Street Calls of the Week
Introduction & Market Context
Thunderful Group AB (THUNDR) presented its Q2 2025 financial results on August 27, revealing significant revenue decline and continued losses as the gaming company pursues extensive restructuring efforts. The presentation highlighted a proposed 50 MSEK investment from Atari that would make the iconic gaming brand Thunderful’s majority shareholder, subject to approval at an Extraordinary General Meeting scheduled for August 28.
The company’s stock closed at 0.24 SEK before the presentation, hovering near its 52-week low of 0.15 SEK and far below its 52-week high of 1.98 SEK, reflecting investor concerns about the company’s financial health.
Quarterly Performance Highlights
Thunderful reported net revenue of 59 MSEK for Q2 2025, representing a 29% year-over-year decline. The company noted that approximately one-third of this revenue decrease was attributable to foreign exchange effects. Adjusted EBITDA fell to -23.2 MSEK, down from 2.5 MSEK in the same quarter last year.
As shown in the following financial highlights chart, the company’s performance deteriorated significantly compared to the previous year:
Despite the revenue decline, EBIT improved to -51.3 MSEK from -61.7 MSEK in Q2 2024, primarily due to fewer write-downs. The company’s investments decreased by 63% year-over-year to 20 MSEK, reflecting its more cautious financial approach.
The following chart illustrates the revenue and adjusted EBITDA trends over recent quarters, showing the consistent decline in financial performance:
Breaking down performance by segment, Publishing revenue fell 35.2% to 37.6 MSEK, while Co-Development & Services revenue decreased 14.9% to 21.3 MSEK. The Publishing segment reported an adjusted EBITDA of -23.3 MSEK, while Co-Development & Services managed a slightly positive adjusted EBITDA of 0.1 MSEK.
Restructuring and Strategic Initiatives
Thunderful has implemented significant workforce reductions as part of its restructuring efforts. By the end of Q2 2025, the company’s headcount stood at 208 full-time equivalents, representing a 36% reduction compared to the same period last year. Management indicated that additional restructuring announced after the quarter’s end will further impact headcount in Q3 2025.
The following chart demonstrates the company’s consistent headcount reduction over the past 18 months:
Cash flow from operations was negative at -27.3 MSEK for the quarter. The company’s available liquidity decreased to 32 MSEK, while net debt increased to 86 MSEK. The company drew down an additional 51.8 MSEK from its credit facility during the quarter.
After the quarter’s end, Thunderful announced additional restructuring measures affecting its development studios, publishing teams, and group operations. The company also revealed a proposed directed share issue of 50 MSEK to Atari, which would make Atari the majority shareholder with approximately 82% ownership. The deal includes Atari appointing two board members and Danske Bank extending Thunderful’s credit facility.
Publishing Slate and Future Outlook
Despite its financial challenges, Thunderful maintains an active publishing slate for 2025-2026. The company’s recent release "Lost in Random: The Eternal Die" received positive reviews but achieved limited commercial success. The company noted that back catalog sales remain stable, providing some revenue consistency.
The following timeline illustrates Thunderful’s upcoming game releases, which the company hopes will improve its financial position:
Key titles in development include "God Breakers," "Aska," "Replaced," and "Planet of Lana II," spanning both PC and console platforms. The company is banking on these releases to generate the revenue needed to stabilize its operations.
Forward-Looking Statements
Thunderful’s management emphasized that their key objective is to reach positive cash flow and long-term commercial sustainability. The proposed Atari investment is positioned as a critical component of this strategy, intended to recapitalize the company and provide breathing room for its restructuring efforts.
The company continues to highlight the strength of its existing game catalog, which provides consistent transactional sales despite broader financial challenges. Management expressed confidence that the combination of cost reductions, strategic investment, and upcoming game releases will eventually return the company to profitability.
With the Atari investment decision expected on August 28, Thunderful stands at a pivotal moment in its corporate history, with its future direction and ownership structure hanging in the balance.
Full presentation:
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