Devolver Digital, Inc. (DEVO) AI Stock Analysis

• Market Cap: £109.14M
• Dividend Yield: N/A
• Average Volume (3M): 28.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 10.40%
• EPS Growth: 53.88%
• Country: UK
• Employees: 235
• Sector: Communication Services
• Sector Strength: 83
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): >-0.01
• Shares Outstanding: 474,500,240
• 10 Day Avg. Volume: 957
• 30 Day Avg. Volume: 28,843
• PEG Ratio: 0.01
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -140.63
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 8.67
• Enterprise Value/Ebitda: -30.20
• 1Y Price Target: £25.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 70 Outperform
• Price Target: 25.00p ▲(8.70%Upside)

Devolver Digital exhibits a solid financial foundation with a strong equity position and improved operational cash flows. Positive corporate events bolster future growth prospects and market confidence. However, the high RSI and negative P/E ratio indicate potential valuation concerns and overbought conditions.

Devolver Digital, Inc. Business Overview & Revenue Model

Company Description

Devolver Digital Inc. develops video games for release on PC and mobile in the United States and internationally. It publishes video games. The company was founded in 2008 and is based in Wilmington, Delaware.

How the Company Makes Money

Devolver Digital, Inc. generates revenue primarily through the publishing and distribution of video games. The company enters into agreements with independent game developers to finance, market, and distribute their games. Revenue is typically earned through a share of the sales proceeds from these games, which are sold via digital platforms such as Steam, PlayStation Network, Xbox Live, and Nintendo eShop. Additionally, Devolver Digital occasionally releases physical copies of popular titles, contributing to their revenue streams. The company may also engage in licensing deals and partnerships for merchandise or media adaptations, further diversifying its income sources.

Devolver Digital, Inc. Financial Statement Overview

Summary

Devolver Digital shows stable financial health with a solid equity base and improving operating cash flow. However, the company struggles with profitability, negative net income, and free cash flow issues, which necessitates stronger cost control and revenue management strategies.

Income Statement

Devolver Digital has shown some revenue growth from 2023 to 2024, but profitability remains a challenge with negative net income and declining gross profit margins. While the EBITDA margin is positive, EBIT remains negative, indicating operational inefficiencies or high non-cash charges.

Balance Sheet

The company maintains a solid equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, suggesting manageable leverage. However, there has been a decrease in stockholders' equity over the years.

Cash Flow

Operating cash flow has improved, reflecting better cash generation capabilities. However, free cash flow remains negative due to high capital expenditures, which could be a concern if this trend continues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.78M	92.36M	134.56M	98.15M	212.74M
Gross Profit	30.07M	24.52M	22.50M	39.23M	91.69M
EBITDA	18.84M	4.09M	13.80M	-56.73M	84.24M
Net Income	-6.14M	-12.74M	-91.50M	30.55M	64.09M
Balance Sheet
Total Assets	201.22M	196.81M	194.82M	279.14M	113.18M
Cash, Cash Equivalents and Short-Term Investments	42.11M	42.65M	79.49M	86.24M	43.53M
Total Debt	1.10M	1.03M	0.00	0.00	240.00K
Total Liabilities	35.99M	38.77M	22.55M	33.67M	41.66M
Stockholders Equity	165.54M	158.12M	172.38M	245.54M	71.51M
Cash Flow
Free Cash Flow	-8.44M	-13.98M	-2.42M	-50.25M	50.08M
Operating Cash Flow	22.26M	13.96M	30.29M	-15.90M	72.25M
Investing Cash Flow	-30.70M	-45.97M	-32.71M	60.46M	-25.39M
Financing Cash Flow	10.21M	-5.50M	-1.72M	-1.85M	-15.76M

Devolver Digital, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DEVO, the sentiment is Positive. The current price of 23 is above the 20-day moving average (MA) of 22.93, above the 50-day MA of 21.43, and below the 200-day MA of 23.75, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 93.30 is Negative, neither overbought nor oversold. The STOCH value of 23.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DEVO.

Devolver Digital, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVPL	76 Outperform	$453.86M	22.45	8.03%	0.87%	4.71%	―
EVPL	76 Outperform	$453.86M	22.45	8.03%	0.87%	4.71%	―
FDEV	76 Outperform	£128.59M	0.08	21.85%	―	-6.57%	―
DEVO	70 Outperform	£109.14M	―	-3.77%	―	10.40%	53.88%
Sector *	61 Neutral	$41.26B	-0.79	-14.19%	3.78%	2.39%	-73.52%

Devolver Digital, Inc. Corporate Events

Devolver Digital Successfully Passes All AGM Resolutions

Devolver Digital, Inc. announced that all resolutions proposed at its Annual General Meeting held on June 27, 2025, were successfully passed. This outcome reflects the company’s stable governance and may positively influence its strategic plans and stakeholder confidence, as it continues to expand its portfolio with upcoming game releases.

Devolver Digital Meets 2025 Financial Expectations, Annual Meeting Scheduled

Devolver Digital, a prominent indie video games publisher, announced that its financial performance for 2025 aligns with market expectations. The company is set to hold its 2025 Annual Meeting, with results to be shared post-conclusion, and has made its 2024 Annual Report available online. This announcement underscores Devolver’s stable market position and ongoing commitment to transparency with stakeholders.

Devolver Digital Announces 2025 Annual Meeting for Shareholders

Devolver Digital, Inc. has announced its Annual Meeting scheduled for June 27, 2025, at Fieldfisher’s offices in London. Shareholders are encouraged to attend in person, and those unable to do so can vote via proxy or electronic means. This meeting is crucial for shareholders to vote on important resolutions affecting the company’s future operations and governance. The announcement underscores the company’s commitment to engaging with its shareholders and ensuring their active participation in corporate decisions.

Devolver Digital Releases 2024 Annual Report Highlighting Strategic Achievements

Devolver Digital has published its 2024 Annual Report and Accounts, detailing the company’s financial performance and strategic direction. This publication provides stakeholders with insights into Devolver’s operational achievements and future plans, reinforcing its position in the indie video games market.

Devolver Digital Returns to Profitability with Strong 2024 Performance

Devolver Digital announced a return to profitability and growth for the year ending December 2024, with strong performance aligning with their fiscal guidance. The company achieved record Metacritic scores for new releases and saw significant revenue growth driven by their back catalogue and successful new titles like ‘The Plucky Squire’ and ‘Neva.’ With a robust pipeline of at least 13 new releases for 2025, including anticipated titles featured in Nintendo’s Switch 2 showcase, Devolver is poised for continued growth. The company’s strategic focus on high-quality game curation and strong partnerships has bolstered its market position, with expectations of sequential improvements in revenue and EBITDA through 2025 and 2026.