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DEVO

Devolver Digital, Inc.

Consumer Products and Services First-pass screen £104m
360/1000 Overall fit
AI beneficiary 35% 30
Operating leverage 25% 50
Valuation 25% 30
Downside protection 15% 35

First-pass take

Indie game publisher with no stated AI exposure. H1 2025 revenue down 25% YoY due to platform-deal timing shifts to H2, but FY2025 guidance ($100m+) unchanged. Loss-making ($11m net loss), minimal net cash (~$4m), intangible-heavy balance sheet. Gross margin improvement (29.6%→31.3%) offset by collapsed EBIT leverage, $6.8m tax-asset write-down, and cyclical discretionary demand.

Flags

loss-makingno-valuation-datacyclicalintangible-heavytax-headwindminimal-net-cashh2-weighted