Frontier Development PLC — Interim / Quarterly Report 2026

Jan 14, 2026

National Storage Mechanism | Additional information

RNS Number : 7795O

Frontier Developments PLC

14 January 2026

14 January 2026

Interim Results

Excellent H1 Results and outlook for full year upgraded

Frontier Developments plc (AIM: FDEV, 'Frontier', the 'Group' or the 'Company'), a leading developer and publisher of video games based in Cambridge, UK, publishes its unaudited interim results for the 6 months to 30 November 2025 ('H1 FY26' or the 'Period').

FINANCIAL SUMMARY & HEADLINES

	H1 FY26(6 months to 30 November 2025)	H1 FY25(6 months to 30 November 2024)	H1 to H1Increase	H1 to H1Increase %
Revenue	£59.6m	£47.3m	£12.3m	+26%
Adjusted Operating Profit*	£9.7m	£5.5m	£4.2m	+76%
IFRS Operating Profit	£7.8m	£4.5m	£3.3m	+73%
Cash balance at period end	£40.1m	£27.2m	£12.9m	+47%

·    Highly positive player responses to new game Jurassic World Evolution 3 helped deliver H1 revenue growth of 26% and an increase in Adjusted Operating Profit* of 76%.

·    Following the growth achieved in H1 and a strong seasonal sales performance entering H2, we raise our FY26 financial guidance to revenue of around £100 million and Adjusted Operating Profit* of around £11 million.

·    Planet Zoo has become Frontier's highest grossing individual game by revenue, providing a solid foundation for release of a sequel, and for Frontier's overall performance, in FY27.

* Adjusted Operating Profit measures Frontier's financial performance after eliminating non-cash development cost accounting adjustments (cost capitalisation, amortisation charges and impairment charges), non-cash share charges, non-operating items (including restructuring costs), and after recording the full benefits of tax and R&D expenditure credits against the expenditure they relate to.

H1 FRANCHISE UPDATES - THE CMS STRATEGY IS DELIVERING

Revenue from Frontier's genre-leading creative management simulation ('CMS') games increased 52% versus the comparative period, delivering 90% of total revenue in H1 FY26 (H1 FY25: 75%), driven by October's release of Jurassic World Evolution 3, which earned nominations at the Game Awards 2025 and the BAFTA Games Awards 2026.

Inspired by the Universal Pictures and Amblin Entertainment films, Jurassic World Evolution 3 continues to connect with new players. After the end of the Period, Jurassic World Evolution 3 achieved an excellent sales performance in December, including a Frontier Christmas Day sales record for an individual game, to start the second half of the financial year strongly.

The success of Jurassic World Evolution 3 underscores the enduring strength and scalability of the CMS model, and Frontier's ability to deliver compelling games for its player communities. Alongside the success of the new game, the Jurassic World Evolution game franchise benefitted in H1 from strong sales of Jurassic World Evolution 2 during summer promotions, and ongoing sales of Jurassic World Evolution.

H1 sales for the Planet Coaster franchise were slightly ahead of expectations, building on proactive community engagement and new content for Planet Coaster 2, including the Sorcery Pack and free updates. With the Toybox Pack launching post-period end in December to positive reception, the franchise is well positioned for long-term performance.

Planet Zoo delivered an excellent revenue contribution in H1, becoming Frontier's highest grossing individual game by revenue, as it continues to lead in its genre and engage with a substantial community of players. This bodes well for its sequel, coming in FY27.

Development is progressing well on the unannounced CMS title scheduled for release in FY28, further strengthening the portfolio and support Frontier's strategy of delivering high-quality, evergreen franchises.

Outside CMS, the ever-evolving Elite Dangerous space simulation game delivered revenue growth of over 50% versus the comparative period, driven by new content, ships, and sustained player engagement. Meanwhile, Frontier's team in Canada, Complex Games, are on track with the development of an unannounced game, which is scheduled for release in FY27.

CEO APPOINTMENT - A SMOOTH TRANSITION

As first announced on 16 December 2025, Jonny Watts, who served as CEO from August 2022 and led Frontier's successful turnaround and strategic refocus on CMS games, formally stepped down as CEO on 1 January 2026. Jo Cooke, previously Chief Marketing Officer, assumed the CEO position and joined the Board on the same date, bringing extensive industry experience and having played a key role in the successful launch of Jurassic World Evolution 3. Jonny will remain on the Board as an Executive Director until 31 May 2026 to support a smooth transition.

TRADING AND OUTLOOK - GUIDANCE UPGRADE

After the end of the Period, strong sales across the portfolio in seasonal price promotions delivered Frontier's second highest-ever December revenue. Based on Frontier's financial performance in the first seven months of the financial year, the Board are now upgrading FY26 financial guidance to revenue of around £100 million and Adjusted Operating Profit* of around £11 million.

Jonny Watts, Executive Director and outgoing CEO, said:

"I'm incredibly proud of what Frontier has achieved in the first half of FY26 and in recent years. The success of Jurassic World Evolution 3 and the strength of our CMS portfolio are a testament to the talent and dedication of our team. I am delighted that we have successfully restored Frontier to a position of consistent, sustainable growth and profitability. Frontier is well placed for the future, and I look forward to supporting Jo and the team through this transition."

Jo Cooke, incoming CEO, said:

"As we look ahead, Frontier is in an excellent shape to build on the strong foundations established in recent years. I again want to thank Jonny for his leadership and the pivotal role he played in shaping our strategy and restoring growth. Jonny's efforts have left the business and our CMS-focused roadmap in a fantastic place for the future. With a talented team and a robust pipeline of exciting new games and additional content for existing games, we remain committed to this strategy, listening to our players and delivering exceptional experiences to them and long-term value for our shareholders."

There will be a call for analysts and institutional investors at 9:30am today. To register, please contact [email protected].

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as amended by The Market Abuse (Amendment) (EU Exit) Regulations 2019. The person responsible for making this announcement on behalf of the Company is Alex Bevis.

Enquiries:

Frontier Developments                                                      +44 (0)1223 394 300

Jo Cooke, CEO

Alex Bevis, CFO                                                                                        

Peel Hunt - Nomad and Joint Corporate Broker             +44 (0)20 7418 8900

Neil Patel / Ben Cryer / Kate Bannatyne

Panmure Liberum - Joint Corporate Broker                    +44 (0)20 3100 2000

Rupert Dearden / Dru Danford / Jamie Anderson

Teneo                                                                                     +44 (0)20 7353 4200

Matt Low / Arthur Rogers 

About Frontier Developments plc

Frontier is a leading independent developer and publisher of video games founded in 1994 by David Braben, co-author of the iconic Elite game. Based in Cambridge, Frontier uses its proprietary COBRA game development technology to create innovative genre-leading games, primarily for personal computers and videogame consoles.

Frontier's LEI number: 213800B9LGPWUAZ9GX18.

www.frontier.co.uk

Interim Results Statement

REVENUE AND GROSS PROFIT

Total revenue grew 26% to £59.6 million (H1 FY25: £47.3 million), led by the outstanding performance of Jurassic World Evolution 3 and supported by the continued sales of Frontier's other genre-leading games.

Gross profit, being revenue less distribution costs and IP royalties, grew to £38.0 million (H1 FY25: £32.9 million), reflecting the growth in revenue. Gross profit margin reduced to 64% (H1 FY25: 70%), primarily due to the success of Jurassic World Evolution 3, which increased the proportion of revenue from royalty-bearing licensed-IP games.

OPERATING COSTS

Adjusted operating costs, under the Adjusted Operating Profit* measure, increased slightly to £28.6 million (H1 FY25: £27.4 million), through the accrual of higher all-staff profit-related bonuses, which are due for payment in September 2026 based on profit for the full financial year. H1 profit grew by over 70% compared to H1 FY25.

Operating costs under IFRS also increased slightly to £30.5 million (H1 FY25: £28.4 million), with the all-staff bonus accrual again being a contributory factor. Another reason for the increase was a fall in the proportion of development costs capitalised under IAS 38 to 69% (H1 FY25: 76%). This reflected the investment in free updates and upgrades for Planet Coaster 2 delivered in the Period, the costs of which are not capitalised.

FINANCIAL PERFORMANCE

Adjusted Operating Profit*, which reflects cash profitability with game development costs expensed as they are incurred, grew by 76% to £9.7 million (H1 FY25: £5.5 million) through the strong trading performance achieved in the Period. Operating profit also increased substantially under IFRS, up 73% to £7.8 million (H1 FY25: £4.5 million).

Included in both Adjusted Operating Profit* and IFRS operating profit is other operating income of £0.3 million (H1 FY25: nil), which relates to the sublet from July 2025 of a portion of Frontier's office on the Cambridge Science Park.

CORPORATION TAX, TAX CREDITS AND R&D EXPENDITURE CREDITS

In arriving at the calculation of Adjusted Operating Profit*, a tax credit of £2.9 million has been recognised (H1 FY25: £3.4 million), which aligns the expected benefits of tax and R&D expenditure credits against the expenditure they relate to, in the period of the expenditure.

Under IFRS, accounting an income tax credit of £27,000 was recognised in the Period (H1 FY25: £nil) for tax filings in Canada (Complex Games). As in previous years, an update will be provided in the full-year financial results in respect of the anticipated Video Games Tax Relief claim for qualifying development activities and the tax charge for the Group. Additional corporation tax disclosures will be provided in the FY26 Financial Statements.

PROFIT AFTER TAX AND EARNINGS PER SHARE

Profit after tax grew to £8.0 million (H1 FY25: £4.4 million) and basic earnings per share grew to 21.4 pence (H1 FY25: 11.4 pence).

CASH POSITION AND CASHFLOW

Frontier continues to be well capitalised and has no debt, with a cash balance of £40.1 million at 30 November 2025 (31 May 2025: £42.5 million, 30 November 2024: £27.2 million). During the Period Frontier undertook a £10.0 million share buyback programme to return surplus capital to shareholders, improve return on equity and increase earnings per share, while maintaining the financial headroom to invest in Frontier's growth strategy. Excluding the cash outflow of £10.0 million for the share buyback, underlying cash grew by £7.6 million through the strong trading performance achieved in the Period. Cash grew further during December through the receipt of November's net revenue, ending at £43.4 million on 31 December 2025.

CONSOLIDATED INCOME STATEMENT
FOR THE PERIOD ENDED 30 NOVEMBER 2025
	Note	6 months to30 November 2025 £'000	6 months to30 November 2024 £'000	12 months to31 May 2025 £'000
Revenue		59,629	47,291	90,600
Cost of sales		(21,633)	(14,388)	(27,257)
Gross profit		37,996	32,903	63,343
Research and development expenses		(17,356)	(16,294)	(31,971)
Sales and marketing expenses		(4,869)	(5,036)	(7,710)
Administrative expenses		(8,290)	(7,030)	(14,921)
Other operating income		334	-	3,910
Operating profit		7,815	4,543	12,651
Finance income		649	386	800
Finance costs		(479)	(531)	(1,032)
Profit before tax		7,985	4,398	12,419
Income tax credit		27	-	3,968
Profit for the period attributable to shareholders		8,012	4,398	16,387
		6 months to30 November 2025p	6 months to30 November 2024p	12 months to31 May 2025p
Earnings per share
Basic earnings per share	5	21.4	11.4	42.4
Diluted earnings per share	5	20.2	11.1	40.7
All the activities of the Group are classified as continuing.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 NOVEMBER 2025
		6 months to30 November 2025 £'000	6 months to30 November 2024 £'000	12 months to31 May 2025 £'000
Profit for the period		8,012	4,398	16,387
Other comprehensive incomeItems that will be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations		(3)	(199)	(534)
Total comprehensive income for the period attributable to the equity holders of the parent		8,009	4,199	15,853

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2025
(REGISTERED COMPANY NO: 02892559)
	Note	30 November 2025 £'000	30 November 2024 £'000	31 May 2025 £'000
Non-current assets
Goodwill		6,539	6,781	6,539
Other intangible assets	6	43,261	37,370	41,971
Property, plant and equipment		3,492	4,291	3,810
Right-of-use assets		16,542	18,625	17,548
Trade and other receivables		868	-	1,105
Total non-current assets		70,702	67,067	70,973
Current assets
Trade and other receivables		20,906	18,684	12,290
Current tax assets		4,868	7,207	4,928
Cash and cash equivalents		40,113	27,241	42,502
Total current assets		65,887	53,132	59,720
Total assets		136,589	120,199	130,693
Current liabilities
Trade and other payables		(17,725)	(12,251)	(10,418)
Lease liabilities		(1,871)	(1,801)	(1,823)
Deferred revenue		(2,696)	(3,429)	(1,486)
Deferred income from R&D expenditure credits		(957)	-	(955)
Current tax liabilities		(20)	-	(276)
Total current liabilities		(23,269)	(17,481)	(14,958)
Net current assets		42,618	35,651	44,762
Non-current liabilities
Provisions		(107)	(92)	(100)
Lease liabilities		(16,693)	(18,609)	(17,644)
Other payables		(197)	(671)	(635)
Deferred revenue		-	(591)	-
Deferred income from R&D expenditure credits		(1,165)	-	(1,204)
Deferred tax liabilities		(990)	(381)	(990)
Total non-current liabilities		(19,152)	(20,344)	(20,573)
Total liabilities		(42,421)	(37,825)	(35,531)
Net assets		94,168	82,374	95,162
Equity
Share capital		197	197	197
Share premium account		36,547	36,547	36,547
Treasury shares		(10,180)	-	-
Equity reserve		(13,486)	(13,612)	(12,955)
Foreign exchange reserve		(1,410)	(1,072)	(1,407)
Retained earnings		82,500	60,314	72,780
Total equity		94,168	82,374	95,162

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE PERIOD ENDED 30 NOVEMBER 2025
	Share capital   £'000	Share premium account    £'000	Treasury shares  £'000	Equity reserve   £'000	Foreign exchange reserve   £'000	Retained earnings   £'000	Total equity  £'000
At 31 May 2024	197	36,547	-	(13,283)	(873)	54,235	76,823
Profit for the period	-	-	-	-	-	4,398	4,398
Other comprehensive income:
Exchange differences on translation of foreign operations	-	-	-	-	(199)	-	(199)
Total comprehensive income/(loss) for the period	-	-	-	-	(199)	4,398	4,199
Share-based payment charges	-	-	-	1,248	-	-	1,248
Share-based payment transfer relating to option exercises and lapses	-	-	-	(1,681)	-	1,681	-
Employee Benefit Trust cash inflows from option exercises	-	-	-	104	-	-	104
Transactions with owners	-	-	-	(329)	-	1,681	1,352
At 30 November 2024	197	36,547	-	(13,612)	(1,072)	60,314	82,374
Profit for the period	-	-	-	-	-	11,989	11,989
Other comprehensive income:
Exchange differences on translation of foreign operations	-	-	-	-	(335)	-	(335)
Total comprehensive income/(loss) for the period	-	-	-	-	(335)	11,989	11,654
Share-based payment charges	-	-	-	1,120	-		1,120
Share-based payment transfer relating to option exercises and lapses	-	-	-	(477)	-	477	-
Employee Benefit Trust cash inflows from option exercises	-	-	-	14	-	-	14
Transactions with owners	-	-	-	657	-	477	1,134
At 31 May 2025	197	36,547	-	(12,955)	(1,407)	72,780	95,162
Profit for the period	-	-	-	-	-	8,012	8,012
Other comprehensive income:
Exchange differences on translation of foreign operations	-	-	-	-	(3)	-	(3)
Total comprehensive income/(loss) for the period	-	-	-	-	(3)	8,012	8,009
Share-based payment charges	-	-	-	1,106	-	-	1,106
Share-based payment transfer relating to option exercises and lapses	-	-	-	(1,708)	-	1,708	-
Employee Benefit Trust cash inflows from option exercises	-	-	-	71	-	-	71
Purchase of treasury shares	-	-	(10,180)	-	-	-	(10,180)
Transactions with owners	-	-	(10,180)	(531)	-	1,708	(9,003)
At 30 November 2025	197	36,547	(10,180)	(13,486)	(1,410)	82,500	94,168

The accompanying accounting policies and notes form part of this financial information.

CONSOLIDATED STATEMENT OF CASHFLOWS
FOR THE PERIOD ENDED 30 NOVEMBER 2025
	6 months to30 November 2025 £'000	6 months to30 November 2024 £'000	12 months to31 May 2025 £'000
Profit before taxation	7,985	4,398	12,419
Adjustments for:
Depreciation and amortisation	13,652	12,874	23,435
Movement in unrealised exchange gains on forward contracts	-	611	-
Share-based payment expenses	1,106	1,248	2,368
Interest received	(649)	(386)	(800)
Payment of interest element of lease liabilities	479	531	1,032
Other operating income	-	-	(3,910)
Working capital changes:
Change in trade and other receivables	(8,625)	(5,373)	1,466
Change in trade and other payables	7,078	300	635
Change in deferred revenue	1,210	-	(3,121)
Change in deferred income from R&D expenditure credits	(37)	-	2,159
Change in provisions	7	7	15
Cash generated from operations	22,206	14,210	35,698
Taxes (paid)/received	(170)	-	5,808
Net cashflows from operating activities	22,036	14,210	41,506
Investing activities
Purchase of property, plant and equipment	(150)	(229)	(341)
Expenditure on other intangible assets	(13,675)	(15,576)	(30,370)
Sale of publishing rights	246	195	4,005
Interest received	649	386	800
Net cashflows used in investing activities	(12,930)	(15,224)	(25,906)
Financing activities
Employee Benefit Trust cash inflows from option exercises	71	104	118
Payment of principal element of lease liabilities	(903)	(854)	(1,726)
Payment of interest element of lease liabilities	(479)	(531)	(1,032)
Purchase of treasury shares	(10,180)	-	-
Net cashflows used in financing activities	(11,491)	(1,281)	(2,640)
Net change in cash and cash equivalents from continuing operations	(2,385)	(2,295)	12,960
Cash and cash equivalents at beginning of period	42,502	29,523	29,523
Exchange differences on cash and cash equivalents	(4)	13	19
Cash and cash equivalents at end of period	40,113	27,241	42,502

The accompanying accounting policies and notes form part of this financial information.

NOTES TO THE FINANCIAL INFORMATION

1.  CORPORATE INFORMATION                                                                                                                            

Frontier Developments plc (the 'Group' or the 'Company') develops and publishes video games for the interactive entertainment sector. The Company is a public limited company and is incorporated and domiciled in the United Kingdom.

The address of its registered office is 26 Science Park, Milton Road, Cambridge CB4 0FP.

The Group's operations are based and headquartered in the UK, with subsidiaries based in Canada and the US.

2.  BASIS OF PREPARATION AND STATEMENT OF COMPLIANCE

Basis of preparation

The consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' (IAS 34), as issued by the International Accounting Standards Board (IASB) and as adopted by the UK, and the disclosure requirements of the Listing Rules.

The consolidated interim financial statements do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006 and have not been audited or reviewed by the Company's auditors.

The consolidated interim financial statements should be read in conjunction with the financial statements for the year ended 31 May 2025.

Statutory accounts for the year ended 31 May 2025 were approved by the Board of Directors on 9 September 2025 and delivered to the Registrar of Companies. The Auditor's Report was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.

The financial information has been prepared under the historical cost convention except for financial instruments held at fair value. The financial information is presented in Sterling, the presentation and functional currency for the Group and Company. All values are rounded to the nearest thousand pounds (£'000) except when otherwise indicated.

Going concern basis

The Group's and Company's forecasts and projections, taking account of current cash resources and reasonably possible changes in trading performance, support the conclusion that there is a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for a period of not less than 12 months from the date of the consolidated interim financial statements. The Group and Company therefore continue to adopt the going concern basis in preparing their financial statements.

3.  ACCOUNTING POLICIES

The consolidated interim financial statements have been prepared in accordance with the accounting policies adopted in the Group's most recent annual financial statements for the year ended 31 May 2025.

4.  ACCOUNTING ESTIMATES AND KEY JUDGEMENTS

When preparing the consolidated interim financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurements of assets, liabilities, income and expenses. The actual results may differ from these estimates.

The judgements, estimates and assumptions applied in the interim financial statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual financial statements for the year ended 31 May 2025.

5.  EARNINGS PER SHARE

The calculation of the basic earnings per share is based on the profits attributable to the shareholders of Frontier Developments plc divided by the weighted average number of shares in issue during the Period, excluding shares held in treasury.

During the Period Frontier executed a share buyback programme of £10 million, acquiring 2,518,527 shares which were placed into treasury. As at 30 November 2025, there were 39,478,535 shares in issue, including the shares held in treasury. The total number of voting rights in the Company as at 30 November was therefore 36,960,008.

	6 months to 30 November 2025	6 months to 30 November 2024	12 months to 31 May 2025
Profit attributable to shareholders (£'000)	8,012	4,398	16,387
Weighted average number of shares	37,439,862	38,649,551	38,658,275
Basic earnings per share (p)	21.4	11.4	42.4

The calculation of the diluted earnings per share is based on the profits attributable to the shareholders of Frontier Developments plc divided by the weighted average number of shares in issue during the Period, excluding shares held in treasury, and as adjusted for the dilutive effect of share options.

	6 months to 30 November 2025	6 months to 30 November 2024	12 months to 31 May 2025
Profit attributable to shareholders (£'000)	8,012	4,398	16,387
Diluted weighted average number of shares	39,640,870	39,759,771	40,265,330
Diluted earnings per share (p)	20.2	11.1	40.7

The reconciliation of the average number of Ordinary Shares used for basic and diluted earnings per share is as follows:

	6 months to 30 November 2025	6 months to 30 November 2024	12 months to 31 May 2025
Weighted average number of shares	37,439,862	38,649,551	38,658,275
Dilutive effect of share options	2,201,008	1,110,220	1,607,055
Diluted average number of shares	39,640,870	39,759,771	40,265,330

6.  OTHER INTANGIBLE ASSETS

	Game technology £'000	Game developments  £'000	Third-party software £'000	IP licences £'000	Total£'000
Cost
At 31 May 2024	27,740	188,508	3,312	13,024	232,584
Additions	2,498	12,103	204	-	14,805
Disposals	-	-	-	(1,915)	(1,915)
Exchange rate movement	-	(143)	(1)	-	(144)
At 30 November 2024	30,238	200,468	3,515	11,109	245,330
Additions	2,526	11,152	72	-	13,750
Disposals	-	(5,841)	-	(1)	(5,842)
Exchange rate movement	-	(263)	(2)	-	(265)
At 31 May 2025	32,764	205,516	3,585	11,108	252,973
Additions	2,176	11,119	171	-	13,466
Exchange rate movement	-	5	-	-	5
At 30 November 2025	34,940	216,640	3,756	11,108	266,444
Amortisation and impairment
At 31 May 2024	19,975	165,066	2,572	9,269	196,882
Amortisation charges	1,788	9,156	237	-	11,181
Exchange rate movement	-	(102)	(1)	-	(103)
At 30 November 2024	21,763	174,120	2,808	9,269	207,960
Amortisation charges	1,789	6,944	235	-	8,968
Disposals	-	(5,769)	-	-	(5,769)
Exchange rate movement	-	(155)	(2)	-	(157)
At 31 May 2025	23,552	175,140	3,041	9,269	211,002
Amortisation charges	2,172	9,001	216	792	12,181
At 30 November 2025	25,724	184,141	3,257	10,061	223,183
Net book value
Net book value at 30 November 2025	9,216	32,499	499	1,047	43,261
Net book value at 31 May 2025	9,212	30,376	544	1,839	41,971
Net book value at 30 November 2024	8,475	26,348	707	1,840	37,370
Net book value at 31 May 2024	7,765	23,442	740	3,755	35,702

7.  KEY PERFORMANCE INDICATORS - NON-STATUTORY MEASURES

In addition to measures of financial performance derived from IFRS-reported results - revenue, operating profit, operating profit margin percentage, earnings per share, and cash balance - we have published and provided commentary on financial performance measurements derived from non-statutory calculations. We believe these supplementary measures, when read in conjunction with the measures derived directly from statutory financial reporting, provide a better understanding of our overall financial performance.

Adjusted Operating Profit

Adjusted Operating Profit measures Frontier's financial performance after eliminating non-cash development cost accounting adjustments (cost capitalisation, amortisation charges and impairment charges), non-cash share charges, non-operating items (including restructuring costs), and after recording the full benefits of development-related tax and R&D expenditure credits against the expenditure they relate to. This effectively provides the cash profit figure that would have been achieved if we expensed all game development investment as it was incurred, net of those tax and R&D expenditure credits, rather than capitalising those costs and amortising them over several years.

	6 months to30 November 2025 £'000	6 months to30 November 2024 £'000	12 months to 31 May 2025 £'000
Operating profit	7,815	4,543	12,651
Add back non-cash intangible asset amortisation charges for game developments and game technology	11,173	10,944	19,677
Deduct capitalised investment costs in game developments and game technology	(13,296)	(14,601)	(28,279)
Add back non-cash share-based payment expenses	1,106	1,248	2,368
Adjustment to record the full benefits of tax and R&D expenditure credits against the expenditure they relate to	2,916	3,384	6,767
Adjustments to tax and R&D expenditure credits of prior periods	-	-	62
Adjusted Operating Profit	9,714	5,518	13,246

EBITDA

EBITDA, being earnings before interest, tax, depreciation and amortisation, is commonly used by investors when assessing the financial performance of companies. It attempts to arrive at a 'cash profit' figure by adjusting operating profit for non-cash depreciation and amortisation charges. In our case, EBITDA does not provide a clear picture of our cash profitability, as it adds back amortisation charges relating to game developments, but without deducting the investment costs for those developments, resulting in a profit measure which does not take into account any of the costs associated with developing games. Since EBITDA is a commonly used financial performance measure, it has been included below for the benefit of readers of the accounts who may value that measure of performance.

	6 months to30 November 2025 £'000	6 months to30 November 2024 £'000	12 months to31 May 2025 £'000
Operating profit	7,815	4,543	12,651
Depreciation and amortisation	13,652	12,874	23,435
EBITDA	21,467	17,417	36,086

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