Frontier Developments (FDEV) AI Stock Analysis

• Market Cap: £167.07M
• Dividend Yield: N/A
• Average Volume (3M): 160.85K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.16
• Revenue Growth: 1.49%
• EPS Growth: N/A
• Country: UK
• Employees: 700
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.31
• Shares Outstanding: 36,960,007
• 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: £610.00
• Price Target Upside: 26.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 516.00p ▲(6.61% Upside)

Frontier Developments demonstrates strong financial stability and operational efficiency, supported by positive technical indicators and strategic corporate actions. The stock's valuation is reasonable, although the lack of a dividend yield may deter some investors. Overall, the company is on a positive trajectory with a robust game pipeline and shareholder-friendly initiatives.

Positive Factors

Balance Sheet Strength

A very low leverage position and high equity ratio provide durable financial flexibility to fund multi-year game development cycles, absorb hit-driven revenue volatility and pursue opportunistic investments or buybacks without frequent external financing.

Cash Generation Efficiency

Strong conversion of earnings into cash and positive free cash flow growth underpin the company's ability to self-fund live-operations, DLC development and content updates, reducing reliance on equity/debt and supporting sustainable reinvestment in franchises.

Games-as-a-Service Revenue Model

A business model that extends title lifecycles via DLC and live monetization builds recurring revenue streams and higher lifetime value per user, aligning with structural industry trends toward services and making revenues less dependent on frequent new-hit releases.

Negative Factors

Gross Margin Compression

A sharp, sustained drop in gross margins signals rising costs or weaker pricing power which can persistently reduce operating leverage; if not reversed, this compresses cash available for development, live-ops and marketing, limiting long-term competitiveness.

Weak Top-line Growth

Modest revenue growth implies limited recent success in scaling new hits and a reliance on incremental DLC or legacy titles; this heightens dependence on a small number of franchises and makes sustained expansion vulnerable to product-cycle variability.

Limited Investor Guidance / Disclosure

Absence of earnings call detail or formal guidance reduces visibility into product pipeline timing and monetization assumptions, making it harder for investors to assess medium-term revenue cadence and increasing uncertainty around forecasting into future release cycles.

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

Frontier Developments shows a recovery in profitability and cash flow generation, with improved operational efficiency and financial stability. Despite challenges in maintaining high gross profit margins, the balance sheet remains strong with low leverage and a solid equity base.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.60M	90.60M	89.27M	104.58M	114.03M	90.69M
Gross Profit	39.91M	39.91M	61.32M	67.34M	73.61M	63.15M
EBITDA	36.09M	36.89M	9.88M	14.86M	33.73M	38.08M
Net Income	16.39M	16.39M	-21.47M	-20.91M	9.63M	21.56M
Balance Sheet
Total Assets	130.69M	130.69M	117.39M	141.01M	169.58M	161.52M
Cash, Cash Equivalents and Short-Term Investments	42.50M	42.50M	29.52M	28.31M	38.70M	42.42M
Total Debt	19.47M	19.47M	21.28M	19.28M	20.74M	22.16M
Total Liabilities	35.53M	35.53M	40.56M	45.04M	51.21M	48.37M
Stockholders Equity	95.16M	95.16M	76.82M	95.97M	118.37M	113.15M
Cash Flow
Free Cash Flow	41.97M	41.97M	31.50M	4.49M	2.41M	6.08M
Operating Cash Flow	42.31M	42.31M	32.46M	47.88M	41.16M	38.95M
Investing Cash Flow	-26.71M	-26.71M	-28.70M	-52.31M	-38.69M	-32.83M
Financing Cash Flow	-2.64M	-2.64M	-2.51M	-6.02M	-6.17M	-9.47M

Frontier Developments Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FDEV, the sentiment is Positive. The current price of 484 is above the 20-day moving average (MA) of 460.47, below the 50-day MA of 501.45, and above the 200-day MA of 370.59, indicating a neutral trend. The MACD of -7.74 indicates Negative momentum. The RSI at 48.91 is Neutral, neither overbought nor oversold. The STOCH value of 51.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£117.50M	14.50	24.79%	―	21.27%	21.93%
FDEV	74 Outperform	£167.07M	11.12	19.06%	―	1.49%	―
EVPL	68 Neutral	£472.59M	21.66	8.06%	1.12%	-6.90%	―
DEVO	62 Neutral	£111.74M	-11.30	-8.33%	―	-10.51%	-63.78%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TBLD	50 Neutral	£27.53M	-3.15	-22.74%	―	-20.54%	86.22%
GFIN	43 Neutral	£1.72M	-1.65	-169.50%	―	-54.59%	―

Frontier Developments Corporate Events

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.

Frontier Developments Director Increases Shareholding

Frontier Developments plc announced that David Walsh, a Non-Executive Director and Person Discharging Managerial Responsibilities (PDMR), purchased 5,500 ordinary shares of the company across three transactions on the London Stock Exchange. This purchase signifies a vote of confidence from a key company figure, potentially impacting investor sentiment positively and reinforcing the company’s market position.

The most recent analyst rating on (GB:FDEV) stock is a Hold with a £584.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Celebrates Success with Jurassic World Evolution 3 and Planet Zoo Sequel

Frontier Developments has announced a strong launch for Jurassic World Evolution 3, with sales exceeding 500,000 units in just over two weeks, surpassing its predecessor’s performance. The company also revealed plans for a sequel to Planet Zoo, its best-selling game to date, highlighting the ongoing success and community engagement surrounding its flagship franchises.

The most recent analyst rating on (GB:FDEV) stock is a Hold with a £584.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments’ AGM Sees All Resolutions Passed

Frontier Developments plc successfully held its Annual General Meeting (AGM) on 29 October 2025, where all resolutions proposed to shareholders were approved. This outcome reflects shareholder confidence in the company’s strategic direction and operational management, potentially strengthening its industry position and reassuring stakeholders of its continued growth and innovation in the video game sector.

The most recent analyst rating on (GB:FDEV) stock is a Hold with a £584.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.

Frontier Developments Launches Jurassic World Evolution 3

Frontier Developments, in collaboration with Universal Products & Experiences, has launched Jurassic World Evolution 3, the latest installment in the popular game franchise. Available on PC, PlayStation 5, and Xbox Series X|S, the game introduces new features such as juvenile dinosaurs, a comprehensive breeding system, and cross-platform sharing. This release is expected to enhance player engagement and expand Frontier’s market presence in the gaming industry.

The most recent analyst rating on (GB:FDEV) stock is a Buy with a £517.00 price target. To see the full list of analyst forecasts on Frontier Developments stock, see the GB:FDEV Stock Forecast page.