NIP Group Reports $126M revenue for 2025, amid heavy losses and Nasdaq pressure

Ninjas in Pyjamas (NIP) are no longer just esports. As one of the longest-standing teams in the scene, you probably have heard of the brand, especially if you follow Counter-Strike or League of Legends.

However, behind the historic esports brand sits a much larger business. The NIP Group, the parent company of the team, is a publicly listed company that reported nearly $130 million in revenue in 2025.

But while the numbers look great on paper, their story is a little more complicated than it seems. Here’s how the company performed and why NIP’s late strategic move matters for the entire industry.

NIP Group is not only the parent company of the Ninjas in Pyjamas brand but also eStar Gaming (ES), one of the most notorious mobile esports teams in China.

For those who are not aware, ES is owned by Mario Ho, the son of Hong Kong-Macau billionaire Stanley Ho. The two brands came together as part of a major merger, with both NIP Ceo Hicham Chahine and Mario Ho becoming co-CEOs.

This is also how got back into the League of Legends scene through the LPL. ES, which previously held the slot in the league as Victory Five, changed its branding after the merger.

On the esports side of things, NIP now competes across 11 titles. Aside from League of Legends and CS, it also fields rosters in EA Sports FC, Honor of Kings, Apex Legends, QQ Speed, CrossFire, Rainbow Six Siege, and Delta Force.

NIP Group is also listed on the NASDAQ exchange, one of the few public companies in the industry, with offices across Abu Dhabi, China, and Brazil. Even though it also had a Stockholm office, the group moved the Swedish operations to Abu Dhabi, where the global headquarters reside, after announcing a wave of layoffs in March 2026.

In particular, the company’s ties with China to understand its operating model and risk profile. NIP Group not only operates through its subsidiaries but also conducts part of its China business through variable interest entity (VIE) arrangements. These structures allow a company (the primary beneficiary) to control another entity through established contractual agreements rather than majority voting rights. In the report, the company explicitly highlights that if PRC (People Republic of China) authorities determine the agreements to be non-compliant, both NIP and the VIE could face penalties or have to restructure, with potential consequences to its financial results and the value of its listed securities.

To understand how NIP reached such a high revenue number, it’s important to understand the company’s business model. Aside from the esports operations, the group also operates across talent management, event production, and, lately, Bitcoin mining, in a serious attempt to diversify the company’s revenues.

This explains why NIP reported US$126.5 million in total revenue for 2025, with a 48% year-on-year (YoY) increase. The largest revenue contributor was talent management, representing nearly 50% of the revenue mix ($62.8 million), and up by 25% compared to the previous year ($47.3 million).

According to the report, NIP Group, via eStar Entertainment, counts on over 36,000 talents, with over 66 million combined social media followers. Among the talents, the most notable are Honor of Kings streamer Yilong "Sao Yi" Zhou with 1.7 million followers on Douyu and lifestyle and fitness creator Yang "Liu Taiyang" Liu. Chinese singer Jackson Wang has been a partner and beneficial shareholder since 2020.

Event production amounted to $31.9 million, while bitcoin mining consisted of nearly 16% of group revenue. Not surprisingly, the esports revenues represent the smallest share of the mix, generating only $11.8 million and decreasing from the $14.7 million in 2024. According to the report, the decrease is due to lower sponsorship income as well as the reduced league revenue share, a common trend seen in other esports leagues.

Within esports revenues, the company also broke down the different components between Ninjas in Pyjamas and its China-linked teams. In 2025, tournament participation revenue reached US$4.7 million from Chinese teams and other subsidiaries, compared to US$1.7 million from Ninjas in Pyjamas.

Player transfer and rental fees were also mainly generated by the PRC and other subsidiaries, contributing US$2.0 million, while Ninjas in Pyjamas contributed US$0.1 million. Sponsorship and advertising revenue remained limited, with US$0.1 million from PRC and other subsidiaries and US$0.7 million from Ninjas in Pyjamas. Branded merchandise revenue was more heavily weighted toward the China-linked side, with US$1.0 million from PRC and other subsidiaries versus approximately US$0.03 million from Ninjas in Pyjamas.

The company also reported US$0.8 million from esports-related talent management services.

While the revenue growth is impressive, it wasn’t a financially sustainable one. Both talent management and bitcoin mining costs were higher than the revenues they generated ($64.4 million and $22.7 million).

Despite the event production and the esports operations having slightly positive margins, it wasn’t enough for the company to generate a positive gross profit, which totaled -$1.5 million.

If we look at net losses, the number would probably scare people off: -$238.1 million. This figure, however, can be explained by the $122.5 million in goodwill impairment as well as the $64.4 million in intangible asset impairment, which were tied to the reduced carrying value of the NIP brand name and league-related rights.

Share-based compensation was also substantial, amounting to $36.7 million, and pushing expenses over the $50 million mark. The total operating expenses were $247.2 million.

Keep in mind that these are non-cash charges, so it’s not like NIP is bleeding over $200 million, but the value loss in its assets is definitely a worrying sign.

The major impairments ended up hurting NIP’s balance sheet, which saw its assets go from $312.6 million to just a little over $200 million ($202.4 million, to be precise). Liabilities also increased by $37 million, with current liabilities higher than current assets, leaving the company in a negative working capital position. Equity dropped by $146.5 million to $92.9 million.

Short-term borrowings also jumped from US$10.6 million to US$38.8 million, with only $7.1 million in cash at the end of the year. The company has assets to work with, but it must improve its cash conversion to operate. And while bitcoin mining seems to have introduced a new strong revenue line, it also introduced volatility and execution risk.

In many ways, NIP Group reflects the broader challenges the esports industry is facing, with most no longer relying on sponsorships or the leagues’ revenue shares. The future seems to be moving towards organizations that can use their brands in wider entertainment or non-esports-related revenue lines.

NIP Group has initiated that transition since the start of the merger, but it’s starting to face major pressure from the market. At the end of March 2026, the company was notified that its share price had fallen below $1.00 for the last 32 consecutive business days and is now required to regain compliance with Nasdaq’s listing rules by September 21, 2026.

To do so, the company’s share price must be at or above $1.00 for at least 10 consecutive business days. If NIP fails to comply and does not receive an extension, Nasdaq could delist the company from the exchange, further hurting the company’s ability to gain future financing.

A common strategy used by corporations to increase the share price would be a reverse stock split, meaning that investors would own fewer shares at a higher price. Nonetheless, it wouldn't be a good look for the company, as it needs to prove that the diversification strategy can translate to healthier margins and long-term value.

Following the publication of our article, Ninjas In Pyjamas contacted Sheep Esports to discuss the layoffs that took place in Sweden: