Starbreeze 2025 revenue up 18.8% but company still has net loss

Starbreeze reported $24.5 million in revenue for 2025, which is 18.8% more than the year before. But they still lost $44.6 million.
By Newsroom | Business, Gaming |

Starbreeze Entertainment has released its financial results for the full year ending December 31, 2025, indicating a notable increase in net sales. The company reported total net sales of SEK 221 million ($24.5 million), representing an 18.8% rise compared to the previous year. However, this revenue growth occurred alongside a substantial net loss for both the full year and the fourth quarter of 2025.

Financial Performance Overview

Starbreeze Entertainment's financial report for the fiscal year 2025, which concluded on December 31, 2025, details a mixed financial picture.

  • Full Year 2025:

  • Net sales reached SEK 221 million ($24.5 million).

  • This marks an 18.8% increase from SEK 185.9 million ($20.5 million) in fiscal year 2024.

  • The company incurred a net loss of SEK 402.7 million ($44.6 million).

  • This is a wider loss compared to SEK 317.7 million ($35.2 million) reported in 2024.

  • Fourth Quarter 2025 (Three months ending December 31, 2025):

  • Net sales were SEK 41.1 million ($4.5 million).

  • This represents a 10.7% decrease compared to the same period in the previous year.

  • A net loss of SEK 61.9 million ($6.8 million) was recorded.

  • This contrasts with a net loss of SEK 167.9 million ($18.6 million) in the fourth quarter of 2024.

Operational Context and Leadership Changes

The financial results were released against a backdrop of significant operational adjustments and leadership transitions within Starbreeze. CEO Adolf Kristjansson characterized the fourth quarter as a "period of steady execution," emphasizing a focus on business stabilization and laying the groundwork for future growth.

  • Personnel Actions:

  • In October 2025, the company undertook redundancies affecting 33 employees.

  • Further reports emerged in late January 2026, indicating unspecified layoffs, with employees sharing their experiences on social media.

  • These workforce reductions followed the cancellation of its Dungeons & Dragons games-as-a-service title, codenamed Project Baxter.

  • Leadership Shifts:

  • September 2025: Adolf Kristjansson, a former EA executive, was appointed CEO, replacing interim CEO Mats Juhl.

  • March 2025: Mats Juhl was appointed interim CEO, stepping in for Juergen Goeldner, who was nominated as chairman of the board.

  • May 2024: Juergen Goeldner became interim CEO, following the departure of Tobias Sjögren.

Product Development and Strategic Initiatives

Starbreeze continues to focus on its core franchises and strategic collaborations.

  • Core Projects: The company is actively developing its core PAYDAY experiences and a Dungeons & Dragons title.

  • KRAFTON Partnership: A collaboration with KRAFTON, Inc. is underway, with ongoing milestone deliveries for PAYDAY x PUBG.

  • New Office Space: A move into new, purpose-built offices in central Stockholm was noted as a key milestone in the first quarter of 2025.

  • Payday 2 Subscription Service: In September 2025, Starbreeze launched a subscription service for Payday 2 on Steam, described as offering players "more choice."

  • DLC Pricing Issue: In January 2026, Starbreeze acknowledged an error in its handling of a stealth price increase for a DLC bundle, stating "We messed up on this one."

While net sales show positive year-over-year growth for the full fiscal year 2025, the persistent net losses raise questions about profitability and long-term financial stability. The Payday series remains a significant contributor to the company's net gaming sales.

Read More: Centrica British Gas Profits Fall Due to Warmer Weather and Fixed Tariffs in 2023

  • Revenue Drivers: The Payday series accounts for the majority of Starbreeze's net gaming sales.

  • Fiscal Year Alignment: The company's fiscal year was adjusted to align with the calendar year (January 1 - December 31), impacting prior reporting periods.

Expert Analysis

Adolf Kristjansson, CEO of Starbreeze, stated, "Our priority has been to stabilise the business, deliver on our commitments, and lay a solid foundation for sustainable growth." This suggests a strategic focus on internal restructuring and foundational improvements rather than immediate profitability.

The company's financial performance reveals a pattern of increasing revenue alongside significant losses. Was the revenue growth driven by factors other than the core product sales? How sustainable is the current strategy given the ongoing net losses and workforce adjustments? These are critical questions for evaluating Starbreeze's trajectory.

Conclusion and Implications

Starbreeze Entertainment's 2025 financial report highlights a dichotomy: increasing revenue on an annual basis, juxtaposed with substantial net losses. The full-year net sales saw an 18.8% increase, reaching $24.5 million. Conversely, the company posted a net loss of $44.6 million for the year, a figure exceeding the previous year's loss.

Read More: Pokemon TCG Mega Evolution Expansion Coming September 2025 with New Rules

The fourth quarter of 2025 showed a decline in net sales of 10.7%, despite a reduced net loss compared to the same quarter in 2024. This performance occurred during a period marked by executive leadership changes, strategic project cancellations, and workforce reductions. The company's ongoing efforts to stabilize operations and build a foundation for growth, as articulated by CEO Adolf Kristjansson, are ongoing.

The evidence suggests that while Starbreeze is experiencing top-line growth, achieving consistent profitability remains a challenge. Future evaluations will need to closely monitor the impact of ongoing development projects, strategic partnerships, and cost management measures on the company's financial health.

Used Sources:

Frequently Asked Questions

Q: What were Starbreeze's total sales in 2025?
Starbreeze's total net sales for 2025 were $24.5 million, which is an 18.8% increase from 2024.
Q: Did Starbreeze make a profit in 2025?
No, Starbreeze had a net loss of $44.6 million in 2025, which was more than the loss in 2024.
Q: How did Starbreeze perform in the last three months of 2025?
In the fourth quarter of 2025, Starbreeze's sales went down by 10.7% to $4.5 million. They also had a net loss of $6.8 million.
Q: What has Starbreeze been doing besides financial results?
Starbreeze has had leadership changes, cancelled some projects, and reduced staff numbers. They are also working on new games and partnerships.
Q: What does the CEO say about the company's situation?
The CEO, Adolf Kristjansson, said the company's main goal is to become stable and ready for future growth. He mentioned focusing on business stability and building a strong base.
Q: What is the main problem for Starbreeze?
Even though Starbreeze's sales are going up each year, they are still losing a lot of money. It is hard for them to make a profit.