Welcome to the Pullup Entertainment Third Quarter 2025-2026 Revenue Conference Call. For the first part, your line will be in listen only. However, you will have the opportunity to ask questions after the presentation. This can be done by pressing the blue hand icon or using the chat box. Now, I give the floor to your host, Geoffroy Sardin, CEO, and Aurélien Briand, CFO. Please, sir, go ahead.
Hello everyone. We delivered a solid performance in Q3. This was driven by strong execution on the back catalog side and by the releases of Absolum and Marvel Cosmic Invasion. We benefited again from the great value and high-quality experiences we delivered to players. Our teams continued to demonstrate excellence in maximizing the value of our existing portfolio, and we saw again the positive impact our live games have on players' long-term engagement. To deliver higher margins and cash flow generation in the medium term, we need to continue developing the recurrence of our business and to drive more value internally. We believe we are on the right path, with nine months back catalog representing 69% of total revenue and with the success of Absolum, an internally developed new IP from our Dotemu Studio and Publishing Home. Q4 is going to be an important contributor to our full-year guidance.
We believe we have what it takes, with another strong performance expected from back catalog and with four new releases. This will require perfect delivery, notably with Toxic Commando, for which we have high expectations. We will be ramping up a powerful marketing campaign in the coming weeks. We are also looking forward to releasing MIO: Memories in Orbit next week, developed by our 12th DCM Studio and published by Focus Entertainment. It will be another indicator of our capacity to develop internally new IPs. Dotemu already demonstrated this fiscal year its capacity to successfully deliver five high-quality titles. It will release two additional ones this quarter with Battlestar Galactica: Scattered Hopes, developed by Alt Shift, and Starship Troopers: Ultimate Bug War, a retro shooter developed by Auroch Digital, renowned for its work on Warhammer 40,000: Boltgun.
In the meantime, we continue to adapt our organization to the industry's evolution and to manage our costs conservatively. I now hand over the call to Aurélien.
Thank you, Geoffroy, and hello everybody. Q3 was down from last year, which had continued to benefit from the exceptional release of Space Marine 2. In just nine months, with revenue of EUR 197 million and excluding fiscal year 2025, we surpassed the previous record of EUR 194 million set for a full year in fiscal year 2023. The quarter was mostly driven by a strong back catalog of EUR 43 million, up 41%. Following a solid Thanksgiving, Space Marine 2, published by Focus Entertainment, had a great end of the year as we saw fast traction to our promotion strategy and a solid momentum for its live content, which represented 25% of its total revenue in Q3.
We also benefited from the depths of our back catalog with dynamic activity levels from our other live games, SnowRunner, Train Sim World, Insurgency: Sandstorm, Atomic Heart, and from A Plague Tale franchise.
New releases revenue of EUR 20 million benefited from the many new games launched this fiscal year, most importantly this quarter, Marvel Cosmic Invasion and Absolum. Marvel Cosmic Invasion, published by Dotemu, saw 87% positive players' reviews on Steam. While the game ended up below expectations on PC, console sales were solid, and it is already a very nicely profitable title. Absolum had a strong performance and, as Geoffroy said, it is the first indication we can create internally successful and profitable new IPs. Dotemu Studio and Publishing Arm did a great job with player-positive reviews on Steam at 93%. I can also mention Train Sim World 6, which, along with the other Train Sim World titles, had a solid performance. Regarding Q4, we expect it to be our biggest Q4 ever. Geoffroy already mentioned the importance of both back catalog, and of our new releases.
On back catalog specifically, we expect another solid year-on-year growth, driven both by its current momentum and by already signed partnerships. While important weeks and releases remain in front of us, we started the fourth quarter on a positive note with dynamic sales in the first two weeks of the year. Finally, we have confirmed our targets, namely fiscal year 2026 top line and adjusted EBIT above FY2023 levels, which was our prior record year performance. As we mentioned during our H1 communication, we expect full-year adjusted EBIT margin to be close to H1 levels. We are now ready to answer your questions.
Thank you. If you wish to ask a question, please press the blue hand icon or send a message in the chat box. I hand over to the speakers for written questions. Thank you.
Okay, so do you see Absolum and Marvel Cosmic Invasion as long sellers? What is the trend after a few weeks?
Yes, thank you very much for your question regarding Absolum. We just released, you know, an update on the game, which was really well perceived by the community, and we saw, you know, the very good traction on the sales so far. Aurélien just mentioned that the first two weeks of the quarter four were solid in terms of sales and momentum. Absolum is one of the key drivers of these first two weeks, you know, a good momentum. Regarding Marvel Cosmic Invasion, don't forget that we are releasing the physical, you know, SKU in this quarter four, and nowadays, we are seeing a very good trend on the game, especially on the console side, that is to say on the Nintendo, PlayStation, and Xbox platform.
There are questions regarding Toxic Commando. How confident are you that this game will meet your expectations?
As we said, in fact, last time we re-announced the game, you know, Game of the Year during the Game Awards, announcing the release date on the 12th of March. In the next coming days, not only weeks, we are starting very solid and intense communication on the game and engagement per sponsor as well. So let's wait to launch. We can't wait to launch this one. We've got good KPIs in terms of internal engagement with some closed betas we conducted in the recent weeks and good internal KPIs in terms of quality. So you will see very soon, you know, the impact of our communications.
Okay. Questions regarding Leikir Studio. Can you give us the cost associated to Leikir Studio closure?
The cash cost associated with Leikir closure will be quite limited, and we will have some depreciation, but way below what we used to see in the past for the same kind of event. So all in all, very limited.
What is the minimum launch for Toxic Commando to achieve the adjusted EBIT guidance?
I think, Maxence, you are talking about volume. Of course, you know, we are talking about forecasts. We are considering, you know, Toxic as a big AA game. A big AA game is, of course, over 100,000 units, you know, for this period. So it would be, and we strongly hope that it will be much more.
Okay. Regarding Memories in Orbit, numbers available on wishlist and followers are weak so far. What do you think about it?
A little reminder, Memories in Orbit was part of the last Steam Next Fest, you know, demo process, and it was part of the top 50, you know, demo out of 3,000 titles which were playable. We see right now, you know, a strong increase on the wishlist, but also on the pre-order. Just a little reminder, it's an indie game, so we can't compare, you know, this kind of potential with AA and AAA game. But so far, we are waiting for the review score, which will be, you know, released very soon. And the first indication we've got on our side is a great, great one.
We have a question regarding, can you comment on the debt level that you expect?
So as of September, we reported a net debt of EUR 85 million, which was before the dividend payment of EUR 8 million. So you have to add that to that. And we have some share increase in a different already owned studio for roughly EUR 6 million. And as we said last time, we'll have an adverse impact on working capital, mostly related to the March release of Toxic Commando. And in addition to that, but not including in the net debt report, we expect to roughly double our net debt in connection with Scrippteam.
Okay. Can you give us the percentage of sales coming from live content?
Again, for the game, we mentioned that for Space Marine 2, we reached 25% of the revenue on the Q3 related to extra content. For a very successful live game such as the Train Sim World ecosystem or SnowRunner, we are above 50%. Obviously, for some games which do not have extra content, the part of extra content is close to zero, but I mentioned the main live game that we have.
Okay. When can we expect the first production from Scrippteam?
On that front, there are several productions which are not only projects but reality. You will see the first big one in the cinema during Q1 next fiscal year, and there are several sets right now, so we could expect to get three productions next fiscal year produced by Scriptteam.
Next question. Ultimately, do you look to acquire the remaining shares owned by minorities in BlackMill and Dotemu? Yeah, in BlackMill and Dotemu.
That's an option because as it is reported in our financial report, there is a put and call option on remaining shares, and this is what happened during the Q3. So that's an option, yes, over the next years.
But on this side, we'd like to get, you know, on board the founders of their studio, you know, getting a skin in the game, what we could say. So it's an option, but it's not mandatory.
Yeah, a question regarding buybacks. Do you expect to do buybacks in the future?
This is still an option, and we are assessing that openly, and we can decide to do so, but we keep that as an option.
We have a question regarding external growth. Do you have any plan in the foreseeable future?
So we continue to assess some targets and some opportunities. We said that many times, this is not, and we are able to deliver our strategy without doing so, but if there are good opportunities, we will obviously investigate that and look at that carefully. No change on that front.
Thank you. This concludes today's call. You may now disconnect.