Aardman, the British animation studio behind Wallace & Gromit and Shaun the Sheep, has reported an annual loss of £1.1m for 2025. This figure, while an improvement on the previous year's £4.1m loss, means the employee-owned business did not meet its target of returning to profit after two consecutive years of losses.
The studio's accounts show that revenues rose by 8% to £20.4m last year. However, production delays and a “challenging market” in children’s content, alongside the timing of some “significant” deals and weaker income in certain business areas, impacted its financial performance.
In early 2026, Aardman undertook a strategic review to manage inflationary cost pressures, which led to “several redundancies.” The company's headcount for the 2025 financial year decreased from 297 to 230 people, with permanent staff numbers falling from 128 to 110.
Aardman also identified artificial intelligence as a principal risk and uncertainty, noting its potential to reshape creative industries. The studio stated it is crucial for AI to be developed and used responsibly and selectively, supporting human creativity rather than replacing it.