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Starbreeze AB (SE:STAR.B)
:STAR.B
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Starbreeze AB (STAR.B) AI Stock Analysis

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SE:STAR.B

Starbreeze AB

(OTC:STAR.B)

Rating:49Neutral
Price Target:
kr0.00
▼(-100.00%Downside)
The overall score reflects significant financial challenges and poor valuation, offset by moderate technical momentum. Financial instability and negative cash flows weigh heavily on the score, with mild bullish technical indicators offering limited support.

Starbreeze AB (STAR.B) vs. iShares MSCI Sweden ETF (EWD)

Starbreeze AB Business Overview & Revenue Model

Company DescriptionStarbreeze AB (STAR.B) is a Swedish video game development company known for creating and publishing immersive and high-quality entertainment experiences. The company specializes in the development of PC and console games, with a focus on action-packed titles. Starbreeze is widely recognized for its flagship franchise, PAYDAY, a cooperative first-person shooter game that has garnered a dedicated fan base worldwide.
How the Company Makes MoneyStarbreeze AB makes money primarily through the development and publishing of video games. The company generates revenue from the sale of its games across various platforms, including digital downloads and physical copies. A significant portion of its income comes from the PAYDAY franchise, which includes game sales, downloadable content (DLC), and microtransactions that offer players in-game purchases for additional content and enhancements. Starbreeze also collaborates with other game studios and publishers, entering into partnerships and licensing agreements that contribute to its revenue. Additionally, the company may receive funding and support through strategic partnerships with platform providers and other industry stakeholders, further bolstering its financial performance.

Starbreeze AB Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q1-2024)
|
% Change Since: -7.41%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a strong financial performance with significant cash reserves and positive trends in product reviews and market reach, particularly for PAYDAY 3. However, there are challenges with the current performance of PAYDAY 3 and high direct costs impacting the bottom line. The company's focus on future investments and solid financial position provide a positive outlook.
Q1-2024 Updates
Positive Updates
Strong Financial Quarter
Net sales amounted to SEK 56.6 million, with an EBITDA of SEK 28.6 million after adjustments. Positive cash flow from operating activities was SEK 78.4 million, resulting in a healthy cash position of about SEK 387 million.
Positive Trends and Investments
Positive review trends for PAYDAY 3 and continued investment in PAYDAY and Project Baxter, expected to release in 2026. PAYDAY 2 generated SEK 10.9 million in sales, with Third-party Games, mainly Roboquest, contributing SEK 17.4 million.
Solid Financial Position
The company has a strong cash position of almost SEK 400 million with no external debt, and is fully funded for the development of Baxter.
Positive Market Trends
Game Pass and PlayStation platforms have shown better than expected player base numbers for PAYDAY 3.
Negative Updates
PAYDAY 3 Performance Below Expectations
PAYDAY 3 is not performing at expected levels, generating SEK 23.3 million, but positive trends are observed with ongoing content updates.
High Direct Costs
Direct costs amounted to SEK 86.5 million, driven by higher depreciation of intangible assets.
Loss After Tax
Reported a loss after tax of SEK 21 million due to ongoing investments.
Company Guidance
During the Q1 2024 earnings call for Starbreeze, executives Hans-Jurgen Goeldner and Mats Juhl provided an optimistic update on the company's financial and operational performance. The quarter saw net sales of SEK 56.6 million and an EBITDA of SEK 48.5 million, adjusted to SEK 28.6 million after long-term incentive program impacts. Despite a loss of SEK 21 million due to ongoing investments, the company maintained a solid cash position of SEK 387 million, with a positive cash flow of SEK 78.4 million from operations. The newly launched game Roboquest performed well, contributing SEK 17.4 million to net sales, while PAYDAY 2 and PAYDAY 3 generated SEK 10.9 million and SEK 23.3 million, respectively, with PAYDAY games accounting for 60% of total sales. Despite PAYDAY 3's initial underperformance, positive trends are emerging, bolstered by the launch of Operation Medic Bag. The company is focused on enhancing PAYDAY 3 and advancing Project Baxter, set for a 2026 release, with a development team of 150 people split between the two projects. Starbreeze is also in the final stages of appointing a new CEO, with an announcement expected soon.

Starbreeze AB Financial Statement Overview

Summary
Starbreeze AB faces significant financial challenges. The decline in revenue and profitability, coupled with negative cash flow from operations, underscores the need for strategic improvements. While the debt position is manageable, the company must focus on enhancing operational efficiency and stabilizing its financial position to ensure future growth.
Income Statement
40
Negative
Starbreeze AB's income statement shows a challenging financial environment. The company has experienced a decline in revenue from 2023 to the TTM, with a significant drop in gross profit margin and persistent net losses. The negative EBIT and EBITDA margins in the TTM highlight ongoing operational inefficiencies.
Balance Sheet
55
Neutral
The balance sheet indicates mixed stability. Despite a reduction in total assets and equity from the previous year, the company maintains a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the declining equity ratio poses concerns about asset financing and overall financial health.
Cash Flow
35
Negative
Cash flow analysis reveals severe pressures, with negative free cash flow growth and operating cash flow to net income ratio. The company struggles to generate positive cash flow from operations, which is crucial for sustainable growth and covering capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue185.85M633.51M127.60M125.69M118.01M
Gross Profit-144.44M324.24M67.08M69.39M86.93M
EBITDA-192.39M457.47M64.32M6.35M41.49M
Net Income-199.29M207.63M-59.81M-103.47M-130.28M
Balance Sheet
Total Assets830.13M1.11B746.40M674.15M708.71M
Cash, Cash Equivalents and Short-Term Investments191.91M347.75M108.22M128.57M157.42M
Total Debt17.70M16.82M400.16M440.68M393.89M
Total Liabilities124.69M216.84M689.62M551.33M480.21M
Stockholders Equity705.44M894.65M56.79M122.82M228.50M
Cash Flow
Free Cash Flow-188.14M-87.80M-88.33M-38.70M-120.43M
Operating Cash Flow64.87M114.58M57.83M73.87M-24.64M
Investing Cash Flow-245.46M-202.38M-143.94M-109.01M-96.22M
Financing Cash Flow24.52M327.44M65.55M6.17M195.60M

Starbreeze AB Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.20
Price Trends
50DMA
0.20
Negative
100DMA
0.19
Negative
200DMA
0.20
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
50.57
Neutral
STOCH
74.90
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 0.2 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.20, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 74.90 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

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
kr335.16M2,108.33>-0.01%7.91%-11.35%-92.00%
56
Neutral
kr10.49B11.5719.18%3.84%-10.55%8.73%
49
Neutral
kr315.57M-28.05%-70.32%-184.31%
46
Neutral
kr77.44M-60.20%-13.48%34.61%
41
Neutral
kr205.80M-253.32%13.74%21.17%
39
Underperform
kr35.24M-25.37%-23.00%74.94%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SE:STAR.B
Starbreeze AB
0.20
-0.09
-30.77%
SE:FRAG
Fragbite Group AB
10.10
2.60
34.67%
SE:GCOR
Gaming Corps AB
1.41
0.55
63.95%
SE:MAGI
MAG Interactive AB
13.50
5.69
72.81%
SE:QIIWI
Qiiwi Games AB
3.76
1.70
82.52%

Starbreeze AB Corporate Events

Starbreeze AB Introduces ‘Smash & Grab’ Mode in PAYDAY 3 Update
Jun 25, 2025

Starbreeze AB has launched a new game mode called ‘Smash & Grab’ for PAYDAY 3, offering a fast-paced heisting experience designed for both new and veteran players. This update, developed in response to community feedback, aims to simplify gameplay while maintaining the series’ signature intensity, and it includes a new weapon, the Spearfish 1895 rifle, enhancing the game’s arsenal.

Starbreeze AB Announces Share Structure Changes
May 30, 2025

Starbreeze AB has announced a change in its share structure, converting 735 series A-shares into series B-shares and issuing 147,676,204 new series B-shares. This move aims to eventually have only series B-shares issued, reducing the total number of votes but not affecting ownership in terms of capital. The total number of registered shares now stands at 1,624,438,244, with a total of 2,757,125,926 votes.

Starbreeze and RyseUp Studios Launch Roboquest on PlayStation
May 27, 2025

Starbreeze AB, in collaboration with RyseUp Studios, has announced the release of their popular FPS roguelite game, Roboquest, on PlayStation 5 and 4. This release leverages PlayStation’s advanced features to enhance gameplay, offering players an exciting and dynamic experience with high-resolution graphics and adaptive controls. The game invites players into a future world where they must combat rogue AI, featuring diverse environments, customizable builds, and a variety of weapons. This launch is a significant milestone for the developers, marking a decade of development and community support, and is expected to strengthen Starbreeze’s position in the gaming market.

Starbreeze Expands PAYDAY 3 with New Heist and Features
May 26, 2025

Starbreeze Entertainment has launched a new paid heist, Party Powder, for PAYDAY 3, alongside a free Armor 2.0 feature. This update enhances the game’s strategic depth and replayability, offering players new challenges and customization options, thereby expanding the PAYDAY 3 universe and potentially strengthening its position in the gaming industry.

Starbreeze Launches Innovative Game ‘Out of Sight’
May 22, 2025

Starbreeze Entertainment, in collaboration with The Gang, has launched ‘Out of Sight,’ a narrative adventure game available on multiple platforms including PC, consoles, and VR. The game, which originated as a student project, offers a unique second-person perspective where players guide a blind girl, Sophie, through a haunted mansion using sound and instinct. This innovative approach highlights the company’s commitment to unconventional storytelling and emotional engagement, potentially strengthening its position in the gaming industry.

Starbreeze AGM 2025: Key Resolutions and Strategic Focus
May 15, 2025

At the Annual General Meeting held on May 15, 2025, Starbreeze AB announced several key resolutions, including the adoption of the income statement and balance sheet for 2024, and the decision not to distribute dividends for the financial year. The AGM also saw the re-election of Jürgen Goeldner as Chairman of the Board and the election of new board members, along with the reappointment of Öhrlings PricewaterhouseCoopers AB as the company’s auditor. These decisions reflect the company’s strategic focus on strengthening its board and financial oversight, while also indicating a cautious approach to financial distribution, possibly to reinvest in future growth opportunities.

Starbreeze AB Receives New Board Proposal from Major Shareholder
May 15, 2025

Starbreeze AB’s nomination committee received an alternative board proposal from major shareholder Digital Bros. SpA, which holds a significant portion of the company’s capital and voting rights. The proposal suggests a board of four members, including a new candidate, Cecilia Tosting, who brings extensive industry experience from her previous roles at Activision Blizzard Nordics AB and the Walt Disney Company. This change in board composition could influence Starbreeze’s strategic direction and operations, potentially impacting its market positioning and stakeholder interests.

Starbreeze AB Reports Q1 2025 Financial Results and Strategic Developments
May 13, 2025

Starbreeze AB reported its Q1 2025 financial results, highlighting an increase in net sales to SEK 67.7 million, driven by strong performance from PAYDAY 3. Despite this, the company faced a loss before taxes of SEK 29.4 million and a decrease in cash flow from operating activities. Significant events include the announcement of PAYDAY 3 as a PlayStation Plus game, a new partnership with The Gang studio, and the appointment of Adolf Kristjansson as CEO. These developments indicate strategic moves to strengthen its market position and expand its game offerings.

Starbreeze AB to Release Q1 2025 Report and Host Investor Webcast
May 6, 2025

Starbreeze AB has announced that it will release its First Quarter 2025 report on May 13, followed by a webcast presentation for investors. The presentation will be led by CEO Adolf Kristjansson and CFO Mats Juhl, providing an opportunity for stakeholders to engage and ask questions, potentially impacting investor relations and market perception.

Starbreeze Acquires PAYDAY 3 Publishing Rights and Issues New Shares
May 6, 2025

Starbreeze AB has acquired the publishing rights for PAYDAY 3 from PLAION, allowing it to accelerate content development and explore broader strategic opportunities for the PAYDAY franchise. To finance this acquisition, Starbreeze is issuing new shares, which will result in a dilution of existing shares but is expected to strengthen its strategic alignment with major industry players.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 05, 2025