Nitro Games Plc (NITRO) AI Stock Analysis

• Market Cap: kr36.04M
• Dividend Yield: N/A
• Average Volume (3M): 27.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -18.60%
• EPS Growth: -118.88%
• Country: SE
• Employees: 49
• Sector: Technology
• Sector Strength: 88
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.07
• Shares Outstanding: 24,924,364
• 10 Day Avg. Volume: 20,491
• 30 Day Avg. Volume: 27,064
• PEG Ratio: -0.09
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -7.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: kr1.50 ▲(20.00% Upside)

The score is held back primarily by financial quality concerns—especially weak free cash flow and elevated/leaping leverage—despite strong recent revenue growth. Technicals are a clear positive with the stock above major moving averages and positive momentum. Valuation is a drag due to a negative P/E and no provided dividend yield support.

Positive Factors

Recurring free-to-play live-ops model

A live-ops F2P model creates recurring, in-game revenue streams from purchases and events, supporting predictable long-term monetization if player retention and content cadence hold. This model scales with engaged users and allows continuous product improvement and recurring lifecycle monetization.

Scale: strong TTM revenue growth

A ~209% TTM revenue increase indicates rapid user acquisition or successful title launches, demonstrating product-market fit and the ability to scale. Sustained top-line expansion helps absorb fixed costs, fund live-ops investment and marketing, and provides a platform for future portfolio growth if retention remains adequate.

Improved operating margins and ROE

Achieving meaningful EBITDA margins and a positive ROE signals operational leverage as scale increases and that management is converting incremental revenue into returns. Persistent mid-teens ROE and double-digit EBITDA margin provide a structural foundation for reinvestment and shareholder value if margins are maintained.

Negative Factors

Elevated leverage and big debt jump

Material increase in debt and leverage reduces financial flexibility for a small publisher, raising refinancing and interest risks. Higher leverage magnifies earnings volatility, constrains investment in UA or content during downturns, and limits strategic optionality such as M&A or opportunistic investments.

Weak cash conversion and near-zero FCF

Profits are not reliably turning into cash: near‑breakeven FCF and low cash conversion mean the company must rely on financing for growth and debt servicing. This undermines self-funding of live-ops, UA, and content, increases liquidity risk, and raises the importance of conservative capital allocation.

Material gross margin compression

A sharp fall in gross margin suggests a less profitable product mix or rising direct costs as the company scales. Persistent margin compression reduces operating leverage, narrows the buffer for marketing and R&D spending, and makes long-term profitability more sensitive to user monetization and cost control.

Nitro Games Plc Business Overview & Revenue Model

Company Description

Nitro Games Plc (NITRO) is a mobile game development company based in Finland, specializing in the creation of engaging free-to-play games across various genres, including action, strategy, and simulation. The company focuses on delivering high-quality gaming experiences through innovative gameplay mechanics and appealing graphics. Nitro Games aims to capture a global audience by leveraging its expertise in game design and user engagement.

How the Company Makes Money

Nitro Games generates revenue primarily through in-app purchases within its mobile games, allowing players to buy virtual goods, upgrades, and additional content. The company also earns money through advertising partnerships, implementing ads within its games to monetize user engagement. Additionally, Nitro Games may enter into strategic partnerships with other gaming companies or platforms to enhance distribution and marketing efforts, further contributing to its revenue streams. The combination of these monetization strategies enables Nitro Games to capitalize on its active user base and maximize earnings from its portfolio of games.

Nitro Games Plc Financial Statement Overview

Summary

Income statement momentum is improving (TTM revenue up ~209% YoY and operating profitability positive), but this is offset by weaker fundamentals elsewhere: leverage has risen sharply (debt-to-equity ~1.32 with a large jump in absolute debt), and cash flow quality is poor with free cash flow near breakeven and weak cash conversion versus earnings.

Income Statement

TTM (Trailing-Twelve-Months) shows a sharp step-up in scale with revenue up ~209% versus the prior year, while profitability has turned positive and remains steady at the operating level (EBIT margin ~5.5%, EBITDA margin ~22%). However, net profitability is still thin (net margin ~4.4%), and gross margin has compressed materially versus 2024 (TTM ~35% vs ~72%), suggesting a less favorable mix and/or higher costs as the company scales.

Balance Sheet

Leverage is meaningful, with debt running above equity in both TTM (debt-to-equity ~1.32) and 2024 (~1.23), which limits flexibility if operating results soften. A key concern is the large jump in absolute debt in TTM (to ~32.3m) versus 2024 (~2.9m). Offsetting this, equity has increased over time and TTM return on equity is positive (~17%), reflecting improved profitability, but the balance sheet remains more leveraged than is typical for a smaller gaming publisher.

Cash Flow

Cash generation is the weakest area. While TTM operating cash flow is positive (~3.1m), free cash flow is close to breakeven (~0.13m) and has declined sharply (free cash flow growth ~-140%). Cash conversion is also soft: operating cash flow is low relative to accounting earnings (coverage ~0.22), and free cash flow is only ~4% of net income, indicating profits are not translating efficiently into cash after investment needs.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.32M	11.39M	8.84M	7.25M	2.64M	1.17M
Gross Profit	5.69M	8.26M	4.38M	3.19M	1.51M	1.21M
EBITDA	1.41M	2.41M	-1.72M	-2.80M	―	―
Net Income	-171.91K	475.33K	-3.28M	―	―	―
Balance Sheet
Total Assets	6.00M	7.54M	10.67M	7.95M	7.02M	5.98M
Cash, Cash Equivalents and Short-Term Investments	1.25M	2.02M	3.83M	1.60M	3.74M	2.98M
Total Debt	2.94M	2.92M	2.68M	3.69M	1.72M	3.32M
Total Liabilities	3.77M	5.16M	8.98M	7.44M	3.12M	4.48M
Stockholders Equity	2.23M	2.38M	1.69M	507.67K	3.90M	1.49M
Cash Flow
Free Cash Flow	134.30K	-661.30K	-2.70M	-4.12M	-2.93M	-3.24M
Operating Cash Flow	930.27K	538.70K	-537.10K	-2.92M	-2.38M	-1.51M
Investing Cash Flow	-607.00K	-1.20M	-2.11M	-1.20M	-545.50K	-1.73M
Financing Cash Flow	-957.10K	-1.15M	4.88M	1.98M	3.68M	4.54M

Nitro Games Plc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NITRO, the sentiment is Neutral. The current price of 1.25 is below the 20-day moving average (MA) of 1.43, below the 50-day MA of 1.40, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 51.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:NITRO.

Nitro Games Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NITRO	56 Neutral	kr36.04M	-19.78	―	―	-18.60%	-118.88%
FRAG	45 Neutral	kr62.84M	-0.46	-229.41%	―	-10.21%	-1.15%
QIIWI	42 Neutral	kr17.67M	-2.85	-31.43%	―	-34.32%	70.25%
THUNDR	42 Neutral	kr121.54M	-0.03	―	―	-81.92%	26.19%
GCOR	41 Neutral	kr174.53M	-3.83	―	―	32.83%	13.34%