Winking Studios Limited FY2025 Trading Update: Robust Growth and Strategic Expansion

Winking Studios Limited, one of Asia’s largest AAA game art outsourcing studios and a leading game development company, has released its trading update for the financial year ended 31 December 2025. The report highlights substantial revenue growth, strategic acquisitions, and a positive outlook for the coming year. Below is a comprehensive analysis of the key financial metrics, performance trends, and significant corporate actions disclosed in the report.

Key Financial Metrics and Performance Comparison

Note: FY2025 numbers are based on preliminary review of unaudited financial statements. The company expects to announce its unaudited financial statements on 27 February 2026.

Historical Performance Trends

• Revenue for FY2025 is expected to grow by at least 40% YoY, driven by the acquisition of Shanghai Mineloader Digital Technology Co., Ltd. and organic growth in other studios.
• Adjusted EBITDA is anticipated to increase by 7% to 13% YoY, indicating improved operational efficiency and scale.
• Indicative artist bookings totaling \$48.6 million provide clear visibility for revenue recognition in the next 24 months, with \$34.6 million expected in FY2026.

Exceptional Earnings and Expenses

• Adjusted EBITDA for FY2025 excludes share-based compensation, foreign exchange gains/losses, and costs related to acquisition and integration, making it a cleaner measure of underlying profitability.
• FY2024 Adjusted EBITDA also excluded dual listing expenses, private placement related expenses, and other exceptional items.

Corporate Actions and Strategic Developments

• Acquisition: The purchase of Mineloader in April 2025 was a significant driver of growth, expanding both revenue and production capabilities.
• Expansion: Investment in Southeast Asia production capacity and the launch of Vertic Studios (a high-end art production brand) signal ongoing strategic expansion.
• M&A Discipline: The company remains focused on disciplined mergers and acquisitions, aiming to strengthen its core platform in Asia and build a stronger commercial presence in Western markets.

Chairman’s Statement

“In FY2025, Winking Studios continued to successfully deliver against its strategic expansion and consolidation objectives, acquiring Mineloader and investing in production capacity and capabilities in Southeast Asia, including the launch of Vertic Studios, its high-end art production brand. Supported by a healthy balance sheet, the Group remains focused on continuing to strengthen its core platform in Asia, pursuing disciplined M&A, and progressing its plans to build a stronger commercial presence in Western markets.”

Tone: Positive. The statement demonstrates confidence in the business’s strategic direction and operational execution.

Forecasted and Expected Events

• Revenue Visibility: Approximately \$34.6 million in artist bookings is expected to be recognized as revenue in FY2026, providing a strong foundation for future growth.
• Financial Statement Release: Detailed unaudited FY2025 financial statements will be announced on 27 February 2026, which may provide further clarity on profitability and cash flows.

Conclusion and Investment Recommendations

Winking Studios Limited has delivered strong financial performance for FY2025, with significant revenue and EBITDA growth, successful integration of a major acquisition, and clear visibility into future revenue streams. The company’s strategic expansion into Southeast Asia and continued focus on M&A underpin a positive outlook. The Chairman’s statement is upbeat, reflecting confidence in ongoing growth and operational execution.

Recommendations

• If you currently hold this stock: Consider maintaining your position. The company’s solid financial results, strategic growth initiatives, and forward-looking bookings suggest continued strength and momentum. Monitor the upcoming February 2026 financial release for confirmation of these trends.
• If you are not holding this stock: Consider initiating a position following the release of the unaudited FY2025 financials, provided the numbers confirm the preliminary positive trends and outlook. Winking Studios is showing clear growth drivers and strong market positioning, making it an attractive opportunity for growth-oriented portfolios.

Disclaimer: This analysis is based strictly on the information provided in the company’s trading update. Investors should review the full unaudited financial statements upon release and consider their own risk tolerance and investment objectives before making any decisions. Past performance does not guarantee future results.

View WinkingStudios Historical chart here