Atari Returns to Operating Profitability, Revenue Up 66% to €56M
After three consecutive years of growth, Atari achieved a significant milestone on August 3, 2026: the publisher returned to operating profitability at its historical business level for the first time in several years. This performance reflects the success of its strategy centered on video games over the past three years. This return to profitability presents a two-tier picture depending on scope: Atari's historical business (excluding acquisitions) posted a positive net result of €0.1M, while the consolidated scope, integrating Thunderful since September 2025, shows a net loss of €4.8M. This gap illustrates a growth-by-acquisition model that prioritizes long-term building over immediate consolidated profitability.
Revenue Up 66%, Driven by Games and Hardware
The group generated consolidated revenue of €56.0M in the 2025-26 fiscal year, up 66% from €33.6M in the previous fiscal year. At constant scope (excluding Thunderful), Atari achieved organic growth of 31%, from €33.6M to €44.2M. Consolidated growth is fueled by a 67.7% increase in the Games segment to €46.1M and an 82.7% increase in the Hardware segment to €7.3M, while Licensing advanced 19.8% to €2.5M.
This expansion reflects the launch of 30 titles over the year, including major titles such as Mortal Kombat: Legacy Kollection, System Shock 2: 25th Anniversary Remaster and Planet of Lana II (Thunderful). The Hardware segment benefited from the launch of new consoles, notably the Atari 2600+ PAC-MAN Edition in partnership with Bandai Namco and the Intellivision Sprint. Thunderful, consolidated since September 2025, contributed €11.8M to the year's revenue.
Return to Operating Profitability of Core Business
At the level of the historical core business (excluding Thunderful), Atari recorded a positive current operating result of €0.9M for fiscal year 2025-26, compared to a loss of €0.8M the previous year. This improvement of €1.7M marks a turning point, as the company returns to operating profitability after several years of deficit. The core business operating result stands at €3.9M (compared to −€3.9M in FY25), benefiting from the accounting recognition of a favorable acquisition of €4.4M related to the consolidation of Thunderful.
Consolidated gross margin stands at €41.8M, or 75% of revenue according to the press release, compared to 73.5% the previous fiscal year. Excluding Thunderful, Atari's gross margin came in at €32.5M, or approximately 73% of revenue. Excluding Thunderful, this improvement in current operating result illustrates the operating leverage highlighted by the company.
Strategic Acquisitions: Short-term Investment for Long-term Growth
On a consolidated basis, Atari recorded a negative current operating result of €6.7M and a net loss of €4.8M, penalized by Thunderful's operating loss of €7.6M and its net loss of €4.8M. Thunderful, acquired majority stake at 81.7% in August 2025 (stake increased to 97% in early 2026), was only consolidated for seven months of the fiscal year.
Post-closing, Atari continued its strategic expansion by acquiring Implicit Conversions (April 2026, specializing in retro game emulation) and Hipster Whale for an initial consideration of $29.3M. Operating cash flow amounted to €11.0M for the fiscal year (compared to €10.2M in FY25), confirming the group's ability to generate operating cash flow despite the burden of acquisitions.
The group announces for fiscal year 2026-27 its intention to continue its retro-focused growth strategy, with a portfolio of new games based on recognized IP and the leverage of acquired studios (Digital Eclipse, Nightdive Studios, Thunderful, Hipster Whale, Implicit Conversions). Management anticipates continued growth, with activity expected to remain stronger in the second half as in previous years.
