Starbreeze AB (STAR.B) AI Stock Analysis

• Market Cap: kr140.98M
• Dividend Yield: N/A
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 8.38%
• EPS Growth: -48.41%
• Country: SE
• Employees: 186
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.04
• Shares Outstanding: 1,482,310,500
• 10 Day Avg. Volume: 3,311,392
• 30 Day Avg. Volume: 2,089,109
• PEG Ratio: -0.03
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.73
• P/FCF Ratio: 4.35
• 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): 0.02
• Revenue Forecast (FY): kr164.43M

• Rating: 40 Underperform
• Price Target: kr0.08 ▼(-25.45% Downside)
• Action: Downgraded Date: 02/23/26
• Date: Action: Downgraded 02/23/26

The score is driven down primarily by weak financial performance (sharp post-2023 revenue decline and significant 2024–2025 losses) and bearish technicals (price below key moving averages with negative MACD). Positive 2025 free cash flow and reduced leverage provide some support, but valuation signals are limited due to a negative P/E and no dividend data.

Positive Factors

Improved leverage

Material reduction in leverage meaningfully lowers financial risk and interest burden over the medium term. A lighter capital structure improves flexibility for R&D, publishing deals or M&A, and reduces default probability, supporting sustainability of operations if cash generation continues.

Positive cash generation trend

Return to positive free cash flow in 2025 and consistently positive operating cash flow indicate the business can convert sales into cash. This supports reinvestment, reduces near-term financing needs and gives management optionality to fund dev cycles or pay down liabilities.

Established franchise & diversified monetization

Owning a recognized IP and multiple revenue streams (DLC, licensing, publishing, merchandise) creates durable monetization channels. Loyal franchise audiences and licensing opportunities can sustain recurring revenue and lower customer-acquisition dependence over time.

Negative Factors

Sharp revenue & margin deterioration

A severe revenue collapse and persistently negative gross and operating margins indicate structural demand or execution issues. Continued weak profitability erodes capacity to fund development and marketing internally, risking product slippage and long-term competitiveness absent a clear recovery plan.

Shrinking equity base and negative ROE

Rapid equity erosion reduces the balance-sheet buffer against losses and increases the likelihood of dilution or distressed financing if performance falters. Strongly negative ROE signals capital destruction and undermines long-term shareholder value unless profitability reverses sustainably.

Volatile cash flows and coverage risk

While FCF improved in 2025, historic volatility and operating cash failing to cover losses in recent years creates funding uncertainty. Continued cash-flow variability raises execution risk for multi-year game projects and may force reliance on external capital during downturns.

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

Income statement is the primary drag: revenue fell sharply from 2023 levels and 2024–2025 show deeply negative profitability and a large net loss. Balance sheet leverage improved materially versus 2021–2022, but equity has declined steeply and returns on equity are strongly negative. Cash flow is a partial positive with operating cash flow positive and free cash flow turning positive in 2025, but volatility and loss coverage concerns keep the profile high-risk.

Income Statement

Profitability has deteriorated sharply after a strong 2023. Revenue dropped from 633.5M (2023) to 185.9M (2024) and 221.0M (2025), and both 2024 and 2025 show deeply negative gross and operating profitability (gross profit and operating profit both strongly negative), culminating in a large net loss in 2025. A key offset is that earnings before interest, taxes, depreciation and amortization remained positive in 2024–2025, suggesting some underlying cost capacity, but overall margins and earnings quality are currently weak and volatile.

Balance Sheet

Leverage has improved materially versus earlier years. Debt-to-equity fell from very high levels in 2021–2022 (3.6x and 7.0x) to low levels in 2023–2024 (near-zero) and remains moderate in 2025 (~0.31x), indicating a less strained capital structure. However, equity has shrunk significantly from 894.7M (2023) to 705.4M (2024) and 221.0M (2025), and returns on equity are strongly negative in 2024–2025, highlighting ongoing losses and weakening balance-sheet resilience.

Cash Flow

Cash generation is mixed but improved from the low point in 2020. Operating cash flow is positive in 2021–2025 and free cash flow turned positive in 2025 (37.1M) after sizable outflows in 2022–2024, which is a meaningful near-term positive. That said, free cash flow has been highly volatile (large negative in 2024), and cash flow coverage of reported losses remains imperfect (operating cash flow not fully covering net loss in 2024–2025), pointing to sustainability risk if losses persist.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	220.98M	185.85M	633.51M	127.60M	125.69M
Gross Profit	-301.42M	-263.00M	324.24M	67.08M	69.39M
EBITDA	47.49M	102.38M	457.47M	64.32M	6.35M
Net Income	-399.31M	-317.85M	207.63M	-59.81M	-103.47M
Balance Sheet
Total Assets	337.48M	830.13M	1.11B	746.40M	674.15M
Cash, Cash Equivalents and Short-Term Investments	102.62M	191.91M	347.75M	108.22M	128.57M
Total Debt	67.79M	22.14M	16.82M	400.16M	440.68M
Total Liabilities	116.45M	124.69M	216.84M	689.62M	551.33M
Stockholders Equity	221.03M	705.44M	894.65M	56.79M	122.82M
Cash Flow
Free Cash Flow	37.15M	-188.14M	-87.80M	-88.33M	-38.70M
Operating Cash Flow	45.83M	64.87M	114.58M	57.83M	73.87M
Investing Cash Flow	-167.33M	-245.46M	-202.38M	-143.94M	-109.01M
Financing Cash Flow	32.42M	24.52M	327.44M	65.55M	6.17M

Starbreeze AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.11 is above the 20-day moving average (MA) of 0.09, above the 50-day MA of 0.10, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.70 is Neutral, neither overbought nor oversold. The STOCH value of 30.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	56 Neutral	kr143.07M	-11.23	-3.04%	13.12%	-3.51%	-192.91%
FRAG	44 Neutral	kr55.73M	53.24	-229.41%	―	-10.21%	-1.15%
SCOUT	43 Neutral	kr25.90M	-2.59	―	―	―	―
GCOR	41 Neutral	kr131.48M	-3.10	―	―	32.83%	13.34%
STAR.B	40 Underperform	kr140.98M	-0.34	-76.88%	―	8.38%	-48.41%

Starbreeze AB Corporate Events

Starbreeze Posts Wider 2025 Loss Despite Higher Sales and PAYDAY 3 Updates

Starbreeze reported fourth-quarter 2025 net sales of SEK 41.1 million, down year-on-year, as PAYDAY 3 and third-party publishing revenues declined but work-for-hire income rose sharply. The quarter swung to an EBITDA loss and a pre-tax loss of SEK 61.9 million, while full-year 2025 net sales climbed to SEK 221 million, driven by PAYDAY 2, PAYDAY 3 and expanding work-for-hire, yet heavy depreciation and a major impairment on the Baxter project pushed the annual pre-tax loss to SEK 402.7 million and reduced cash to SEK 102.6 million.

Operationally, Starbreeze continued to support PAYDAY 3 with free updates and post-launch content, including the release of the Skills 2.0 overhaul and the Shopping Spree DLC with gameplay improvements and bug fixes. The ongoing investment in PAYDAY 3 live operations highlights the company’s strategy to sustain engagement and revenue from its flagship franchise, even as profitability is pressured by write-downs and a transition toward a broader service and work-for-hire model.

The most recent analyst rating on ($SE:STAR.B) stock is a Hold with a SEK0.09 price target. To see the full list of analyst forecasts on Starbreeze AB stock, see the SE:STAR.B Stock Forecast page.

Starbreeze Expands PAYDAY 3 With New Shopping Spree Heist DLC

Starbreeze AB has released Shopping Spree, a new paid DLC heist for PAYDAY 3 set in the struggling Nobleman Galleria mall, where players target mafia figure Pietro Palatucci’s illicit retail front and attempt to cripple the Palatucci crime family’s finances. The add-on emphasizes replayability through randomized objectives, dynamic favors that adjust risk–reward, and a multi-store layout supporting multiple playstyles, from stealth to all-out combat, while also tying deeper into the PAYDAY universe via in-world brand Teddy Moo; alongside the DLC, the studio is rolling out free quality-of-life improvements and bug fixes for all PAYDAY 3 players, underscoring its commitment to ongoing support and retention of its core community.

The most recent analyst rating on ($SE:STAR.B) stock is a Hold with a SEK0.12 price target. To see the full list of analyst forecasts on Starbreeze AB stock, see the SE:STAR.B Stock Forecast page.

Starbreeze AB Enhances PAYDAY 3 with Skills 2.0 Update

Starbreeze AB has launched a major update for PAYDAY 3 called Skills 2.0, which revamps the game’s skill system to offer players more impactful choices and deeper buildcrafting options. This update is expected to enhance player engagement by providing a more dynamic and personalized gaming experience, potentially strengthening Starbreeze’s position in the competitive gaming market.

The most recent analyst rating on ($SE:STAR.B) stock is a Hold with a SEK0.11 price target. To see the full list of analyst forecasts on Starbreeze AB stock, see the SE:STAR.B Stock Forecast page.

Starbreeze AB Announces Share Conversion

Starbreeze AB has announced a conversion of 134,236 series A-shares into series B-shares, as part of its ongoing program to eventually issue only series B-shares. This conversion reduces the total number of votes in the company but does not affect the ownership in terms of capital. The total number of registered shares now stands at 1,624,438,244, with 142,127,683 series A-shares and 1,482,310,561 series B-shares.

The most recent analyst rating on ($SE:STAR.B) stock is a Hold with a SEK0.11 price target. To see the full list of analyst forecasts on Starbreeze AB stock, see the SE:STAR.B Stock Forecast page.