Financial

EG7 Q2 2025 Interim Report

Summary

EG7 reported a solid Q2 2025 performance, with net revenue rising 7.4 % year‑over‑year to MSEK 379 and adjusted EBITDA increasing 12.1 % to MSEK 38, maintaining a margin of 9.9 %. Excluding foreign‑exchange effects, revenue growth reached 17 %, and organic growth stood at 6.7 %. The group’s cash position remained healthy, with a net cash balance of MSEK 102.5 after debt and short‑term earnouts. Key drivers included the launch of Palia on PlayStation 5, Xbox Series X/S and PC in May, which achieved 215 k peak daily active users (DAU) and 1.2 m monthly active users (MAU), tripling pre‑release figures, and a 3× increase in average daily revenue. The first DLC for MechWarrior 5: Clans was released, with a second DLC slated for September 2025. Other projects such as Cold Iron and Fireshine continued to progress, while M&A activity remained selective due to market volatility. Geographically the revenue mix was dominated by Daybreak (50 %) and Big Blue Bubble (16 %), with the rest of the group contributing 34 %. Adjusted EBITDA contributions were largely from Big Blue Bubble (66 %) and the rest of the group (27 %). FX fluctuations, particularly USD/SEK and GBP/SEK, impacted revenue but were offset by strong domestic performance. Looking forward, EG7 anticipates a stable quarter with continued growth from Palia releases and MechWarrior DLCs, underpinned by robust cash flows and a lean operating model that supports disciplined M&A pursuits.

From the report

E G 7 Q 2 2 0 2 5 INTERIMREPORT Q2 2025 Key Performance Figures NET REVENUE ADJUSTED EBITDA Y-O-Y NET REVENUE GROWTH ADJUSTED EBITDA MARGIN 379 38 7.4 9.9 MSEK MSEK Percent Percent ▪ 7.4% Net Revenue growth y-o-y ▪ Excluding FX impact, Net Revenue growth of 17% ▪ Excluding FX and Palia, organic growth of 6.7% ▪ 12.1% Adjusted EBITDA growth y-o-y ▪ Adjusted EBITDA margin of 9.9% in-line with Q1 2024

E G 7 Q 2 2 0 2 5 INTERIMREPORT Palia Update ▪ Successful release on PlayStation 5, Xbox Series X/S on May 13ᵗʰ ▪ Now available on all console and PC platforms ▪ Elderwood expansion content release ard ▪ Significant increase in performance ▪ Life-to-date,8+mm players ▪ 215k peak DAU , representing more than 3 times pre-release level ▪ 1.2mm peak MAU , representing 3 times pre-release level uture ▪ In July average daily revenue of more than 3 times pre-release 30-day average ▪ An exciting and robust roadmap ▪ Animal husbandry feature coming this fall ▪ Shared, co-op housing plans ▪ Monthly (small), quarterly (medium) and annual (large) update plans going forward ▪ A large and compelling market opportunity ▪ Cozy life sim genre represents a compelling opportunity with a large target audience ▪ An opportunity to establish a leading cozy life sim game in the market differentiated by its larger multiplayer and live online service features he

E G 7 Q 2 2 0 2 5 INTERIMREPORT Additional Updates ▪ Piranha’s MechWarrior game plan ▪ Successfully released the first DLC for MechWarrior 5: Clans in Q2 ▪ Next up is DLC 7 for MechWarrior 5: Mercenaries – Sep 2025 target release ▪ Plans to support both Mercenaries and Clans with on-going DLC releases going forward ▪ Cold Iron project ▪ Project making steady progress ▪ In final stages of development ▪ Subject to on-going progress, aiming to share an official announcement in the near future ▪ M&A growth opportunities ▪ Continuing flow of special situations opportunities in the market ▪ To date, passed on several as the risks outweighed potential upside for most ▪ Current climate is a tale of “haves and have-nots”: ▪ At the top of the market, the big guys are doing very well with established franchises ▪ At the mid to lower end, the market remains quite challenging ▪ Still too much volume / supply combined with a lack of capital availability ▪ Further rationalization expected at the lower end of the market over the near-term ▪ EG7 in a good position with our solid balance sheet to pursue M&A opportunities as the market rationalizes further

> **[Chart page]** This page contains visual data — view in PDF for the best experience. E G 7 Q 2 2 0 2 5 INTERIMREPORT Net Revenue, Adjusted EBITDA and EBIT QUARTERLY LTM (MSEK) 600 513 40% 2 000 1 725 1 673 1 713 1 787 1 813 40% 500 466 455 35% 35% 400 353 379 30% 1 500 30% 300 25% 25% 1 000 25% 200 102 22% 129 74 16% 20% 500 19% 18% 19% 19% 19% 20% 100 33 37 15% 334 295 326 338 342 15% 0 9% -5 -10 10% 10% 0 102 55 10% -100 -26 -148 -38 5% -139 -189 -201 5% -200 2Q24 3Q24 4Q24 1Q25 2Q25 0% -500 2Q24 3Q24 4Q24 1Q25 2Q25 0% Net Revenue Adjusted EBITDA EBIT Adj EBITDA Margin Net Revenue Adjusted EBITDA EBIT Adj EBITDA Margin

> **[Chart page]** This page contains visual data — view in PDF for the best experience. E G 7 Q 2 2 0 2 5 INTERIMREPORT More predictable part of Net Revenue QUARTERLY LTM (MSEK) 600 90% 2500 90% 500 80% 466 513 455 77% 80% 2000 72% 74% 73% 71% 70% 80% 72% 65% 70% 379 70% 1725 1673 1713 1787 1813 70% 400 60% 60% 300 283 353 335 332 319 290 50% 1500 1245 1237 1247 1269 1276 50% 40% 40% 1000 200 30% 30% 100 20% 500 20% 10% 10% 0 0% 0 0% 2Q 24 3Q 24 4Q 24 1Q 25 2Q 25 2Q 24 3Q 24 4Q 24 1Q 25 1Q 25 More predictable Net Revenues Total Net Revenue % of Group Total More predictable Net Revenues Total Net Revenue % of Group Total

> **[Chart page]** This page contains visual data — view in PDF for the best experience. E G 7 Q 2 2 0 2 5 INTERIMREPORTQ 2 NETREVENUECONTRIBUTION Net Revenue and Daybreak 190 50% Big Blue Bubble 61 16% Adjusted EBITDA Mix Rest of the group 128 34% Group total 379 100% Q 2 ADJEBITDACONTRIBUTION Daybreak 2 6% Big Blue Bubble 25 66% Rest of the group 10 27% Group total 37 100% (MSEK) DA YBREAK QUARTERLY BIG BLUE BUBBLE QUARTERLY 250 212 40% 90 75 84 81 80% 200 199 190 190 35% 80 66 70% 167 61% 61 30%70 60% 150 25% 49% 25% 50% 60 49 50% 50% 37 42 41%20% 50 40% 100 16% 33 15%40 30% 13% 25 30 50 7% 52 27 30 10% 20 20% 12 1% 2 5% 10 10% 0 0% 0 0% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Net Revenue Adjusted EBITDA Adj EBITDA Margin Net Revenue Adjusted EBITDA Adj EBITDA Margin

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Words: 1,671
Type: Financial

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