Winking Studios (LSE:WKS) delivered strong revenue growth during the first half of 2026 as demand for its art outsourcing services remained robust, although increased investment in North America and artificial intelligence weighed on profitability.
Unaudited revenue reached US$23.5 million, representing a 21.1% increase from the same period a year earlier, including organic growth of 8.9%. Adjusted EBITDA, however, declined to US$1.2 million as the group absorbed seasonally weaker contributions from Mineloader and increased spending to support its next stage of expansion.
North American and AI investment steps up
Winking Studios strengthened its presence in the North American market through the acquisition of Canadian studio Ampera in April 2026. The deal gives the group a direct foothold in the region and is intended to deepen relationships with Western customers.
Around US$0.4 million has been committed to expanding the Ampera team and developing its market presence. At the same time, Winking Studios invested approximately US$0.9 million in AI-enabled game development capabilities.
The group has already secured initial customer projects involving its AI capabilities and is seeking to establish itself as an end-to-end development partner as major game publishers increasingly look to work with larger, integrated outsourcing providers.
Art outsourcing leads first-half growth
Art outsourcing remained a key growth driver, with revenue from the division increasing 25.4% during the period. Revenue generated in Japan more than doubled to US$3.6 million, demonstrating further progress in an important gaming market.
Repeat projects represented more than one-third of total sales, providing additional visibility over the group’s revenue base and highlighting continued demand from existing customers.
Winking Studios also maintained a strong financial position. Cash, cash equivalents and bond investments stood at US$24.6 million, while gearing remained low, giving the company financial flexibility to continue funding its North American expansion and AI strategy.
Second-half revenue expected to strengthen
Winking Studios expects revenue in the second half of 2026 to exceed the level recorded during the first six months, supported by continued strength in its core art outsourcing operations.
The company reported indicative bookings of US$51.6 million covering the next 24 months, providing a substantial pipeline of potential future work.
Despite the positive revenue outlook, the board expects Winking Studios to record a modest adjusted EBITDA loss for the full year. The company is prioritising investment in AI-native development capabilities and the expansion of its North American platform as it seeks to compete for larger projects and establish sustainable long-term growth.
More about Winking Studios Limited
Winking Studios Limited is a Singapore-headquartered provider of AAA game art outsourcing and game development services, with listings in London and Singapore. The group operates 14 studios across Asia and North America and employs more than 1,400 people.
Its global customer base includes 22 of the world’s 25 largest game publishers, with services spanning art outsourcing, game development and publishing.
Winking Studios operates through three principal segments: Art Outsourcing, Game Development, and Global Publishing & Other Services. Its activities are delivered through four complementary brands — Winkingworks, Mineloader, Vertic and Ampera — giving the group an integrated platform within the increasingly consolidated global video game outsourcing industry.
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