Frontier Developments (FDEV) AI Stock Analysis

• Market Cap: £135.50M
• Dividend Yield: N/A
• Average Volume (3M): 160.85K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.13
• Revenue Growth: 1.49%
• EPS Growth: N/A
• Country: UK
• Employees: 700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.20
• Shares Outstanding: 36,786,564
• 10 Day Avg. Volume: 121,822
• 30 Day Avg. Volume: 160,846
• PEG Ratio: -0.03
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 1.06
• P/FCF Ratio: 2.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £602.50
• Price Target Upside: 24.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.24
• Revenue Forecast (FY): £100.39M

• Rating: 74 Outperform
• Price Target: 422.00 p ▼(-12.81% Downside)
• Action: Reiterated Date: 01/16/26
• Date: Action: Reiterated 01/16/26

The score is driven primarily by improving financial performance and cash-flow strength alongside a solid balance sheet, with a strong uptrend in the stock price providing additional support. Valuation also contributes positively due to the low P/E, while the main offsetting risk is the significant decline in gross margin.

Positive Factors

Strong cash generation

Frontier converts earnings into cash efficiently: operating cash flow runs nearly three times net income and free cash flow conversion is ~1x. That durable cash generation supports reinvestment, DLC/live-ops funding and reduces reliance on external financing over the next several quarters.

Conservative balance sheet

Low leverage and a high equity ratio give Frontier financial flexibility to weather development cycles or fund new projects without large refinancing risk. A 0.20 debt/equity and strong equity base lessen solvency pressures and support longer-term R&D and live-service spending.

Improving profitability

The firm moved from prior losses to an 18% net margin with improved operating margins, indicating better cost control and scalable economics on published titles. Sustained margin recovery increases free cash potential and funds content pipelines over the medium term.

Negative Factors

Sharp gross margin decline

A near 25 percentage-point drop in gross margin signals rising cost of goods sold or increased mix of lower-margin sales. If structural, this compresses operating leverage and requires higher revenue growth or ongoing cost reductions to sustain current net margin levels.

Modest recent revenue growth

Revenue growth is only marginal in the latest year, leaving profitability reliant on cost improvements and back-catalog monetization. Limited top-line expansion reduces the margin of safety for investing in new IP or scaling live services over the coming 2–6 months.

Dependence on post-launch monetization

A material share of revenue comes from post-launch DLC and live-ops, concentrating outcomes on title engagement and content cadence. Failure to sustain player spending or a weaker release schedule can materially affect recurring revenues and multi-year cash flow predictability.

Frontier Developments Business Overview & Revenue Model

Company Description

Frontier Developments plc develops and publishes video games for personal computers and videogame consoles in the United Kingdom. The company develops games across various platforms using its cross-platform technology, Cobra. It also publishes games developed by selected partner studios under its Frontier Foundry games label. The company was incorporated in 1994 and is headquartered in Cambridge, the United Kingdom.

How the Company Makes Money

Frontier Developments generates revenue through multiple streams, including game sales, downloadable content (DLC), and microtransactions. The majority of its income comes from sales of its games on various platforms, including PC and consoles. Additionally, the company monetizes its titles through the release of DLC, which enhances the gaming experience and encourages further purchases from existing players. Microtransactions also contribute to revenue, particularly in games that offer cosmetic items or additional content. Frontier has established partnerships with major gaming platforms and publishers, which help in distributing its games and expanding its reach in the market. Furthermore, the company benefits from a loyal fan base that supports its ongoing development efforts, further solidifying its financial performance.

Frontier Developments Financial Statement Overview

Summary

Financials show improving profitability and strong cash generation. Net margin turned positive to 18.09% and EBIT/EBITDA margins improved, while cash conversion is strong (operating cash flow to net income 2.83; free cash flow to net income 0.99). Balance sheet is stable with low leverage (debt-to-equity 0.20) and a high equity ratio (72.81%), though the sharp gross margin decline (68.69% to 44.05%) is a key risk.

Income Statement

Frontier Developments has shown a mixed performance in its income statement. The company experienced a slight revenue growth of 1.93% in the latest year, recovering from previous declines. Gross profit margin decreased significantly from 68.69% to 44.05%, indicating increased cost pressures. However, the net profit margin improved to 18.09% from a negative position, reflecting better cost management and profitability. EBIT and EBITDA margins also improved, suggesting operational efficiency gains.

Balance Sheet

The balance sheet of Frontier Developments is relatively stable. The debt-to-equity ratio decreased to 0.20, indicating a conservative leverage position. Return on equity improved to 17.22%, showing effective use of equity to generate profits. The equity ratio stands at 72.81%, reflecting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow metrics indicate a positive trend for Frontier Developments. Free cash flow growth was 2.90%, and the operating cash flow to net income ratio is robust at 2.83, suggesting strong cash generation relative to earnings. The free cash flow to net income ratio of 0.99 indicates efficient conversion of earnings into cash.

Breakdown	TTM	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	102.94M	90.60M	89.27M	104.58M	114.03M	90.69M
Gross Profit	45.02M	39.91M	61.32M	67.34M	73.61M	63.15M
EBITDA	40.78M	36.89M	9.88M	14.86M	33.73M	38.08M
Net Income	20.00M	16.39M	-21.47M	-20.91M	9.63M	21.56M
Balance Sheet
Total Assets	136.59M	130.69M	117.39M	141.01M	169.58M	161.52M
Cash, Cash Equivalents and Short-Term Investments	40.11M	42.50M	29.52M	28.31M	38.70M	42.42M
Total Debt	18.56M	19.47M	21.28M	19.28M	20.74M	22.16M
Total Liabilities	42.42M	35.53M	40.56M	45.04M	51.21M	48.37M
Stockholders Equity	94.17M	95.16M	76.82M	95.97M	118.37M	113.15M
Cash Flow
Free Cash Flow	50.13M	41.97M	31.50M	4.49M	2.41M	6.08M
Operating Cash Flow	50.40M	42.31M	32.46M	47.88M	41.16M	38.95M
Investing Cash Flow	-24.68M	-26.71M	-28.70M	-52.31M	-38.69M	-32.83M
Financing Cash Flow	-12.85M	-2.64M	-2.51M	-6.02M	-6.17M	-9.47M

Frontier Developments Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 484.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDEV, the sentiment is Negative. The current price of 484 is above the 20-day moving average (MA) of 406.70, above the 50-day MA of 446.31, and above the 200-day MA of 417.98, indicating a bearish trend. The MACD of -20.57 indicates Positive momentum. The RSI at 30.27 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FDEV.

Frontier Developments Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMR	74 Outperform	£87.21M	14.08	24.79%	―	21.27%	21.93%
FDEV	74 Outperform	£135.50M	6.19	19.06%	―	1.49%	―
EVPL	68 Neutral	$427.93M	10.70	8.06%	1.12%	-6.90%	―
DEVO	62 Neutral	£115.54M	-4.40	-8.33%	―	-10.51%	-63.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TBLD	50 Neutral	£28.02M	2.36	-22.74%	―	-20.54%	86.22%
GFIN	45 Neutral	£2.01M	―	-169.50%	―	-54.59%	―

Frontier Developments Corporate Events

Frontier Developments Expands Share Buyback, Updates Voting Rights

Frontier Developments has continued executing its recently announced share buyback programme, repurchasing 20,000 ordinary shares on 5 March 2026 at a price of 388 pence per share via Peel Hunt. The company intends to hold these shares in treasury, reflecting an ongoing capital management strategy that may signal confidence in the company’s valuation and provide flexibility for future corporate purposes.

Following this latest transaction, Frontier has bought back a total of 173,445 shares since the start of the programme, leaving 39,478,535 shares in issue, of which 2,691,972 are held in treasury. The resulting total of 36,786,563 voting rights will form the new reference point for shareholders monitoring disclosure thresholds, with implications for institutional holders tracking their reportable stakes under UK transparency rules.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £424.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Expands Share Buyback, Updates Voting Rights

Frontier Developments PLC, a UK-based video game developer and publisher listed on AIM, focuses on creating and managing entertainment software franchises for a global gaming market. The company operates through multiple titles and leverages both original and licensed intellectual property to strengthen its position in the interactive entertainment sector.

Frontier Developments has continued its recently announced share buyback programme, repurchasing 35,124 ordinary shares on 4 March 2026 at a price of 382 pence per share. Following this transaction, the company has bought back a total of 153,445 shares, now holds 2,671,972 shares in treasury, and has 36,806,563 voting rights in issue, information that is relevant for shareholders assessing their disclosure obligations and tracking capital structure changes.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £432.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Founder David Braben Sells Shares Amid Ongoing Buyback Programme

Frontier Developments has disclosed a managerial share dealing involving President and Founder David Braben, who sold 7,500 ordinary shares of 0.5p each on 4 March 2026. The transaction, executed on AIM of the London Stock Exchange at a price of 382p per share, was carried out in line with the company’s recently launched share buyback programme, signalling active capital management and insider participation in the process.

The sale forms part of the broader framework of Frontier’s buyback strategy announced on 26 February 2026 and does not indicate a standalone change in strategic direction. Investors may interpret the disclosure as routine portfolio rebalancing by a key executive within a structured capital return programme, rather than a shift in confidence about the company’s operational or market outlook.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £432.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Advances Share Buyback, Updates Voting Rights

Frontier Developments has continued its recently launched share buyback, repurchasing 34,683 ordinary shares on 3 March at 380 pence each through Peel Hunt, and intends to hold these shares in treasury. Following this latest transaction, the company has bought back a total of 118,321 shares under the current programme, leaving 39,478,535 shares in issue, of which 2,636,848 are held in treasury, and setting total voting rights at 36,841,687 for regulatory disclosure purposes.

The reduction in free float and concentration of voting rights may provide a modest earnings-per-share benefit and signals management’s willingness to deploy capital in support of the share price. The updated voting rights figure also clarifies the reference base shareholders must use when assessing notification thresholds for changes in their holdings under UK disclosure and transparency rules.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £435.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Founder Braben Sells Shares as Part of Ongoing Buyback Programme

Frontier Developments has disclosed a share transaction by president and founder David Braben, who sold 7,000 ordinary shares at 380p each on 3 March 2026. The sale was carried out on the London Stock Exchange’s AIM market as part of the company’s previously announced share buyback programme, signaling continued execution of its capital management strategy and providing transparency to investors about insider dealings.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £435.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Expands Buyback, Updates Voting Share Count

Frontier Developments has continued its recently launched share buyback programme, repurchasing 28,386 ordinary shares on 2 March 2026 at a volume-weighted average price of 390.81 pence. The company plans to hold these shares in treasury, bringing total shares bought back under the programme to 83,638 and leaving 36,876,370 voting shares in issue.

The reduction in free-float and concentration of voting rights may support earnings per share metrics over time and signals management’s willingness to return capital to shareholders. Updated voting rights data also assists investors in assessing disclosure thresholds and monitoring any changes in significant shareholdings under UK transparency rules.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £462.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Founder Sells Shares Amid Ongoing Buyback Programme

Frontier Developments has disclosed a share dealing by its president and founder, David Braben, under regulatory requirements for persons discharging managerial responsibilities. Braben sold 5,000 ordinary shares at 390.5 pence each on 2 March 2026 on AIM in London, with the transaction executed in line with the company’s recently announced share buyback programme, signaling active capital management and potential implications for share liquidity and ownership structure.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £462.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Founder David Braben Sells Shares Aligned With Buyback Plan

Frontier Developments disclosed that its president and founder, David Braben, has sold 10,000 ordinary shares at a price of 406.65 pence each on 27 February 2026 on the London Stock Exchange’s AIM market. The transaction is described as being in line with the details of the company’s recently launched share buyback programme, signalling an internally coordinated capital markets move rather than an isolated disposal and offering investors additional transparency around insider dealing activity.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £445.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Launches Share Buyback, Repurchases 26,537 Shares

Frontier Developments PLC has initiated a share buyback programme and, on 26 February 2026, repurchased 26,537 ordinary shares at a price of 400 pence per share, with Peel Hunt LLP acting as broker. The company plans to hold these shares in treasury, resulting in 39,478,535 shares in issue, of which 2,545,064 are in treasury, leaving 36,933,471 shares carrying voting rights and subtly reshaping the ownership base and voting power calculations for shareholders.

The transaction underscores Frontier’s use of capital management tools to potentially enhance shareholder value and optimise its capital structure. By reducing the free float of voting shares, the buyback may support earnings per share metrics over time and provides investors with updated reference figures for regulatory disclosure thresholds under UK transparency rules.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £437.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Founder David Braben Sells Shares Aligned With Buyback Plan

Frontier Developments president and founder David Braben has sold 15,000 ordinary shares in the company at a price of 401.61 pence each on 26 February 2026. The transaction, executed on the London Stock Exchange’s AIM market, was carried out in line with the parameters of Frontier’s recently launched share buyback programme, signalling active capital management while modestly reducing Braben’s direct holding.

The sale forms part of a structured approach to the company’s equity base rather than an isolated disposal, and is being disclosed under market rules for dealings by senior managers. While the volume is relatively small in the context of Frontier’s overall share capital, such trades are closely watched by investors as indicators of insider sentiment and the company’s ongoing balance between shareholder returns and founder ownership.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £437.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Reports Stable Share Capital in Latest Block Listing Return

Frontier Developments plc reported its latest block listing return covering the period from 26 August 2025 to 25 February 2026, confirming that no new shares were issued under its Enterprise Management Scheme, Company Share Option Plans, Save As You Earn Option Scheme, or Long Term Incentive Plan. The company retains a balance of 75,961 unallotted ordinary shares under these schemes, with total shares in issue standing at 39,478,535, including 2,518,527 held in treasury, indicating stability in its share capital structure and limited recent dilution for existing shareholders.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £454.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Awards Performance-Linked Share Options to Executive Directors

Frontier Developments plc, the AIM-listed Cambridge-based video game developer and publisher, has awarded 185,000 share options to three executive directors under its existing Long Term Incentive Plan. The options, granted at the nominal exercise price of 0.5p per ordinary share, are scheduled to vest in 2029 subject to performance conditions.

Half of the awards depend on achieving threshold targets for revenue, profit and shareholder returns over a three-year period, with the remainder tied to stretch targets on the same metrics. The grants materially increase long-term equity incentives for CEO Jo Cooke, President and Founder David Braben and CFO Alex Bevis, signalling an effort to align top management more closely with shareholder value creation and Frontier’s financial performance trajectory.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £502.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Upgrades Outlook After Strong H1 Driven by Jurassic World Evolution 3

Frontier Developments reported a strong first half for the 2026 financial year, with revenue up 26% to £59.6m and adjusted operating profit rising 76% to £9.7m, driven primarily by the successful launch of Jurassic World Evolution 3 and robust performance across its CMS portfolio. CMS titles accounted for 90% of H1 revenue, with Jurassic World Evolution 3 achieving record-breaking December sales and award nominations, while Planet Zoo became the company’s highest-grossing individual game and Planet Coaster continued to outperform expectations, underpinning a pipeline that includes a Planet Zoo sequel in FY27 and an unannounced CMS title in FY28. The strength of trading, including Frontier’s second-highest December revenue ever, prompted an upgrade to full-year guidance to around £100m in revenue and £11m in adjusted operating profit, reinforcing the company’s turnaround to sustainable growth. The period also marked a planned leadership transition, with former CMO Jo Cooke taking over as CEO from Jonny Watts, who remains on the board to ensure continuity as Frontier doubles down on its CMS-focused strategy and content roadmap.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £586.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Lifts Guidance After Strong H1 on Jurassic World Evolution 3 Success

Frontier Developments reported a strong first half for FY26, with revenue up 26% year-on-year to £59.6m and adjusted operating profit rising 76% to £9.7m, driven primarily by highly successful launch sales of Jurassic World Evolution 3 and robust performance across its creative management simulation portfolio. The company’s CMS titles contributed 90% of total revenue, with Planet Zoo becoming its highest-grossing game to date and setting the stage for a planned sequel in FY27, while Elite Dangerous also delivered over 50% revenue growth. Strong trading in December, including record Christmas Day sales for Jurassic World Evolution 3, prompted management to upgrade full-year guidance to around £100m in revenue and £11m in adjusted operating profit, underlining a return to consistent profitability. Alongside the financial momentum, Frontier announced a smooth leadership transition as former CMO Jo Cooke took over as CEO from Jonny Watts on 1 January 2026, with Watts remaining on the board to support the handover, and confirmed progress on an unannounced CMS title for FY28 and another unannounced game from its Canadian studio for FY27, reinforcing its pipeline and long-term CMS-focused strategy.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £586.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Confirms Jo Cooke as New CEO in Planned Leadership Transition

Frontier Developments has appointed Johanna (Jo) Mair Cooke as Chief Executive Officer, with her formal joining of the board effective 1 January 2026, following an earlier announcement in December. Outgoing CEO Jonny Watts will remain on the board until 31 May 2026 to ensure an orderly leadership transition, while Cooke has been granted 25,000 share options under the company’s long-term incentive plan, due to vest in August 2028 without performance conditions, underscoring a planned and stable succession at the top of the UK-listed games developer.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £586.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Announces CEO Transition and Strong Interim Results

Frontier Developments plc announced a leadership change as CEO Jonny Watts plans to step down for personal reasons, after successfully leading a strategic shift back to the company’s core strength in creative management simulation games. Jo Cooke, currently Chief Marketing Officer, will succeed Watts as CEO, effective January 2026, bringing extensive industry experience to continue driving the company’s growth. The company also announced its interim financial results will be published in January 2026, with expectations of strong performance from its portfolio, including the recently launched Jurassic World Evolution 3.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £586.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.