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Digital Bros S.p.A. (DIB) AI Stock Analysis

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IT:DIB

Digital Bros S.p.A.

(Milan:DIB)

Select Model
Rating:63Neutral
Price Target:EUR 10.50â–²(4.17% Upside)
Action:reiterated
Date:09/30/26

The score is driven primarily by mixed financial performance: a strengthened, low-leverage balance sheet and improved recent cash generation offset by declining revenue and continued net losses. Technicals add support with a positive trend above key moving averages and moderate momentum. Valuation is a headwind because losses (negative P/E) limit earnings-based attractiveness and there is no dividend yield provided.

Positive Factors
Low Financial LeverageThe sharp reduction in debt relative to equity lowers financial risk and gives Digital Bros greater flexibility to fund publishing, development, and marketing initiatives. A sizeable equity base also improves resilience, allowing the company to manage uneven releases without relying heavily on external financing.
Negative Factors
Declining Revenue TrendThe multi-year revenue decline points to uneven demand and an inconsistent release cadence, which can make the publishing model less predictable. Lower scale may also reduce the company’s ability to absorb development and marketing costs, putting pressure on future operating performance if growth does not return.

Digital Bros S.p.A. (DIB) vs. iShares MSCI Italy ETF (EWI)

-30%-20%-10%0%10%20%30%IT:DIB-17.92%EWI+12.15%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
EUR 144.65M
Dividend Yield
―
Average Volume (3M)
14.48K
Price to Earnings (P/E)
-21.9
Beta (1Y)
0.78
Revenue Growth
15.85%
EPS Growth
40.45%
Country
Italy
Employees
270
Sector
Communication Services
Sector Strength
60
Industry
Electronic Gaming & Multimedia

Digital Bros S.p.A. Business Overview & Revenue Model

Company Description

Digital Bros S.p.A. is a global leader in the video game sector, with operations encompassing the development, publishing, distribution, and marketing of interactive entertainment across Europe, the Americas, and other international markets. The comp...

Digital Bros S.p.A. Financial Statement Overview

Summary

Overall fundamentals are mixed: revenue has been trending down and net losses persisted in 2024–2026, but the balance sheet is conservatively financed (debt-to-equity ~0.09x in 2026) and operating/free cash flow improved materially in 2025–2026. The combination supports a mid-range score, held back mainly by negative profitability and uneven top-line performance.

Income Statement

52Neutral

Balance Sheet

74Positive

Cash Flow

67Positive
Financial statement breakdown
BreakdownTTMJun 2025Jun 2024Jun 2023Jun 2022Jun 2021
Income Statement
Total Revenue108.45M108.45M93.62M117.93M117.93M132.24M
Gross Profit48.37M86.39M28.48M79.77M82.23M86.78M
EBITDA39.55M54.22M15.27M33.67M40.87M59.66M
Net Income-6.50M-6.50M-10.92M-2.21M9.68M28.55M
Balance Sheet
Total Assets140.47M140.47M189.56M230.81M265.19M226.31M
Cash, Cash Equivalents and Short-Term Investments9.45M9.45M6.72M22.22M20.75M11.29M
Total Debt9.16M9.16M24.73M45.63M59.38M25.25M
Total Liabilities35.97M35.97M74.82M103.12M121.47M88.99M
Stockholders Equity103.70M103.70M113.95M131.00M142.34M135.90M
Cash Flow
Free Cash Flow27.50M35.88M32.50M13.16M-36.90M-35.87M
Operating Cash Flow36.45M36.45M32.83M30.75M37.53M21.53M
Investing Cash Flow-17.98M-17.98M-17.18M-14.78M-78.33M-53.72M
Financing Cash Flow-15.74M-15.74M-20.91M-13.40M39.24M7.42M

Digital Bros S.p.A. Technical Analysis

Technical Analysis SentimentNegative
Last Price10.08

Price Trends

50DMA11.47Negative
100DMA11.61Negative
200DMA11.17Negative

Market Momentum

MACD-0.39Negative
RSI36.95Neutral
STOCH27.06Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:DIB, the sentiment is Negative. The current price of 10.08 is below the 20-day moving average (MA) of 10.23, below the 50-day MA of 11.47, and below the 200-day MA of 11.17, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 36.95 is Neutral, neither overbought nor oversold. The STOCH value of 27.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:DIB.

Digital Bros S.p.A. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (60)

Financial Indicators

IT:DIB against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IT:DIBIT:DIB63NeutralEUR 144.65M-21.91-5.80%―15.85%40.45%
Sector *60Neutral$48.67B4.58-11.27%4.14%2.83%-41.78%
IT:MFEAIT:MFEA59NeutralEUR 1.62B13.12―10.26%90.41%69.22%

* Communication Services Sector Average

Performance Comparison

-50%0%50%IT:DIBIT:NPIIT:LFGIT:LMGIT:MFEAIT:MTVFRDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
IT:DIB and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IT:DIBDigital Bros S.p.A.10.08-1.10-9.84%
IT:NPINotorious Pictures S.p.A.0.930.3048.71%
IT:LFGLeone Film Group SpA1.460.075.04%
IT:LMGLucisano Media Group S.p.A.1.02-0.02-1.64%
IT:MFEAMFE-MediaForEurope NV Class A2.15-0.71-24.83%
IT:MTVFRMondo TV France SA0.01-0.30-96.77%

Digital Bros S.p.A. Corporate Events

Digital Bros Tightens Governance With CEO Confirmations and New Board Committees

Oct 27, 2026

Digital Bros’ board has reconfirmed Abramo Galante and Raffaele Galante as chief executive officers following the renewal of corporate bodies by shareholders. The board also verified the independence of several directors, appointing Laura Soifer as l...

Digital Bros Publishes Financial Documents Ahead of Shareholders’ Meeting

Oct 27, 2026

Digital Bros S.p.A. has released key documentation for its Ordinary and Extraordinary Shareholders’ Meeting scheduled for October 27, 2026, making the materials available at its Milan registered office, on its corporate website and via the authorized...

Digital Bros Boosts Revenue and Tightens Losses as Shareholders Approve Dividend and New Incentive Plan

Oct 27, 2026

Digital Bros reported consolidated revenues of 108.5 million euro for the 2025–2026 fiscal year, up 15.8% on strong performance from key game releases and posted EBITDA of 54.2 million euro, equal to 50% of revenues. Despite non-cash write-downs tied...

Digital Bros Publishes Q&A Document Ahead of October 27 Shareholders’ Meeting

Oct 22, 2026

Digital Bros S.p.A. has announced the public availability of documents related to its Ordinary and Extraordinary Shareholders’ Meeting scheduled for October 27, 2026. The company has published a Q&A document prepared under applicable Italian financia...

Digital Bros Publishes Shareholder Report Ahead of October 2026 Meeting

Oct 9, 2026

Digital Bros S.p.A. has announced the public availability of a shareholder report prepared by Raffaele Galante ahead of the ordinary and extraordinary shareholders’ meeting scheduled for 27 October 2026. The publication of this governance document, a...

Digital Bros Faces Board Vote With Single Slate Backed by Major Shareholder

Oct 2, 2026

Digital Bros S.p.A. has scheduled the appointment of a new Board of Directors for its shareholders’ meeting on 27 October 2026, with a single list of nine candidates proposed by major shareholder Raffaele Galante, who holds 30.65% of the share capita...

Digital Bros Boosts Revenues and Margins as Assetto Corsa Strategy Strengthens Balance Sheet

Sep 24, 2026

Digital Bros reported consolidated revenues of €108.5 million for the 2025-2026 financial year, a 15.8% increase driven by the successful launch of Wuchang: Fallen Feathers and continued strength of the Assetto Corsa franchise. Premium Games revenues...

Digital Bros Calls 2026 Shareholders’ Meeting to Approve Results and Overhaul Governance

Sep 23, 2026

Digital Bros S.p.A. has called an ordinary and extraordinary shareholders’ meeting for 27 October 2026, to be held via a designated representative, to approve the June 30, 2026 financial statements and decide on profit allocation. Shareholders will a...

Digital Bros publishes proxy documents ahead of October 2026 shareholders’ meeting

Sep 18, 2026

Digital Bros S.p.A. has made available to the public the proxy and sub-proxy forms, along with voting instructions for the Appointed Representative, in connection with its ordinary and extraordinary shareholders’ meeting scheduled for 27 October 2026...

Digital Bros Publishes Governance Documents Ahead of October 2026 Shareholders’ Meetings

Sep 17, 2026

Digital Bros S.p.A. has announced the publication of key governance and shareholder documentation ahead of its ordinary and extraordinary shareholders’ meetings scheduled for 27 October 2026. The materials include updated rules of the Board of Direct...

Digital Bros Calls October 2026 Meeting for Governance, Incentive and Capital Moves

Sep 17, 2026

Digital Bros S.p.A., a Milan-based player in the digital entertainment and video game industry, is convening an Ordinary and Extraordinary Shareholders’ Meeting to review its latest financial performance and corporate governance arrangements. The com...

Digital Bros Publishes Guidance on Renewal of Statutory Auditors Board

Sep 2, 2026

Digital Bros S.p.A., an Italian digital entertainment and media company based in Milan, maintains a structured governance framework with dedicated online resources for shareholders. Its reliance on official web portals for corporate communication und...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Sep 30, 2026