Sister Group Achieves First Profit in a Decade

Sister Group has announced a historic financial achievement, recording its first profit in ten years for the year ending December 31, 2025. The company's adjusted EBITDA reached £3.8M, contributing to an overall profit of £3.3M. This significant turnaround follows a strategic decision in 2025 to "refocus on our strengths" and shut down its U.S. hub.

The 'next phase' for Sister Group centers on delivering "best-in-class storytelling from a UK base to a global audience." This strategic shift involves potential acquisitions of documentary indie Dorothy Street and digital-first label After Party Studios. Despite a 22% slip in overall revenue to £56.6M, driven by smaller budgets and sales to public broadcasters, the company's focus on retaining Intellectual Property for lower-budget shows like ITV's Coldwater is seen as beneficial.

The closure of the U.S. office, initiated in late 2024, is now "substantially complete" and expected to be finalized by 2027. This wind-down resulted in a significantly reduced loss of £2.5M last year compared to £34.5M the prior year. Sister Group maintains a global presence through its U.S. publisher Zando and podcast maker Campside Media, and will continue to seek work from American buyers.

Looking ahead, Sister Group faces challenges including rising production costs, shifting consumer viewing habits towards social platforms, and the rapid advancement of AI. The company, however, shows no indication of seeking a buyer or becoming part of a larger entity, emphasizing its commitment to independent storytelling.