Embracer Group Interim Report: Q2 July–September 2025

Embracer Group AB reports a Q2 (July–September 2025) performance that fell short of expectations, with net sales declining 19 % year‑over‑year to SEK 3,850 million and adjusted EBIT slipping to SEK 109 million. The decline is largely attributed to a 6 % organic contraction in sales and higher depreciation‑amortisation costs, while the group’s free cash flow improved to SEK 1,292 million after a negative SEK 524 million in the prior year. Net cash at 30 September stood at SEK 11.9 billion, reflecting a modest increase in available liquidity.

Operating segments show divergent trends: PC/Console Games experienced a 13 % sales drop and negative EBIT, driven by under‑performance of titles such as Killing Floor 3 and mid‑size releases, whereas Mobile Games grew 17 % with a 25 % organic lift from the PLAION portfolio. Entertainment & Services posted modest gains, buoyed by licensing and merchandising from Middle‑Earth Enterprises.

The group’s return on investment analysis indicates a weighted average ROI of 1.9× across completed projects, with the top‑5 titles contributing over SEK 535 million in gross profit. Strategic actions include divestments of Easybrain and a shift toward an IP‑first structure, alongside planned share buybacks.

Looking ahead, Embracer forecasts adjusted EBIT of at least SEK 1 billion for FY 2025/26, expecting Q3 to outperform Q2 due to stronger seasonal performance in Entertainment & Services and a continued focus on mid‑size PC/Console releases. The company remains committed to operational discipline, core IP investment, and targeted cost initiatives as it prepares for a Nasdaq First North listing in December 2025.