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Frontier Developments (FDEV) AI Stock Analysis
Frontier Developments
(LSE:FDEV)
The score is driven primarily by strong financial performance (cash generation, low leverage, and a clear profitability rebound) and supportive valuation (low P/E with a solid dividend yield). The earnings call adds momentum via positive guidance signals (buybacks, strong pipeline, and Planet Zoo 2 expectations), while technicals are more mixed due to near-term weakness versus the 20-day average despite a better longer-term trend.
Frontier Developments (FDEV) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 190.09M
- Dividend Yield
- 2.64%
- Average Volume (3M)
- 143.95K
- Price to Earnings (P/E)
- 7.1
- Beta (1Y)
- 1.19
- Revenue Growth
- 15.67%
- EPS Growth
- 75.96%
- Country
- UK
- Employees
- 696
- Sector
- Communication Services
- Sector Strength
- 60
- Industry
- Electronic Gaming & Multimedia
Frontier Developments Business Overview & Revenue Model
Company Description
Frontier Developments plc, a UK-based company, specializes in the creation and distribution of video games for both personal computers and console systems. The firm utilizes its proprietary 'Cobra' technology to develop titles compatible across diver...
How the Company Makes Money
Frontier Developments makes money primarily by developing and publishing video games and monetizing them through a mix of upfront sales and ongoing post-launch spending. Key revenue streams include: (1) Base game sales: revenue from the initial sale...
Frontier Developments Earnings Call Summary
The call was strongly positive. Management reported the second-highest revenue in company history, record adjusted operating profit, 34% year-over-year growth in CMS revenue, strong cash generation, a special dividend, share buybacks, positive Planet Zoo 2 pre-orders, and a broad pipeline supported by Disney and new Planet titles. The main negatives were the decline in gross margin to just under 67%, a lower capitalization rate, and expected FY 2027 tax credits of GBP 8 million-GBP 9 million versus GBP 12.8 million in FY 2026, but these were presented with explicit explanations and did not outweigh the operational and financial positives.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For FY 2027, gross profit margin is expected to come back up maybe to 68%, something like that; gross operating costs are probably looking at mid-60s, I would say; total tax credits and reliefs are probably looking at GBP 8 million-GBP 9 million; buybacks would feature within FY 2027; Planet Zoo 2 is expected to generate GBP 30 million+, I would say would be a good number, with potential for more, while Chaos Gate: Deathwatch is probably more in the maybe a GBP 5 million-GBP 10 million revenue contribution in this financial year; Planet Zoo 2 has a dev budget of somewhere around GBP 17 million, a normal CMS is probably around GBP 13 million-GBP 15 million, and the Disney game is probably more like GBP 20 million; capitalization is expected to be in the 60%-65% bracket; the FY 2028 game is planned for fiscal year 2028, with its announcement more likely to be January than November, and Frontier remains committed to an average cadence of one CMS title a year.
Frontier Developments Financial Statement Overview
Summary
Strong overall fundamentals supported by a sharp profitability rebound (income statement score 74), conservative leverage and solid equity position (balance sheet score 82), and consistently strong operating/free cash flow with decent earnings quality (cash flow score 86). The key offset is historical volatility, including losses in 2023–2024 and a slight free cash flow normalization in 2026 versus 2025.
Income Statement
74PositiveBalance Sheet
82Very PositiveCash Flow
86Very Positive| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 104.80M | 104.80M | 90.60M | 89.27M | 104.58M | 114.03M |
| Gross Profit | 48.97M | 48.97M | 39.91M | 61.32M | 67.34M | 73.61M |
| EBITDA | 36.41M | 35.43M | 36.89M | 9.88M | 14.86M | 33.73M |
| Net Income | 27.28M | 27.28M | 16.39M | -21.47M | -20.91M | 9.63M |
Balance Sheet | ||||||
| Total Assets | 147.08M | 147.08M | 130.69M | 117.39M | 141.01M | 169.58M |
| Cash, Cash Equivalents and Short-Term Investments | 43.97M | 43.97M | 42.50M | 29.52M | 28.31M | 38.70M |
| Total Debt | 17.67M | 17.67M | 19.47M | 21.28M | 19.28M | 20.74M |
| Total Liabilities | 40.05M | 40.05M | 35.53M | 40.56M | 45.04M | 51.21M |
| Stockholders Equity | 107.03M | 107.03M | 95.16M | 76.82M | 95.97M | 118.37M |
Cash Flow | ||||||
| Free Cash Flow | 48.15M | 48.15M | 41.97M | 31.50M | 4.49M | 2.41M |
| Operating Cash Flow | 49.13M | 49.13M | 42.31M | 32.46M | 47.88M | 41.16M |
| Investing Cash Flow | -27.54M | -27.54M | -26.71M | -28.70M | -52.31M | -38.69M |
| Financing Cash Flow | -20.14M | -20.14M | -2.64M | -2.51M | -6.02M | -6.17M |
Frontier Developments Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDEV, the sentiment is Positive. The current price of 535.00 is below the 20-day moving average (MA) of 564.55, below the 50-day MA of 535.01, and above the 200-day MA of 432.11, indicating a neutral trend. The MACD of -7.42 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 25.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:FDEV.
Frontier Developments Peers Comparison
Overall Rating
- GB:FDEV80Outperform
GB:EVPL78Outperform
GB:GMR78Outperform
GB:TBLD58Neutral
GB:GFIN50Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:FDEV | 80Outperform | GBP 185.82M | 7.13 | 27.12% | 2.64% | 15.67% | 75.96% |
| GB:EVPL | 78Outperform | GBP 577.77M | 34.57 | 5.55% | 0.75% | 1.40% | -26.55% |
| GB:GMR | 78Outperform | GBP 79.84M | 15.15 | 15.29% | ― | >-0.01% | -27.70% |
| Sector * | 60Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
| GB:TBLD | 58Neutral | GBP 51.13M | -13.71 | -13.75% | ― | 13.15% | 57.21% |
| GB:GFIN | 50Neutral | GBP 4.18M | -4.95 | -200.26% | ― | -39.71% | 33.33% |
* Communication Services Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:FDEV | Frontier Developments | 535.00 | 32.02 | 6.37% | |
| GB:GMR | Gaming Realms | 30.00 | -11.50 | -27.71% | |
| GB:GFIN | Gfinity plc | 0.05 | -0.02 | -24.62% | |
| GB:EVPL | everplay Group PLC | 401.00 | 10.67 | 2.73% | |
| GB:TBLD | tinyBuild Inc. | 13.00 | 5.63 | 76.27% |
Frontier Developments Corporate Events
Frontier Developments Launches Planet Zoo 2 Across PC and Consoles
PositiveFrontier Developments has released Planet Zoo 2, a major new instalment in its zoo management franchise, on PC, PlayStation 5 and Xbox Series X|S, extending its Creative Management Simulation portfolio. The title introduces advanced animal simulation...
Frontier Developments Publishes 2026 Annual Report and Sets AGM Date
NeutralFrontier Developments plc has published its Annual Report and Accounts for the year ended 31 May 2026 and distributed the Notice of its upcoming Annual General Meeting to shareholders. The documents are available on the company’s website, reinf...
Frontier Developments CFO Exercises Options Without Shareholder Dilution
PositiveFrontier Developments plc has reported share transactions by Chief Financial Officer and Executive Director Alex Bevis, involving the exercise of options over 50,000 ordinary shares at 250 pence per share. The resulting shares were sold on the same d...
Frontier Developments Delivers Record FY26 and Maps Out CMS-Led Growth
PositiveFrontier Developments reported a record FY26, with revenue rising 16% to £104.8 million and operating profit nearly doubling to £25.0 million, driven by Jurassic World Evolution 3 and continued strength in Planet Coaster and Planet Zoo. Adj...
Frontier Developments Strikes Disney Deal for New Simulation Game
PositiveFrontier Developments has signed an agreement with Disney to develop and publish a new video game based on Disney’s portfolio of iconic intellectual property. Fully funded by Frontier, the title will draw on the company’s established stre...
Frontier Developments Sets Date for FY26 Financial Results and Investor Briefing
NeutralFrontier Developments plc has announced it will publish its audited financial results for the year ended 31 May 2026 on 9 September 2026 at 7 a.m. BST, underscoring a structured approach to investor communication. The company’s management will...
Frontier Developments Reports No New Share Issues in Latest Block Listing Return
PositiveFrontier Developments plc reported a block listing return covering the period from 26 February 2026 to 25 August 2026, detailing activity under several employee and incentive share schemes. The return confirms that no new shares were issued or allott...
Frontier Developments Cancels Treasury Shares to Simplify Capital Structure
PositiveFrontier Developments plc, a leading Cambridge-based developer and publisher of creative management simulation video games, builds globally recognized franchises such as Planet Coaster, Planet Zoo, and Jurassic World Evolution on its proprietary COBR...
Frontier Developments names new CMO as it builds on record year
PositiveFrontier Developments has appointed veteran marketer Dan Lazarides as Chief Marketing Officer, adding him to the executive board to lead publishing and commercial teams across current and upcoming projects. Lazarides, who previously held senior roles...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 15, 2026