Shares in tinyBuild LON:TBLD, the AIM-quoted video games publisher best known for its Hello Neighbor franchise, were up over 15% this morning on news that the company has swung back into profit in the first half of 2025. This was thanks to a sharp reduction in costs and stronger performance from its catalogue of titles.
Revenues from continuing operations were broadly flat at $17m in the six months to June 30, up slightly from $16.8m a year earlier. But adjusted earnings before interest, tax, depreciation and amortisation improved markedly to $4.2m, compared with a $2.3m loss in the same period of 2024.
The group attributed the turnaround to a more favourable sales mix and tighter operating controls, with selling, general and administrative expenses cut to $7.1mn from $10.5mn last year.
Gross profit rose to $10.4m, helped by lower impairments of development costs, which fell to $1.1m from $3m. Net cash from operating activities more than tripled to $6.8m. Cash balances stood at $4.6m at the end of June, up from $3.1m at year-end, supported by the console launch of Deadside.
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Management cautioned, however, that liquidity was expected to decline later in the year as investment in forthcoming releases stepped up.
The company also completed the sale of Red Cerberus, a development services subsidiary, generating a net cash inflow of $1m but booking a $0.5m pre-tax loss on disposal.
TinyBuild catalogue carries growth
The first half was characterised by strong contributions from existing intellectual property rather than new launches. Own-IP titles accounted for 85 per cent of gaming revenues, up from 78 per cent a year earlier, while catalogue sales made up the entirety of gaming income. The standout performer was Deadside, whose console release lifted both revenues and margins.
New content included Deep Cuts, version 1.0 of Level Zero: Extraction, and physical Switch editions of Graveyard Keeper and Hello Neighbor. Meanwhile, new titles such as Hozy, SpeedRunners 2 and Trainfort were announced, alongside further playtests for upcoming projects.
Outside gaming, tinyBuild continued work on Season 3 of the Hello Neighbor animated series and progressed development of a feature film adaptation, first unveiled last year.
Post-period, the company launched The King is Watching, which sold more than 200,000 units in its first fortnight, and released version 1.0 of Drill Core.
Crowded marketplace
Chief executive Alex Nichiporchik said 2025 had “rocked so far” for the company, crediting staff with securing four titles in Steam’s Top 100 Wishlist chart — a record for tinyBuild. He added that the company’s second tinyBuild Connect showcase event had reinforced its global standing as a developer-publisher.
Still, the outlook is tempered by industry headwinds. Steam recorded 10 per cent more releases in the first half of 2025 compared with last year, intensifying competition. Management said the stronger first-half earnings gave it more flexibility to manage its development pipeline and release schedule, but cautioned that macroeconomic uncertainties and the war in Ukraine continued to weigh on sentiment and operational planning.
The board remains confident of delivering results “ahead of expectations” at the adjusted EBITDA level for the full year.
For investors, the question is whether the reliance on catalogue sales and cost-cutting can be sustained as the market grows more crowded. With its emphasis on developing proprietary franchises and balancing high- and low-budget projects, tinyBuild is betting that cautious investment and diversification will help it navigate the volatile games landscape.
