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EG7 Q2 2025 Interim Report

Key insights

6 takeaways

01
EG7 reported Q2 2025 net revenue of MSEK 379, a 7.4% year-over-year increase, with adjusted EBITDA rising 12.1% to MSEK 38.See it on page 2
02
The launch of Palia on PS5, Xbox, and PC tripled pre-release figures, reaching 215k peak DAU and 1.2m MAU while tripling average daily revenue.See it on page 3
03
Organic revenue growth reached 6.7% for the quarter, with total revenue growth climbing to 17% when excluding foreign-exchange effects.See it on page 2
04
Daybreak remains the primary revenue driver at 50% of the total, while Big Blue Bubble contributes the majority of adjusted EBITDA at 66%.See it on page 8
05
The company maintains a healthy financial position with a net cash balance of MSEK 102.5 after accounting for debt and short-term earnouts.See it on page 12
06
Future performance is expected to be supported by the release of a second MechWarrior 5: Clans DLC in September 2025 and continued growth from the Palia platform.See it on page 4

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.