Simteract Q3 2025: Stable Cash Flows From Simulation Contracts and Solid Project Pipeline

Introduction

Simteract S.A., a Kraków-based game development studio specialising in premium simulation titles, reported a solid third quarter of 2025. The company operates in a focused niche of driving and transport simulations, leveraging years of experience in professional training simulators to build commercial games for a global audience. The latest quarterly figures confirm that Simteract is able to generate recurring revenues from long-term contracts while funding its own IP roadmap, even in a still relatively early stage of its public-market story.

Business profile and strategic positioning

Simteract is a technology company functioning in two tightly connected segments. The core activity is the production of video games and their components in cooperation with international publishers. In parallel, the company continues to develop advanced simulation software used in training environments, including traffic simulations, vehicle and locomotive simulators, and weather and climate models.

The studio’s long-term ambition is to be one of the key global players in the premium simulation segment. Management is building a portfolio of titles with extended life cycles, supported by downloadable content and ongoing updates, so that projects can generate revenues for years after their initial launch. Simteract’s team has worked together since 2014 and has extensive know-how in real-time 3D graphics and simulation, which translates directly into the quality of its games.

The development strategy is built around two complementary tracks. The Prodigy Track focuses on proven concepts, working with strong publishers from the earliest stages, often in a work-for-hire model. The North Star Track is oriented toward innovative projects, where Simteract takes more creative and commercial risk, initially developing games without an external publisher in order to capture more long-term value if they succeed.

Financial performance in Q3 2025

In the third quarter of 2025, Simteract generated 2.61 million PLN in net revenue from sales and related items, an increase of 7.4 percent year on year compared with 2.43 million PLN in Q3 2024. Within this figure, revenue from the sale of products and services amounted to 1.67 million PLN, significantly below the 5.39 million PLN reported a year earlier, mainly due to the phasing of large production contracts. This decline was offset by the recognition of internally generated development work and positive changes in the value of work in progress.

Despite the lower product sales line, the company delivered a higher quarterly net profit. Net earnings in Q3 2025 reached 311 thousand PLN, up 4.2 percent versus 299 thousand PLN in the same quarter of 2024. At the operating level, Simteract reported profit from operations of 319.7 thousand PLN for Q3 2025, compared with 470.3 thousand PLN a year earlier, reflecting a higher cost base but still demonstrating the business model’s ability to generate operating profit on active projects.

Looking at the first nine months of 2025 as a whole, the company recorded 6.84 million PLN in revenues, compared with 6.17 million PLN in the corresponding period of 2024. The period-to-date result remains negative, with a net loss of 225.9 thousand PLN versus a loss of 128.3 thousand PLN a year earlier. The improvement in Q3 therefore marks an important step in closing the gap accumulated in the first half of the year.

Cost structure and profitability

Operating expenses in Q3 2025 amounted to 2.40 million PLN, up from 2.00 million PLN in Q3 2024. The largest cost categories remain wages and salaries, social security contributions and external services, which together reflect the people-intensive nature of game development and co-development work.

Personnel costs, including wages, social security and other employee benefits, reached nearly 1.39 million PLN in the quarter, significantly higher than a year earlier. This is a consequence of maintaining and gradually expanding the development team, which at the end of September 2025 comprised 28 employees on employment contracts and 24 additional collaborators under civil-law agreements. At the same time, Simteract continues to invest in its technology base, especially in Unreal Engine-based solutions for driving and off-road simulations.

Other operating expenses such as materials, utilities, taxes and miscellaneous costs remained under control. The company also benefits from public funding in the form of grants, which are recognised in other operating income and help to offset the cost of development projects. In Q3 2025, other operating income totalled 110.6 thousand PLN, almost three times more than the 41.1 thousand PLN recorded in the prior-year quarter, primarily due to the systematic recognition of subsidies from the DUST project.

Balance sheet and capital structure

As at 30 September 2025, Simteract’s total assets amounted to 11.16 million PLN, only slightly higher than the 11.10 million PLN reported a year earlier. The structure of the balance sheet reflects the company’s development-stage profile, with a significant share of capitalised development costs and work in progress.

Non-current assets totalled 1.53 million PLN and included 0.67 million PLN of completed development work, 0.04 million PLN of property, plant and equipment and 0.23 million PLN of long-term financial investments in related and associated companies. Deferred tax assets of 0.58 million PLN, presented within long-term prepayments, also form a meaningful component of non-current assets.

Current assets came in at 9.64 million PLN, essentially unchanged year on year. Within this, work in progress and other inventory items accounted for 2.24 million PLN, receivables for 1.08 million PLN, short-term investments for 0.43 million PLN and short-term prepayments for 5.89 million PLN. The high level of prepayments is mainly related to the accounting treatment of long-term contracts and public-grant-financed projects.

On the funding side, equity amounted to 7.06 million PLN, up from 6.85 million PLN a year earlier. The increase stems primarily from the allocation of prior-year profits to the reserve capital. The share capital remains unchanged at 122.4 thousand PLN, divided into 1,224,000 shares. Simteract has no long-term financial debt, and short-term interest-bearing liabilities were reduced significantly over the year following the repayment of bank loans. As of the end of September 2025, the company reported a short-term loan balance of zero, compared with more than 2.09 million PLN in short-term loans at the end of September 2024.

Short-term liabilities totalled 1.72 million PLN, comprising trade payables, taxes and social security obligations, employee-related liabilities and a new component of other financial liabilities. Provisions for employee benefits and deferred tax amounted to 0.85 million PLN, while short-term accruals reached 1.53 million PLN. Overall, the balance sheet presents a relatively conservative financial structure with a high equity ratio and diminished reliance on bank financing.

Cash flow and liquidity

The cash flow statement for the first nine months of 2025 shows that Simteract generated 470.5 thousand PLN in positive net cash from operating activities, up from 216.3 thousand PLN in the same period of 2024. The main drivers were improved working capital management, including a reduction in inventories and a favourable change in receivables, coupled with higher non-cash items such as amortisation.

Net cash used in investing activities was modest at 103.4 thousand PLN and mainly represented purchases of fixed assets and continued investments in long-term financial assets. The scale of investment spending underscores disciplined capital allocation while the company focuses on software-driven projects with relatively limited physical-asset requirements.

Financing cash flows were negative at 698.8 thousand PLN, reflecting substantial repayments of loans and related interest, only partially offset by new borrowings. This deliberate deleveraging, combined with positive operating cash flow, resulted in a net decrease in cash of 331.7 thousand PLN over the nine-month period.

At the end of September 2025, Simteract held 431.0 thousand PLN in cash and cash equivalents, compared with 930.8 thousand PLN at the beginning of the year. Although the cash position has declined, the absence of bank debt, the availability of grant funding and ongoing contract flows collectively support the company’s liquidity. Management explicitly notes that current contracts and sales of Taxi Life are sufficient to finance operations and at least one new project for the next twelve months.

Key projects and operational focus

Simteract’s operations in Q3 2025 were centred around four main initiatives that reflect its dual-track strategy and technological ambitions.

Taxi Life: A City Driving Simulator

Taxi Life: A City Driving Simulator is a premium simulation game developed in cooperation with the French publisher Nacon. The title launched in March 2024 on PC (Steam and Epic Games Store) and on PlayStation 5 and Xbox Series X|S. It places players in the role of a taxi driver trying to build a transport business in a realistically recreated Barcelona, with a one-to-one scale map and over two hundred faithfully reproduced landmarks.

While there were no new material events around Taxi Life reported in Q3 2025, earlier disclosures highlight the ongoing post-launch support and content roadmap. An amendment to the publishing agreement, signed in December 2024, provided for the development of several DLC packs. These include three larger expansions adding new vehicles and mechanics, and three cosmetic packs offering additional liveries. The DLC rollout, scheduled through mid-2025, is aimed at extending the game’s life cycle and sustaining revenue contributions from the title.

Taxi Life has already been played by around two hundred thousand players across physical and digital editions, confirming a meaningful audience for Simteract’s urban-driving concept. Although the company does not intend to provide regular sales updates, the strong initial adoption supports the thesis that high-quality simulations can address a durable niche.

Bus Simulator 27 with Astragon

On the Prodigy Track, Simteract is developing Bus Simulator 27 under a contract with Astragon Entertainment, a leading publisher of simulation games and part of the Team17 Group. Astragon has a long-established Bus Simulator franchise in its portfolio, and the new instalment introduces a fresh game world and content.

In July 2025, Astragon publicly revealed the title, confirming Simteract as the developer and publishing teaser materials, as well as opening product pages on major digital storefronts including Steam, Epic Games Store, PlayStation and Xbox. Further marketing beats, including the announcement of the release date, are planned by the publisher for later stages of the campaign.

For Simteract, the project strengthens its position as a trusted partner for top simulation publishers and ensures a stable stream of contract revenues. It also showcases the Prodigy Track strategy, in which the company applies its existing know-how and technology to high-budget, externally funded productions.

North Star Track project

Alongside Taxi Life and Bus Simulator 27, Simteract is working on an unannounced game within the North Star Track. This project is designed to broaden the company’s portfolio beyond commissioned work and build more proprietary value. The concept aims to leverage the team’s strengths in realistic driving and systemic simulation, while exploring new gameplay directions and business models.

At this stage, Simteract is deliberately developing the title without an external publisher, which gives it greater creative freedom but also requires stricter internal capital discipline. The long-term objective is to secure a partner on favourable terms or to self-publish, depending on market conditions and the project’s maturity.

Project DUST and technology development

Project DUST is an R&D initiative co-financed by the European Funds for a Modern Economy programme under the SMART Path. The goal is to develop tools and production processes that enable the efficient creation of off-road driving games in Unreal Engine 5, with advanced simulation of terrain, vehicle suspension, damage and water interactions.

The work focuses on three pillars: simulation and destruction of off-road vehicles, simulation and deformation of terrain, and realistic water behaviour, both in droplets on surfaces and in the environment. The total value of the project is 7.35 million PLN, with funding of 4.15 million PLN from the European Regional Development Fund.

Beyond the grant itself, Project DUST is strategically important because it strengthens the company’s technology stack, which can then be reused across multiple future titles, improving quality while lowering marginal development costs.

Risks, external environment and outlook

Simteract’s risk profile is shaped by the typical challenges of the game industry and by its specific focus on the simulation niche. Key factors include the commercial performance of released titles, the timely execution of long-term contracts, and the company’s ability to retain and attract specialised talent in a competitive labour market.

Management also monitors macroeconomic and geopolitical risks, including the ongoing war in Ukraine. At present, the war does not have a direct impact on the company’s activities. Simteract does not employ staff from Ukraine, does not source materials or services from the affected region and has no significant sales exposure to Ukrainian or Russian markets. Nevertheless, the wider economic uncertainty may affect consumer spending and platform policies, so the situation remains under review.

Looking forward, Simteract intends to continue scaling its dual-track model, with two or more production projects running in parallel. The combination of publisher-funded titles such as Bus Simulator 27 and company-driven initiatives on the North Star Track should gradually reduce earnings volatility and increase upside potential if proprietary IP proves successful. In the long term, the company plans to migrate from the NewConnect market to the main market of the Warsaw Stock Exchange, which would broaden its investor base and visibility.

Conclusion

The third quarter of 2025 confirms that Simteract is progressing along its strategic path as a specialised simulation studio. The company delivered higher revenues and net profit compared with the prior-year quarter, generated positive operating cash flows and further reduced its dependence on bank financing. At the same time, it advanced a portfolio of projects that combine stable contract work with ambitious proprietary development and deep technology R&D supported by EU funds.

For investors, the Simteract story is increasingly about disciplined execution: successfully delivering Bus Simulator 27 for Astragon, sustaining and expanding the Taxi Life franchise, bringing the North Star project to a commercially attractive stage and fully harnessing the capabilities developed under Project DUST. If these elements are managed effectively, the company has a credible opportunity to strengthen its position in the global premium simulation segment and translate its engineering strengths into durable shareholder value.

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