Winking Studios FY2025: Big topline jump, bigger platform – can margins catch up in 2026?
Winking Studios has posted a strong set of preliminary FY2025 numbers, powered by its largest deal to date and a clear tilt towards AAA console work. Revenue rose 42.6% to US$45.5 million, with Mineloader – acquired in April 2025 for US$19.8 million – contributing US$11.4 million across nine months. Organic growth was 8.6%, with momentum skewed to the second half as management had guided.
Below I break down the key figures, what’s working, what needs watching, and why the 2026 set-up looks better than it has for a while.
Key numbers investors should know
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | US$45.5 million | US$31.9 million | +42.6% |
| Gross profit / margin | US$13.5 million / 29.8% | US$9.5 million / 29.7% | +43.2% / +0.1 ppt |
| Adjusted EBITDA / margin | US$5.4 million / 12.0% | US$4.8 million / 15.1% | +13.2% / -3.1 ppts |
| EBITDA | US$3.4 million | US$2.0 million | +69.2% |
| Adjusted net profit / margin | US$3.0 million / 6.5% | US$3.4 million / 10.6% | -12.3% / -4.1 ppts |
| Net profit | US$0.3 million | US$0.5 million | -37.9% |
| Cash, cash equivalents and bond investments | US$28.8 million | US$41.3 million | – |
| Debt | Zero | Zero | – |
| Headcount | 1,426 | 846 | +68.6% |
| Indicative bookings (24 months) | ≥ US$48.6 million | US$35.8 million | +35.8% |
| Expected FY2026 revenue from bookings | ~US$34.6 million | Not disclosed | – |
| Proposed final dividend per share | SG$0.00024 | SG$0.00024 | Unchanged |
Definitions: AAA refers to high-budget, high-production-value games. Adjusted EBITDA is a profitability measure that strips out items such as share-based payments, acquisition costs and certain non-cash/one-off items. “Indicative bookings” are customer-indicated artist bookings over the next 24 months, subject to final confirmation.
Mineloader deal has changed the shape of the business
The strategic story is clear: Mineloader brings scale, Western client exposure and AAA console capability. That shows up everywhere:
- AAA titles worked on: up to 117 (FY2024: 14), with delivery across major franchises including Ninja Gaiden.
- US revenue more than doubled to US$7.3 million (FY2024: US$3.5 million).
- Mainland China and Hong Kong remained the largest market at US$16.7 million (+51.1%).
- Repeat revenue dipped to 32.8% (FY2024: 41.4%) due to a bigger console mix, which typically yields fewer follow-up projects.
Operationally, Winking also launched Vertic Studios in Southeast Asia – a high-end, English-speaking AAA art brand – and ended the year with 1,426 employees. That is a lot of new capacity to monetise in 2026.
Revenue mix and segments: art outsourcing still dominates
- Art Outsourcing: US$37.5 million (82.4% of revenue), up 42.0%.
- Game Development: US$7.9 million (17.3% of revenue), up 48.4%.
- Global Publishing & Other Services: US$0.1 million (0.3% of revenue).
Geographically, combined Mainland China and Hong Kong represented 36.8% of the total, while the United States stepped up to US$7.3 million. Diversification is moving in the right direction without losing the Asian cost advantage.
Margins and profits: stable gross margin, squeezed operating margin
Gross margin held steady at 29.8%, which is impressive given industry pricing pressure and a big integration year. The drag is further down the P&L:
- Adjusted EBITDA margin fell to 12.0% (FY2024: 15.1%). Drivers include ongoing listing costs of US$0.4 million and the absence of US$0.7 million of non-recurring gains seen in FY2024.
- Adjusted net profit was US$3.0 million (FY2024: US$3.4 million), while statutory net profit landed at US$0.3 million, with FX losses and higher D&A after acquisitions weighing.
My take: Winking deliberately bulked up – people, studios, and capabilities – into a market that was only just recovering. The pay-off shows in bookings and client mix, but the margin gap now needs closing through utilisation, pricing discipline and integration synergies.
Cash, balance sheet and cash flow: firepower intact
Year-end liquidity was healthy: US$28.8 million across cash, cash equivalents and bond investments, and zero debt. Net cash from operating activities jumped to US$5.1 million (FY2024: US$0.6 million), while investing outflows of US$14.5 million mainly reflect the Mineloader purchase. Net assets increased to US$53.0 million.
Translation: the group can keep investing in people, studios and selective M&A without over-stretching. That matters in a fragmented industry where scale and breadth win mandates.
Outlook 2026: visibility better, demand improving but price-sensitive
Management says trading has started in line with expectations, with outsourcing demand “exceeding earlier expectations” as the global games market recovers. Bookings indicate at least US$48.6 million over 24 months, with roughly US$34.6 million expected to convert into FY2026 revenue (subject to customer confirmation). Priorities include:
- Formally establishing a Western operational presence, including a UK hub and senior hires in Europe and North America.
- Selective M&A in Asia and Europe to add specialisms and capacity.
- Maintaining cost efficiency and sustainable profitability as clients remain price-conscious.
Dividend: small, steady signal
The Board proposes a final cash dividend of SG$0.00024 per share (0.024 cents), the same level as last year and above the stated policy range as a percentage of distributable profits. It is modest in absolute terms but consistent with a company prioritising reinvestment while signalling confidence.
What I like, and what I’m watching
Positives
- Scale-up delivered: revenue +42.6% with gross margin preserved at 29.8%.
- Strategic shift to AAA/console validated by client list, 117 AAA titles and US growth to US$7.3 million.
- Bookings and visibility: ≥ US$48.6 million over 24 months; ~US$34.6 million expected in FY2026.
- Robust balance sheet: US$28.8 million liquidity, zero debt, and strong operating cash generation.
Watch items
- Adjusted EBITDA margin fell 3.1 percentage points; turning scale into margin is the 2026 task.
- Net profit of US$0.3 million is thin; FX volatility and higher D&A after acquisitions are live headwinds.
- Repeat revenue reduced to 32.8% due to console mix; pipeline quality and utilisation need to stay high.
- Execution risk in building a Western footprint and integrating any new acquisitions.
Why this matters for retail investors
Winking is evolving from a largely Asian art house into a scaled, multi-studio AAA partner with rising Western exposure. That typically commands better pricing over time, deeper client integration and more defensible revenues. The trade-off is near-term margin dilution as the platform is built. With bookings up, capacity in place and cash on hand, FY2026 is set up as a year to prove that the enlarged platform can drop more to the bottom line.
Bottom line
FY2025 proves the strategy works on growth and capability. The next leg is margin and earnings quality. If Winking can convert its ≥ US$48.6 million in bookings efficiently, lift utilisation across its 1,426-strong workforce, and bed down a Western hub without cost creep, FY2026 should look meaningfully better on profitability. One to watch for operational execution rather than financial engineering – and the balance sheet gives them time to get it right.
