Tinybuild Inc. 

Tinybuild Inc. (LSE: TBLD) is an FTSE AIM All Share Index listed, a global video games publisher and developer, with a catalog of titles across a variety of genres (horror, action, simulation, survival, and others). The Company focuses on owning intellectual property (IP) to build multi-game and multimedia franchises, in partnership with developers.  

Key Recommendation Rationale – Sell at GBX 7.63

• Top-Line Stagnation: Revenue remained flat at USD 17.0 million despite record industry user numbers and a 10% increase in game releases on Steam. The company failed to convert market growth into actual revenue expansion.
• Single-Title Dependency: The surge in back-catalogue performance is attributed almost entirely to the console launch of Deadside. With over 80 titles in the portfolio, relying on one game for growth exposes the business to volatility if sales normalize.
• Under-investment in Future Pipeline: Capitalised software development costs dropped sharply by 29% to USD 6.2 million. The improved cash flow is partially a result of reduced investment in new projects, which risks starving the company of future revenue streams.
• Profit Driven by Austerity, Not Scale: The swing to a positive Adjusted EBITDA of USD 4.2 million was achieved by slashing SG&A expenses to USD 7.1 million (from USD 10.5 million). With revenue flat, profitability is reliant on cost-cutting rather than organic top-line growth. 

Valuation Methodology: Price/ Earnings Approach

 Share Price Chart

One Year Technical Chart (February 20, 2026), Source: REFINITIV 

Conclusion

Despite record industry activity, tinyBuild's revenue stagnated at USD 17.0m, with growth overly reliant on the single title Deadside. Profitability improved only through severe cost-cutting and a 29% reduction in development investment. This strategy of austerity over organic growth risks starving the future pipeline and lacks a scalable foundation.

Given its current trading levels, the recent strategic investments and partnerships, relative valuation, and associated risks, it is prudent to exit the stock at the current levels.

Hence, a ‘Sell’ recommendation is given on the stock at the Closing Market Price of GBX 7.63 as of 20 February 2026. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 20 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’