FY2025 trading update: revenue up at least 40% and ahead of consensus
Winking Studios Limited (AIM and SGX: WKS) has guided to a strong FY2025, with revenue expected to increase by at least 40% versus FY2024’s US$31.9 million. On simple maths, that implies a minimum of about US$44.7 million for FY2025 – marginally higher than broker consensus of US$43.6 million.
The beat is driven by the April 2025 acquisition of Shanghai Mineloader Digital Technology Co., Ltd. and mid-to-high single-digit organic growth across the rest of the studios. It is a clear sign that demand for AAA game art outsourcing and development remained resilient through the year.
Profitability: steady progress, but not shooting the lights out
Adjusted EBITDA is expected to be 7% to 13% higher than FY2024’s US$4.8 million. That points to a range of roughly US$5.1 million to US$5.4 million for FY2025.
Adjusted EBITDA is a cash profit proxy that strips out interest, tax, depreciation and amortisation, and then makes further adjustments for items such as share-based compensation, foreign exchange movements and acquisition costs. In short, revenue growth is the headline, while profit growth is positive but more measured – consistent with a year of integration and investment.
Why this matters: acquisition-led scale plus organic traction
Mineloader was a “significant driver” of the revenue step-up, and the rest of the Group still delivered mid-to-high single-digit organic growth. That is a healthy mix for an outsourcer – acquisitions add capability and client reach, while organic growth signals underlying demand and execution.
Management leaned into capacity and capability building in Southeast Asia and launched Vertic Studios, a high-end art production brand. That positioning should help Winking compete for premium work while maintaining cost-effective delivery hubs.
Bookings give FY2026 visibility
As at 31 December 2025, indicative artist bookings totalled at least US$48.6 million over the next 24 months, subject to final customer confirmation. Of that, approximately US$34.6 million is expected to be recognised as revenue in FY2026.
Bookings are essentially contracted or highly probable workload. Having the bulk of it due to land in FY2026 gives investors early line of sight on next year’s top line, though the usual caveat applies that some items await final customer confirmation.
Strategy check-in: build in Asia, sell more in the West
Winking says the balance sheet is healthy (no figures disclosed), and the plan is clear: keep strengthening the core Asian platform, pursue disciplined M&A, and build a stronger commercial presence in Western markets. The dual listing and global client roster – 22 of the top 25 game publishers – provide a credible springboard.
The near-term focus will likely be squeezing more utilisation and margin from the expanded network of 13 studios and over 1,400 employees, while Vertic Studios targets higher-end briefs. The proof point to watch is how much of that flows into Adjusted EBITDA as integration costs fade.
Key numbers at a glance
| Metric | FY2024 | FY2025 guidance |
|---|---|---|
| Revenue | US$31.9 million | At least +40% vs FY2024 (c. US$44.7 million or more) |
| Consensus revenue (FY2025) | n/a | US$43.6 million |
| Adjusted EBITDA | US$4.8 million | +7% to +13% vs FY2024 (c. US$5.1m to US$5.4m) |
| Indicative bookings (next 24 months) | n/a | At least US$48.6 million |
| Expected FY2026 revenue from bookings | n/a | Approximately US$34.6 million |
| FY2025 results release | n/a | 27 February 2026 |
My take: positive top-line surprise, investment year on margins
This is a tidy update. A revenue print of at least 40% growth is clearly ahead of the consensus US$43.6 million, and the language around organic growth suggests the core business is not just riding the Mineloader deal. For a project-driven outsourcer, the bookings detail is particularly helpful for FY2026 visibility.
The softer spot is that Adjusted EBITDA did not expand in line with sales. That is not unusual following an acquisition and capacity build-out, especially with adjustments that include share-based pay, FX and acquisition and integration costs. The question for the full results will be whether margins begin to recover as integration benefits and utilisation improve.
What to watch next ahead of 27 February
- Full FY2025 revenue detail – split between Mineloader and organic, if disclosed.
- Adjusted EBITDA bridge – quantum of integration costs and any FX impact.
- Conversion of indicative bookings to firm orders – especially the portion slated for FY2026.
- Early traction from Vertic Studios and any new Western market wins.
- Balance sheet detail – cash, net debt and working capital are not disclosed here.
Bottom line for investors
Winking Studios is signalling a year of scale and pipeline strength, with a modest revenue beat versus expectations. Profit growth is positive but deliberately tempered by a year of acquisition and investment. If the Group can translate the larger platform and bookings into higher-margin work through 2026, there is scope for earnings to catch up with sales.
More colour lands on 27 February 2026. For now, this is a constructive update that supports the growth narrative while keeping a pragmatic eye on execution.
