Hello, everyone. I will start today by reviewing our full-year earnings as well as our expectations for fiscal 2026. Geoffroy will then cover market trends, our positioning, and what we are building for the future. Before I start, I would like to mention that we have renamed our EBITDA metric to Adjusted EBIT for clarity's sake. The basis of calculation is exactly the same as before. As a reminder, the group defined Adjusted EBIT as the current profit from consolidated companies before goodwill amortization, before amortization of intangible assets identifying the business combination process, and after the research tax credit and video game, cinema, audiovisual media tax credits. Starting with slide four. As you know, fiscal 2025 has been an exceptional year. We had already released our annual revenue of EUR 390 million, a level two times higher than our prior best performance.
This has been driven by Space Marine 2. It is, however, important to note that other new releases—Train Sim World, Drova, Void Crew—and our back catalog have nicely outperformed our expectations. Geoffroy will come back to the reasons behind this pattern of repeated outperformance. A pattern we are also seeing with Roadcraft and Drop Du Chy, our most recent release. As a consequence of this remarkable top-line performance, Adjusted EBIT ended up at EUR 60.3 million, slightly above our guidance range of EUR 55-60 million. This was also reflected in a strong cash flow generation and in a significant reduction of our net debt to EUR 70 million versus EUR 133 million a year ago. Slide five. We already covered this part last April. I will just mention that Space Marine 2 has now reached 7 million unique players. The game continues its exceptional performance.
It will be a major driver to the strong back catalog growth we expect for fiscal 26, as we will support the community with new content and updates. While smaller in scope, it is telling that Roadcraft and Void Crew have both reached more than 200,000 players. Next slide, we will move to the P&L. Slide six. Our gross margin is strongly up in absolute value, driven by the very strong top-line performance. It stands at 30% of total revenue, in line with historical ratios, reflecting Space Marine 2 royalties, as well as Space Marine 2 and back catalog amortization. Costs below the gross margin line show highly efficient sales and marketing, while G&A are up, in line with H1 trends, mostly due to the group structure's higher maturity and costs triggered by Space Marine 2.
Goodwill amortization of EUR 17 million reflects our 10-year amortization policy and some accelerated depreciation related, notably, to Streum On divestment. The EUR 6.5 million exceptional costs are mainly related to Streum On Studio divestment. Our EBITDA stands then at EUR 139 million, a historical record as well. Slide seven. Let's now look at our statement of cash flows. CapEx amounted to EUR 94 million and included initial payments for Space Marine 2. Changing working capital reflected a normalized level of accrued royalties compared to last year, which had two releases at the very end of the year with very low royalties. To a lesser extent, there was also an impact from Space Marine 2's season pass, deferred revenue, and costs for content still to be delivered. I will come back to that later on. All in all, we generated strong operating cash flow, reflecting strong Adjusted EBIT and favorable working capital.
Worth mentioning, the EUR 22.6 million capital increase in May 2024, as well as EUR 4.8 million share buyback at an average price of EUR 19.9 at the end of March 2025. Our cash and cash equivalents stand at EUR 62 million as of March, compared to EUR 18 million last year. Slide eight with key balance sheet items. I already mentioned the positive impact from working capital. Equity increased by EUR 39 million thanks to positive net results over the period and the capital increase already mentioned. Our net debt has sharply decreased to EUR 70 million versus EUR 133 million at the end of March 2024 and now stands at a very comfortable level. Moving to slide nine, let's now look at fiscal 2026. We expect net revenue and Adjusted EBIT to grow versus our prior record set in fiscal year 2023 of, respectively, EUR 194 million and EUR 28 million. Slide ten.
The year will benefit from a rich lineup of new games. Pullup Entertainment will release three titles: Roadcraft, which is already out, Memories in Orbit, and Toxic Commando. Dotemu will deliver Marvel Cosmic Invasion, notably on Switch 2, which, you know, is having a record launch worldwide. Dotemu will also release Ninja Gaiden Ragebound, Absolum, and Abyssus. You can expect more titles from Dotemu, The Arcade Crew, and Dotemu Spotlight labels to be announced throughout the year, as well as titles from Dovetail Games. We also expect strong growth from our back catalog in fiscal 2026. It will be driven by Space Marine 2's ongoing performance and our team's expertise in maximizing the value of our deep portfolio of existing games. One thing to consider when modeling the year is that Q1 fiscal 2026 will be particularly strong versus Q1 last year.
First, we are releasing two successful titles over the quarter, Drop Du Chy and, most importantly, Roadcraft, combined with a fast-growing back catalog, which will drive a strong top-line growth for the next three months. Additionally, we expect to record in Q1 EUR 19 million of non-cash deferred revenue related to Space Marine 2's season pass. The last remaining content will be delivered during that time frame. We will also record in fiscal 2026 the cost related to that content. Another element I would like to highlight is that we are confident our full-year revenue will end up higher than the EUR 254 million expected by analyst consensus.
This confidence is built on the strengths of our back catalog, the deferred revenue I just mentioned, the great trends we are currently seeing for Roadcraft, as well as excellent player reception to the current demos of Absolum, Memories in Orbit, and Ninja Gaiden Ragebound. This revenue is expected to come with a gross margin relatively similar to last year, 30%, in line with historical ratios. I now hand over the call to Geoffroy.
Thank you, Aurélien, and hello, everyone. I will start with a review, slide 11. I will start with a review of macro trends. It has been extensively discussed that the industry growth has slowed in the past two years. The graph on the left offers an interesting perspective as it zooms out over a 30-year time frame. As you can see on consoles and PC, we have had many phases of stabilization prior to resuming growth. The current slower growth is a reflection of a healthy phase of normalization after a few years of exuberance, both at the revenue and investment level. Growth is expected to resume with news looking for a 4% CAGR up to 2027. Slide 12. Let's now zoom in and specifically look at a segment that is dear to our hearts, the AA and indie games. Data is very supportive here.
As you can see on this chart, the AA and indie segment has been nicely growing on Steam since the end of 2023. Is this data well-known enough? I'm not sure. However, recent striking AA and indie successes are under the limelight, and this is a good thing for the industry. Space Marine 2 is one of those successes for sure. Balatro, Split Fiction, Helldivers 2, or the recent release of Expedition 33: Clair Obscur, to name a few, are also here to highlight a reality. The AA and indie market is thriving. It is a growth segment, but you have to be selective to capture the opportunity. Slide 13. At Pullup Entertainment, we are demonstrating that we are perfectly positioned thanks to our differentiating editorial policy. We have a diverse and deep base of successes on which we are building momentum.
As mentioned, Space Marine 2 has already reached 7 million unique players. Over 600,000 unique players have already enjoyed Roadcraft in just three weeks, making it one of the biggest releases in Focus Entertainment's 30-year history. With such a strong start, the game will soon be profitable. It is on track to do over EUR 50 million revenue over its lifetime, which is more than we anticipated before its release. Indie games are also an important part of our portfolio as they greatly participate in both building our brand reputation among passionate gamers and in diversifying our performance. Last year, Memories in Orbit and Void Crew outperformed our expectations. Drop Du Chy, our recent release from Dotemu's The Arcade Crew label, is off to a stronger start than expected. We also look to build a recurrence through our portfolio with evergreen live simulation games.
Our two most successful brands here are Train Sim World and SnowRunner, which are engaging players over many years with constant updates and community events. We cannot overstate the value provided to our business by these brands' visibility. Fiscal 26 is going to be a big year for Dotemu, with many high-profile releases. Dotemu is building on the Ninja Turtle and Streets of Rage 4 expertise legacy to unleash a new wave of growth over the coming years. Finally, we are passionately building our own IP and co-own IP library. We have just announced Resonance: A Plague Tale Legacy, and the community's amazing and humbling response is a reflection of the deep love players have for this great brand. We are building momentum on a wide range of successes with brands that have an excellent reputation among the most passionate and engaged players. Slide 14.
What's hiding behind our capacity to regularly hit the right spots? That's what we call our editorial manifesto. At Pullup Entertainment, we are driven by creating high-quality AA and indie games with uncompromising gameplay. We don't try to please everyone. Each one of our games has a clear creative vision for a specific audience who seeks meaningful, focused, and distinctive experiences. Interestingly, the recent successes I mentioned earlier in the AA and indie segments demonstrate that when you do it right, you end up reaching a wider audience. Slide 15. Players are increasingly selective and so are we through our three-pillar strategy, which we presented last October during our Investor Day. Let me now review our progress on each of them. Slide 16. First pillar, we look to expand the value of our publishing business.
Over the past 12 months, we have cemented Pullup Entertainment's strength with the Space Marine 2 and Roadcraft releases and the top five Metacritic ranking for the year 2024. These reputed successes build Pullup brand among gamers and partners. We have secured an important milestone with the Space Marine 3 announcement, which brings strong medium-term visibility. We have also invested over the past few years to unleash Dotemu's potential with a promising lineup for fiscal 26, with notably Marvel Cosmic Invasion, Ninja Gaiden Ragebound, and Absolum. More will be unveiled through the year, notably for its label, The Arcade Crew. As a consequence, we expect Dotemu's revenue to grow strongly in fiscal 26 and be a solid support to our performance over the coming years. Slide 17. Our second pillar relates to the work we have been doing to internalize high-value assets and to go up the value chain.
Over the past 12 months, we have been deploying a stringent production control process across our studios. This has already led to capital allocation decisions toward our biggest opportunity with Streum On Studio's divestments and cancellation of some projects. Our teams are also busy implementing player-centric decision KPIs at every stage of development, ensuring both a strong unique creative vision and a detailed knowledge of targeted audiences. To drive synergies across the group, we have also centralized Focus Entertainment publishing production capabilities. With this emphasis of efficiency and control, we continue to increase our capital allocation towards owned and co-owned IPs with close to 20 projects under development. Memories in Orbit, a fully owned IP developed internally, is an exciting opportunity for us this year. Current player and media reception to its demo is promising and shows we are on the right path to create great games internally.
On the co-owned side, we are very excited by our continued partnership with Asobo Studio with the reveal of Resonance: A Plague Tale Legacy, which received a great reception from players around the world. Slide 18. Third pillar. As you know, one of our stated goals is to increase visibility and recurrence across our portfolio. We are already operating from a position of strength. The fact that in fiscal 2025, our back catalog was flat year on year is a statement to the resilience and depth of portfolio despite the absence of large successful new releases in fiscal 2024. Our team really are experts in maximizing the value of our existing portfolio of games. One of the ways of doing this is through effective live operations that drive player long-term engagement. Train Sim World is an evergreen ecosystem with already 15 DLCs released by Dovetail for the latest iteration.
Over the franchise lifetime, it is well over 100 DLCs that have built engagement and excitement among the brand's core fan. As a consequence, live revenue represents over 50% of Train Sim World total lifetime revenue. Likewise, with Space Marine 2, 16 free updates and eight paid DLCs with 250 items in total have been released as part of the game year one lifeplan. Combining Warhammer's powerful brand attraction with a super high-quality game experience and engaging updates is a winning recipe that will deliver visibility and recurring revenues over the coming years. Building this effort across our portfolio, eight back catalog titles will be supported with new content in fiscal 2026 and multiple new releases this year will have live support over many years. Slide 19. A few final words. Fiscal 2026 is set to be another year of strong performance for Pullup Entertainment.
As Aurélien said, it will be driven both by a very rich lineup and by strong growth from our back catalog. With a solid balance sheet and a differentiating and effective editorial policy, we are positioning the group to deliver adjusted EBIT growth for both fiscal 2027 and fiscal 2028. We are fully committed to creating strong value for our shareholders. This ends our presentation. Before answering your questions, let's watch a short video of our exciting lineup.
We wait for a starting gun to race against the setting sun because time will wait for no one. The journey's sun, I'm a smoking. Our life is only but a shadow skin. Take my hand, breathe in the wild. In every season, we close the eyes. I will wait for no one. The journey's sun, I'm a smoking. Our life is only but a shadow skin.
Take my hand, breathe in the wild. In every season, we close the eyes. I will wait for no one. Wait for no one. It's the one that's easy. Time will wait for no one.
Hello everyone again. We hope that you enjoyed this fantastic video and this portfolio, this rich lineup. We are now ready to answer your questions.
Ladies and gentlemen, if you would like to ask a question, please click on "Raise your hand" and wait for us to give you the floor. You can also submit your question by writing in the Q&A section. Once again, if you have a question, please click on "Raise your hand" and wait for us to give you the floor.
Excuse me, I don't know if you can hear me, but we cannot raise our hands or I think the chat is not activated.
Mr. Durie, we are hearing you well. You can now ask your question.
Okay, thank you. I'll start then. Thank you for the presentation and again, congrats to all the team for this amazing year. Maybe first to come back on last year's results. Marketing costs were quite low as a percentage of sales. What do you expect this year? Should we expect more or less the same thing? Or was last year exceptional, especially because Space Marine 2 had such a large community that you did not have to spend that much on marketing? That will be my first question.
Yes, thank you, Maxence. We look to be at more or less the same level next year, same order of magnitude.
Last year, we had Space Marine 2, which was a big game. This year, as you have understood, it will be a quite big year for Dotemu. The release, individual release for Dotemu, are completely much less, let's say, marketing spent. You can expect to be more or less in the same range with, for sure, quite a different mix. If I may, Maxence, in fact, the power of the big franchise we are working with, especially with Marvel, with Ninja, we have already a strong momentum in terms of momentum in terms of share of voice and community aspect.
Very clear. Thank you. Maybe another question. It is regarding the lineup and the first Roadcraft. It is a successful launch. Do you expect it to reach millions of players in the long run, like SnowRunner or MudRunner did before?
Are we more or less on the same trend?
Yes, indeed. In fact, after less than three weeks reaching more than 600,000 unique players, the trend is very positive because it is a live game with a lot of engagement because the game is a co-op game. It could gather a lot of passionate people within this franchise and this genre. We expect to reach, for sure, at some point, the million players. If I may add something, Maxence, what the game is delivering is above what we expected a few months ago. We are very happy with the launch of the game. Very good. Thank you. Maybe another one, it is regarding Toxic Commando. I had quite high hopes for this game initially, but we have not seen it a lot in the media. I think the last gameplay video was several months ago.
I was wondering, what do you expect for this game? Maybe a second question, is it correct to assume that on PC, it will be an Epic Games Store exclusivity?
First of all, the game's development is tracking well, Maxence. You will have to be a bit patient to know more. We already announced that the game would be within this fiscal year. Regarding the Epic, yes, it was already mentioned that it would be part of an Epic deal from the start.
Maybe a follow-up on this. Maybe it's too soon for you to answer, but is it correct to assume that after a 12-month exclusivity window, we could expect next fiscal year also a launch on Steam? Or is it too soon to communicate around that?
Yes, it's an undisclosed topic.
Okay. Maybe a last one for me, it's regarding the CapEx.
Is the EUR 70 million-EUR 100 million per year still the baseline? Could we expect CapEx overall to decline a bit this year? Or should we stay more in the high range or close to EUR 100 million?
Yeah, indeed, we say that we'll be in the EUR 70 million-EUR 100 million range. We now expect, due to the start of the development of TraceMind3, to be more at the upper range of this one. Let's say between EUR 80 million-EUR 100 million for next year on video games.
Very clear. Thank you.
Ladies and gentlemen, if you have another question, please click on "Raise your hand" and wait for us to give you the floor. You can also submit your question by writing in the Q&A session.
Hi, this is Yann from Gilbert du Pont. Sorry, it's not working on my side also. Can I ask some questions?
Go ahead, Mr. Yukan.
Thank you. Yes, two questions on my side. The first one is on Mio. How is it going on? And maybe when do you expect it to be released? Because it is an internal development. First point. The second one, you mentioned stringent internal production control process. Where do you think you are at the moment since you presented it in your last capital market day? Are you 100% achieved with this kind of control? Let's say, is it in the standard you like now, or do you still have some process to do to be better and better on this point?
Okay. Thank you for your two questions. For the first one on Memories in Orbit, just to give you some context, Memories in Orbit is a game and a project developed by our studios called Douze Dixième. It is a metroidvania.
We just unveiled and proposed the demo through the Summer Next Fest through the Steam platform. What I could tell you is today it is part of the top 30 demo out of 3,000 demos proposed for this event. It is part of the top. There is a before and after demo revealed because the number of wish lists is growing up very well. We are expecting to launch this game during this fiscal. You have to be a little bit patient to get more information regarding the release date. Regarding the process, the stringent internal production process, it is an ongoing deployment. It is a never-ending story. We are polishing the process, all the milestone process, and the collaboration between our production line and all the studios and entities.
Just one thing important is production process is important, but editorial policy, we are letting really all our creative people doing their job because they are the best to do it. Our job is not to impose anything, but to propose and to support. Okay. Maybe a last question. Should we expect other sale of studio or are you good right now after Streum On? Today, in fact, we went agile in our portfolio and management, all the entities, and we are fully committed to support all the entities we are working today. This is exactly the case for Douze Dixième and for all the other talented studios we are working with.
Great. Thank you very much.
We have a written question. What do you think of the successful release of Switch 2 for both the industry and Pullup Entertainment?
Yes, thank you for this question.
Regarding Switch 2, we are not surprised. I think you also saw the first results after four days of sales with more than 3.5 million consoles sold. Nintendo has brought so much joy and fun to gamers that success was to be expected. We are very close to Nintendo. We have a good lineup to take advantage of the large Switch 1 install base. With Marvel Cosmic Invasion, it will be released this year on Switch 2. We are very pleased with this success. Every launch of a new console and platform is good momentum for the industry, and we are taking part of this adventure.
We have another written question. What's the impact of the GTA 6 delay for Pullup?
Thank you for this question. First, the audience we address is highly engaged and passionate and consumes many games per year.
We come with highly differentiated games at Pullup. Second, this implies a bigger share of voice opportunity for our games. Third, we look forward to its release, to be very frank with you, because it will be a major positive event for the industry. It will notably increase the console's install base. Every big launch console or big title is a good momentum for the industry, globally speaking.
Another written question. This one directed to Aurélien. Could you come back to your comments on gross margin and the level of top line? Can you kind of reprise what you said?
Yeah, for sure. Yes. What I explained is that we are confident that our FY2026 revenue will be above the current consensus, which is set as EUR 253 million. We will build that confidence on the strength of our catalog.
The different revenue I mentioned during the whole France Face Mine 2 and the great trends that we are currently seeing for Roadcraft. I said that we are expecting gross margin to be relatively similar to what we did in FY 2025 and in line with historical ratios of Pullup Entertainment. I hope it clarifies.
If you have another question, do not hesitate to open your mic and ask your question. Okay, we have another written question. H1 EPS was EUR 2.85, while full year EPS is at EUR 2.50. Could you explain the reason behind the EUR 0.35 EPS in H2? Is this due to lower release or special cost?
No, no, not at all. This is quite a technical question. In fact, the EPS is calculated on the net result and divided by the average number of share in circulation. Sorry for that.
As we had a capital increase in May, the average number of shares in circulation has increased over the year so that the ratio has decreased accordingly. Quite technical.
It seems that we do not have another question. Geoffroy, I will leave you the floor.
Yes, thank you very much.
To conclude our call, and for those who have not already seen it, we are pleased to show the beautiful reveal trailer of Resonance: A Plague Tale Legacy. Thank you very much and have a nice end of day. Time will wait for no one. Time will wait for no one. Ladies and gentlemen, the conference is now over. Thank you for your participation. If you have any other questions, please feel free to contact our investor relations representative. Your main sign-off. Have a good evening.