Frontier Developments Shares: Expect ‘Attractive Returns for Long-Term Investors’

Frontier Developments shares extended their sharp rally this week after the company upgraded full-year guidance alongside a strong set of interim results. 

The stock jumped 3.3% on Wednesday before surging another 9% on Thursday. Over the past 12 months, Frontier has gained 147.2%, and the shares are already up 18.6% this year as of Jan. 15.

The momentum follows an upbeat assessment from Edison analyst Dan Ridsdale, who argues that Frontier is now firmly positioned for long-term value creation as the gaming industry emerges from a post-pandemic slowdown. 

Ridsdale said the company’s strength in creative management simulation games, which generate deep, sustained player engagement, provides a compelling strategic advantage. 

He added that Frontier’s incoming CEO, Jo Cooke, brings a “player-centric” focus well aligned with this model.

Frontier reported a 26% rise in first-half revenue to £59.6 million, with adjusted operating profit up 76% to £9.7 million. 

CMS titles accounted for 90% of sales, driven by the strong launch of Jurassic World Evolution 3, which set a Christmas Day sales record for the company. Planet Zoo also became Frontier’s highest-grossing game to date, reinforcing the strength of its portfolio.

Management raised full-year FY26 guidance to around £100 million in revenue and £11 million in adjusted operating profit, citing robust holiday demand and strong early trading in H2.

Ridsdale pointed to Frontier’s “capital-light model,” expanding pipeline and improving industry backdrop as reasons long-term investors could see “attractive returns.” 

He highlighted that the group’s enterprise value sits only marginally above its net asset value, suggesting room for further re-rating as confidence continues to recover.