Aardman posts £1.1m loss despite Wallace & Gromit hit
Aardman, the Bristol studio behind Wallace & Gromit, reported an annual loss of £1.1 million for 2025 despite record television viewing for its latest film. The Guardian
The loss compares with a £4.1 million loss the previous year. Revenues rose 8% year-on-year to £20.4 million. The company had aimed to record a small profit in 2025 after two consecutive years of losses.
Aardman said it missed that target because of production delays and a challenging market in children's content. It said the timing of some significant deals and weaker income in parts of the business hurt its bottom line.
Headcount for the 2025 financial year fell from 297 to 230, with permanent staff falling from 128 to 110. The company undertook a further strategic review in early 2026 to manage inflationary cost pressures, resulting in several redundancies.
The results followed strong public attention for Wallace & Gromit: Vengeance Most Fowl. It broke viewing records over Christmas 2024 as the most-watched animated film broadcast on British television since 2002. It won two BAFTAs and received an Oscar nomination for best animated feature film.
Aardman launched a five-year business plan in 2024 involving more investment in intellectual property and cost reductions. It identified artificial intelligence and generative AI as a principal risk and uncertainty to its business.
The studio was co-founded by Peter Lord and David Sproxton in the early 1970s in Bristol. It became employee-owned in 2018 after the founders transferred majority ownership to staff.
