million
, compared
to the loss of Euro 10
.9 million
of the previous fiscal year. The net profit attributable to non -
controlling interests
amounted to Euro 14 thousand, compared to Euro 215 thousand as of June 30 th , 2025. As the period of
exercise
provided
by the Stock Option Plan 2016 -
2026 expired on June 30 th , 2026, the basic and diluted loss per share now coincide at
Euro 0.4
6 , compared to Euro 0.77 and Euro 0.73, respectively, as of June 30 th , 2025.
NET FINANCIAL POSITION
As of June 30 th , 2026, t
he Group's
adjusted
net financial
position
was positive at Euro 3
.3 million
,
above the
expectations
of a net debt position at fiscal
year
-
end and
improv
ing by Euro 19
.8 million
compared to June 30 th , 2025.
T he
adjusted
net financial position restated by the IFRS16 effect was positive at Euro 5
.5 million
.
The net financial
position calculated
in accordance with the “ Guidelines on disclosure requirements
under the
Prospectus Regulation
” issued by the European Securities and Markets Authority (ESMA), was
positive
at Euro
283
thousand,
improving
by Euro
19
.7 million
compared to
June 30
th
, 2025
.
PARENT COMPANY DIGITAL BROS
S.p.A.
As of June 30 th
, 202
6 , t
otal revenues
of the
P arent company Digital Bros S.
p .
A
amounted to
5
.3 million
,
down 23
.3 %
compared to
Euro
7 million
in the previous fiscal year .
The performance is consistent with the continued reduction in distribution activities over recent years.
Net profit amounted to Euro 10
.3 million
, increased by Euro 10
.1 million
from
the net profit of
Euro
144
thousand
as of
June 30
th
, 2025
.
The Company expects a further reduction in its distribution activities in the next fiscal year .
The dividends received are expected to remain broadly in line with the current
levels
, but
no revaluations or impairment losses are expected in the next fiscal year. As a result, both revenues and net result are expected to
slightly
decrease
as of June 30 th
, 2027
.
PROPOSAL FOR THE ALLOCATION OF EARNINGS
The Board of Directors proposes to the Shareholders’ Meeting the distribution of a dividend of Euro
0.21
per share, for a total amount of approximately Euro 3
million
. The remaining
profit is
proposed to be allocated for Euro 7 thousand to the legal reserve and , for the remaining amount, to retained earnings .
The amount allocated to retained earnings , calculated on the basis of the number of outstanding shares, is estimated at
Euro
7.3
million
.
Subject to approval by the Shareholders’ Meeting, the dividend will be paid on
November
18 th
, 2026, excluding treasury shares held by the Company, with an ex -
dividend date for coupon no.
13 o
f
November
16 th
, 2026, in accordance with the Borsa Italiana calendar, and a record date o
f November
17 th
, 2026.
TREASURY SHARES
As of
June 30
th ,
202 6
, Digital Bros S .
p .
A .
did not hold any treasury shares, and no transactions have been
made
in the
period, in accordance with Art .
2428 paragraph 2 .
3 of the Italian Civil Code .
5
SIGNIFICANT EVENT DURING THE PERIOD
On April 27 th , 2026, the Group entered into an agreement with Chinese development studio Chengdu Lingze Technology Co. Ltd. for the acquisition of the intellectual property rights to the videogame Wuchang: Fallen Feathers for a total consideration of Renminbi 32 millio n (approximately Euro 4 million).
SIGNIFICANT EVENTS OCCURRED AFTER JUNE 30
TH ,
202 6
The following significant events occurred after the end of the reporting period:
• On July 20 th , 2026, the Board of Directors approved the proposal for a new medium/long -
term incentive
scheme, the “Phantom Share Plan 2026 -
2032”, for Executive Directors and selected employees and collaborators with key roles in the
pursuing
of the Group’s objectives. The Phantom Share Plan 2026 -
2032 will
be submitted for approval to the Shareholders’ Meeting to be held on October 27 th , 2026.
• On July 29 th , 2026, the Group entered into an agreement for the development and publishing of the sequel to Wuchang: Fallen Feathers with the Chinese development studio Chengdu Recursive Dolphin Technology Co.
Ltd., founded by the creative director of the original gam e. The initial investment is expected to amount to Euro 21.5 million.
BUSINESS OUTLOOK
The Group’s release schedule for the next fiscal year will be concentrated in the second half, with the launch of Bloodstained: The Scarlet Engagement and the full release of Assetto Corsa EVO and Assetto Corsa Rally.
Both
the
Assetto
Corsa
games
will
subsequently be
supported by additional content released over time. The release schedule will also include a number of titles w ith
significantly lower
levels of
investment, including Nivalis Nights. No new releases are planned for the Free to Play operating segment.
The first half of the fiscal year will therefore be mainly driven by
back catalogue
sales, which are expected to continue
making
a significant contribution to revenue s . For the Free to Play operating segment, sales will be exclusively generated by back catalogue sales throughout the fiscal year.
Given the timing of the main releases, management
expects full
-
year revenues to
decline
compared to the current fiscal
year, with
a larger p ortion of revenue s
expected
to be generated in the second half.
EBITDA is expected to reflect the revenue
trend
, but
EBIT is expected to improve, mainly due to l ower impairment losses
and write
-
offs.
The p
roject cancellations that affected the current fiscal year are not expected to have the same impact in the next fiscal year , given the Group’s strategy of
increasingly focus
ing its
inves
tments
on a smaller number of intellectual properties, particularly products that have already been released or are approaching release, as well as sequels to successful games. This approach is expected to provide
better
control over the Group’s portfolio and greater visibility and predictability over future performance.
The net financial position as of June 30 th , 2027 is expected to further improve , as EBITDA is expected to exceed forecasted investments for the next fiscal year , despite t he Group expect ing to be in a net
debt
position
during the first three quarters of the next fiscal year, in relation to the main releases
scheduled
to happen
in the second half.
6
ART .
154 -
BIS OF THE
T.
U .
F .
As required by paragraph 2, Art .
154 -
bis of the
T.U.F.,
Digital Bros Group's Chief Financial Officer, Stefano Salbe, declares that the information contained in this press release corresponds to the Group's underlying documents, books and
accounting records
.
This press release is available on the websites
www.digitalbros.com
and
www.1info.it
.
DIGITAL BROS GROUP
Listed on the Euronext STAR Milan, Digital Bros Group is a global company that has been operating since 1989 as a developer, publisher and distributor of video games through its brand 505 Games. Digital Bros Group is active on a global scale through its su bsidiaries in Italy, United States, UK, Czech Republic, China, Japan, Australia and Canada with 2 7 0 employees.
For further information please contact:
Digital Bros S .
p .
A .
Stefano Salbe
-
CFO Tel
, + 39 02 413031
ir@digitalbros.com
7
DIGITAL BROS GROUP
-
FINANCIAL STATEMENTS
Consolidated
balance sheet
as of June 30 th , 202 6
Euro thousand
June 30
th
, 202
6
June 30
th
, 202
5
Non -
current assets
1 Property, plant and equipment
5,166
5,459
2
Investment properties
0 0 3
Intangible assets
76,797
111,234
4
Equity investments
234
7,159
5 Non
-
current receivables and other assets
1,958
2,601
6 Deferred tax assets
20,062
23,723
7 Non
-
current financial activities 0
2,821
Total non
-
current assets
104,217
152,997
Current assets
8
Inventories
1,007
1,356
9
Trade receivables
10,389
14,185
10
Tax receivables
7,753
8,600
11 Other current assets
4,678
5,706
12 Cash and cash equivalents
9,448
6,718
13 Other current financial assets
2,981
0
Total current assets
36,256
36,565
TOTAL ASSETS
140,473
189,562
Shareholders’ equity
14
Share capital
(5,740)
(5,706)
15
Reserves
(5,859)
(9,632)
16
Treasury shares
0 0 17
Retained earnings
(92,099)
(98,612)
Equity attributable to the shareholders of the Parent Company
(103,698)
(113,950)
Equity attributable to non -
controlling interests
(804)
(790)
Total net equity
(104,502)
(114,740)
Non -
current liabilities
18
Employee benefits
(1,208)
(1,109)
19 Non
-
current provisions
(376)
(1,059)
20
Other non
-
current payables and liabilities 0
(4,947)
21 Non
-
current financial liabilities
(1,131)
(1,221)
Total non
-
current liabilities
(2,715)
(8,336)
Current liabilities
22
Trade payables
(20,540)
(29,636)
23
Tax payables
(1,114)
(1,142)
24 Short term provisions 0 0 25 Other current liabilities
(3,571)
(10,838)
26 Current financial liabilities
(8,031)
(24,870)
Total current liabilities
(33,256)
(66,486)
TOTAL LIABILITIES
(35,971)
(74,822)
TOTAL NET EQUITY AND LIABILITIES
(140,473)
(189,562)
8
Consolidated profit and loss
statement
as of June 30 th , 202 6
Euro thousand
June 30
th
, 202
6
June 30
th
, 202
5 1
Gross revenue
108,455
93,620
2
Revenue adjustments
0 0 3
Net revenue
108,455
93,620
4 Purchase of products for resale
(958)
(718)
5 Purchase of services for resale
(4,214)
(7,383)
6
Royalties
(16,549)
(19,329)
7 Changes in inventories of finished products
(349)
(1,312)
8 Total cost of sales
(22,070)
(28,742)
9 Gross profit (3+8)
86,385
64,878
10
Other income
8,184
9,784
11 Costs for services
(7,947)
(9,413)
12 Rent and leasing
(660)
(623)
13
Payroll costs
(30,629)
(29,951)
14 Other operating costs
(1,113)
(1,218)
15 Total operating costs
(40,349)
(41,205)
16 Gross operating margin (EBITDA) (9+10+15)
54,220
33,457
17 Depreciation and amortization
(30,505)
(26,742)
18
Provisions
0
1,241
19 Asset impairment charge
(18,692)
(20,405)
20
Impairment reversal
96 909
21 Total depreciation, amortization and impairment adjustments
(49,101)
(44,997)
22 Operating margin (EBIT) (16+21)
5,119
(11,540)
23 Interest and financial income
1,844
3,952
24
Interest and
other
financial expenses
(9,429)
(7,066)
25 Net interest income/(expenses)
(7,585)
(3,114)
26 Profit/ (loss) before tax (22+25)
(2,466)
(14,654)
27
Current tax
(4,615)
858 28
Deferred tax
592
3,092
29
Total taxes
(4,023)
3,950
30
Net profit/loss
(6,489)
(10,704)
attributable to
the shareholders of the Parent Company
(6,503)
(10,919)
attributable to non -
controlling interests
14 215
Earnings per share:
33 Basic earnings per share (in Euro)
(0.46)
(0.77)
34 Diluted earnings per share (in Euro)
(0.46)
(0.73)
9
Consolidated comprehensive income
statement
as of June 30 th , 202 6
Euro thousand
June 30
th
, 2026
June 30
th
, 2025
Profit (loss) for the period (A) (6 ,
489)
(10 ,
704)
Actuarial gain (loss) 8 8 Income tax relating to actuarial gain (loss) (2) (2) Changes in the fair value 62 (2 ,
222)
Tax effect regarding fair value measurement of financial assets (4 ,
403)
533 Items that will not be subsequently reclassified to profit or loss (B) (4 ,
335)
(1 ,
683)
Exchange differences on translation of foreign operations
(307)
(1 ,
029)
Items that will subsequently be reclassified to profit or loss (C)
(307)
(1 ,
029)
Total other comprehensive income D= (B)+(C) (4 ,
642)
(2 ,
712)
Total comprehensive income (loss) (A)+(D) (11 ,
131)
(13 ,
416)
Attributable to:
Shareholders of the Parent Company (11 ,
145)
(13 ,
631)
Non -
controlling interests
14 215
Changes in fair value reflected the changes in third party equity investments that were classified in the consolidated comprehensive income statement and not in the consolidated profit and loss statement .
10
Consolidated cash flow statement as of
June 30
th ,
202 6
Euro thousand
June 30
th
, 2026
June 30
th
, 2025
A.
Opening net cash/debt
6,718
11,981
B.
Cash flows from operating activities
Profit (loss) for the period
(6,489)
(10,704)
Depreciation, amortization and non -
monetary costs:
Provisions and impairment losses
18,692
20,405
Amortization of intangible assets
28,406
24,495
Depreciation of property, plant and equipment
2,099
2,247
Net finance income/expense
7,585
3,114
Current income taxes
4,615
(858)
Deferred tax assets
(592)
(3,092)
Net change in other provisions
(683)
(746)
Net change in employee benefit provisions 107 150
Other non monetary changes
(1,797)
(1,087)
Total cash flows from operating activities (B)
51,944
33,925
C.
Change in net working capital
Inventories
Trade receivables
349
1,312
Current tax assets
3,752
2,634
Other current assets
1,093
(4,255)
Trade payables
782
3,836
Other current liabilities
(9,096)
(7,531)
Other non
-
current liabilities
(3,114)
1,862
Current tax liabilities
(7,267)
4,181
Current provisions
0
(652)
Non -
current receivables and other assets 643 918
Income taxes paid
(1,528)
(1,162)
Interest paid
(1,105)
(2,893)
Total change in net working capital (C)
(15,491)
(1,748)
D.
Cash flows from investing activities
Net payments for intangible assets
(17,421)
(20,521)
Net payments for property, plant and equipment
(568)
(112)
Net payments for non -
current financial assets 5 0
Changes in financial assets 0
3,668
Total cash flows from investing activities (D)
(17,984)
(16,966)
E.
Cash flows from financing activities
Capital increases
34 0
Increase (decrease) in other components of equity 859 0
Changes in financial liabilities
(16,929)
(20,912)
Effect of exchange rate changes 298 438
Total cash flows from financing activities (E)
(15,738)
(20,474)
F.
Changes in consolidated equity
Dividends paid
0 0
Changes in treasury shares held 0 0
Total changes in consolidated equity (F) 0 0 G.
Cash flow for the period (B+C+D+E+F)
2,730
(5,263)
H.
Closing net cash/debt (A+G)
9,448
6,718
11
Consolidated profit and loss statement per operating segment as of
June 30
th ,
202 6
Euro thousand
Free to Play
Premium Games
Other
Activities
Holding
Total
1
Gross revenue
9 , 261 98 , 182 1 , 012 0 108 , 455 2
Revenue adjustments
0 0 0 0 0 3
Net revenue
9 , 261 98 , 182 1 , 012 0 108 , 455
4 Purchase of products for resale 0
(931)
(27)
0
(958)
5 Purchase of services for resale (1 ,
942)
(2 ,
272)
0 0 (4 ,
214)
6
Royalties
(4 ,
508)
(12 ,
041)
0 0 (16 ,
549)
7 Changes in inventories of finished products 0
(153)
(196)
0
(349)
8 Total cost of sales (6 ,
450)
(15 ,
397)
(223)
0 (22
,
070)
9 Gross profit (3+8) 2 , 811 82 , 785 789 0 86 , 385
10
Other income
1 , 046 6 , 858 280 0 8 , 184
11 Costs for services (1 ,
013)
(4 ,
829)
(224)
(1 ,
881)
(7 ,
947)
12 Rent and leasing
(54)
(288)
(40)
(278)
(660)
13
Payroll costs
(5 ,
718)
(19 ,
405)
(1 ,
227)
(4 ,
279)
(30 ,
629)
14 Other operating costs
(108)
(506)
(100)
(399)
(1 ,
113)
15 Total operating costs (6 ,
893)
(25 ,
028)
(1 ,
591)
(6 ,
837)
(40 ,
349)
16 Gross operating margin (EBITDA) (9+10+15) (3 ,
036)
64 ,
615
(522)
(6 ,
837)
54 ,
220
17 Depreciation and amortization (1 ,
737)
(27 ,
733)
(215)
(820)
(30 ,
505)
18
Provisions
0 0 0 0 0 19 Asset impairment charge (3 ,
026)
(15 ,
624)
(42)
0 (18
,
692)
20
Impairment reversal
96 0
0 0 96 21 Total depreciation, amortization and impairment adjustments (4 ,
667)
(43 ,
357)
(257)
(820)
(49 ,
101)
22 Operating margin (EBIT) (16+21) (7 ,
703)
21 ,
258
(779)
(7 ,
657)
5 , 119
12
Consolidated statement of changes in equity as of
June 30
th ,
202 6
Euro thousand Share
capital
(A) Share
premium
reserve Legal
reserve IAS
transition
reserve Currency
translation
reserve Other
reserves Total
reserves
(B) Treasury
shares
(C) Retained
earnings Profit
(loss) for
the year Total
retained
earnings
(D) Equity of
Parent
Company
shareholders
(A+B+C+D) Equity of
non-
controlling
interests Total
equity
Total on July 1st, 202 4 5,706 18,528 1,141 1,367 (709) (8,459) 11,868 0 115,640 (2,214) 113,426 131,000 (3,314) 127,686
Allocation of previous year result 0 (2,214) 2,214 0 0 0 0 Other changes 470 470 (3,889) (3,889) (3,419) 3,889 470 Comprehensive income (loss) (1,023) (1,683) (2,706) (6) (10,919) (10,925) (13,631) 215 (13,416)
Total on June 30th, 2025 5,706 18,528 1,141 1,367 (1,732) (9,672) 9,632 0 109,531 (10,919) 98,612 113,950 790 114,740
Total on July 1st, 202 5 5,706 18,528 1,141 1,367 (1,732) (9,672) 9,632 0 109,531 (10,919) 98,612 113,950 790 114,740
Increase in the share capital 34 858 858 0 892 0 892 Allocation of previous year result 0 (10,919) 10,919 0 0 0 0 Comprehensive income (loss) (296) (4,335) (4,631) (10) (6,503) (6,513) (11,144) 14 (11,130)
Total on June 30th, 2026 5,740 19,386 1,141 1,367 (2,028) (14,007) 5,859 0 98,602 (6,503) 92,099 103,698 804 104,502
13
FINANCIAL STATEMENTS
–
DIGITAL BROS S
, p , A , Digital Bros S.p.A.
-
Balance sheet
as of June 30 th , 202 6
Euro thousand
June 30, 202 6 June 30, 202 5
Non -
current assets
1 Property, plant and equipment 3 , 281 3 , 653 2
Investment properties
0 0 3
Intangible assets
147 194
4
Equity investments
16 ,
792 23
, 854
5 Non
-
current receivables and other assets 641 641 6 Deferred tax assets 425 4 , 771 7 Non -
current financial activities 0 19 , 046
Total non
-
current assets
21 ,
286 52
, 159
Current assets
8
Inventories
996 1
, 192
9
Trade receivables
283 327
10
Tax receivables
66 ,
714 44
, 763
11 Other current assets 4 , 689 5 , 890 12 Cash and cash equivalents 2 , 106 1 , 869 13 Other current financial assets 1 , 018 20 14 Total current assets 0 1 , 041
Current assets
75 ,
806 55
, 102
TOTALE ATTIVITA
’ 97
, 092
107 ,
261
Shareholders’ equity
15
Share capital
(5 ,
740)
(5 ,
706)
16
Reserves
(6 ,
399)
(9 ,
875)
17
Treasury shares
0 0 18
Retained earnings
(48 ,
392)
(38 ,
119)
Total net equity (60 ,
531)
(53 ,
700)
Non -
current liabilities
19
Employee benefits
(288)
(299)
20 Non
-
current provisions
(48)
(59)
21
Other non
-
current payables and liabilities 0 0 22 Non -
current financial liabilities
(333)
(934)
Total non
-
current liabilities
(669)
(1 ,
292)
23
Current liabilities
(1 ,
188)
(1 ,
364)
24
Trade payables
(27 ,
392)
(42 ,
097)
25
Tax payables
(124)
(132)
26 Short term provisions 0 0 27 Other current liabilities (1 ,
068)
(824)
28 Current financial liabilities (6 ,
120)
(7 ,
852)
Total current liabilities (35 ,
892)
(52 ,
269)
TOTAL LIABILITIES
(36 ,
561)
(53 ,
561)
TOTAL NET EQUITY AND LIABILITIES
(97 ,
092)
(107
,
261)
14
Digital Bros S.p.A.
-
P rofit and loss
statement
as of June 30 th , 202 6
Euro thousand
June 30
th
, 20
2 6
June 30
th
, 202
5 1
Gross revenue
5 , 347 6 , 971 2
Revenue adjustments
0 0 3
Net revenue
5 , 347 6 , 971
4 Purchase of products for resale
(27)
(29)
5 Purchase of services for resale 0 0 6
Royalties
0 0 7 Changes in inventories of finished products
(196)
(757)
8 Total cost of sales
(223)
(786)
9 Gross profit (3+8) 5 , 124 6 , 185
10
Other income
380 168
11 Costs for services (1 ,
900)
(2 ,
771)
12 Rent and leasing
(300)
(324)
13
Payroll costs
(4 ,
663)
(4 ,
481)
14 Other operating costs
(435)
(469)
15 Total operating costs (7 ,
298)
(8 ,
045)
16 Gross operating margin (EBITDA) (9+10+15) (1 ,
794)
(1 ,
692)
17 Depreciation and amortization
(826)
(835)
18
Provisions
0 414
19 Asset impairment charge
(74)
(8 ,
313)
20
Impairment reversal
6 , 973 0 21 Total depreciation, amortization and impairment adjustments 6 , 073 (8 ,
734)
22
Operating
margin (EBIT) (16+21) 4 , 279 (10 ,
426)
23 Interest and financial income 13 , 413 13 , 402 24 Interest and other financial expenses (7 ,
693)
(2 ,
997)
25 Net interest income/(expenses) 5 , 720 10 , 405
26 Profit/ (loss) before tax (22+25) 9 , 999
(21)
27
Current tax
216 136
28
Deferred tax
58 29
29
Total taxes
274 165
30
Net profit/loss
10 ,
273 144
15
Digital Bros S.p.A.
-
C
omprehensive income
statement
as of June 30 th , 202 6
Euro thousand
June 30
th
, 2025
June 30
th
, 2024
Profit (loss) for the period (A) 10 , 273 144 Actuarial gain (loss) 8 8 Income tax relating to actuarial gain (loss) (2) (2) Changes in fair value 62 (2 ,
199)
Tax effect regarding fair value measurement of financial assets (4 ,
403)
528 Items that will not be subsequently reclassified to profit or loss (B) (4 ,
335)
(1 ,
665)
Total comprehensive income (loss) (A)+(B) 5 , 938 (1 ,
521)
Changes in
the fair value reflected the changes in equity investments that were classified in the consolidated comprehensive income statement and not in the consolidated profit and loss statement .
16
Digital Bros S.p.A.
-
Cash flow statement as of June 30 th , 202 5
Euro thousand
June 30
th
, 2026
June 30
th
, 2025
A.
Opening net cash/debt 20 709
B.
Cash flows from operating activities
Profit (loss) for the period
10,273
144
Depreciation, amortization and non -
monetary costs:
Provisions and impairment losses 74
8,313
Amortization of intangible assets 84 91
Depreciation of property, plant and equipment 742 744
Net finance income/expense
(5,720)
(10,405)
Current income taxes
(216)
(136)
Deferred tax assets
(58)
(29)
Net change in other provisions
(11)
(436)
Net change in employee benefit provisions
(19)
12
Other non monetary changes
(117)
(54)
Total cash flows from operating activities (B)
5,032
(1,756)
C.
Change in net working capital
Inventories
196 757
Trade receivables
2 122
Tax receivables
(1,286)
(8,112)
Current tax assets
1,201
(4,266)
Other current assets
(237)
110
Trade payables
(176)
36
Other current liabilities
(2,600)
12,975
Other non
-
current liabilities
208 136
Current tax liabilities 244 89
Current provisions
0 0
Non -
current receivables and other assets 0 0
Income taxes paid 0 0
Interest paid
(413)
(489)
Total change in net working capital (C)
(2,861)
1,358
D.
Cash flows from investing activities
Net payments for intangible assets
(37)
(92)
Net payments for property, plant and equipment
(370)
(61)
Net payments for non -
current financial assets 5
(260)
Changes in financial assets 0
(1,174)
Total cash flows from investing activities (D)
(402)
(1,587)
E.
Cash flows from financing activities
Capital increases
34 0
Increase (decrease) in other components of equity 858 0
Changes in financial liabilities
(2,333)
868
Effect of exchange rate changes 670 428
Total cash flows from financing activities (E)
(771)
1,296
F.
Changes in consolidated equity
Dividends paid
0 0
Changes in treasury shares held 0 0
Total changes in consolidated equity (F) 0 0 G.
Cash flow for the period (B+C+D+E+F) 998
(688)
H.
Closing net cash/debt (A+G)
1,018
20