Starbreeze AB (STAR.B) AI Stock Analysis

• Market Cap: $200.74M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• Revenue Growth: 8.38%
• EPS Growth: -48.41%
• Country: SE
• Employees: 186
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 1,482,176,300
• 10 Day Avg. Volume: 3,311,392
• 30 Day Avg. Volume: 2,089,109
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 1.67
• P/FCF Ratio: -1.65
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: -0.68
• Enterprise Value/Ebitda: -0.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.17
• Revenue Forecast (FY): $239.18M

• Rating: 40 Neutral
• Price Target: kr0.11 ▼(-5.00% Downside)

Starbreeze AB's overall stock score is primarily impacted by its poor financial performance and valuation. The company faces significant profitability and cash flow challenges, reflected in its negative margins and P/E ratio. Technical analysis also indicates bearish trends, further weighing down the stock's attractiveness. Strategic improvements are crucial for enhancing financial stability and investor confidence.

Positive Factors

Revenue Growth

The positive revenue growth indicates Starbreeze's ability to expand its market presence and enhance its product offerings, which is crucial for long-term sustainability in the competitive gaming industry.

Low Leverage

Low leverage suggests that Starbreeze has a manageable debt load, providing it with greater financial flexibility to invest in growth opportunities and weather economic downturns.

Diverse Revenue Streams

Starbreeze's diverse revenue streams reduce dependency on any single source, enhancing its resilience against market fluctuations and supporting sustained financial health.

Negative Factors

Negative Margins

Persistent negative margins highlight operational inefficiencies and profitability challenges, which could hinder long-term financial stability and growth potential.

Cash Flow Challenges

Cash flow challenges limit Starbreeze's ability to reinvest in its business, potentially restricting its capacity to innovate and compete effectively in the gaming industry.

Negative Return on Equity

A negative return on equity suggests that Starbreeze is not effectively utilizing shareholder investments, which could deter future investment and impact its growth trajectory.

Starbreeze AB Business Overview & Revenue Model

Company Description

Starbreeze AB (publ) operates as an independent developer, creator, publisher, and distributor of computer and video games in Europe, North America, Asia, and internationally. The company develops and publishes games for PC and console, as well as mobile. It also acts as a publisher for games developed by other game developers. Starbreeze AB (publ) was incorporated in 1998 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Starbreeze AB generates revenue through multiple streams, primarily from the sale of video games, both digital and physical. The company's flagship franchise, 'Payday', has been a significant revenue driver through its sales, downloadable content (DLC), and expansions. Additionally, Starbreeze earns income from licensing agreements and partnerships, which allow third-party developers to use its proprietary game engines and technology. The company also explores opportunities in publishing, where it collaborates with other developers to bring new titles to market, sharing profits from sales. Furthermore, Starbreeze engages in merchandise sales related to its games, enhancing revenue through branded products. Overall, the combination of game sales, DLC, licensing, and publishing partnerships forms the core of Starbreeze's revenue model.

Starbreeze AB Financial Statement Overview

Summary

Starbreeze AB faces significant financial difficulties across all verticals. The company struggles with profitability, as evidenced by negative margins and returns. While leverage is low, cash flow issues persist, impacting overall financial stability. Strategic improvements are necessary to enhance financial performance and sustainability.

Income Statement

Starbreeze AB's income statement reveals significant challenges. The company has experienced negative gross and net profit margins, indicating operational inefficiencies and substantial losses. Although there is a slight revenue growth in the TTM, the EBIT and EBITDA margins remain negative, reflecting ongoing profitability issues.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio in the TTM, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is stable, but overall financial health remains a concern due to persistent losses.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate, highlighting cash management issues. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations, but the free cash flow to net income ratio is negative, underscoring cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	226.21M	185.85M	633.51M	127.60M	125.69M	118.01M
Gross Profit	-269.90M	-263.00M	324.24M	67.08M	69.39M	86.93M
EBITDA	-280.33M	102.38M	457.47M	64.32M	6.35M	41.49M
Net Income	-386.43M	-317.85M	207.63M	-59.81M	-103.47M	-130.28M
Balance Sheet
Total Assets	403.08M	830.13M	1.11B	746.40M	674.15M	708.71M
Cash, Cash Equivalents and Short-Term Investments	135.13M	191.91M	347.75M	108.22M	128.57M	157.42M
Total Debt	43.33M	22.14M	16.82M	400.16M	440.68M	393.89M
Total Liabilities	120.21M	124.69M	216.84M	689.62M	551.33M	480.21M
Stockholders Equity	282.87M	705.44M	894.65M	56.79M	122.82M	228.50M
Cash Flow
Free Cash Flow	-156.06M	-188.14M	-87.80M	-88.33M	-38.70M	-120.43M
Operating Cash Flow	48.93M	64.87M	114.58M	57.83M	73.87M	-24.64M
Investing Cash Flow	-207.42M	-245.46M	-202.38M	-143.94M	-109.01M	-96.22M
Financing Cash Flow	44.47M	24.52M	327.44M	65.55M	6.17M	195.60M

Starbreeze AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 100DMA: Negative
• 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:STAR.B, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.14, and below the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 75.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:STAR.B.

Starbreeze AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
MAGI	59 Neutral	€232.09M	―	-3.04%	12.66%	-3.51%	-192.91%
GCOR	41 Neutral	€148.35M	―	―	―	32.83%	13.34%
FRAG	41 Neutral	€69.14M	-0.47	-229.41%	―	-10.21%	-1.15%
STAR.B	40 Neutral	$200.74M	―	-76.88%	―	8.38%	-48.41%

Starbreeze AB Corporate Events

Starbreeze AB Focuses on PAYDAY Amid Strategic Shift

Starbreeze AB is an independent developer, publisher, and distributor of PC and console games, known for its popular PAYDAY franchise, and is listed on Nasdaq Stockholm. In its Q3 2025 earnings report, Starbreeze AB highlighted a strategic shift towards focusing on its PAYDAY franchise, resulting in the discontinuation of Project Baxter. This decision led to a significant impairment charge, impacting the company’s financial results. Despite this, the company reported an increase in net sales to SEK 58.4 million, driven by the PAYDAY franchise and work-for-hire collaborations. However, the company faced a substantial loss before taxes of SEK 285.9 million due to the write-down associated with Project Baxter. Looking ahead, Starbreeze aims to strengthen its position in the heisting genre by focusing on the PAYDAY franchise and expanding into new platforms, aligning with industry trends of concentrating on strong IPs for sustainable growth.

Starbreeze AB Shifts Focus to PAYDAY Amid Financial Challenges

Starbreeze AB’s Q3 2025 report highlights a strategic shift towards the PAYDAY franchise, with the discontinuation of the Baxter project. Despite increased net sales, the company reported a significant loss before taxes due to high depreciation and impairment costs, particularly related to the Baxter project. The strategic focus on PAYDAY aims to strengthen its market position in the heisting genre.

Starbreeze Focuses on PAYDAY Franchise, Discontinues Project Baxter

Starbreeze AB has announced a strategic shift to focus on its flagship PAYDAY franchise, discontinuing the development of Project Baxter. This decision results in a non-cash impairment of SEK 255 million but is expected to strengthen Starbreeze’s position in the gaming industry by reallocating resources and talent to enhance the PAYDAY series. The move aims to accelerate growth, increase player engagement, and position Starbreeze as a leader in the heisting genre, with plans to become cash-flow positive by 2026.

Starbreeze Unveils Strategy to Enhance PAYDAY Franchise and Heisting Genre

Starbreeze AB has unveiled an updated strategy to enhance its leadership in the heisting genre, focusing on the PAYDAY franchise. The strategy aims to deepen player engagement, expand platform reach, and diversify revenue streams, with PAYDAY serving as the core growth platform. The company plans to evolve PAYDAY into a modern live-engagement game, while also developing new heisting experiences and special operations to broaden its portfolio. This approach is expected to position Starbreeze for sustainable, long-term value creation for players and stakeholders.

Starbreeze Introduces PAYDAY 2 Subscription Service on Steam

Starbreeze Entertainment has launched a new subscription service for its popular game PAYDAY 2 on Steam, allowing players to access over 65 downloadable content packs for a monthly fee. This initiative, part of the PAYDAY franchise’s anniversary celebrations, aims to provide players with greater flexibility and cost-effectiveness in experiencing the game, potentially enhancing Starbreeze’s market position and offering more choices to its community.

Starbreeze AB Expands PAYDAY 3 with ‘Delivery Charge’ Heist

Starbreeze AB has launched a new DLC heist for PAYDAY 3, titled ‘Delivery Charge,’ which introduces a fresh gameplay experience set in a dockside armored transport depot. This release emphasizes replayability and player choice, with new features like the favor system and various heist strategies, enhancing the game’s dynamic nature and expanding its criminal landscape.

Starbreeze AB Reports Q2 2025 Earnings Growth

Starbreeze AB is an independent developer, publisher, and distributor of PC and console games, known for its popular PAYDAY franchise, with operations in Stockholm, Barcelona, Paris, and London.

Starbreeze Appoints Paul Keslin as General Manager of Project Baxter

Starbreeze has appointed Paul Keslin as the General Manager of Project Baxter, leveraging his extensive experience in AAA development, live service operations, and product management. Keslin’s leadership is expected to align the project’s creative vision and business strategy, enhancing Starbreeze’s position in the gaming industry and potentially delivering a game that resonates with players for years.

Starbreeze AB Reports Mixed Q2 2025 Financial Results Amid New Game Launches

Starbreeze AB’s Q2 2025 interim report highlights a mixed financial performance with net sales increasing to SEK 53.8 million, driven by PAYDAY 3 and work-for-hire projects. Despite a reduction in losses before tax, the company continues to face challenges with negative earnings per share. Significant events include the launch of new content for PAYDAY 3 and other game releases, which could impact future revenue streams and market positioning.