Embracer Group Q3 Financial Results: Fiscal Year 2025/26

Embracer Group’s financial results for the third quarter of the 2025/26 fiscal year, covering the period from October to December 2025, reflect a period of significant structural transition and mixed performance. While the Swedish holding company reported a 26% year-over-year decline in total quarterly revenue to 5.2 billion Swedish kronor ($581.7 million), management expressed satisfaction with the results, noting that the figures exceeded internal expectations and represented substantial growth compared to the first and second quarters of the same fiscal year.

The company’s performance was bolstered by key intellectual properties, specifically the Kingdom Come: Deliverance, Dead Island, and Tomb Raider franchises. Notably, Kingdom Come: Deliverance II achieved over 5 million copies sold, aided by the release of the Mysteria Ecclesiae expansion. While PC and console gaming revenue saw an 11% decline to 1.99 billion Swedish kronor ($223.5 million), revenue specifically from new releases during the quarter rose by 25%. Conversely, the mobile gaming segment experienced a sharp 66% decline, and the non-gaming entertainment and services segment fell by 15%.

Despite the overall revenue contraction, net profit increased by 45% to 1.4 billion Swedish kronor ($162.2 million). This period also marked significant organizational changes, including the spin-off of the Coffee Stain Group and the earlier separation of the Asmodee Group. The company is currently undergoing a broader transformation, with plans to rebrand as Fellowship Entertainment. These results underscore a strategic shift toward streamlining operations while maintaining profitability through core gaming assets.