Coffee Stain Group FY 2025/26 Interim Report: Q2

The interim report presents the financial performance of Coffee Stain Group AB for July‑September 2025, a period that saw net sales decline by 12 % to SEK 224 million compared with the same quarter in 2024. The drop is largely attributed to currency headwinds (USD/SEK –9.1 %) and a weaker contribution from back‑catalogue sales, while sequential growth of SEK 40 million was driven by the release of Deep Rock Survivor 1.0 and a linked platform deal.

Operating profitability contracted, with EBIT falling to SEK 44 million (margin 20 %) from SEK 69 million (27 %). Cash EBIT also slipped to SEK 69 million (31 %) from SEK 106 million (41 %), reflecting lower sales and a higher share of development costs expensed rather than capitalised. Adjusted EBIT, excluding acquisition‑related items, decreased to SEK 83 million (margin 37 %) from SEK 133 million (52 %). Net profit for the quarter was SEK 19 million, down from SEK 28 million, largely due to higher interest expenses on liabilities to Embracer Group AB and exchange‑rate losses.

Cash flow from operating activities before working capital was SEK 108 million, a decline from SEK 160 million. Free cash flow after working capital stood at SEK 78 million, up from SEK 46 million thanks to a positive working‑capital contribution. Financing activities were negative, driven by loan repayments and group contributions totaling SEK 211 million.

For the first six months of FY 2025/26, net sales were SEK 408 million (–13 % YoY), EBIT was SEK 46 million, and free cash flow after working capital reached SEK 163 million. Cash and cash equivalents at 30 September were SEK 269 million, down from SEK 576 million due to financing outflows.

Key risks highlighted include dependence on key personnel, sales performance of new titles, distributor concentration, and the success of acquisitions. The report was subject to a limited review by an independent auditor in accordance with IAS 34 and ISRE 2410.