FinancialModern Times Group
Q4 2025 Interim Report
28 Feb 202610 pages~5 min full read
Q4 2025 revenue reached SEK 3,123 million, representing 108% organic year-on-year growth and a 25% increase on a constant-currency basis.
Adjusted EBITDA for the quarter was SEK 717 million, maintaining a 23% margin consistent with the full-year performance.
User-acquisition spending grew 76% year-on-year, accounting for 38% of total quarterly revenue to support original studios and key franchises like RAID and racing titles.
The direct-to-consumer channel grew by 600 basis points to represent 32% of total revenue, signaling a successful strategic pivot toward higher-margin in-app purchases.
The company reported an adjusted net income of SEK 1,390 million and an adjusted EPS of SEK 11.33, exceeding financial guidance.
Unlevered free cash flow reached SEK 878 million with a 66% cash-conversion rate, supporting a leverage ratio of five times EBITDA.
The firm concluded a pre-IPO study for PlaySimple and is preparing for a new district-based organizational structure rollout in early 2026.
The interim filing presents the fourth‑quarter 2025 financial results for a midcore‑casual gaming group, emphasizing a record‑setting revenue run and the successful execution of a transformation agenda that includes the integration of the Plarium acquisition and the rollout of a new district structure in early 2026. Revenue reached SEK 3,123 million, reflecting 108 % organic growth year‑on‑year and a 25 % increase on a constant‑currency basis, while adjusted EBITDA rose to SEK 717 million, delivering a 23 % margin that matches the full‑year figure. Unlevered free cash flow amounted to SEK 878 million, with a cash‑conversion rate of 66 % and a leverage ratio of five times EBITDA, underscoring robust liquidity and disciplined capital management.
User‑acquisition spending accelerated, representing 38 % of quarterly revenue—up from 37 % in the prior quarter—and grew 76 % on a reported basis, driven by heightened investment in original studios, new casual titles, and the racing franchise. The direct‑to‑consumer channel expanded by 600 basis points to 32 % of total revenue, reflecting a strategic shift toward higher‑margin in‑app purchases. Across the fiscal year, the company posted a 9 % organic revenue increase, with word‑games, racing, and RAID franchises delivering the strongest quarter‑end performance.
Operating cash flow for the quarter stood at SEK 840 million, while adjusted net income was SEK 1,390 million, translating to an adjusted EPS of SEK 11.33. The financial outcomes exceed guidance and position the firm to meet its medium‑term outlook, with a pre‑IPO study for PlaySimple concluded and the midcore transformation progressing as planned.
