Frontier Developments (LSE:FDEV) reported record preliminary results for the year ended 31 May 2026, with revenue rising 16% to £104.8 million and adjusted operating profit increasing 44% to £19.0 million. The video games developer attributed the performance to the continued success of its creative management simulation (CMS) strategy and the strong reception of its flagship franchises.
The year benefited from the launch of Jurassic World Evolution 3, while Planet Coaster and Planet Zoo continued to generate resilient sales. Profitability was further supported by disciplined cost management, higher video games tax credits and strong cash generation. The company also completed substantial share buybacks during the period, which management believes will enhance future earnings per share.
Frontier highlighted ongoing momentum across its existing portfolio, with plans for a major expansion to Jurassic World Evolution 3 and continued content releases for Planet Coaster 2 and Elite Dangerous. Looking ahead, the company expects to launch Planet Zoo 2 and Warhammer 40,000: Chaos Gate – Deathwatch during FY27, strengthening its pipeline of new releases.
The group also revealed plans to introduce a new internally developed Planet-branded CMS franchise in FY28. The project forms part of Frontier’s longer-term strategy of releasing one CMS title each year, reinforcing its position as a specialist developer focused on sustainable growth within the simulation gaming genre.
The company’s outlook is supported by improving profitability, strong cash generation and a robust balance sheet, while valuation metrics remain attractive with a relatively low earnings multiple. However, management noted that mixed technical indicators and pressure on gross margins remain factors for investors to monitor as the business continues to expand.
More about Frontier Developments
Frontier Developments plc is an independent video game developer and publisher based in Cambridge, UK. The company specialises in creative management simulation games and is best known for franchises including Planet Coaster, Planet Zoo and Jurassic World Evolution. Its titles are built using the proprietary COBRA technology platform and are designed to provide long-lasting, highly engaging simulation experiences for players around the world.
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