Stillfront’s Net Revenue Declines 14% to $143.9m, but Big Farm: Homestead Drives Organic Growth

Why It Matters

The results highlight the risk of relying on a broad portfolio and underscore the strategic importance of D2C sales and focused franchise investment for sustaining profitability in the mobile gaming sector.

Key Takeaways

• Q1 net revenue fell 14% to $143.9 million.
• Daily active users dropped below 7 million year‑over‑year.
• D2C bookings now 44% of total, boosting gross margin to 84%.
• Big Farm: Homestead drove 78% revenue rise, 88% organic growth.
• UA spend stayed 34% of revenue, focused on Big, Supremacy.

Pulse Analysis

Swedish publisher Stillfront reported a 14% slide in first‑quarter net revenue to $143.9 million, marking the steepest decline since the company’s 2022 restructuring. Daily active users fell from 7.8 million to under 7 million and monthly players dropped to 35.5 million, reflecting weaker engagement across legacy titles such as BitLife and Empire. The group’s gross profit margin, however, rose to 84% thanks to a growing share of direct‑to‑consumer (D2C) bookings, which now represent 44% of total bookings, up from 36% a year earlier.

The bright spot in Stillfront’s portfolio comes from its flagship Big franchise. The newly launched Big Farm: Homestead generated $19.2 million in revenue, a 78% increase year‑over‑year, driven by 88% organic growth and aggressive user‑acquisition spending. Supremacy also posted a 9% revenue rise, underscoring the company’s strategy of concentrating resources on a handful of scalable franchises. Overall, Stillfront allocated roughly 34% of net revenue to user acquisition, primarily targeting Big and Supremacy, a tactic that lifted those titles while other brands lagged.

The shift toward D2C and selective franchise investment signals a broader industry trend of bypassing platform fees and prioritizing higher‑margin revenue streams. By steering players to web‑based stores, Stillfront reduces Apple and Google commissions, albeit at the cost of lower headline revenue. Investors will watch whether the organic momentum in Big and Supremacy can offset the decline in older IPs and sustain profitability. The recent change to the Nomination Committee adds a governance note, but the company’s core focus remains scaling its core franchises for long‑term growth.