Net sales and EBIT aligned with our expectations. Approximately half of the sales originated from Payday 3, with the remainder fairly evenly split between Payday 2 and the publishing title Roboquest. Moving forward, investments in Payday 3's development will decrease significantly, as most of the workforce shifts focus to Project Baxter, a new game slated for release in 2026.

As of the end of the quarter, Starbreeze reported cash and cash equivalents of SEK249m. During the first nine months of 2024, the company invested nearly SEK170m in game development. With the self-financed development of Project Baxter, this cash reserve is essential to completing the project. Considering a projected neutral cash impact from Payday 3, Starbreeze may require additional funding through a distribution agreement. We believe securing such a deal next year, while the cash position remains robust, will be important for favorable terms.

We estimate a net cash position of approximately SEK190m by the end of 2024, which result in a enterprise value (EV) at current levels around SEK0.20 per share of approximately SEK100m. These are historically low levels for Starbreeze, and there is much indication that the IP rights for Payday are significantly more valuable despite the rough start for Payday 3. Due to lowered estimates we have a new fair value range of SEK0.15-SEK0.70 per share (SEK0.35-SEK1.20) with a base case of SEK0.38 per share (SEK0.60).