AIM-listed games developer Frontier Developments (LON:FDEV) posted forecast-beating FY26 results and announced a £5 million special dividend. For the year to May, the firm posted record revenue, earnings and cash generation, enabling it to make the extra payout.
Operating profit beats forecasts
Revenue for the year to May 2026 rose 16% to £104.8 million, in line with the most recent upgraded guidance. Adjusted operating profit rose 62% to £21.4 million, comfortably above the latest upgraded forecast of £19 million.
Sales were driven by the success of Jurassic World Evolution 3 and the continued popularity of the Planet Coaster and Planet Zoo franchises. Operating profit grew thanks to strong trading, tight cost control and tax credits, and would have doubled if FY25’s one-off gains were excluded.
The firm’s cash balance rose to £44 million, despite investing £17.5 million in share buybacks during the year. Buybacks, together with strong operating profit growth, led to a 76% jump in basic earnings per share to 74.6p.
Frontier Development posts record results
| FY2026 | FY2025 | Change | |
| Revenue (£m) | 104.8 | 90.6 | 16% |
| Adj operating profit (£m) | 21.4 | 13.2 | 62% |
| Basic EPS (p) | 74.6 | 42.4 | 76% |
Source: Company accounts
A special dividend and ‘an exciting future’
Thanks to its strong cash generation, Frontier announced it would pay a £5 million special dividend from reserves. The payment of 14.1p per share will be made on 9 October.
The firm said it had ‘an exciting future’ ahead with a strong roadmap of new content ready for release. On 13 October, Planet Zoo 2 is scheduled for release, and at some point in H2 the much-awaited Warhammer 40,000: Chaos Gate – Deathwatch game will be released.
Further out, a new game is in development using Frontier’s own IP to extend the Planet franchise further. In addition, the firm recently announced a deal to develop and publish a new game drawing on Disney’s (NYSE:DIS) iconic IP portfolio.
We like the games developers and Frontier in particular, especially since the return of former CEO Jo Cooke. FY26 has been a banner year for the firm, and there are some big launches to come this year too.
Strong sales mean strong cash generation, which the firm has reinvested in creating more and better IP. Meanwhile, the deal with Disney is a major feather in its cap as it shows the US firm has the confidence to trust it with its iconic portfolio.
Also, having founder David Braben in the background as President is a bonus in our view. Despite starting the company over 30 years ago, Braben still has the passion to oversee development and make sure the firm gets it right.
