tinyBuild Aktie

Good afternoon, and welcome to the tinyBuild, Inc. Investor Presentation. [Operator Instructions] The company may not be in a position to answer every question it receives during the meeting itself. However, the company can review all questions submitted today and publish responses where as it is appropriate to do so.

Before we begin, I'd like to submit the following poll. I'd now like to hand you over to the team at tinyBuild. Good afternoon.

Good afternoon, everyone, and welcome to the full year 2025 results presentation. With that, we're just going to skim over the disclaimer and go straight into introductions if you have not met us. So I'm Alex Nichiporchik, CEO and Co-Founder of tinyBuild. I've been in the business for 20 years now, and tinyBuild actually is turning 15 this year, which is really exciting. It's close to half my life at this point. I've been into game production, marketing, journalism and essentially like my whole career revolves around game development. And at the company, I handle mostly the production side of things, alongside being the actual Chief Executive.

And with that, Jaz?

Yes. Hello. Jaz here. I also have over 20 years' experience in finance. I joined the company in 2021, just before the IPO, and I was appointed CFO in 2023. Over to you, Alex.

All right. So today, we're going to do a brief operational review, then dive deep into the financials with Jaz, and then we'll talk strategy and happy to answer questions as they come along.

So that said, if we look at 2025, I'd say that we are back in the game. The things that we have been talking about for the past 4 years, namely building out franchises, finding new intellectual properties, finding ways to expand them. A lot of those things have finally started paying off. We will talk about our recent hit, The King is Watching, and how that came to be. We also have strong operating leverage resulting from our own IP strategy, and I will talk about that a little bit in detail when we have detailed slides.

But we also have one of the strongest pipelines we've ever had going into 2026 with 7 games in the top 200 global wish list chart. At the same time, we are keeping very tight cost controls in place and using data-driven decisions for our investments. So we will focus on what works and pivot what doesn't work. And whenever we see a great opportunity, we will make sure to get it done right. For us, it's really about quality over quantity going into this year, and that has proven itself last year as well.

So some highlights. I will just call out that we had a very significant adjusted EBITDA swing in 2025, which is great. And we have also built up $4.6 million in cash by December of last year.

That said, let's just go into some of our usual slides. We still have a very healthy own IP portfolio mix. Now we will sometimes have it go a little bit lower, and that depends on when we do strategic third-party deals. By strategic, I mean developers that we really love working with that we have a long-lasting relationship and that we know are going to be successful.

For the rest, what we do is we do want to own the intellectual property. And I will just kind of contextualize that because it can sound really harsh out of context. What we want to do is give developers the creative freedom to create something really, really impressive. And we will guide them. We will help them with production and sometimes get more involved than some other publishers.

Now when and if the IP becomes successful, what can sometimes happen is that the developers or the original creatives may lose interest in working on a game that they just spent a couple of years on, and they will want to do something else. That is absolutely normal. What I was annoyed at for years when we were doing mostly third-party publishing was when this happens and then we have a hit on our hands, and we know exactly how to make it even bigger because when you have something that is already big, making it bigger, scaling it is much easier than going from 0 to, let's say, first 0.5 million copies sold.

So this is why we invest in our own IP. And by doing so, we create this structure where the original developers can still benefit from us continuing to scale it, and they may even come back for later games in the franchise, which is exactly what we want, and this is exactly what is happening with Hello Neighbor 3 right now.

Now back catalog. As a reminder, when the game launches in the previous calendar year, it is considered back catalog. So we did launch a few new IPs last year with The King is Watching being a runaway hit. But at the same time, we launched a little game called Deadside on consoles. It has been available on PC for about 5 years prior, and it was a runway hit for us on consoles, on PlayStation and Xbox. And we continue to update and expand both that game and the technology that powers it that we are also able to scale to other games.

And with that, let's dive into the financial overview.

Just starting with a short summary of the main KPIs. Starting with the net game revenues. This excludes DevGAMM, our events business and excludes Red Cerberus, our Brazilian QA business sold at the beginning of 2025. That is excluded for 2024 and 2025. We're pleased to report that revenues from games are up for the first time in 3 years, up 17%.

That is the result of a very strong performance from that side in H1. You remember us talking about that. But also other games, for example, The King is Watching as a new release. And one of our oldest franchise, Hello Neighbor coming in strong in Q4, not just Hello Neighbor main title, but all of the other titles in the franchise witnessed a rebirth in terms of revenues, especially on PC, thanks to factors Alex will delve into details later on.

In terms of EBITDA, we can see a big swing from negative $6 million to positive $5.6 million. That shows how strong our operating leverage is, partly the result of revenue mix. We have a high percentage of revenues coming from owned IP, which has a high flow-through, partly cost discipline after the cost action put in place in 2023 and 2024.

And on the right-hand side, software development costs, they declined again to just short of $12 million. This is a level we now feel comfortable with. We are back to roughly the same level we were pre-pandemic in terms of as a percentage of sales, around 30%. And that is a level that seems right for the size and for the growth we want to achieve.

Looking at the adjusted EBITDA more in details, you can see the different components leading to $5.6 million at the end of the year. Cost of sales includes royalties paid out, and that's where you see how small it is relative to some of our competitors due to the fact that we own the IP and we retain a higher share of royalties on average. In terms of development of cost amortization, you see a decline there, partly driven by the impairments of the previous years, partly driven by the fact that in 2025, we launched a relatively small number of new games.

And then SG&A, where you see mostly the impact of our cost action and the cost discipline we continue to put in place going forward. On the impairment side, $7.2 million negative. That's roughly half impairment of games and half impairment of brands, including $1.8 million for the Versus Evil brand.

Looking at the whole P&L a little bit more in details. At the top, revenue from games up 7%. Development Services includes pretty much everything to do with platform deals. It's up to $2 million. That number is not something we're committing to for 2026. As you know, platform deals come and go and right now, the market is pretty light on platform deals.

The negative number in 2024 is due to an accounting adjustment, revenues which were accrued for a game that has been canceled, and that's how it shows up. Cost of sales, we discussed. And in terms of marginality, I want to touch on adjusted EBITDA the margins we achieved in 2025 of 16% are a good start for us. This is definitely not the arrival point. As an own IP focused company, we think we can push the business way further. We're going to continue to maintain a focus on cost management to make sure that operating leverage comes through loud and clear when revenues land.

Moving from the P&L to the cash flow statement. Most important line there is the development costs. Development costs have been brought back in line with the size of the business at around $12 million. You can see in gray on the left-hand side that the M&A movements. In 2024, we made 2 small disposals of IP. And in 2025, we sold the Red Cerberus, the Brazilian QA business.

On the right-hand side, you can see the project concentration. We have a very diversified portfolio, over 40 projects currently under development. Every project typically doesn't go above 10%, and we have a good number of projects, 9 projects with an annual budget of over $0.5 million. We try, as you see from the chart, to keep a good balance between relatively larger projects, which come typically with a higher potential and relatively smaller projects with a much faster development cycle, which can deliver a much higher ROI if on smaller terms in absolute terms.

Looking at the cash flow statement in more details. The cash flow from operations pretty much doubled from $6.3 million to $12.6 million. That is the result of strong EBITDA performance, more than offsetting a couple of million adverse movements in terms of net working capital. And as you see, cash at the end has increased from $3.1 million to $4.6 million at the end of 2025, strong cash flow generation that we want to continue work in the direction of increasing our cash position. We feel like we have a strong financial position, and we feel like we can continue to invest and strengthen our cash position going forward.

Cash utilization, most of the cash came in from operating profit, the $2 million headwind I mentioned in terms of net working capital and the software development cost is the lion's share of cash utilization.

In terms of tax paid, we have a large amount of losses carry forward. Here, you see in the tax paid in 2025, part taxes due for 2025, part taxes due for adjustments of previous years. We expect a smaller amount in the coming years.

Another look at the balance sheet in terms of net working capital, receivables decreased by $1.9 million, timing of receipts on several large contracts. And in terms of payables, the decrease in $5.1 million is mostly due to a reduction in accrued royalties. accrued royalties either due to a settlement where we didn't have to pay royalties or other royalties, which have actually been paid.

In terms of intangible, you see the big drop from $41.8 million to $35.3 million, and that reflects the impairment we discussed talking about the P&L. Deferred revenues, to close on net working capital, is $1.9 million from $0 in the previous years. It reflects contracts that have already been paid for larger deals and for which revenues have been deferred.

Back to you, Alex, for the strategy.

All right. Thank you so much, Jaz. So if you have been following us for a while, you may have heard about a game called The King is Watching, which has sold over 0.5 million units. And this is a prime example of how we work today. We have small teams working independently on games that they love, and they know exactly what they're doing. Now this game was initially supposed to take about a year to develop. And at about month 9 or 10, we saw that players are enjoying very specific parts of this game. So we pivoted. We talked to a developer and mutually agreed that it needs to be more of a rogue like, more of a game that you spend a lot of time in. That really worked.

There is a recent article on gamesindustry.biz about how we did it, so please take a read. We talk about how we had about 40% of sales in China, how we were breakout on the Steam Next Festival in February. And we just recently this week launched the DLC that is also doing quite well. This is exactly how you start the franchise and continue expanding it. Finally, things went right when we are able to continuously update this game. And this is our top 3 launch on Steam, which is phenomenal. And like I said, over 0.5 million copies sold.

Now let's talk about Hozy, and I've actually seen some questions in the chat about this specific game, which makes me very happy. So we revealed it last year at the tinyBuild Connect, an annual event that we do for the company where we present our upcoming games. We revealed it with a demo. This is something that a lot of peers have also started doing when instead of just saying, here is a game, here is a trailer, here's what it's about, we say, just play it.

And players did play it. They loved it. Within the first 4 months of the game reveal, we hit 150,000 wish list. We dominated the Cozy section on the last Steam Next festival, which was just last month. And right now, we're sitting at over 450,000 wish lists. On March 18, we had 400,000. The game launches on March 30. And let's just say that I'm cautiously optimistic about this title. And this just kind of reinforces our strategy of working on tiles that have really high potential, finding the right audience and also working on it as a portfolio, working on all of our tiles together.

This is really key to understand if you're maybe a new shareholder or a potential shareholder in tinyBuild that it's not just about the one game. It's very easy to start focusing on just this one potential tile and then all the questions are about it. But remember, it's a portfolio. This is why 2025 was so good, and we are really happy with the upcoming portfolio going into 2026 and also our existing tiles that we continue to work on because for successful tiles, once they are live, work only begins.

Now a slightly different case study. We talk a lot about franchises, and you've probably heard about Hello Neighbor, which we will give you guys an update on. But also franchising on an engine and technology level is something we have been quite successful with over the past couple of years. So Deadside, while it does use Unreal Engine as its core game engine, the underlying technology behind this multiplayer component is extremely unique. It took years to develop with a very brilliant team.

And we were able to prove that we can use that same technology and rapidly develop spin-offs with a game called Duckside, which was developed in under a year and met its profitability target quite fast. So what I'm getting to is that using internal studios and internally developed technologies does give us a lot of flexibility when it comes to sharing knowledge, technology, game engines, et cetera. And I'm really excited about where this will go next.

Now a little bit about the pipeline. We mentioned the 7 games in the Top 200 chart. We have talked about Hozy, which is coming on March 30. Then ALL WILL FALL is launching very shortly after, also really excited about that one. And then we also have a lot of really interesting upcoming titles. I want to highlight The Lift, which we did announce, and we will have an update on that quite soon. But that is also an internal studio working on a really unique and original concept that we verified quite early, and we are now confident that the game will find its audience.

A very similar thing is happening with a lot of these. And if you haven't seen the game ReStory yet, it's from the creator of I Am Future and the original let's say, idea man behind the game Graveyard Keeper, which was a hit for us a few years back. In it, you run a little repair shop in '90s Japan with very familiar devices, including officially licensed Atari devices that will be in the game. So check these out. We're really excited about this portfolio. And remember that these are just the announced titles.

And a little update on Hello Neighbor. A few years ago, I've heard this expression that you will unlock a franchise's potential maybe on Year 8, sometimes on Year 15. And often, it's even later than that. So the theory is that it will take you 2, 3 decades to fully unlock the potential of a franchise. And we've just seen that with Resident Evil Requiem, which, I mean, technically, it's Resident Evil 9, but depending on how you count, it's like, I think, Resident Evil 20 something, and it is the best-selling one in the franchise.

Now what happened with us last December is we are working on the Hello Neighbor 3 development logs quite often. So we revealed the design of the main character in Hello Neighbor, Mr. Peterson for Part 3. We also have a lot of hype for the animated series that is continuing to gain more fans and reactivating existing fans. People are really excited about the upcoming movie. And at the same time, the modding community -- so when you create user-generated content based on the tools that we provide in the very original Hello Neighbor went absolutely viral. So this created a portfolio effect.

And 8 years after the launch of the original game, we had the best month on steam for this title. So the game launched 8 years ago and the best month for it on steam was last December, which again reinforces all of the strategic investments that we do in this franchise and how we are building a blueprint for our other titles. So multimedia is working for us. And the more branches you have, the stronger your franchise becomes. And we are really excited about the progress for Hello Neighbor 3.

And I just -- a couple of slides ago, I said, don't get excited about very specific title, right, get excited about the portfolio. So just keep that in mind in context, right? This is the prime example that took us 8 years to get here from that is showing the blueprints that we're working on for the portfolio.

That said, 2025 was definitely a turnaround year for us. I'm really proud of the team. We have over 70 people working in production, and they're doing a phenomenal job at all of these titles. They have a lot of authority in the company. And when we restructured a couple of years ago, this is what they wanted. I wanted to have small teams that work in a start-up fashion that are able to make decisions really fast. And now we're seeing the fruits of that strategic decision.

So with that said, shall we move on to Q&A. And I will just put the core strategy slide on here while we talk about that. I'll use the Q&A slide.

[Operator Instructions] As you can see, guys, we've had a number of questions both pre-submitted and throughout today's presentation. So thank you very much to all the investors for submitting those. If I may, perhaps, Alex, just hand over to you just to read out those questions where appropriate to do so, and I'll pick up from you at the end?

Yes. I'm just going to -- Jaz, if you can see if you can like combine some of the questions. I see a lot of them. I'll just pick out a couple here that I can immediately answer. I will not be able to -- [ Shahin A ] I guess, is asking about our studio in Belgrade and what we have there, what kind of offices. And I can use that just to talk about our geographical spread right now.

So we have 3 main locations in Europe. We have Belgrade, where we have several studios, some of our publishing teams. We have Studio Riga that was responsible for Duckside, Vision Sim and Hello Engineer, and now they're working on a really exciting project. So they're in Riga, Latvia. And we also have a couple of other people there. And we have Studio Netherlands, which has, again, some development, mostly for Hello Neighbor 3 and some publishing.

Now the reason it's spread out what seems like without any logic is because a lot of the people relocated 4 years ago when Russia invaded Ukraine. So we were essentially locked by people's ability to travel. A lot of people were able to travel to Serbia, but couldn't go to the European Union. So that is why we founded a location there. Right now, it is working out quite well for us because people can essentially move between locations and they do, depending on their lifestyle and choice of preference.

What I will say is that Belgrade is a really nice city. In all 3 locations, the goal was to have offices in the center to make it a walking distance to wherever you live, and we incentivize that. I really like the European style of offices where you can just walk around. Now that is the publishing. Our studios are in -- also in other locations across the U.S. and Europe. That's it.

Jaz, did you have a moment to review the questions? I see a lot of overlap here.

Yes, yes. There are a bunch of questions on Kingmakers, and we might as well address the elephant in the room. In terms of Kingmakers, we're not going to discuss the state of advancement of the date of release. For every game, not just for Kingmakers, we try and meet the best we can based on expectations. Of course, if expectations blow out o f-- way beyond what we were planning for, we have to adapt, and that's what is happening with that.

We will share news when we have them on all games, including Kingmakers.

There's one question on Kingmakers, which is worth addressing, which is if Kingmaker is released until financial year 2027, can you still meet market expectations for 2026? And yes, Kingmakers was planned for 2025, and we still met and surpassed market expectations based on that. So we are not working. Our forecasting is not based on a single game carrying the whole company. It's based, as Alex was saying earlier, on a portfolio, and that's really what is allowing us to generate growth right now.

I see another question about Kingmakers, if it's co-op or P2P, if it's going to be coop. We do confirm that.

I see an interesting question from Edward G regarding SAND. It's actually a logical question. So SAND had 5,000 playtesters during its last public play test. And Edward is asking about if we should do a server slam like ARC Raiders did, et cetera. Yes, that is actually happening. It's just that it's happening behind closed doors. So you don't see it publicly. But remember that the game has been announced for PlayStation as well. So you can kind of like infer on what is happening there.

I'm just walking through the questions.

Yes. Thank you so much. We've never had this much activity in the chat.

Do you think ALL WILL FALL can be an engaging game without the water level mechanic, for example, just building on a flat plane?

There are so many city builders that have done that. You have to like have some sort of, I won't say gimmick, you have to have something that stands out. And that mechanic definitely makes the game stand out. We will see. Like once the game launches, who knows, we might go into user-generated content or something like that. It's not an announcement, just a possibility where players might be able to do that themselves.

Another question on Hozy. I played the Hozy demo and found it to be unique and enjoyable, but I share some of the criticism regarding not knowing what is in the boxes and the subsequent cluttering. Do you plan to add some quality of life features before release, something like icons on the boxes to give some information on what is there in store outside the room?

Happy you played it. And yes, the team is working on that right now. We received a lot of feedback during the playtest and the demo. All of it is being taken into consideration.

Another one from Shahin is about can you talk about the nearly 200 employees, how are they distributed across publishing, marketing, HR, game development and are third-party studios counted in. So this is stuff, tinyBuild stuff. So it does not include third-party studios. The split is -- this is mostly about game development. We have a large publishing team. We could probably carry more game at a push, but the rest of the structure, HR finance is really small.

Yes, just on a structural level, this is what I -- sorry, Jaz. I'm just excited talking about that because a few years ago, we noticed that we were slowing down internally in terms of decision-making because when you grow, you have like layers of management on top of each other. And I really don't like that. I want to have smart people on the team that are able to make decisions independently. And that's how we structure it. So we have about 70 people in publishing and the rest are mostly on development with a support layer of HR finance that are doing a lot of work for the amount of people that we have there.

Does the release of GTA 6 in Q4 mean that we cannot release games in Q4?

Unless -- well, we'll see if it actually launches. But there is always a Q4 window when you should not be launching games. That is always due to AAA. So I mean, what will happen hypothetically this year is if it does launch, it means that some other AAA games will shift from the period where we won't launch anyway. But again, it really depends on how well the games market perceives the launch because expectations are quite high, and we all know that it's become a that this happens before GTA 6 releases. I hope it does, but we will be avoiding that launch window, and we usually do avoid it if you look at us historically.

Question about our credit facilities and cash management for working capital. How does the firm forecast cash? And what is the status of its credit facilities? So in terms of cash forecast, it gets a little bit nerdy, but we run 2 independent models, and they check on each other on weekly cash flow and a bigger model that goes out 3 years.

In terms of credit facilities, we do not have any credit facilities right now. We have a minimum, absolutely minimum use of credit cards. And how we manage cash is we tend to forecast for the worst case. So our forecast and market guidance, as you've seen, tend to be on the conservative side has been so since I arrived as a CFO, and we continue to work on the same assumptions. Games can -- of course, our expectations for games is that we invest in are very high. But when we forecast for cash, we have to take a much more conservative view.

Another question, is tinyBuild considering a sale of certain back-catalog games to generate funds or perhaps return capital to shareholders? I can take that?

Yes. Continue.

So we have sold very small IPs back in 2024 when just after the capital increase, it was appropriate. We are not looking actively at selling any franchise, any catalog title. If we were approached at a very interesting price, definitely, we would consider that. But what Alex said about building a franchise for the long term, when you own the IP, you really keep working that franchise, and that's what we're doing. We're doing that with Hello Neighbor, but we're doing that with other titles as well. You see the sequel of SpeedRunners, you see the sequel of Streets of Rogue and so on and so forth. The more announcement to come on other big franchises we have in the portfolio. So for now, we have no active desire to sell anything in the catalog.

What are the drivers of growth in general admin expenses from $7.1 million in the first half of 2025 to $8.8 million in the second half, excluding trade receivable release? It's mostly timing. There is nothing else than that. In 2024, we also went very, very tight on costs. Some of that has to come back and came back in the second half of 2025.

How does tinyBuild valuation compared to peers? So I'm going to take that. As management, we don't like to speak about valuation. We'd rather the market do that. But I can tell you what I read from analysts. We are currently trading on the lowest multiples, both in terms of EV sales and EBITDA. Why? I think it's still a legacy of the financial problems we had 2 years ago. We have raised capital. We have demonstrated now for 2 years that we can manage a tight ship in an uneasy market, and we have the best pipeline ever. So I'll let you draw the conclusions in terms of where we think valuation should go.

Another question. What is the reason for the decline in gross margins in the second half despite higher revenues and the success of The King is Watching? So gross margins are impacted by royalties and by other small factors. The mix of the portfolio is what really drives the variance there, nothing structural.

Another question. Will you implement the formal capital allocation policy so investors can get confidence in how cash will be allocated once larger budget games are launched? Yes. Capital allocation is already something we're doing very formally internally. I think you're looking for an explicit guidance. We're looking at everything. If we were -- let's run a scenario. If we were to hit big with any of the game in our pipeline, we would consider everything from signing new titles, of course, because we are a growth company, all the way down to share buyback.

It's not something we have been putting as top priorities in the past few years because we were adjusting, we are rightsizing the business, and we were making sure that we were building that big pipeline. But if we had excess cash, everything all the way down to share buyback will be considered very carefully.

Another question. How will you generate ongoing revenues and ensure ongoing players progression beyond the first few weeks for SAND, Raiders of Sophie?

That's a great question. And I can see there is some other questions regarding the game feature sets, et cetera. So during the playtest that this person probably played, there was essentially accelerated progression and not all of the content was in the game. We do believe that it is primarily a PVP, player versus player experience. And one of the reasons we've been doing so many public play tests is to make sure that players understand that. that there's going to be a small PVE component, but it's not the focus of the game. Because what we found during playtesting is that what the team is very good at is player versus player interaction.

And as a reminder, the team previously did a game called Secret Neighbor, which was one of our top sellers. It was the multiplayer spin-off of Hello Neighbor. So they know what they're doing. I fully trust them. And I play the game twice a week, every Tuesday and every Thursday, seeing a lot of progress. So I'm actually like scheduled to play it right after this call.

Will you be releasing a demo for Kingmakers or at least a single public playtest?

We will talk about this marketing campaign when it's the right time for that specific one. So we can't like spoil our marketing plans in investor meetings. I did that before, and it's not the right move.

Graveyard Keeper has a proven fan base and strong brand recognition. What's the strategy for monetizing that IP further? Could you develop a multiplayer open world version?

Multiplayer, I'm not sure. But let's just say, we are very excited about Graveyard Keeper. Same thing as was the previous question. I can't talk about our marketing plans, sorry.

Another question more directly. Any share repurchase expected this year? Again, depending on cash, excess cash could well be used in that direction.

Okay. Some of the concerns on SAND are lack of PVE content, nothing...

We can't address that, sorry.

Sorry, apologies.

Yes.

Do you believe you will maintain sufficient cash buffer even if key games slip? Yes, that's basically the core of my job is making sure that we have enough resources to keep investing in games even if we stumble on a game. And it's happened. Last year, we delayed SAND and Kingmakers. And you've all seen FEROCIOUS, which was highly expected, didn't perform as well. And still, we delivered ahead of expectations. So I'm pretty confident that we are forecasting conservatively.

Are there any other title experiencing delays?

Well, I mean, you have a delay only if you announce a launch date, right? So games are a very unpredictable medium that often requires some time. What I will say is that for some of our announced projects and including The King is Watching, which did launch last year, including DUCKSIDE, including Pigeon Sim, we have been practicing to release games really fast as in shorter development cycles are a priority for us because the market changes, teams can get tired of working on the same thing for several years.

So we use a lot of data-driven decision-making, a lot of playtesting, like I mentioned, for games like SAND to make sure that the target audience will like what they play. It doesn't make sense to release something if we have data suggesting that players are just not going to like it. I mean, was the point, the publicly available reviews on Steam, on PlayStation, on Xbox are very critical of any kind of issue.

Did I lose everyone or did we just lose Jaz?

Jaz has a disconnection momentarily, Alex.

Meanwhile, there is an interesting question about more frequent business updates. And the answer to that is maybe not necessarily doing more frequent business updates. But over the past couple of years, we've been like very deep in production of titles that we didn't spend enough effort on, I guess, corporate PR to give potential investors, players, partners an idea of what is happening. And you can already see that changing with the recent interview I did about The King is Watching. And the idea is to have more frequent stories on what we're doing, how we're doing and essentially sharing knowledge. I feel like we need to do a better job on that, and it is one of the priorities for me this year.

Okay. I just pressed something here, sorry. Okay. Jaz is having some connectivity issues. So let me just scan for more question. Could we build an MMO game like Fortnite using the Deadside engine? Now it needs a little bit of elaborating. Fortnite is a session-based multiplayer game, similar to PUBG or CounterStrike, it doesn't need a persistent world. And MMO assumes that you have a persistent world.

And this is exactly what the Deadside engine is really good at doing. It has features like a huge map, 100-plus players on that map. Each is able to build their own base on it. We have vehicles. We have enemy bots with AI. And those things seem like they're really easy to do. But once you scale it to a persistent world that needs to live on for weeks or months, we found that it's incredibly difficult to do. In fact, I've been wanting to do games like this for the past 12-ish years ever since I got into the original Day Z mods for Arma way, way back. And I just couldn't because it's really difficult.

And a result of that difficulty is that many games try to do MMO open world, persistent world and end up becoming session-based. We see this time and time again. And this is the reason for acquiring the studio, Bad Pixel, that has developed that side. And now we're seeing fruits of labor behind that decision, not just for the original game, but for other games that use the same technology.

And I guess final question here. Was this analyst call recorded? Will it be accessible? And I guess the answer to that is yes.

Meeting is recorded. On that note, Alex, thank you and Jaz for taking all those questions from investors. Thanks to the investors for so many questions today. That's brilliant. The company review all the questions that submitted. If there's any others that we can put responses to, well, of course, publish those back to you. Just before redirecting investors to provide you with their feedback, which is particularly important to you and the team, Alex, if I could just ask you for a few closing comments, please.

I mean it's -- a lot of people, at least for my generation, want to make games because they think it's easy and a fun job. It is a fun job. It's not easy. And it's one of those things that I'm not going to do anything else in life. I have hobbies, but my work is video games, and I love video games. Not going anywhere. We're going to persist here and I'm really excited about the progress over the last couple of years and the work that the team has done. So hopefully, you guys stick around with us for the journey.

Fantastic. Alex, Jaz, thanks indeed for updating investors today. Can I please ask investors not to close this session? You should be automatically redirected to provide your feedback in order for the team can better understand your views and expectations. It will only take a few moments to complete and it's greatly valued by the company.

On behalf of the management team of tinyBuild, Inc., we'd like to thank you for attending today's presentation. That concludes today's session, and good afternoon to you all.

Thanks, everyone. Thank you.

Good afternoon, and welcome to the tinyBuild's Half Year Results Investor Presentation. [Operator Instructions] Before we begin, I would like to submit the following poll. And I would now like to hand you over to the management team of tinyBuild. Alex, good afternoon.

Good afternoon, and thanks, everyone, for joining for our H1 2025 results. We're going to dive straight in here with a disclaimer that I'm sure everyone has read. And presenting today is myself and Jaz. A couple of words about myself. I've been in the industry for over 20 years, have been in games nonstop ever since I dropped out of high school, which is for another day of a story. But I've been a journalist, a marketing specialist and a producer on many different titles in different industries. And for the past, depending on how you count 14 years, I have been the CEO and founder of tinyBuild. Jaz, do you want to say a few words about yourself?

Sure. I'm the CFO. I've been working in finance for over 20 years before joining tinyBuild in 2021, just before the IPO. And I was appointed as CFO 2 years and a little bit ago.

So today, we will go through the operational review, then we'll take a deep dive into finances and talk about strategy. And we do have a lot of questions. So hopefully, we will have a very fruitful Q&A. With that said, the way to summarize the operational review is that we are back in the game. Jaz has been in his position for the last couple of years. And to say that the last couple of years have been challenging is an understatement. But we believe that we are on the right track right now because we're seeing that our strategy is paying off. Specifically, our strategy to own intellectual property and have the control and flexibility to be able to scale those IPs into franchises is paying off.

And it is showing not only on new releases, but also on our back catalog, which we'll take a deeper dive into. We also have possibly the strongest -- well, objectively the strongest pipeline ever in the company's history because we currently have 4 titles sitting in the Steam 100 most wishlisted chart. If you are unfamiliar with this, just Google for Steam top wishlist, and it gives you a chart of the most wishlisted titles on the platform, which is the biggest PC game distribution platform in the world.

And the wishlist is essentially when someone goes to a game page wishlist, press the little wishlist button, and they express interest in the game, which means that they will be following it for news and updates, and they will also be notified when the game launches. Now we've also been very focused on cost management and data-driven capital allocation.

So Steam as a platform and the consoles as well have been evolving over the years to give us as developers and publishers, more tools to engage with our audiences and gather data, data on what players like and what they don't like. We're able to test our games really early on and allocate capital based on what works, and it also allows us to fix whatever doesn't work. So it has been an incredibly data-driven journey for the past couple of years. And within the current game industry climate, focus on cash generation is key for us. Cash is king, we all know that.

Just a few highlights here. We have had a really interesting first half of the year with mostly back catalog releases. You can see that 100% of our revenues is attributed to back catalog. We currently have over 90 games in our portfolio. We have generated close to $7 million, $6.8 million cash from operations, and most of our revenue still comes from our own intellectual property. And to illustrate that, we can see this chart over here on the right-hand side, 85% of our revenue comes from our own IP, which means that we have a degree of control and flexibility when we do find something that is successful.

And for context, a new IP being successful is extremely more difficult than expanding an already popular intellectual property. And if we take a look at the left-hand side here, we see that the revenue concentration has actually gone up in terms of titles in the first half year of 2025, and that is mostly due to the runaway success of our console launch of the game debt side. I will touch upon that in the strategic review with the case study a little bit later, but it just shows that a 5-year-old game can deliver very meaningful revenues with continued support.

Now before anyone wonders why there is no great chart, this is because of our definition of a newly launched title. A newly launched title is something that has launched in this calendar year for the first time commercially. So if anything launched in the previous years into early access or on one platform, that will be considered back catalog by our definition. So for the full year results, we expect to see a similar revenue mix as in the previous years because we have some new launches coming in the second half of the year that are defined as new launches. But this really shows everyone how the work on back catalog, which is easy to not focus on or think that it's irrelevant is actually playing out.

We have revenue growth despite not launching any new title with a few exceptions in the first half of the year. And with games like Deadside coming to consoles with Drill Core coming to 1.0 and more platforms, it is a really healthy back catalog that is the backbone of the business. And with that, let's dive into the financials before we talk about strategy.

Hello. Just to start, I'd like to share with everybody. Last time after the presentation, I got the feedback from some investors that I was looking excessively serious, possibly sad. And I'm very pleased to wear a full genuine smile today on this good set of numbers. Starting with net game revenues on the left-hand side, we see for the first time in 2 years, a pickup in revenues from H2 2024 to H1 2025. This is primarily driven by the success of Deadside launched on console, but also from a strong performance across the whole back catalog.

As the share of own IP revenues increased, so increased the flow-through, so higher gross margins, and that is the primary reason for the big jump in adjusted EBITDA. It's very difficult. We will be able to maintain the same level of gross margins going forward. But the second reason for the big jump in EBITDA is also a strong cost control. H1 2025 is the first 6 months in which we see the full effect of the cost initiative management put in place starting from the end of 2023 and Q1 2024. Q1 2024 and H1 2024 still had a bunch of one-off costs related to redundancies. So this is the first time we see a clean 6 months -- first 6 months of the year with a new cost base.

Right here, right now, we believe we have the right cost base. We are in no rush to increase or decrease to touch anything. We think we have rightsized the business for the current opportunities. On the right-hand side, software development declined again in the first half of the year. That's mostly timing. Again, we think we have achieved the right size in terms of investments as well. So if you do the average between H2 2024 and H1 2025, you have roughly where we want to be going forward in terms of investments in new titles.

Drilling a little deeper into the profit and loss. If we just look at the breakdown of revenues here in the table, the first 2 lines show a very interesting trend. We have presented platform deals as the main problem we had on revenues for the past couple of years. And here, again, platform deals, the second line under development services declined 93%.

Well, the good news is that they're now close to 0 at $100,000. So we don't expect any further weight on revenues going forward. And the even better news is that based on that, if you just look at game revenues growing 10% and events revenues growing 27%, the underlying growth -- revenue growth we are seeing is double digit.

Moving from revenues to 2 big decline, cost of sales and admin expenses. In cost of sales, you have, first and foremost, as I mentioned, the positive impact of a more favorable revenue mix. So higher share of own IP means higher flow-through of revenues. And also at the margin as a lower amount of amortization of debt expenses. In admin expenses from $10.6 million to $7.3 million, you have the full impact of our cost savings. And as I mentioned, the current cost base is the one we think is appropriate for the business.

Going down to the adjustment to get to adjusted EBITDA. Impairments were also reduced from $3 million to $1 million. In the $1 million, there is mostly an adjustment to the value of Level 0 extraction. Again, we launched to strong success the first few days, but that failed to achieve a longer-term success after that minimal contribution again for share-based expenses. And in the other, you find the one-off positive contribution from a legal settlement, which resulted in a reduction in owed royalties.

All in all, we achieved an EBITDA of $4.2 million for the year. How we get to that number from revenues all the way down to EBITDA, I want to flag here that H1 was particularly low in terms of marketing costs due to the low number of new releases. Only one new title was launched in H1. And also in the second half of the year, we will have alongside new launches, an increase in amortization of debt investments. That, combined with what I mentioned earlier about the revenue mix points at a lower margin for the second half of the year.

In terms of cash flow, what I want to call out here is cash flow from operations increasing from $2 million to $6.9 million. Most of the delta is explained by what flows through via the P&L. But I also want to comment on net working capital. There is still a $3 million drag on net working capital. We believe we have now achieved a much more reasonable level in terms of net working capital, and we expect a smaller weight from that side going forward. Investment in software development decreased 28% from $8.7 million to $6.2 million. But as I mentioned, that is mostly timing.

A little bit more on investment in development, 6.2 million in the first half of the year. Here, you see the progression, the peak in 2022 and how we adjusted that to the current level. And on the right-hand side, you see the breakdown by project. We still have a large number of projects we are working on announced and unannounced, and we're also working on some back-catalog titles. No project is too big compared to the others, and we have over 5 projects with an annual spend of over $0.5 million.

In terms of balance sheet, we've already talked about the net working capital delta. So let's go straight to the net cash position. From December 2024, $3.1 million to the end of June 2025, $4.6 million. Our cash position has improved. There is a little bit of seasonality in there. December cash balance is always slightly underestimated due to the amount of revenues which are booked in Q4 for the Christmas season and with the cash received in January and February, but still a very solid number, and we remain deadly focused on cash and cash generation.

Here is the cash utilization bridge from $3.1 million at the end of last year, at $8.6 million in terms of cash profit, take away $3 million net working capital drag software development of $6.2 million. And M&A is the disposal of Red Cerberus, our QA business in Brazil. With that, over to you, Alex, for the strategic review.

Thank you so much, Jaz. Just a couple of words on our 5-year plan. We always share this slide and one of the things that I believe is important is to be consistent. So one of the things that I'm really excited about, and we've been talking about this since we went public in 2021 is cross-media. And in video games, it's actually much easier to have a video game come out that's a new IP that suddenly reaches millions upon millions of players. And this is very different from other media formats, I think television or movies, cinema, et cetera, because those industries are much more gated.

So we believe that we are in a unique position to leverage successful video game IP and take that to cross media. And this has always been the plan. And if you want some verification for this, just search for Hello Neighbor cartoon. It's an animated show that we have been working on. We have 2 seasons out on YouTube. And the third season is coming up.

We're also working on a movie for Hello Neighbor, our prime IP and the movie for Kingmakers that has been announced last year with Story Kitchen, the same production company responsible for the original Sonic movie that kind of shifted the whole trend of the new game adaptations into a positive trend. So we are excited about our 5-year plan, and we are sticking to it.

Now let's talk about a short case study for a game called The King is Watching. If you follow me on social media, you know that this has been our top 1 game release in terms of concurrent players. So whenever a game launches in the first few days, it usually has its peak of concurrent players. And this is our highest peak of CCUs or concurrent players that we have ever seen. And it's also our top 3 launch on Steam overall if we look at about 2 months launch window.

Now it is a new IP. It is a Roguelite Kingdom Builder. And if you really like Roguelite games, I highly encourage you to try it. One of the things that is really exciting about this game is that it has a relatively small budget. It had a short development cycle of under 18 months from start to finish. And it is a testament to our strategy of internal team structure. So what we do internally is we have these groups of producers that work independently of one another, and we empower them and encourage them to make quick decisions.

There is a long post on social media and on our website, I believe, about a case study that dives deeper into this. But long story short, we play tested this game about a year into development, identified a lot of issues, fixed them based on player feedback and the direct result of that is the current launch success. And now we have learned over the years, like I mentioned before, that when you have a successful IP, it's very important to have a plan going forward to continuously expand upon that IP to add updates and reengage players. And we are sure doing that.

Really happy with the team, and this is really a demonstration of not just our marketing capability, but our team culture because I like being surprised when something goes really well within our teams, and I find out about it, and it's a really pleasant thing, and I'm not the bottleneck, right? So we are very decentralized at that in that regard. Now let's talk about the elephant in the room, Kingmakers. Last year, we announced it to insane virality across all platforms. So we got tens of millions of views on our announcement trailer. And what's important to keep in mind here is that we have announced it with a trailer that showed a lot of technology that players have never seen before.

And it's one of those situations when the technology investment of over 4 years pays off just from the first frame from the first short video and players immediately engage with it. So right now, the game is top 9 on the Steam wishlist. We are working really hard with the development team to make sure that whatever we release meets and hopefully exceeds player expectations, and that is not an easy task. So the technology play here has paid off. We're working really hard and the pressure that we have from the amount of wishlist is really hard, really big, really real.

And we are going to do everything we can to launch it at the right time with the right content within the launch build. Now talking about technology, one of the things that we have talked about previously, and it's difficult to quantify before you see results is Deadside. So Deadside is developed by Bad Pixel Studios. We have acquired them in 2021. And the game was an early access on Steam for 5 years. The thing is the genre is a massive multiplayer or an MMO survival shooter. And there are not that many games like that because from a technology standpoint, they are extremely difficult to develop.

Most people will assume that a game will work at 20 players per server in terms of a multiplayer game and that it will be easy to scale it to 50 or 70 players on a large map with a lot of interactable objects, et cetera. It's not. So the hypothesis we had last year was, okay, this technology is very unique. It's very difficult to develop. So let's see if we can make a spin-off from it. So last year, we launched Duckside, which was in development for less than a year, leveraging the technology of Deadside, and it was a commercial success.

So now with 2 games based on the same engine, we took a look and identified a couple of pieces that we're missing in this puzzle to scale it even further. One was modding support. So modding, also known as modifications is when a game allows itself to insert user-generated content. So think different game rules, different maps, the ability to modify variables in the game, et cetera. And this moding support has been released about 6 weeks ago for Duckside.

We already have about 200 modifications for the game live. And about half of the audience on Deadside right now spends their time within the game on modified servers, not on what we designed, on what the users design. And that's a really good sign because the community gets really engaged, is really creative. So we are excited on continuing to developing that. Now the other piece that is missing from the Deadside engine is procedural map generation. In these kind of games, you have a huge open world and this open world is well filled by us as developers, designers, level designers, et cetera. And that takes a lot of time.

And what we wanted to do is make it so that the game is procedural. So we have an algorithm that builds out unique experiences for gamers whenever they launch the game. It's called a wipe in this game genre. So people will play a game for a week, 2 weeks or a month. And then the game resets and then you have a completely new map, which we don't have yet. We are working on it. We are making great progress and are excited to launch it. And this is -- unlike the whole Neighbor franchise, it is more of a technology play when you share technology between studios that is unique to our company and then are able to scale it into something bigger.

A few words about the pipeline. We already talked about the 4 titles that are in the top 100 chart. And I've already seen some questions about Hozy. So I will highlight that because Hozy at #4 here is one of those titles that we have identified a clear niche. We know exactly who the players are. We know how to target them, and we know that they're getting really excited about the game. So acute observers will have noticed that the game is climbing the top wishlist charts at a very steady pace.

And since right now, it is after 4:00 p.m., we have just announced game #11 called The Lift. The announcement came out just over an hour ago. It's a game developed by our internal studio called Fantastic Signals. I encourage everyone to check out the trailer for it. And there will be a lot of let's play videos because the way that we're shifting our marketing is we really want players to play our titles. So we just announced a game that is actually immediately playable. So people watch the trailer, go like, okay, well, I may like it, oh, you can actually play it right now.

So people will make their own determinations on if they like it or not, not just based on the trailer marketing material, but on their own experience, which is really exciting for me. Now let's talk about multimedia a little bit more. So our Hello Neighbor tree here continues to grow. As a reminder, we have several million books sold based on the Hello Neighbor series. We have 2 seasons of our anime series live on YouTube right now with Season 3 coming up soon. And we have the movie in ongoing production. I can't share that many details. But what I can say is that the script is done. The script is really good, and it's written by one of the writers of the Five Nights at Freddy's movie.

And Hello Neighbor 3 is an active development with plenty of development logs by the original creator of the franchise. And this is what I mean when I say that when we own IP and have infrastructure to be able to continuously develop it, we can have the original creators be involved in the original game. And then sometime later after taking a break and having some inspiration, come back for one of the sequels. And this creates this ecosystem where we're able to unlock value over -- well, over a decade, to be frank, because the original, Hello Neighbor was announced way back in 2016, which is almost 10 years ago.

Now closing remarks before we go off into Q&A. I still believe in our core strategy, which is we're a global developer and publisher. We focus on intellectual property and unlocking value of that IP through scaling it through -- by becoming franchises. And now it's not just about the law, the story, et cetera, it's also about technology because if we have unique technology internally, we're able to scale it into franchises across multiple games and then across multiple media formats when those games become successful.

So our outlook, the Board remains confident that the company has adopted the right strategy and that we are on track to deliver results within expectations. And with that, let's dive into Q&A. I know that we have quite a few questions here. Jaz, I uploaded some that I've seen submitted that we can talk about. And I also see that we have quite a few new ones that were submitted during this presentation. So how shall we go about it?

So I'm happy to ask you some questions, and we can start with the launch and marketing strategy. I grouped the ones we have received before the call, and then we go through the new ones in turns. So starting with Kingmakers, what is the new launch strategy for Kingmakers, Sand and Streets of Rogue 2?

Okay. Well, those are actually very different titles, right? So for Kingmakers, it is important to live up to the expectations of the original fantasy that we set out for the announcement trailer. And with games that are more sandboxes, it is going to be super important to give players the tools to express themselves and to make sure that it feels quite unique.

One of the things that we've been emphasizing on with Kingmakers is that it is going to be a co-op game quite some time into development when we tested the game in multiplayer, we realized that it is so much more fun. So it is going to be a multiplayer shooter action strategy, RTS game. That's a mouthful, but I'm really excited about that one.

Now with Sand, and I'm actually going to merge this with another question that we had submitted. So Sand is a very unique case. It's a player versus player long session-based game, where players build these giant walkers, we call them tramplers to walk across a desert planet of Sophie, gather a root and if they're lucky, evacuate or extract onto the orbit, sell that route, make their trampler even better and then the cycle continues. When we were play testing that one, we have been noticing that the game appeals to a very wide audience of both PvP and PvE players.

So the question that was submitted here, and I love product-related questions, please submit them, is that we had some backlash when we announced a game mode that is -- players refer to it as a closing store mechanic. Essentially, in our early play test, we had a wide open world with no concrete goal where players would just scatter around wherever they want it. But we saw that when you gather players together in a more compliant area over time, then it becomes much more fun.

So when we play tested that, we made the announcement that we're going to do this game mode, players were built. And when we got those players, especially the louder voices into a closed play session of this game mode, the sentiment internally within our communities actually turned to more positive. So we're actually excited about that. But the key with Sand is going to be to launch it not just on PC, but also on console because the game has this really great rhythm when you have a phase of relaxation when you're exploring the world and then a really intense phase of either PvE player versus environment or PvP player versus player interactions. And that is when your hands start to sweat.

And it also plays really well on a controller. So with sound, we're making sure that the game launches as a full 1.0 release on PC and at least one console. It is a monumental technical challenge that we're going to -- well, we are working on overcoming. And Streets of Rogue 2 is a completely different beast because it is a sequel to one of our most beloved games.

And when we announced it and did some play tests, both public and internal, we noticed that players just need a lot more content because the original spend half a decade in early access and continued development and the sequel did not spend that much time in development. So the sequel needs to meet those expectations, which is why we are taking the time. Jaz, hopefully, that answered that question.

Yes. The second question is, will you avoid clashes with other major releases?

The short answer is yes. We're not seeing a trend where especially AAA companies will do shortened marketing cycles. A few months before the launch, they just go like, "Hey, we're going to launch in a few months. Here's also a beta and here's all of our marketing needs." And we like to have the flexibility to choose a date that makes sense for the product based on ever-evolving market conditions.

Another one on Kingmakers. Will Kingmakers ship with a demo -- with a public demo?

To be determined.

How will you position early access versus 1.0 marketing?

Just one second, I need to...

I'm quite happy I have cat rather than 2 dogs.

I'm so sorry, apparently a field mouse went into my office here and my dogs tried to kill it. The mouse is still live. If anyone was wondering, it ran back out. I'm so sorry about it. Now let's get back to the Q&A.

So the question was, how will you position early access versus 1.0 marketing?

There was really not that much difference. With 1.0, you're kind of saying that, hey, here's the final product and maybe there are going to be ongoing updates. When you release an early access game, then you're essentially promising a full development cycle. So you need to manage expectations on that development cycle, and that's how you position the marketing. So it's a full promise delivered on day 1 with 1.0 versus a long-term promise with early access.

And how should we interpret changes in Steam wishlist rankings?

Well, whenever a game is steadily growing in the Steam wishlist rankings, that is a very good sign. If a game is stagnating or losing positions, that's not a very good sign.

Yes. For the record, users can wishlist, also unwishlist the game. So you can actually go backward in the rank. Second bunch of questions is on platform and porting strategy. Will consoles be supported before 1.0 where possible?

Well, the short answer is yes.

What's in-house versus external for porting and at what cost?

Right. So porting is a very interesting one. Most of our internal studios do have internal porting capacity. But what we do is we will still outsource the bulk of the work and then bring it in-house. Porting is -- it can be a very significant expense. So we decide on a case-by-case basis when it makes sense for what type of game. And the main thing is for it to not distract the team from delivering a good product. So however that shapes up, if it's an external studio that doesn't have capability, it needs to benefit the product, first and foremost.

New question on back catalog. Do you see other avenues to further monetize the back catalog?

Yes. And that is bringing it to more platforms, which really well coincides with the previous question on porting. So bringing games to more platforms, continuously updating them, bringing out new DLC, new free pieces of content to reengage the existing audience. All of those things help our back catalog, which is why there is a lot of work being done.

What does the post-2026 pipeline look like?

We do have games that are in production slated for that time line. I will caveat that, that we are leaning towards more shorter development cycles, and that has shown to be fruitful for us. So it's kind of like asking predicting the future. I wish I could I really can't. We don't know what the trends are going to be, but we have a hypothesis on where the industry is headed.

What's the status of the Kingmaker and the Hello Neighbor films?

So I can't comment on where the Kingmakers movie is. What I will say is, like I said in the presentation, the Hello Neighbor movie script is done, and it is being produced by our friends at Boulderlight Pictures. They are a movie production company famous for movies like Barbarian and more recently, Weapons. If you haven't seen Weapons, please check it out. It just came out on streaming a couple of days ago.

Next is on localization. Has your approach evolved on localization?

Yes. We have been adding more and more languages, and we have been hiring community managers for specific local markets to not just localize text in games, but also marketing material and social media posts, which has been helping us with local presence. We have also been alongside localization, working on localized marketing campaigns for games that we believe are relevant to specific regions.

And the last one of the pre-submitted questions for you is about the terms of the publisher deal. Have they changed in recent years?

Well, publishing deals, they are always evolving because the industry is evolving. So are they changing? Yes, in an evolutionary basis.

Okay. I'll take a couple of questions on accounting. The first one is straightforward. How do we amortize the capitalized development cost?

We amortize that over 3 years, starting on the date of launch of the game, and we amortize them over 3 years, 40%, 35% and 25% per annum.

Next one is on revenues. Are the revenues reported gross or net of platform fees, they are net of platform fees?

So it's the money we actually receive from the platforms after they've taken the cut.

Now a couple of questions on capital allocation and similar. Will you cancel treasury shares to offset dilution?

There are advantages in the EBT we have set up. So we have set up this EBT, this trust for employee benefit, which sits offshore where the treasury shares are sitting. Canceling the treasury shares is a possibility that we have considered, we will consider. But at the same time, these are shares which can be used to reduce dilution on future equity awards. So net-net, the benefit could be higher in keeping them as they are for now.

Second related question, how will you align executive pay with share performance?

Well, mostly when it comes to Alex, he's the largest shareholder. Alex, maybe I should let you answer this question when it comes to myself.

Right. Well, so for myself, obviously, I'm [indiscernible]. I led the capital raise that we did over a year ago. For key employees, it's all about long-term recognition and compensation when it comes to the share price. So our executive team, our production team, our key people, we have a plan that directly rewards share performance in terms of stock awards. And I essentially want everyone's incentives to be aligned with my own.

Next is what's your plan to increase institutional ownership?

Well, the plan is to deliver strong results. There is no better way to attract institutional investors than to beat consensus to see the market cap growing and to start getting everybody's interest. There is then a more commercial aspect to it, which is working with our nominated adviser, Zeus, to make sure that we have a good road show and everything else. We have worked with Zeus for many years now, and we are fully confident they can do a great job at that.

Another question, why a small buyback now before major launches? Why not a small buyback now before major launches?

Well, right now, we have a strong cash position, but we also have a number of investment opportunities. We continue to consider all options for capital allocation. And should we have excess cash, should we not have any interesting investment opportunities, we would definitely go down the buyback route alongside others. For now, we see some uncertainty in the second half. And as I said, some good utilization of cash in the operations.

When and how will excess cash be returned to shareholders?

A similar question or similar answer to the previous one. When we will dry up in terms of opportunities, we will start returning cash to shareholders. What we have now is the best pipeline ever, the strongest console launch in H1 with Duckside, a top 3 launch in the second half already with The King is Watching. So I think the -- we are seeing proof that the strategy is working, and it's a good time to put more money into these interesting opportunities.

We can jump to the questions -- to the new questions online, which I can't see right now. Alex, can you see them?

Yes, I can see that people are saying that they're happy, you look happy, Jaz.

Jaz on the right-hand side, can you see a blue button that reads...

Can you share the current wishlist figure for Kingmakers or a sense of expected sales around launch?

So I can take this one if you want. The public numbers we have seen for wishlist on Kingmakers is over 1 million. We don't disclose the exact numbers for commercial reasons.

The next one is, what are the time lines for Hello Neighbor and Kingmaker movies?

We have taken that. You say that 1,000-hour game model is preferable. I note that the sector-leading peers, [ ever play ], mentioned that for indie games, players prefer they not to be too difficult and to finish in a reasonable time frame. I was interested in your comments.

I will disagree with that respectfully because we are really, as an industry, competing for people's time. It's not just with video games, it's also with Netflix or any other streaming service [indiscernible] So the more time people spend in your games, the more players you're going to reach because of virality and the more long-term revenues you're going to generate. This is a debate that we have constantly going on internally.

So for example, The King is Watching initially, it wasn't designed as a highly replayable game. And then during the play tests, we have seen that players really loved the replayability of it and wanted more of it. And I believe that contributed to its success. So designing games for time spent, I believe, is the way, at least in our segment. What I don't want to do is spend weeks, months of time on a feature in a game or on some sort of cut scene or piece of content that players experience only once because then it becomes the realm of diminishing returns as you have to continuously develop more for a possibly shrinking audience.

Considering the variety for Kingmakers, are there any discussions regarding M&A of road redemption games or broader discussion regarding continued partnership?

We do have discussions on how to make sure that the partnership is long term and to meet the expectations set by Kingmakers. We don't comment on M&A discussions or opportunities.

Would you consider uplisting from the AIMX segment of the LSE to enable greater access to the stock for international shareholders?

I can take that. With regards to where we're listed on AIM, it's a good market for us for the current market cap for even a larger market cap. So no reason to change that. We have considered in the past, and we will consider in the future if it's possible, if it's appropriate to list on other exchanges alongside AIM, but very happy on AIM as we stand.

Is AI helping both from a cost perspective in the business generally and also in speed of game development and rectifying various issues with games from a technical playing perspective?

Okay. On the latter part of the question, rectifying technical issues, no, it's not there yet. Where AI does help on a day-to-day basis is in admin of the business. It helps speed a lot of things up when it comes to documents, contracts, e-mail, et cetera. It does help on the game development process for inspiration. If, let's say, 2 or 3, 4 years ago, it took you days, if not weeks, to get some renders up for -- just to see how a game might look. Right now, you can get inspiration in, well, minutes and you can iterate through -- cycle through a lot of inspiration for your game.

In terms of AI as a core development tool, I believe we are maybe 18 months away from that actually happening. A lot of people do want it to happen and are excited about the tools that we have. It's just that it's not there yet. And the whole chat-based image generation bubble is a bubble. We need a few of these tools to become more mature businesses that actually make money that then we can use in a consistent way and in a way that makes sense for our core development of video games.

Can you comment on Kingmakers release date and price level? And for the other top 100 wishlist on Steam titles you mentioned, can you give more color again on the release date?

We are not going to comment directly on the release dates of these games because there are a lot of factors that come in, in real time. I already mentioned Battlefield 6, somebody saying that they're launching in October. So we are evaluating what's right for each and every title considering where it is in development, what the calendar looks like and when it is the best time to launch those titles.

Also on the price point, I did comment on this in our previous analyst calls. We are seeing a lot of pressure on consumers. So we are very sensitive towards pricing. We've seen a lot of titles launch at a very high price point that disappoint players. So we really don't want to disappoint players.

Okay. For Sand, would you consider changing to a game mode where you increase the environmental PvE difficulty over time? After 90 minutes or so, the difficulty should be so high that even cruise with legendary gear struggle to survive versus PvE?

Well, that's a thing about Sand. PvE, you can spend a lot of time on it and it becomes boring and generic. What we're seeing in our play test is that the PvP aspect of it is very, very unique. There is no other game out there that allows you to build your own custom huge chip, walking trampler that then dictates your strategy of how you approach enemies. We have seen some cursing matches in voice chat when play testing because the situations are so tense and so unique.

So what we want to make sure is that those highlights are indeed the highlights of a potential players full week that they'll be talking about how they interacted with other players. But it's also about the comeback situation when you feel like you're about to lose a match. And then like last second, you grab your repair tool, you repair your generator and then you have saved yourself and you then turn around that are fixing your walker and you are the one that wins that PvP bell. Those are unique situations. That's what I personally live for. So to answer your question, probably no, not that much focus on PvE because we already see that the strongest part of the game is the occasional PvP counter.

Okay. I might take this next one. What do you see as the main factor influencing tinyBuild's current share price performance?

So it's always difficult for us to comment on the share price. But what we think is the best way for us to push the stock price up is really just stay laser-focused on the numbers. It's important to tell the story and to tell it well, but really where we see the stock moving is on numbers. A day like today, when we can deliver strong numbers is a day where uncontroversially, the stock will react positively. And that's been the case. We will continue to keep our head down.

Personally, our feeling on where the stock price sits right now is that there is still a discount for liquidity, for financial stability. So we are kind of taking that as a priority #1, focus on cash generation, increasing a little bit that cash buffer to make sure that everybody in the market understands that we are a very solid business financially and then delivering on the operations. And as Alex said many times, we now have a little bit more headroom to be extremely commercial about the size of the budget and the timing of the release.

So we have a very data-driven approach. We follow the audience in the sense that when we have a stronger and stronger and even stronger validation from the audience, we are happy to put a little bit more budget and to have a little bit more flexibility on the release date to make sure that we meet those audience expectations. And the audience, the players these days are extremely demanding. They really expect a lot from a game, and we can deliver a lot from games as we've done with that side, as we've done with Kingmakers recently. So that's what we're trying to do. There is a comment about my smile. Thank you, guys. It's still a working smile, but thank you for noticing.

Are this level of cost of sales sustainable over time?

I'll take this one as well. So cost of sales includes the royalties paid out. And I commented that, that is a function of the revenue mix. With a very high own IP share of revenues, cost of sales will be low because we keep a higher share of the revenues. But we can't predict exactly how the breakdown of game revenues will come through across the whole portfolio.

So H1 was particularly favorable in terms of revenue mix. We should not assume that, that is the standard going forward. Cost of sales will probably increase going forward. But where we have visibility is actually on admin costs on our operational cost, and that is set at the right level right now.

Another question on the price for Kingmakers, which we already answered. Is there anything that you think -- is there anything that you think as shareholders can help tinyBuild with, Alex?

Good news when those news come, right? We're all in this together, and I really appreciate the community on X that we have some meaningful discussions on, not just about tinyBuild, but in general about the industry. So please follow me on X and let's engage and talk.

Another question. Will we see any partnerships with streamers on the upcoming releases?

Yes. We have been working on developing relationships with streamers, influencers, TikTokers, you name it. And with every game launch, we have a very thoughtful plan on which influencers will attract the right audience for the right game. So yes.

Next, a question on any share dilution plan.

So we mentioned the equity awards and the desire to align all executives with equity ownership. Whether that's going to happen via a small dilution or using the EBT is to be seen. There are certain constraints we have to oblige, but it shouldn't be meaningful.

And what was the rationale for switching brokers back to Zeus from Berenberg?

Both brokers are exceptionally good. Sometimes for certain situations, one can be more nimble than the other. There is nothing wrong with Berenberg. We were very happy with Berenberg. We are very happy with us Zeus right now. And I think we answered all of the questions.

That's great, Jaz. Alex, if I may just jump back in, then thank you very much for addressing all those questions from investors today. And of course, the company can review all questions submitted today, and we'll publish those responses on the Investor Meet Company platform. But Alex, before I redirect investors to provide you with the feedback, which I know is particularly important to the company, could I just please ask you for a few closing comments?

So I think the name of the game is consistency and making sure that you follow through. So this is exactly what we've been doing for the past 4 years that we've been listed and before then. It's always keeping your eye on the ball and sticking with what you believe in because so far, our strategy is paying off. We did hit a few bumps in the road that we have overcome. And right now, I am really excited for the full year and also for the years to come. So I'm in this for the long run, and I appreciate the support from everyone here.

Fantastic, Alex, Jaz. Thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the Board can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of tinyBuild, we would like to thank you for attending today's presentation, and good afternoon to you all.