Cherrypick Games Q3 2025: Return to Profit Amid Intensified Investment in Key Titles

Quarter in brief

Cherrypick Games S.A. reported a profitable third quarter of 2025 and continued to execute its strategy of building premium, multiplatform titles for PC, Mac and consoles. The period was dominated by production work on Angst: A Tale of Survival, preparations around Signal Station, and initial concept work on the larger-scale project Sniper at Work. At the same time, a significant change in the project portfolio occurred just after the balance-sheet date with the termination of the Quartermaster publishing agreement.

Despite a still-challenging environment for the games industry, the company managed to generate a positive net result while strongly increasing development expenditures on its key titles.

Financial results and profitability

In Q3 2025 (1 July–30 September), Cherrypick Games generated sales revenues of PLN 310 thousand, an increase from PLN 191 thousand in the corresponding period of 2024. This reflects growing monetisation of the company’s portfolio and early contributions from new initiatives.

The improvement at the bottom line was even more pronounced:

Operating result for Q3 2025 reached a profit of PLN 73 thousand versus a loss of PLN 700 thousand a year earlier.
Net profit for the quarter amounted to PLN 84 thousand, compared with a net loss of PLN 573 thousand in Q3 2024.

On a year-to-date basis (1 January–30 September 2025), the company recorded:

Revenues of PLN 1,060 thousand versus PLN 1,594 thousand in the same period of 2024.
Operating profit of PLN 169 thousand compared to an operating loss of PLN 1,067 thousand in 2024.
Net profit of PLN 130 thousand, versus a net loss of PLN 911 thousand a year earlier.

This combination of lower year-to-date revenues and positive net profit indicates that the turnaround is being driven primarily by the cost side: reduced general and administrative expenses, lower amortisation and the absence of exceptional negative items that burdened previous periods.

Management also highlights EBITDA (operating profit plus depreciation and amortisation) for the nine months to 30 September 2025 at PLN 211 thousand, versus PLN 486 thousand in the prior year period. The change reflects a fundamentally different structure of non-cash costs and earlier write-offs, while underlying profitability has clearly improved at the level of operating and net income.

Earnings per share for the first nine months of 2025 amounted to PLN 0.10, compared to a loss of PLN 0.67 per share in the same period of 2024, confirming the scale of the turnaround on a per-share basis.

Balance sheet and capital structure

As at 30 September 2025, total assets stood at PLN 2,573 thousand, up from PLN 1,867 thousand at year-end 2024 but significantly lower than PLN 18,166 thousand reported as of 30 September 2024, reflecting prior-period write-downs and the recapitalisation of the balance sheet.

The asset structure is strongly dominated by development expenditures:

Development and other intangible assets amounted to PLN 2,391 thousand, up from PLN 1,506 thousand at the end of 2024.
Property, plant and equipment remain modest at PLN 31 thousand, underlining the asset-light, project-based nature of the business.

On the equity and liabilities side:

Equity totalled PLN 955 thousand as of 30 September 2025, versus PLN 825 thousand at the end of 2024, driven by the current-year profit and internal reallocations within equity.
Total liabilities reached PLN 1,618 thousand, up from PLN 1,042 thousand at year-end 2024, and are entirely short-term following the settlement of earlier long-term items.

The company’s equity ratio remains relatively low, which is typical for smaller, development-heavy game studios but also means that access to external financing is strategically important. The report notes that, as of 30 October 2025, Cherrypick signed a non-binding letter of intent with Loft Capital Ltd. regarding a potential capital injection through up to 300,000 subscription warrants convertible into shares, coupled with a PLN 200 thousand loan. This transaction, if finalised, would support current and new projects and partially ease balance-sheet constraints.

The shareholder base remains concentrated, with the CEO Marcin Kwaśnica holding approximately 40.8% of the shares, and the two largest shareholders together controlling over 60% of the capital.

Cash flows and investment activity

Operating cash flow in Q3 2025 was slightly positive at PLN 6 thousand, compared with an outflow of PLN 64 thousand in Q3 2024. For the nine months to 30 September 2025, net cash from operating activities amounted to PLN 425 thousand, down from PLN 719 thousand a year earlier but still clearly positive.

Investment cash flows are shaped almost entirely by development spending:

In Q3 2025 the company invested PLN 283 thousand in game development and related intangible assets.
For the nine months, investment outflows reached PLN 882 thousand, mainly connected with Angst: A Tale of Survival and other projects.

Financing cash flows in the nine-month period were positive at PLN 463 thousand (Q3 alone: outflow of PLN 52 thousand), driven by new loans and partially offset by loan repayments and lease payments.

Cash and cash equivalents at the end of the reporting period were PLN 84 thousand, broadly unchanged versus PLN 85 thousand at year-end 2024, which indicates that development activity and operating needs have so far been funded largely through a combination of operating cash generation and new debt.

Strategic projects and operational developments

Angst: A Tale of Survival

The main strategic focus of the company is Angst: A Tale of Survival, a survival game with “roguelite” gameplay and a strong emphasis on engaging quests. The title, previously known under its working name Papillon, is scheduled to launch on Steam on 5 December 2025 at a price point of USD 7.99.

Management emphasises that Angst is a key element of the development strategy and one of the most important positions in the company’s portfolio. Its commercial performance will have a material impact on financial results in subsequent periods and the title has the potential to be adapted for additional platforms and distribution channels over time.

Signal Station

Work on Signal Station continues according to plan, with a target release in 2026. The company plans to present a demo version during an upcoming Steam festival, which should serve as an important milestone for player feedback and wishlisting metrics.

Sniper at Work

Sniper at Work is described as a larger and more ambitious project currently at the concept and prototype stage. Full-scale development is planned to start in 2026, contingent on securing additional financing. This title could materially expand the company’s presence in the premium PC and console segment but will also require a higher level of investment and team capacity.

Quartermaster project termination

After the balance-sheet date, on 1 October 2025, Cherrypick and Frozen District agreed to terminate the publishing contract for the game Quartermaster. The decision followed an assessment that the project currently lacks sufficient commercial potential and is not planned for release within the next 12 months. All contractual milestones have been settled, and Cherrypick waived future revenue-sharing rights, while Frozen District retained the right to continue and release the game independently.

This event removes a source of potential future upside from the project portfolio but simultaneously eliminates execution and funding risk associated with continuing development under uncertain demand conditions.

Risks and key sensitivities

Cherrypick Games operates with a lean internal structure – at the end of Q3 2025, the company employed the equivalent of two full-time positions, supplemented by contractors – and a balance sheet heavily concentrated in development assets and short-term liabilities.

Key risk areas include:

Financing risk: Limited equity and modest cash reserves make the company dependent on continued access to external funding, including the potential transaction with Loft Capital.
Project concentration: Near-term performance is highly sensitive to the market reception of Angst: A Tale of Survival, with additional concentration in Signal Station and Sniper at Work at later stages.
Market environment: Management explicitly notes that the video games industry is going through one of the most challenging periods in its history, with rising competition for player time and money, and more selective consumer demand.

At the same time, the company confirms the going-concern assumption for at least 12 months after the balance-sheet date, pointing to its cost discipline, pipeline of releases

Outlook and management commentary

Management’s communication underscores that the coming quarters will be decisive. The short-term priority is a successful global launch of Angst: A Tale of Survival on Steam in December 2025, followed by continued development and platform expansion of this title. In parallel, the company aims to advance Signal Station towards its planned 2026 release and to bring Sniper at Work out of the concept stage once funding is secured.

The strategic direction remains consistent:

Focus on premium multiplatform titles with strong gameplay hooks.
Continued utilisation of existing IP and re-releases of older games onto new platforms, extending the life and monetisation potential of the back catalogue.
Building scale gradually, aligning team expansion and project scope with funding availability.

Conclusion

The Q3 2025 report positions Cherrypick Games as a small but focused studio that has successfully returned to profit after a period of significant losses and balance-sheet restructuring. Revenue growth, improved operating performance and disciplined cash management have been achieved despite heavy investment in game development and a demanding market backdrop.

Looking forward, investor attention will naturally centre on the commercial performance of Angst: A Tale of Survival and the company’s ability to secure additional capital for Sniper at Work and other projects. Executed well, these steps could unlock operational leverage on the existing cost base and transform Cherrypick’s scale over the next few years; executed poorly, they could re-expose the company to liquidity pressure.

For now, the Q3 2025 figures and disclosed events suggest a cautious but genuine turnaround, with meaningful upside potential balanced by equally material execution and financing risks.

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