Aardman loss: Wallace & Gromit studio misses return to profit target
Aardman, the Bristol animation studio behind Wallace & Gromit, fell short of its target to return to profit in 2025, posting a £1.1m loss despite revenue rising 8% to £20.4m, its accounts show.
Hands shaping a clay character figure on a modelling bench in a small animation studio workspace.
Revenue up, but the red ink remains
The aardman loss for 2025 came despite a turnaround plan that had promised better: the studio had been aiming to record a small profit in 2025 after two years of consecutive losses, but was hit by production delays and a "challenging market".
Its annual accounts show revenue rose 8% to £20.4m, yet the business stayed in the red to the tune of £1.1m - an improvement on the previous year's £4.1m loss.
- The missed target to get back in the black is set out in the accounts themselves.
- Aardman attributed the shortfall to the timing of some "significant" deals and weaker income in some parts of the business.
Cost cuts, review and redundancies
In 2024 the studio launched a five-year business plan involving more investment in its intellectual property and cutting back costs. It then undertook a further strategic review in early 2026 to manage inflationary cost pressures, which resulted in "several redundancies".
- Headcount for the 2025 financial year had already shrunk from 297 to 230 people.
- Permanent staff fell from 128 to 110 over the same period.
AI named as a business risk
The accounts recognise artificial intelligence as a principal risk and uncertainty to the business. They state that AI and generative AI were "reshaping parts of the creative industries, creating opportunities to improve workflows and support innovation".
"reshaping parts of the creative industries, creating opportunities to improve workflows and support innovation"
The studio said the technology must be used responsibly in ways that support and celebrate human creativity and craft rather than replace it.
Hits amid the losses
The financial picture sits against a run of successes for the Wallace and Gromit studio. Wallace & Gromit: Vengeance Most Fowl broke viewing records over Christmas in 2024 as the most watched animated film broadcast on British television since 2002, won two Baftas and received an Oscar nomination for best animated feature film.
- A third Shaun the Sheep film was released last month.
- This month brings an audiobook of Gromit's autobiography read by the actor Martin Freeman.
- A recently opened exhibition at Lightroom in London explores the studio's 54-year history.
The accounts show Aardman remaining in loss for 2025 after its small-profit target slipped, with the early 2026 strategic review and redundancies marking its latest response to cost pressures.
