Starward Industries Q3 2025: Persistent Losses, Equity Financing and a Dual Focus on The Invincible and Into the Fire

Quarter in brief

Starward Industries S.A. closed the third quarter of 2025 with another loss, but with a largely stable balance sheet and fresh equity financing in place. The studio continues to operate with a lean team of 14 people and is strategically focused on two pillars:

Extending the lifecycle and monetisation of its flagship title The Invincible.
Advancing development of its next major game, Into the Fire.

The Q3 2025 report shows that operating costs remain close to product revenue and that the company still operates below break-even, yet it has successfully raised capital to support production and reduce loan exposure.

Financial results and profitability

Revenues and operating performance

For the period 1 July–30 September 2025, Starward generated:

Net revenue from sales: PLN 335.9k (Q3 2024: PLN 427.6k).
Operating costs: PLN 658.7k (Q3 2024: PLN 742.2k).

This resulted in:

Loss on sales: PLN –322.7k (Q3 2024: PLN –314.6k).
Operating loss: PLN –322.7k (Q3 2024: PLN –314.3k).
Net loss: PLN –346.5k (Q3 2024: PLN –341.7k).

For the first nine months of 2025:

Net revenue from sales totalled PLN 1,087.5k, down from PLN 1,416.6k in the same period of 2024.
Operating costs reached PLN 2,158.6k (9M 2024: PLN 2,375.2k).
Operating loss was PLN –1,067.6k (9M 2024: PLN –949.8k).
Net loss widened to PLN –1,142.9k from PLN –985.0k a year earlier.

The figures confirm a pattern: revenues remain modest and are not yet sufficient to cover the cost base, despite some cost reductions. The slight improvement in operating expenses versus 2024 has not translated into better overall profitability because revenue has fallen more sharply.

Cost structure

The cost base in Q3 2025 is dominated by:

External services: PLN 439.0k, mainly outsourcing, porting and marketing.
Salaries: PLN 129.2k.
Social security and other employee benefits: PLN 28.3k.
Other operating costs: PLN 45.0k.
Amortisation: PLN 8.8k.

This breakdown highlights the asset-light, project-based nature of the business, with a strong reliance on external partners and variable service costs rather than heavy in-house infrastructure.

Balance sheet and capital structure

Starward’s balance sheet remains relatively compact but shows a clear shift in composition over the last year.

As at 30 September 2025:

Total assets: PLN 9.30m (31 December 2024: PLN 9.65m; 30 September 2024: PLN 10.11m).
Equity: PLN 8.23m (31 December 2024: PLN 8.07m; 30 September 2024: PLN 8.17m).
Liabilities and provisions: PLN 1.07m (31 December 2024: PLN 1.58m; 30 September 2024: PLN 1.94m).

Assets

Non-current assets amount to roughly PLN 526.0k and include:

Property, plant and equipment of about PLN 33.8k.
Long-term receivables of PLN 26.9k.
Long-term financial assets of PLN 40.8k.
Long-term prepayments (mainly deferred costs and grants) of PLN 424.5k.

Current assets are the core of the balance sheet at PLN 8.78m, driven by:

Inventories of PLN 8.09m (31 December 2024: PLN 8.57m; 30 September 2024: PLN 8.66m).
- Work in progress: PLN 1.99m, up strongly year on year, reflecting investment in Into the Fire and ongoing development work.
- Finished products: PLN 6.09m, down from 7.43m at year-end 2024, indicating gradual monetisation of The Invincible and other completed content.
Short-term receivables of PLN 197.8k.
Cash and cash equivalents and other short-term financial assets of PLN 422.3k (31 December 2024: PLN 91.5k; 30 September 2024: PLN 388.2k).

The shift within inventories from finished goods to work in progress illustrates the transition of value from The Invincible to the new project Into the Fire.

Equity and liabilities

Equity of PLN 8.23m consists primarily of:

Share capital of PLN 272.8k.
Supplementary capital (share premium and reserves) of PLN 9.09m.
Current year loss of PLN –1.14m.

Liabilities and provisions of PLN 1.07m are dominated by:

Provisions of PLN 826.9k, including a significant deferred tax provision of PLN 776.9k.
Short-term liabilities of PLN 244.0k, mainly trade and other payables.

Importantly, the company shows no long-term interest-bearing debt, which reduces financial risk but shifts the burden of funding clearly onto equity and short-term working capital.

Cash flows and financing

The cash flow statement paints a picture of ongoing operating pressure offset by fresh equity:

Net cash used in operating activities for 9M 2025: PLN –349.3k (9M 2024: PLN –740.7k).
Net cash flow from investing activities: PLN –0.7k (9M 2024: PLN +10.8k), reflecting minimal capex.
Net cash flow from financing activities: PLN +680.7k (9M 2024: PLN +800.0k).

The key financing event in 2025 was an equity issue:

Gross proceeds from new share issuance and capital contributions: approximately PLN 1.28m.
These funds were used partly to:
- Repay shareholder loans and other borrowings in the amount of PLN 600k.
- Strengthen liquidity and support production of Into the Fire.

As a result:

Cash at the end of the period rose to PLN 422.3k from PLN 91.5k at the end of 2024.
The company reduced its exposure to interest-bearing debt while increasing reliance on shareholder capital.

While the improvement in cash and the reduction of loans are positive, the negative operating cash flow confirms that Starward is still in an investment phase, not yet self-financing through game sales.

Operational developments and project pipeline

The Invincible: long-tail monetisation

More than two years after launch, The Invincible remains central to Starward’s operations and brand:

The title continues to hold an average rating of around 88% positive reviews on Steam.
In Q3 and after the reporting date, the game took part in 24 themed and seasonal promotions on major platforms.
On Steam, it appeared in prominent events such as “From Poland With Love” and was featured on the front page as a “daily deal”.
On 28 July, for the first time, the game was discounted by 50%, following a 45% promotional discount in June.
On 16 September, The Invincible joined the PlayStation Plus Extra subscription catalogue, which should support additional reach and recognition.

The company’s marketing strategy for The Invincible is based on:

Participation in seasonal and thematic platform sales.
Periodic updates and ongoing optimisation.
Leveraging global exposure events: the game was also present in the Polish pavilion at EXPO Osaka 2025, which attracted over 1.3 million visitors.

Management notes that Q3 2025 sales of The Invincible were significantly higher than in Q2, as deeper discounts and expanded platform promotions activated both existing wishlists and new players.

Into the Fire: next flagship title

The second strategic pillar is Into the Fire, the next major title in Starward’s portfolio:

The company is intensively developing the game, with a significant portion of R&D expenses capitalised as work in progress.
New financing from the share issue has secured production work for the current stage.
However, management openly states that the full budget of the game, including marketing, may require additional funding.

The board has already begun discussions about further financing options to ensure both production and promotional needs can be met at the intended scale. The ability to secure such funding on reasonable terms will be a key determinant of the project’s scope and timetable.

Risks and key sensitivities

Starward’s situation comes with several notable risk areas:

Profitability and cash-flow risk
The company has not yet reached break-even. Repeated quarterly losses and persistent negative operating cash flow mean that further external capital may be needed if sales do not accelerate.
Project and IP concentration
The balance sheet is heavily concentrated in a small number of projects: The Invincible and Into the Fire. Underperformance of either title would have a direct impact on both the income statement and the carrying value of inventories.
Funding and dilution risk
With no long-term loans and modest current cash, the most likely form of future funding is additional equity. This supports financial stability but risks diluting existing shareholders if valuation conditions are not favourable.
Market and platform dynamics
The monetisation of The Invincible depends on the effectiveness of discounts, platform promotions and subscription placements. Changes in platform policies or saturation of the player base could weaken the long-tail revenue profile.

Despite these risks, the company prepares its report on a going-concern basis, citing the completed equity issue, cost discipline, ongoing sales of The Invincible and progress on Into the Fire as supporting factors.

Outlook and conclusion

The Q3 2025 report positions Starward Industries as a small, focused studio with:

Stable but still relatively low revenue driven by a single released IP.
Ongoing and widening net losses at both quarterly and year-to-date levels.
A relatively clean balance sheet with limited financial debt and a significant equity cushion, supported by new share issuance.
A clear but narrow development roadmap centred on Into the Fire.

The next phase in Starward’s story will be defined by two questions:

Can The Invincible continue to generate a meaningful long tail of digital revenues through discounts, updates and subscription presence?
Will Into the Fire secure the necessary funding and, once released, deliver the scale of commercial success needed to move the company toward sustained profitability?

Until those questions are answered, Starward remains a high-risk, high-optionality profile within the NewConnect game developer segment: financially contained due to low leverage, but strongly exposed to the performance of a very concentrated project pipeline.

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