MTG Q1 2026 Earnings Release

Key insights

7 takeaways

01
MTG reported Q1 2026 net sales of SEK 3,159 million, achieving 14% pro forma growth and an adjusted EBITDA of SEK 802 million, a 30% year-over-year increase.See it on page 2
02
The company is aggressively integrating over 50 AI tools, resulting in an 80% reduction in both marketing asset production time and content development cycles for titles like Merge Gardens.See it on page 27
03
The Casual District segment drove significant growth with 29% organic revenue expansion, supported by the scaling of new titles such as Crossword Go and Tile Match.See it on page 8
04
Direct-to-consumer revenue now accounts for 39% of total group sales, reflecting a successful diversification of distribution channels.See it on page 9
05
The firm maintained a strong financial position with SEK 582 million in unlevered free cash flow and a 78% LTM unlevered cash conversion rate.See it on page 11
06
MTG maintains a 2026 outlook of 5% to 8% pro forma revenue growth and an adjusted EBITDA margin between 22% and 24%.See it on page 12
07
User acquisition investment remained stable at 38% of total revenue as the company continues its midcore transformation and evaluates potential M&A activity.See it on page 5

Summary

MTG’s Q1 2026 earnings report highlights a period of robust financial performance and strategic operational transformation. The company reported net sales of SEK 3,159 million, representing 14% pro forma growth on a constant currency basis. Profitability remained strong, with an adjusted EBITDA of SEK 802 million, reflecting a 25% margin and 30% year-over-year growth. The firm maintained a healthy cash position, generating SEK 582 million in unlevered free cash flow, with an LTM unlevered cash conversion rate of 78%.

The company’s growth is driven by its two primary segments: the Midcore District, which achieved 10% pro forma revenue growth, and the Casual District, which saw 29% organic growth. User acquisition (UA) investment remained consistent at 38% of total revenue, with a strategic shift toward scaling new casual titles such as Crossword Go and Tile Match. Direct-to-consumer revenue streams have grown to represent 39% of total group sales, indicating a successful diversification of distribution channels.

A central theme of the report is the aggressive integration of artificial intelligence across the entire game development lifecycle. By utilizing over 50 AI tools, the company has significantly reduced development timelines and costs; for instance, marketing asset production time has been cut by approximately 80%, and content development cycles for titles like Merge Gardens have seen time savings exceeding 80%. These AI-driven efficiencies are intended to lower barriers to scale, allowing for rapid prototyping, smaller development teams, and more personalized player experiences. Looking ahead, the company maintains a 2026 outlook of 5% to 8% pro forma revenue growth and an adjusted EBITDA margin between 22% and 24%, supported by ongoing midcore transformation efforts and potential M&A activity.