CHAIRMAN’S STATEMENT

A Year of Resilience and Strategic Realignment

The 2025 financial year was a defining period for Flexion Mobile PLC. It was a year characterised by the stability of our core distribution business, set against significant headwinds in our marketing services division. As we navigated these contrasting dynamics, the Board and management took decisive action to protect the long-term health and profitability of the Company.
 
At a macroeconomic level, the alternative game distribution market continues to evolve rapidly supported by regulatory pressure in the biggest markets. As we enter the final act in the lawsuit between Google and Epic in 2026, we expect changes in favour of alternative distribution and payments. This makes our market position attractive and we have begun to scale up our support for more titles and channels. The number of games on our platform is our north star for success. For 2026 our aim is to reach 50 live games.
 
While overall Group revenue saw a slight contraction of 6% to GBP 72.5m in 2025, our core games distribution business demonstrated resilience. Distribution revenue increased by 1% overall, and importantly, by 4% in constant currency terms (USD). This confirms that our business model—bringing games to alternative app stores —remains highly relevant and continues to capture market share as we deliver value to our clients.
 
Conversely, our marketing services division, primarily driven by Audiencly, faced a challenging year. Shifting market conditions and operational challenges in influencer marketing led to a 42% decline in division revenue. In the fourth quarter, the Board undertook a rigorous assessment of this unit, resulting in a GBP 12.2m non-cash impairment loss. While this heavily impacted our overall operating result for the year, it was a necessary and prudent step to align our balance sheet with current market realities. We have since initiated an aggressive cost restructuring to streamline and refocus our games marketing services, ensuring a leaner, more efficient operation moving forward.
 
Despite these challenges, we continued to execute on our growth strategy. The strategic partnership announced with Xsolla in Q3 represents a significant milestone in delivering frictionless payments and global reach for our game developers. Furthermore, our ability to attract blockbuster titles remains undiminished. 
 

I would like to extend my gratitude to our CEO, Jens Lauritzson, the executive team, and all our employees for their dedication during a year of necessary transition. I also thank you, our shareholders, for your continued support as we position Flexion for a return to profitable growth in 2026.

 
Andrew Shen
Chairman, Flexion Mobile PLC