Games Workshop Achieves Record £659.7 Million Revenue and £275.7 Million Profit as Warhammer Hobby Expands Globally

Core Business Drives Record Financial Results

For the 52 weeks ending 31 May 2026, Games Workshop achieved record group revenue of a3659.7 million and profit before tax of a3275.7 million. On a constant currency basis, revenue was a3666.9 million, indicating a slight foreign exchange headwind on sterling figures. The core business, excluding licensing revenue, generated a3626.8 million in sales, up from a3565.0 million the prior year, reflecting strong year-on-year growth. This success underscores the global appeal of the Warhammer hobby and the company’s effective execution of its strategy focused on premium miniatures and worldwide distribution.

Core operating profit increased to a3245.1 million from a3211.8 million, or a3247.6 million at constant currency. The company maintained its core operating profit margin at approximately 40%, a target management is committed to preserving while pursuing sales growth. CEO Kevin Rountree highlighted that "record levels" of group revenue and profit before tax were achieved "thanks to another good performance from the core business," emphasizing strong operational execution across design, manufacturing, logistics, and sales. Robust cash generation, with a net cash increase before dividends of a3210.3 million compared to a3197.5 million previously, enabled returns to shareholders alongside investments in growth.

Licensing Revenue Falls After Previous Year’s Exceptional Product Launch

Licensing revenue decreased to a332.9 million from a352.5 million in the 52 weeks ended 1 June 2025. The company attributed the decline to the prior year’s "surprise but very positive product release." Licensing, which leverages Games Workshop’s intellectual property through selected partners in video games, animation, and media, remains a secondary revenue stream. Licensing operating profit fell to a329.9 million from a349.5 million due to the reduced revenue base. The company does not anticipate repeating the prior year’s exceptional licensing performance.

Management continues to focus on expanding licensing opportunities to increase Warhammer brand exposure globally without impacting the core miniatures business. The company is actively seeking new partners and exploring animation, live action, video games, and other media to "bring the worlds of Warhammer to life like never before." The licensing strategy prioritizes "the right licence with the right licensee" and maintains strict quality control through approval processes. Currently, most licensing income derives from video game sales in North America, the UK, and Continental Europe, highlighting the digital entertainment concentration of this revenue stream.

Retail Network and Trade Account Growth Enhance Global Reach

At period end, Games Workshop operated 598 retail stores across 24 countries, including 465 low-cost single-manager stores and 133 multi-staff outlets, with three featuring café formats. The retail strategy centers on attracting new hobbyists with curated product ranges, including starter sets and new releases tailored to each location’s customers. Each store serves as a community hub for the Warhammer hobby. The company acknowledged that "not all of our Warhammer stores have performed at a level that we are satisfied with," signaling a disciplined approach to store profitability and potential closures of underperforming sites.

The independent trade account base grew to 9,100 ordering stockist accounts in 71 countries during 2025/26, up from 8,100 the prior year. These retailers are supported by telesales teams in Memphis, Nottingham, Barcelona, Sydney, Tokyo, Shanghai, Seoul, and Singapore, operating in 21 languages across 17 time zones. Independent retailers play a vital role in areas without company-owned stores or where retail operations are not commercially feasible, selling through physical and online stores to extend Warhammer’s reach beyond direct company control.

Triple-Channel Sales Strategy Fuels Growth Across Retail, Trade, and Online

Games Workshop’s revenue model integrates three complementary sales channels: retail stores, independent trade accounts, and online sales via its e-commerce platform. The company aims for all channels to grow harmoniously, recognizing that independent retailers will always outnumber company-owned stores. The announcement confirmed "constant currency year-on-year sales growth in all three channels, all established countries, and growth through export to 46 countries globally." This diversified approach reduces reliance on any single distribution method and caters to varied customer preferences worldwide.

The online channel includes the primary warhammer.com store offering the full product range and web store terminals within retail locations, enabling customers to access the complete assortment. This integration of physical and digital retail delivers a seamless customer experience and captures sales that might otherwise be lost due to inventory limits at individual stores. Management emphasized customer focus across all channels, stating "whoever and wherever our customers are, and in whichever way they want to engage with Warhammer, we will do our utmost to support them." Digital content engagement remains strong, reaching "hundreds of thousands of people every day" through warhammer-community.com and owned social media.

Significant Investment in Design, Manufacturing, and Distribution

During 2025/26, Games Workshop invested a321.9 million in the Warhammer studio and a37.6 million in tooling, mainly for new plastic miniatures. The Nottingham-based Warhammer studio employs around 460 specialists producing hundreds of new sculpts, illustrations, rules, and stories weekly, ensuring continuous product innovation across Warhammer 40,000, The Horus Heresy, The Old World, and Age of Sigmar. The company commits to annual investment in design and tooling at appropriate levels.

Manufacturing remains centralized in Nottingham, with core facilities at F1 (40 injection moulding machines) and F2 (17 machines plus packing cells). A recently acquired property at Easter Park supports paint activities and innovation projects. The new F4 factory is in fit-out, currently used for packing, with injection moulding and tooling installations planned. The company proudly manufactures in Nottingham, the expertise hub for its global operations. Distribution is handled from the East Midlands Gateway warehouse near Nottingham, with regional hubs in Memphis, Tennessee, and Sydney, Australia, plus third-party warehouses in China, Japan, and South Korea.

Extensive Intellectual Property Portfolio Across Four Major Warhammer Universes

Games Workshop controls globally recognized intellectual property spanning four primary Warhammer universes: Warhammer 40,000, a grimdark sci-fi setting featuring Space Marines; The Horus Heresy, set 10,000 years earlier depicting galactic civil war; The Old World, the company’s oldest fantasy setting from 1983; and Age of Sigmar, a post-apocalyptic fantasy universe launched over a decade ago. Additional brands include Necromunda, Blood Bowl, and the licensed Lord of the Rings property. Each universe contains thousands of characters, events, conflicts, and dedicated game systems for tabletop engagement.

The company’s IP is described as "truly unique," with millions of words and thousands of illustrations and miniatures across these settings. IP expansion continues through internal development and licensed partnerships. All plastic miniatures bear the Citadel Miniatures brand, renowned for quality and detail across proprietary and licensed properties. Beyond miniatures, the Black Library imprint published over five million novels during the period, enhancing immersion and recruiting new hobbyists. The company is committed to making its IP more accessible through animation, live action, video games, and other media via select partners.

Supporting Products: Paints, Brushes, and Publications Enhance Customer Engagement

The Warhammer Colour paint range, brushes, and painting system provide important complementary revenue streams for hobbyists of all skill levels. The company continually develops new paints and techniques to improve the hobby experience. These products are sold through retail stores, trade accounts, and online, broadening accessibility worldwide.

Black Library publishes a wide range of fiction, including short stories, audio dramas, novels, and audiobooks, distributed through bookstores, digital platforms, retail, and specialist outlets. Selling over five million novels in the period, these publications deepen customer engagement, support recruitment, and generate additional revenue from readers beyond miniature hobbyists. The diverse supporting product portfolio captures value from varied customer interests within the Warhammer ecosystem.

Strong Cash Generation and Disciplined Shareholder Returns

Games Workshop generated a net cash increase of a3210.3 million before dividends during 2025/26, up from a3197.5 million previously, reflecting robust operational cash flow. The company prioritizes returning surplus cash to shareholders "in ever increasing amounts" while maintaining a cash buffer of a3120 million, equivalent to three months’ working capital. This buffer covers planned capital investments and Group Profit Share payments exceeding a31 million before dividend declarations. During the period, a Group Profit Share cash award of a35,000 per employee recognized staff contributions to maintaining core operating profit margins near 40%.

Dividends per share declared and paid totaled 485 pence, down from 520 pence the prior year, reflecting a balanced approach between shareholder returns, growth investment, and employee recognition. Earnings per share rose to 624.0 pence from 594.9 pence. The company operates an employee sharesave scheme to encourage staff involvement in performance. Management stated it has "no intention to acquire other companies, nor to dispose of any of those we own," focusing on organic growth through internal investment rather than acquisitions, prioritizing long-term value creation over short-term gains.

Centralized Management and Strategic Focus on Sustainable Growth

Games Workshop is managed centrally from Nottingham, with 79% of core sales generated outside the UK. CEO Kevin Rountree leads a flat organizational structure with 19 senior executives reporting directly to him, including the operational board and key direct reports. Key roles include the Group Finance Director overseeing financial strategy, Group Product Director managing the Warhammer studio and approvals, Group Operations Director handling manufacturing and logistics, and Operational Sales Director directing three sales channels. Structural changes effective 31 May 2026 have been implemented, with further evolution planned in 2026/27 to support succession planning.

The company’s strategic framework emphasizes long-term value over short-term gains, focusing on continuous IP development and enhancing the Warhammer hobby and business. Ambitions include producing the world’s best fantasy miniatures, engaging customers, and sustaining profitable global sales indefinitely. Management seeks employees aligned with company values and quality focus, emphasizing learning and adaptability. Investment in staff development supports strategy execution. Success is measured by high return on investment long-term and sales growth with stable core operating profit margins short-term.

Comprehensive Performance Metrics and Customer Engagement Tracking

Games Workshop uses a broad set of key performance indicators covering financial and non-financial metrics to monitor progress and benchmark forecasts. Financial KPIs include monthly and year-to-date core sales growth by channel, core gross margin, and core operating profit, with emphasis on sales and costs under direct control. Licensing revenue and cash are tracked separately as they are not under company control. The year-to-date core operating profit percentage measures operational efficiency.

Non-financial KPIs track strategic progress, including the number of company-owned stores and ordering stockist accounts by territory, and customer engagement via warhammer-community.com. Management’s focus on digital content engagement reflects commitment to direct customer relationships beyond retail transactions. This multi-dimensional framework supports disciplined long-term strategy execution across geography, distribution, financial performance, and customer satisfaction.