Aardman, the British animation studio behind Wallace and Gromit, narrowed its annual loss to £1.1m but missed its target to return to profit in 2025.
The employee-owned business had aimed for a small profit after two consecutive years of losses. Production delays and what the studio describes as a "challenging market" in children's content prevented the turnaround.
Aardman remains profitable on paper through licensing and related ventures, but the core production operation continues to lose money. The studio did not disclose specific reasons for the production delays or name particular projects affected.
The children's content sector has faced headwinds across the industry in recent years, though Aardman did not elaborate on market conditions beyond that characterization.