Reports
Published: 2025-08-21 08:00:00
Record-breaking EBITDA and on track to Profitability.
The financial performance of the second quarter marks the best Q2 and H1 for EBITDA in company history. This major improvement in margin was driven by significant cost savings from having one game in development this year compared to three last year, as well as deriving more revenue from higher-margin activities, which included milestone payments for Teenage Mutant Ninja Turtles: Empire City.
Second quarter, April 1 – June 30, 2025
First half year, Jan 1 – June 30, 2025
CEO Comments
The financial performance of the second quarter marks the best Q2 and H1 for EBITDA in company history. This major improvement in margin was driven by significant cost savings from having one game in development this year compared to three last year, as well as deriving more revenue from higher-margin activities, which included milestone payments for Teenage Mutant Ninja Turtles: Empire City. Sales were lower than the previous year, which was in line with management expectations.
With the major announcement of Teenage Mutant Ninja Turtles (TMNT): Empire City, the launch of our studio developed hit GORN 2, and new financing efforts through our partners at Alpha Nordic, Q2 was an unseasonably active quarter for Beyond Frames.
The quarter’s clear highlight was the successful launch of GORN 2. While we are not yet recognizing sales from the title due to the ongoing recoupment period with our publishing partner, Devolver Digital, we are beyond thrilled with the game’s performance and are excited about its future f inancial contribution.
Looking forward, our focus remains on achieving profitability by maximizing performance from our existing catalog, supporting our live service titles, and advancing development of TMNT: Empire City. In parallel, we’re actively exploring strategic opportunities in M&A and partnerships, while preparing to engage with the fast-evolving changes driven by our major distribution platforms.
Studios
This quarter marked the official announcement of TMNT: Empire City. The reveal, in partnership with IGN, the world’s largest video game media company, generated strong visibility across their YouTube channel, website, and social media. As of this writing, the teaser trailer has attracted nearly 360,000 views on YouTube alone, making it one of IGN’s most-viewed trailers during the quarter. The game has already become Cortopias’ most wishlisted title to date, which is an important leading indicator of future sales. We anticipate continued growth in wishlist activity as more is revealed in the lead-up to launch.
As noted, GORN 2 continues to perform exceptionally well commercially. We plan to support the title with additional downloadable content and are currently finalizing funding agreements with external partners to support the production. These agreements are expected to be concluded by early autumn 2025. Had we self-published GORN 2, Q2 2025 would have been our strongest second quarter in company history in terms of gross revenues. Although sales recognition is deferred due to recoupment terms, we’re encouraged by the clear growth in consumer demand for games developed in-house. Based on current forecasts, we expect the recoupment period to conclude by the end of Q3 or early Q4. Additional funding arrangements may affect this timeline.
Following the end of the quarter, we also announced that Moon Mode secured non-recoupable financing from a major technology company for the development of a new mobile game. More details will be shared in the coming months.
Publishing
Our publishing catalog continued to deliver solid results, though performance from our newest titles fell short of internal expectations for their launch windows. Specifically, GRIM and Silent North underperformed due to lower-thananticipated player tolerance for early access product quality. This impacted the portfolio’s ability to offset performance from Ghosts of Tabor, which continues to perform well following its relaunch last year.
That said, we remain confident in GRIM and Silent North as long-term contributors. Both titles continue to receive updates that enhance quality of life and add new content, with the goal of aligning with evolving player expectations. In August, our publishing team will attend Gamescom to engage with studios regarding potential future publishing partnerships.
Financing Progress with Alpha Nordic
During the quarter, we launched a new financing partnership with Alpha Nordic, tied to the future revenue stream of TMNT: Empire City. As of the close of the first round, SEK 3.9 million has been secured. A second round is planned to close during Q4 2025. The proceeds from this effort are being used to further diversify and strengthen our portfolio across both studio development and third-party publishing.
XR Marches On
Meta Reality Labs reported a 5% year-over-year increase in revenue, driven primarily by Meta Ray-Ban sales. While AR (augmented reality) glasses are not a primary revenue driver for us today, growing adoption of wearables is a positive long-term trend for our portfolio. Spotify also entered the VR space with the launch of a new app in late July, enabling headset owners to experience the platform natively in immersive environments.
Meanwhile, investment activity in XR remains active:
Looking Forward
Our full focus remains on bringing Beyond Frames to profitability. The successful launch of TMNT: Empire City will be central to that plan, alongside stable and consistent cash flows from our existing portfolio.
Beyond our day-to-day operations, we are preparing for the next wave of XR evolution. Augmented and Mixed Reality are taking center stage globally, accelerated by their natural pairing with AI. As the world’s largest tech companies race to shape this new frontier, we view this momentum as a netpositive for VR and immersive gaming as a whole. We’re not prepared to announce our plans for the smart glasses market just yet, but we won’t stand on the sidelines while others build the future—we are committed to playing an active role in this next phase of innovation.
On behalf of all of us at Beyond Frames, thank you to our players, team, partners, and shareholders for your continued support.
Ace St. Germain,
CEO Beyond Frames Entertainment AB (publ)
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This information is such information as Beyond Frames Entertainment is obliged to publish in accordance with the EU Market Abuse Regulation (MAR). The report was submitted, through the care of the below contact person, for publication on August 21, 2025, at 08:00 CET.
The financial information in this report has not been reviewed by the company's auditor.
For further information, please contact CFO Emma Partin, emma.partin@beyondframes.com or ir@beyondframes.com.
Beyond Frames Entertainment AB
Bondegatan 21
SE-116 33 Stockholm
Webpage: Beyond Frames Entertainment
Email: ir@beyondframes.com
+46(0)708 34 34 85
About Beyond Frames Entertainment
Headquartered in Stockholm, Sweden, Beyond Frames is an XR-focused publisher with its development studios Cortopia, Moon Mode and partner studio Odd Raven. Offering creative and technical consulting, funding, marketing and publishing services, Beyond Frames partners with studios creating amazing XR products such as Ghosts of Tabor (Combat Waffle Studios), Outta Hand (Capricia Productions), ARK and ADE (Castello Inc.), Silhouette (Team Panoptes) and Mixture (Played With Fire), Beyond Frames Entertainment AB (publ) is listed on the Swedish Spotlight Stock Market, ISIN: SE0011614965.
