Aardman Reports 2025 Loss Despite Revenue Growth
Aardman reported a £1.1 million loss for 2025 and reduced its workforce to manage costs despite an 8% increase in revenue.
Aardman, the British animation studio behind Wallace & Gromit, failed to return to profit in 2025, reporting a loss of £1.1 million. While this represents an improvement over the £4.1 million loss from the previous year, the studio missed its financial targets due to production delays and a difficult children's content market.
Revenue for the 2025 financial year rose 8% to £20.4 million. To combat inflationary pressures, the employee-owned company conducted a strategic review in early 2026 that resulted in several redundancies. Consequently, the studio's headcount fell from 297 to 230 employees.
The studio identified generative AI as a primary risk to its business model. Aardman stated that "AI and generative AI were reshaping parts of the creative industries," and argued that the technology should support human creativity rather than replace it.
Aardman is pursuing growth through new initiatives, including a third Shaun the Sheep feature film and a history exhibition at the Lightroom in London.
