Stillfront stock: gross margin hits 84% as D2C-first strategy absorbs a 14% revenue decline
Summary
Stillfront Q1 2026 net revenue fell 14% YoY to $143.9m as the company defunded non-priority titles
Gross margin rose to 84% from 81%, driven by D2C reaching 44% of bookings versus 36% a year ago
Big Farm: Homestead became Stillfront's highest-grossing launch ever, lifting the Big segment 78% YoY
"Our key franchises grew organically by 12% in the quarter, demonstrating the strength of the portfolio we are building around a select number of strategically important franchises"
01
Stillfront is shrinking by design, not by distress
Investment was pulled from non-priority titles, letting weaker games decline without rescue UA
BitLife, Empire, Albion, and Jawaker all recorded YoY net revenue declines
Jawaker fell from $23.9m to $20.6m, partly due to Middle East regional challenges
DAUs dropped from 7.8m to under 7m; MAUs fell from 41.3m to 35.5m
Adjusted EBITDA fell 23% to $33.6m, reflecting lower revenue and elevated UA on priority franchises
02
D2C mix shift lifts margin but compresses reported revenue
D2C bookings rose 8 points YoY to 44% of total, bypassing Apple and Google platform fees
Web shops price items below in-app rates, reducing revenue per transaction but retaining more per dollar
Gross margin reached 84%, up 3 points YoY
Gross profit still fell in absolute terms, from $135m to $121.2m
03
Big Farm: Homestead and Supremacy validate the franchise-concentration thesis
Big segment surged 78% YoY to $19.2m with 88% organic growth
Big Farm: Homestead is now Stillfront's most successful launch in company history
Supremacy reached $26.7m, up 9% YoY with 15% organic growth
Stillfront directed 34% of net revenue toward UA, concentrated on these two franchises
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