July-September 2025 performance
· Total revenue decreased by 7% to GBP 16.5m (17.8m)*
· Distribution revenue increased by 2% in constant currency terms (USD)
· Total gross profit decreased by 54% to GBP 1.8m (3.9m)
· Adjusted EBITDA‡ decreased by 140% to GBP -0.6m (1.4m)
· Amortisation decreased to GBP 0.4m (1.7m)^#
· Operating result amounted to GBP -0.7m (-0.6m)
· EPS amounted to GBP -1.60 pence (-2.12 pence)
· Operating cash flow amounted to GBP 0.8m (-0.8m)
· Cash and cash equivalents increased to GBP 13.7m (12.4m)^β
 
January-September 2025 performance
· Total revenue decreased by 6% to GBP 51.5m (54.6m)*
· Distribution revenue increased by 2% in constant currency terms (USD)
· Total gross profit decreased by 34% to GBP 7.4m (11.3m)
· Adjusted EBITDA‡ decreased by 97% to GBP 0.1m (3.9m)
· Operating result amounted to GBP -2.1m (-2.1m)
 
 Important events during the quarter
· Launch of Realms of Pixel from NovaSonic Games PTE
· Launch of a Top 5 Grossing game
· Signing of Seaside Escape from Microfun
 
Important events after the quarter
· Strategic partnership entered into with Xsolla
 

^{* Comparative figures for the year-earlier period in brackets. 
‡ The Group defines adjusted EBITDA as earnings before interest, tax, depreciation, amortisation, finance costs, impairment losses, foreign exchange gains/losses, corporate acquisitions costs, fair value gains/losses and other exceptional costs. 
# The total amortisation of GBP 372,662 (1,739,269) includes GBP 65,959 (1,455,112) related to game distribution rights, GBP 134,595 (131,172) related to Brand, GBP 56,977 (85,404) related to customer relationships, GBP 114,969 (67,581) related to capitalised development costs and GBP 163 (Nil) related to computer software.
β A net cash payment of GBP 0.4m was reserved in relation to a developer agreement. The amount has been accrued as a liability in the quarter-end balance sheet but is not reflected in the quarter-end cash balance.}

Chairman’s Statement
 
I am honoured to have joined the Board of Flexion as Chairman following the Annual General Meeting in June 2025. Over the past few months, I have had the privilege of working closely with Jens (CEO), Per (COO), Victor Horbach (GM of Distribution), Ross (CFO), and the rest of the Board as we refine and execute a clear and disciplined strategy for the company. We have a program in place, and we are working through it step by step. We have a plan, and now it is about focused execution — with our north star being the number of games on our platform. By the end of FY2026, we are targeting a portfolio of 50 games, representing a greater than 40% increase from today. This transformation will not be completed overnight, but management is aligned and being held accountable for consistent, measurable progress toward this goal.
 
The third quarter represented an important period of alignment and strategic recalibration for Flexion. We made key decisions to focus the company on building a more scalable platform and evolving our commercial model toward that of a true technology platform. With the ongoing opening of alternative app stores and new distribution models, our priority is to ensure that Flexion’s offering is operationally efficient and commercially scalable — positioning us to serve a broader range of developers and partners globally.
 
By broadening our reach beyond the largest developers to include the broader universe of mobile games, we are positioning Flexion to serve a much larger total addressable market. This evolution enhances the scalability of our business, deepens our partner network, and strengthens our long-term strategic position in the mobile ecosystem.
 
Alongside this shift, we have refocused management’s resources on driving forward the business while maintaining financial discipline. We have initiated a comprehensive review of our cost structure, with a focus on improving unit economics and reducing non-essential general and administrative expenditure. This disciplined approach will allow us to reinvest in areas that directly support our growth ambitions and the scalability of the platform.
 
We have also undertaken a fulsome review of our capital allocation strategy and Flexion’s return on equity. As part of that process, we have examined ways to return capital to long-term shareholders — including through share buybacks and dividends — and will continue to assess these options into 2026 to ensure we have the appropriate toolkit in place to deliver value to our long term shareholders responsibly.
 
Our core distribution business continues to grow revenue in USD terms. However, Audiencly is now a weaker-performing part of the business. We are taking a measured approach to cost management and refocusing within this segment. While this may impact top-line performance, we are putting greater emphasis on contribution margin in this business line. The management team has been active in Düsseldorf, and we expect to share more on this as we further dissect and optimise this business line in the quarters ahead.
 
Flexion’s opportunity remains significant. The Board has therefore asked management to fully focus on operational execution and delivery against our strategic objectives. Accordingly, if shareholders have questions regarding the business, I will be the best point of contact and welcome direct engagement. We have a clear direction, a strong platform, and a management team committed to disciplined execution as we work to deliver sustainable long-term value for shareholders.
 
Andrew Shen
Chairman