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Adjusted EBIT amounted to SEK 109 million
SECOND QUARTER, JULY-SEPTEMBER 2025 (COMPARED TO JULY-SEPTEMBER 2024)
> Net sales decreased by -19% (6% organic growth) to SEK 3,850 million (4,726).
The sales split per operating segment:
> PC/Console Games: decreased by -13% (-4% organic growth) to SEK 1,853 million (2,121).
> Mobile Games: decreased by -61% (1% organic growth) to SEK 535 million (1,358).
> Entertainment & Services: increased by 17% (25% organic growth) to SEK 1,462 million (1,247).
> EBIT1) amounted to SEK -73 million (28), an EBIT margin of -2% (1%). Adjusted EBIT decreased by
-79% to SEK 109 million (513), corresponding to an Adjusted EBIT margin of 3% (11%).
> Cash flow from operating activities amounted to SEK 405 million (470). Net investments in intangible
assets amounted to SEK -838 million (-894). Free cash flow after changes in working capital
amounted to SEK -348 million (-392).
> Basic earnings per share was SEK -0.10 (-2.18) and diluted earnings per share SEK -0.10 (-2.18).
Adjusted earnings per share was SEK -0.67 (-0.26). Adjusted earnings per share after full dilution
was SEK -0.67 (-0.26).
> An adjusted EBIT of at least SEK 1,000 million is forecasted for the financial year 2025/26.
SIX MONTHS, APRIL-SEPTEMBER 2025 (COMPARED TO APRIL-SEPTEMBER 2024)
> Net sales decreased by -25% (2% organic growth) to SEK 7,204 million (9,620).
The sales split per operating segment:
> PC/Console Games: decreased by -27% (-13% organic growth) to SEK 3,494 million (4,778).
> Mobile Games: decreased by -62% (-2% organic growth) to SEK 1,055 million (2,747).
> Entertainment & Services: increased by 27% (35% organic growth) to SEK 2,655 million (2,095).
> EBIT1) amounted to SEK -330 million (-1,425), an EBIT margin of -5% (-15%). Adjusted EBIT decreased
by -83% to SEK 184 million (1,092), an Adjusted EBIT margin of 3% (11%).
> Cash flow from operating activities amounted to SEK 862 million (109). Net investments in intangible
assets amounted to SEK -1,587 million (-1,893). Free cash flow after changes in working capital
amounted to SEK -572 million (-512).
> Basic earnings per share was SEK -2.10 (-11.28) and diluted earnings per share SEK -2.10 (-11.28).
Adjusted earnings per share was SEK -1.36 (0.16). Adjusted earnings per share after full dilution was
SEK -1.36 (0.15).
Key performance indicators, Group
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net sales, SEK m
3,850
4,726
7,204
9,620
22,370
EBIT1), SEK m
-73
28
-330
-1,425
3,535
EBIT margin
-2%
1 %
-5%
-15 %
16 %
Adjusted EBIT, SEK m
109
513
184
1,092
3,344
Adjusted EBIT margin
3%
11%
3%
11 %
15%
Cash flow from operating activities, SEK m
405
470
862
109
3,492
Net investments in intangible assets, SEK m
838
894
1,587
1,893
3,615
Net sales growth
-19%
-30%
-25%
-32 %
-18%
Total game development projects
107
128
107
128
108
Total game developers
5,174
5,911
5,174
5,911
5,378
Total headcount
6,935
8,009
6,935
8,009
7,180
1) EBIT equals Operating profit in the Consolidated statement of profit or loss.
In this report, all figures in brackets refer to the corresponding period of the previous year, unless otherwise stated.
EMBRACER GROUP
INTERIM REPORT
JULY-SEPTEMBER 2025
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
1
Q2
FY 2025/26
CEO COMMENTS
BUILDING FROM A POSITION OF STRENGTH
Our Q2 results were in line with our moderate expectations, and our full-year outlook remains
intact. Our focus on three key priorities remains: investing in our core IPs, operational discipline,
and targeted cost initiatives. This quarter shows progress, but also where focus is still needed.
We’re committed to building a more cohesive organization, strengthening profitability and
unlocking long-term value. Coffee Stain Group’s upcoming Capital Markets Event will be an
important milestone as the company prepares for its spin-off, targeted for December.
A SOLID DELIVERY FOR CORE IP IN Q2
In the second quarter, organic growth reached +6%,
with net sales of SEK 3.9 billion, adjusted EBIT of SEK
109 million, and EBITDAC of SEK 102 million. Mobile
Games and Entertainment & Services had a solid
quarter while the overall profitability within PC/Console
was weak. Our core IPs, including The Lord of the Rings
and Kingdom Come: Deliverance, delivered solid
results above expectations in the quarter. Our focused
efforts on Kingdom Come: Deliverance II, alongside the
successful launch of the Legacy of the Forge DLC, was
a catalyst for new and existing player engagement. Just
this week, the third major DLC, Mysteria Ecclesiae, was
released along with the announcement of reaching
another major milestone of 4 million units sold.
On the other hand, this quarter saw a weak
performance for new releases, including Killing Floor 3
and several small and mid-sized titles. Tripwire
Interactive, the studio behind Killing Floor 3, continues
to demonstrate a strong commitment through
consistent updates and active community engagement.
As we move forward, we will consistently monitor
player engagement and determine the best ways to
support Killing Floor 3, ensuring our approach reflects
community feedback and builds as a sustainable
service model.
Free cash flow was negative, impacted by seasonal
working capital effects ahead of the holiday season, as
also seen in our previous Q2 reports. Our capex was
reduced to SEK 853 million in Q2, down from SEK 926
million a year earlier. Our balance sheet remains
strong, with over SEK 4.2 billion in net cash while our
cash earnout obligations decreased from SEK 2.0
billion in Q1 to SEK 1.3 billion in Q2. This provides us
with considerable strategic flexibility ahead to execute
our necessary plans to improve our profit and cash
generation.
FY 2025/26 FORECAST INTACT
Looking ahead, we maintain our expectation to deliver
at least SEK 1.0 billion in Adjusted EBIT for the current
financial year, including the financial contribution from
Coffee Stain Group. For Q3, we expect performance to
be somewhat stronger than in Q2. This is primarily
driven by a stronger expected seasonal performance
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
2
Hobbiton™ Movie Set
© & TM Mee under lic. to Rings Scenic Tours and Wingnut Film Productions
within Entertainment & Services offset by a continued
limited profitability within PC/Console. We do expect a
continued build-up of working capital in the third quarter.
Fellowship, the multiplayer online game released in
Early Access on 16 October, has seen a positive early
reception, and we see good potential for the game to
continue to build over the longer term.
We are excited about the recent reception for the
REANIMAL demo, and our teams across the group are
working hard to deliver the game to its full potential.
Our impactful mid-sized PC/Console releases this year,
including REANIMAL and Gothic 1 Remake, are
weighted towards Q4. This means that we expect a solid
free cash flow in Q4 and also some phasing into the next
financial year. Looking further ahead, we are excited
about our pipeline, with a range of major projects
based on our core IPs scheduled to launch over the
upcoming three years. An improved release slate will be
one key to drive stronger profit and cash generation
ahead.
COFFEE STAIN SPIN-OFF A NOTABLE
MILESTONE AHEAD
Coffee Stain Group is preparing for their Capital
Markets Event on 17 November and remains on track
for a separate listing targeted for December. The spin-
off represents a significant milestone, as we are
streamlining and sharpening the focus of our
businesses. With a powerful combination of strong IPs,
engaged communities, and innovative talent, we are
highly confident in Coffee Stain’s future as a standalone
company.
The renaming of Embracer Group will occur at the
earliest alongside the start of our new financial year on
1 April 2026. This timing ensures a seamless transition
and allows us to align our new name and brand identity
with the beginning of an exciting new chapter for the
group.
IN CONTROL OF OUR OWN DESTINY
Change is the only constant, and that is certainly true
also for the games industry. Never have we faced
greater competition for consumer time and money. That
is why it is essential that we maintain full control of our
principal value-generating efforts; we own and control
our core IPs, we have some of the best creative talents
in the industry and we operate from a position of
financial strength. Our long-term value will be driven by
investing in our world-leading IPs in ways that delight
fans.
As we evolve into Fellowship Entertainment, our
commitment to an IP-first strategy remains at the core
of everything we do. This focus drives us to structure
the group around our strongest franchises and creative
talent. To realize this vision, we continue our work to
streamline processes while ensuring that our internal
experts are clearly identified and leveraged across the
entire group in a smart and efficient way. We are
evolving from a decentralized structure toward a more
cohesive way of working. As part of this evolution, we
are making progress on improving profitability and
freeing up capital for higher-return opportunities. We
see additional scope to continue reallocating capex to
our core IPs. While we are still in the early stages of this
journey, we are confident that these changes will
unlock significant long-term value for the group.
PRIORITIZING DISTRIBUTION OF EXCESS
CASH
At our Annual General Meeting in September, we
announced and subsequently launched a SEK 500
million share buyback program, which was successfully
completed on 6 November. We will continue to
prioritize the distribution of excess cash to
shareholders, either through dividend or share
buybacks. We continue to actively explore
opportunities to enhance strategic optionality and
maximize shareholder value. As we continue to refine
our structure, we aim to talk to our growth opportunities
and exact capital allocation strategy in due course.
To conclude, this quarter demonstrates our ability to
deliver on expectations, remain steadfast in our
strategic priorities, and further strengthen our platform
for profit and cash flow generation. As I stated in
August this is a pivotal moment, where we channel our
energy and sharpen our focus. Together, we are
building a stronger and more focused group. Thank you
for your trust.
Phil Rogers
Group CEO
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
3
FINANCIAL COMMENTS
NET SALES
Net sales, SEK m
Jul-Sep
2025
Jul-Sep
2024
Change
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
PC/Console Games
1,853
2,121
-13%
3,494
4,778
10,450
Mobile Games
535
1,358
-61%
1,055
2,747
5,359
Entertainment & Services
1,462
1,247
17%
2,655
2,095
6,561
Total
3,850
4,726
-19%
7,204
9,620
22,370
Total net sales in the quarter amounted to SEK 3,850 million, corresponding to a decrease of
-19%. The negative net sales growth in the quarter is primarily related to the divestment of
Easybrain and lower foreign exchange rates.
Organic growth and pro forma growth amounted to 6% in the quarter. Entertainment & Services
segment had the highest contribution with an organic and pro forma growth of 25%, which was
mainly driven by increased sales for PLAION Partners. The growth contribution from
Entertainment & Services was offset by a -4% organic and proforma growth in PC/Console
Games, mainly driven by decreased catalog sales (including platform deals).
In the Mobile Games segment the organic and proforma growth amounted to 1% mostly driven
by CrazyLabs performance in the quarter.
Jul-Sep 2025
Apr-Sep 2025
Net sales growth
Net sales
growth
Organic
growth
Pro forma
growth
Net sales
growth
Organic
growth
Pro forma
growth
PC/Console Games
-13%
-4%
-4%
-27%
-13%
-13%
Mobile Games
-61%
1%
1%
-62%
-2%
-2%
Entertainment & Services
17%
25%
25%
27%
35%
35%
Total
-19%
6%
6%
-25%
2%
2%
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
4
FINANCIAL
COMMENTS
Satisfactory
Coffee Stain Publishing | Coffee Stain Studios
EBIT AND ADJUSTED EBIT
EBIT amounted to SEK -73 million (28) in the quarter, yielding an EBIT margin of -2% (1%). The
decrease compared to the previous year mainly relates to impairments within the PC/Console
Games segment and to the divestment of Easybrain within the Mobile Games segment.
Items affecting comparability (IAC - see definitions page 41) amounted to SEK -172 million (-75)
in the quarter. SEK -157 million relates to write-downs of intangible assets. These write-downs
are related to a range of game development projects across THQ Nordic. Write-downs are
defined as IAC if related to projects where the studio or team has been discontinued. Other
IAC amounted to SEK -15 million are mainly related to profitability actions resulting in the
discontinuation of studios and teams. IAC are presented in the table provided on page 44.
Adjusted EBIT decreased by -79% and amounted to SEK 109 million (513) in the quarter,
yielding a 3% margin (11%). The decrease in Adjusted EBIT in the quarter is primarily driven by
divested assets in Mobile Games, which contributed with SEK 263 million in the comparable
quarter, along with negative organic growth and higher depreciation and amortization costs
within PC/Console Games.
The decrease in the Mobile Games and PC/Console Games segments is slightly offset by an
increase in Entertainment & Services which is mainly explained by a strong organic growth.
EBIT, SEK m
Jul-Sep
2025
Jul-Sep
2024
Change
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
PC/Console Games
-154
-70
-120 %
-268
-1,719
-3,855
Mobile Games
175
230
-24 %
158
595
9,101
Entertainment & Services
-36
-68
47 %
-102
-181
-1,096
Corporate
-58
-65
11 %
-117
-120
-614
Total
-73
28
-361 %
-330
-1,425
3,535
Adjusted EBIT, SEK m
Jul-Sep
2025
Jul-Sep
2024
Change
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
PC/Console Games
51
175
-71 %
97
312
1,892
Mobile Games
63
374
-83 %
118
892
1,383
Entertainment & Services
50
29
72 %
83
8
324
Corporate
-55
-65
15 %
-114
-120
-256
Total
109
513
-79 %
184
1,092
3,344
FORECAST
For our current full financial year 2025/26 we reiterate an adjusted EBIT forecast of at least
SEK 1,000 million.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
5
FINANCIAL
COMMENTS
OPERATING SEGMENT
PC/CONSOLE GAMES
The PC/Console Games operating segment includes the following
operative groups: THQ Nordic, PLAION, Coffee Stain and Crystal Dynamics
– Eidos. PC and console games have been a core business for Embracer
Group ever since its inception. The segment develops and publishes games
for PC and console. It includes AAA, AA+, Indie, MMO, Free-to-play, Asset
Care, VR, Work-for-Hire and other game development.
Key performance indicators,
PC/Console Games
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net Sales, SEK m
1,853
2,121
3,494
4,778
10,450
of which Digital products, SEK m
1,225
1,313
2,289
2,944
6,990
of which Physical products, SEK m
79
219
164
398
903
of which Other products 1), SEK m
549
589
1,042
1,435
2,558
Net Sales growth
-13 %
-46%
-27 %
-40 %
-27 %
EBIT, SEK m
-154
-70
-268
-1,719
-3,855
EBIT margin
-8 %
-3%
-8 %
-36 %
-37 %
Adjusted EBIT, SEK m
51
175
97
312
1,892
Adjusted EBIT, margin
3 %
8%
3 %
7 %
18 %
Type of income
New releases sales, SEK m
238
266
321
411
2,024
Back catalog sales 2), SEK m
1,065
1,266
2,131
2,931
5,869
Other1), SEK m
549
589
1,042
1,435
2,558
1) Primarily Work-for-Hire and other game development projects.
2) See Definitions, quarterly information.
SEGMENT HIGHLIGHTS
Net sales in the quarter for PC/Console Games amounted to SEK 1,853 million, a decrease of
-13% compared to the same period last year, and -4% organically and pro forma. The negative
organic growth was primarily impacted by lower back catalog revenue.
EBIT amounted to SEK -154 million (-70) yielding a -8% (-3%) EBIT margin. Items affecting
comparability amounted to SEK -149 million (-75) and relates to profitability actions including
headcount reductions and impairment of certain game development projects where the studio
or team has been discontinued. Adjusted EBIT amounted to SEK 51 million (175), yielding a 3%
(8%) Adjusted EBIT margin. The lower Adjusted EBIT is primarily explained by the negative
organic growth and increased depreciation and amortization driven by new releases in the
quarter.
Net sales from new releases amounted to SEK 238 million (266) in the quarter, a decrease of
-11% YoY. Among the new releases in the quarter, Killing Floor 3 and Titan Quest II (PC Early
Access) were the main contributors. Killing Floor 3 underperformed management expectations
in the quarter.Tripwire Interactive, the studio behind the game, continues to demonstrate a
strong commitment through consistent updates and active community engagement. Looking
ahead, player engagement and how best to support the title will be evaluated continuously.
Several small- and mid-sized new releases, including Frosthaven, Echoes of the End and Metal
Eden, saw weak performance in the quarter.
Revenue from back catalog titles (including platform deals) amounted to SEK 1,065 million (1,266)
in the quarter, a decrease of -16% YoY. The top-10 back catalog net sales drivers in the quarter
included Kingdom Come: Deliverance II, Satisfactory, Star Trek Online, MX vs. ATV Legends,
Dead Island 2, Deep Rock Galactic, Welcome to Bloxburg, Valheim, Neverwinter and Remnant II.
Kingdom Come: Deliverance II performed slightly ahead of expectations, supported by a solid
release of the second expansion, Legacy of the Forge. The game recently also reached
another major milestone of 4 millions units sold.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
6
OPERATING SEGMENT
PC/CONSOLE GAMES
SHARE OF
GROUP SALES
48%
(45%)
INTELLECTUAL
PROPERTY (IP)
238
(241)
INTERNAL
HEADCOUNT
4,432 (5,205)
INTERNAL
STUDIOS
59
(66)
Other net sales amounted to SEK 549 million (589) in the quarter, a decrease of -7% YoY.
GAME DEVELOPMENT INVESTMENTS AND COMPLETED GAMES
The finalized value of the completed and released games during the quarter amounted to SEK
1,156 million (455), driven by the release of Killing Floor 3, Titan Quest II (PC Early Access),
Metal Eden and Echoes of the End. In total, SEK 661 million (817) were invested in the quarter.
The ratio of investments to completed games decreased from 1.8x to 0.6x YoY. When new
games are released, capitalized development costs are amortized, based on a degressive
depreciation model over two years.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
7
OPERATING SEGMENT
PC/CONSOLE GAMES
3.6x
2.0x
0.8x
3.2x
3.3x
2.1x
1.5x
1.9x
1.9x
2.8x
1.8x
1.4x
0.7x
3.3x
0.6x
Completed games
Investments in game development
Investments in game development as X times completed games
Jan-
Mar
2022
Apr-
Jun
Jul-
Sep
Oct-
Dec
Jan-
Mar
2023
Apr-
Jun
Jul-
Sep
Oct-
Dec
Jan-
Mar
2024
Apr-
Jun
Jul-
Sep
Oct-
Dec
Jan-
Mar
2025
Apr-
Jun
Jul-
Sep
0
500
1,000
1,500
2,000
0
1
2
3
4
5
SEK million
Times
ANNOUNCED PC/CONSOLE RELEASES AS OF NOVEMBER 13, 2025
Title
Publishing Label
IP Owner
Main
Developer Platforms
Deus Ex Remastered
Aspyr
Own
Internal
PC, PS5, XB X|S
R-Type Delta: HD Boosted
Clear River Games
External
External
PC, PS5, XB X|S,
Switch, PS4, XB1
Rushing Beat X: Return of Brawl Brothers Clear River Games
External
External
TBC
Truxton Extreme
Clear River Games
Own
Internal
PC, PS5
Into the Unwell
Coffee Stain Publishing
External
External
PC
Warhammer 40,000: Dawn of War IV
Deep Silver / PLAION
External
External
PC
TENSE
Demiurge Studios
Own
Internal
PC
Tomb Raider (final title TBC)
External
Own
Internal
TBC
DarkSwarm
Ghost Ship Publishing
External
External
PC
Deep Rock Galactic: Rogue Core
Ghost Ship Publishing
Own
Internal
PC
Dinolords
Ghost Ship Publishing
External
External
PC
A Rat´s Quest - The Way Back Home
HandyGames
External
External
PC, PS4, XB1, Switch
Flask
Ghost Ship Publishing
External
External
PC
Double Shake
Limited Run Games
External
External
PC, PS5, Switch
Fear Effect 2
Limited Run Games
External
Internal
PC, PS5, Switch, PS4
Fighting Force Collection
Limited Run Games
External
Internal
PC, PS5, Switch, PS4
He-Man and the Masters of the
Universe™: Dragon Pearl of Destruction
Limited Run Games
External
External
PC, PS5, Switch, PS4
Nickelodeon Splat Pack
Limited Run Games
External
Internal
PC, PS5, Switch
Tomba! 2: The Evil Swine Return Special
Edition
Limited Run Games
External
Internal
PC, PS5, Switch, PS4
Screamer
Milestone
Own
Internal
PC, PS5, XB X|S
MARVEL 1943: Rise of Hydra
PLAION
External
External
TBC
Thief VR: Legacy of Shadow
PLAION
Own
External
PSVR2
Darksiders 4
THQ Nordic
Own
Internal
PC, PS5, XB X|S
Fatekeeper
THQ Nordic
Own
External
PC, PS5, XB X|S
Gothic 1 Remake
THQ Nordic
Own
Internal
PC, PS5, XB X|S
REANIMAL
THQ Nordic
Own
Internal
PC, PS5, XB X|S,
Switch 2
SpongeBob SquarePants: Titans of the
Tide
THQ Nordic
External
Internal
PC, PS5, XB X|S,
Switch 2
Söldner: Secret Wars Remastered
THQ Nordic
Own
External
PC
The Eternal Life of Goldman
THQ Nordic
External
External
PC, PS5, XB X|S,
Switch
The Guild Europa 1410
THQ Nordic
Own
Internal
PC
Tides of Tomorrow
THQ Nordic
Own
Internal
PC, PS5, XB X|S
NORSE: Oath of Blood
Tripwire
External
External
PC, PS5, XB X|S
* PC/Console titles from the operating segments Mobile Games and Entertainment & Services are also included in the release list.
For latest release dates please refer to above mentioned publishers.
The release list does not include games where we only have physical distribution rights.
The release list does not include DLCs or Work-For-Hire projects.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
8
OPERATING SEGMENT
PC/CONSOLE GAMES
OPERATING SEGMENT
MOBILE GAMES
The Mobile Games operating segment consists of DECA Games, which
includes CrazyLabs. The Mobile Games segment includes free-to-play, ad
centric, in-app-purchase centric and pay-to-play mobile games.
Key performance indicators,
Mobile Games
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net Sales, SEK m
535
1,358
1,055
2,747
5,359
Net Sales growth
-61 %
-8%
-62 %
-6%
-9 %
EBIT, SEK m
175
230
158
595
9,101
EBIT margin
33 %
17%
15 %
22 %
170 %
Adjusted EBIT, SEK m
63
374
118
892
1,383
Adjusted EBIT, margin
12 %
28%
11 %
32 %
26 %
User Acquisition Cost (UAC), SEK m
241
591
464
1,094
2,508
User Acquisition Cost (UAC), % of Net Sales
45 %
44%
44 %
40 %
47 %
Total installs, million
181
252
333
482
940
Total Daily Active Users (DAU), million
10
27
11
27
27
Total Monthly Active Users (MAU), million
121
214
122
212
214
SEGMENT HIGHLIGHTS
Net sales in the quarter for Mobile Games amounted to SEK 535 million, a decrease of -61%
compared to the same period last year, primarily due to the divestment of Easybrain. Organic
growth and pro forma growth amounted to 1% year-over-year and also saw a positive trend
sequentially. The development of total downloads, DAU and MAU, compared to the same
period last year is mainly due to the divestment of Easybrain.
EBIT amounted to SEK 175 million (230), yielding a 33% (17%) EBIT margin. Adjusted EBIT
amounted to SEK 63 million (374), yielding a 12% (28%) Adjusted EBIT margin. UAC amounted
to SEK 241 million (591), or 45% (44%) of net sales. The lower Adjusted EBIT and Adjusted EBIT
margin are mainly explained by the divestment of Easybrain and a different product mix.
DECA Games achieved a steady performance in the quarter, with a positive top line and
profitability trend sequentially. CrazyLabs saw the successful scaling and growth of a new
hybrid casual game, Flop House, and improved performance in the back catalog of live games.
The expected scaling of Glow: Fashion Idol did not materialize as expected due to delays in
technical fixes and product improvements. The game is still expected to grow in future
quarters. Competition in the hybrid-casual market continues to increase, but CrazyLabs
expects new game launches to support continued growth.
The top-5 revenue generating titles in the quarter were: Glow: Fashion Idol, Coffee Mania,
Alien Invasion, Party In My Dorm, and Bus Frenzy - Traffic Jam.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
9
OPERATING SEGMENT
MOBILE GAMES
SHARE OF
GROUP SALES
14%
(29%)
INTELLECTUAL
PROPERTY (IP)
30
(51)
INTERNAL
HEADCOUNT
753
(1,101)
INTERNAL
STUDIOS
8
(11)
OPERATING SEGMENT
ENTERTAINMENT & SERVICES
The Entertainment & Services segment consists of three operative groups:
Dark Horse Media, Freemode and PLAION's partner and film business. Dark
Horse is a leading IP-focused creator, publisher, and distributor of comic
books, art books & merchandise. Freemode is an ecosystem of fan-centric
game and entertainment related businesses, including Middle-earth
Enterprises and Limited Run Games.
Key performance indicators,
Entertainment & Services
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net Sales, SEK m
1,462
1,247
2,655
2,095
6,561
of which Digital products, SEK m 1)
98
172
189
300
1,083
of which Physical products, SEK m 1)
1,240
992
2,242
1,667
5,144
of which Other products, SEK m
123
83
223
128
334
Net Sales growth
17 %
-10 %
27 %
-35 %
-7 %
EBIT, SEK m
-36
-68
-102
-181
-1,096
EBIT margin
-2 %
-5 %
-4 %
-9 %
-17 %
Adjusted EBIT, SEK m
50
29
83
8
324
Adjusted EBIT, margin
3 %
2 %
3 %
— %
5 %
1) A correction is made of the Q1 figures 2025 with a reclassification from Digital to Physical sales.
SEGMENT HIGHLIGHTS
Net sales in the quarter for Entertainment & Services amounted to SEK 1,462 million, an
increase of 17% compared to the same period last year, or 25% organically and pro forma. The
positive organic growth was primarily driven by PLAION Partners. The performance was also
positively impacted by the recent strengthening of PLAION Partners footprint through several
new agreements announced earlier this year.
EBIT amounted to SEK -36 million (-68), yielding a -2% (-5%) EBIT margin. Adjusted EBIT
amounted to SEK 50 million (29), yielding a 3% (2%) Adjusted EBIT margin. Items affecting
comparability amounted to SEK -19 million (–) and relates to profitability actions including
discontinuation of teams and disposals of fixed assets. The Adjusted EBIT improvement was
driven by the strong organic growth. Middle-earth Enterprises had no major new product
releases within the quarter, but still generated a solid contribution to Adjusted EBIT, driven by
merchandising and a broad mix of licensing revenue streams.
After the quarter, Middle-earth Enterprises entered into a strategic agreement with Asmodee
Group to provide category management services across all tabletop games and tabletop
gaming accessories based on The Lord of the Rings and The Hobbit. As the exclusive provider
of category management services, Asmodee Group will oversee the strategy in close
collaboration with Middle-earth Enterprises and lead development of the tabletop range,
working alongside external partners and experts of the industry as well as Middle-earth's
growing team of creative and lore experts.
For several other companies within Freemode, with a higher share of sales of physical
products, including Limited Run Games and Dark Horse Media, market conditions are partly
challenging, impacted by US tariffs and macroeconomic developments. Several strategic
initiatives are ongoing to drive improved medium to long-term profitability.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
10
OPERATING SEGMENT
ENTERTAINMENT
& SERVICES
SHARE OF
GROUP SALES
38%
(26%)
INTELLECTUAL
PROPERTY (IP)
192
(193)
INTERNAL
HEADCOUNT
1,178
(833)
INTERNAL
STUDIOS
2
(3)
OTHER FINANCIAL INFORMATION
NET PROFIT/LOSS FOR THE PERIOD
Net profit/loss for the quarter amounted to SEK -23 million (-452), improved by SEK 429 million
compared to the same period previous year. The improvement is mainly related to positive net
financial items in the current quarter compared with a negative amount in the comparable
quarter. For the period April to September net profit amounted to SEK -433 million (-2,573), an
increase of SEK 2,140 million.
Net financial items amounted to SEK 111 million (-551) in the quarter. Net interest income/
expenses and other financial income/expenses amounted to SEK -5 million (-149). Changes in
fair value of contingent considerations and related interest expenses including deferred
considerations amounted to SEK 224 million (3). Exchange rate gain/losses amounted to SEK
-91 million (-404), mainly related to the revaluation of intercompany financial receivables.
Income tax amounted to SEK -61 million (71) in the quarter. Current income tax amounted to
SEK -128 million (-79) and deferred tax amounted to SEK 66 million (173). Provision for Pillar 2
top-up tax amounted to SEK 0 million (-23).
CONDENSED CASH FLOW
SEK m
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Operating activities
Cash flow from operating activities before
changes in working capital
518
841
1,171
976
3,926
Cash flow from changes in working capital
-113
-371
-308
-867
-435
Cash flow from operating activities
405
470
862
109
3,492
Cash flow from investing activities
-959
676
-1,794
3,489
14,016
Cash flow from financing activities
-180
-169
-16
-2,920
-12,648
Total cash flow, Continuing operations
-734
977
-948
678
4,860
Total cash flow, Discontinued operations
—
-95
—
-50
5,280
Total cash flow, total Group
-734
882
-948
628
10,140
Cash and cash equivalents at the beginning
of period
6,879
3,221
7,097
3,507
3,507
Exchange-rate differences in cash and cash
equivalents
-18
-51
-23
-83
-95
Cash and cash equivalents in Discontinued
operations
—
-1,109
—
-1,109
-6,454
Cash and cash equivalents at the end of
period
6,127
2,943
6,127
2,943
7,097
Cash flow from operating activities before working capital amounted to SEK 518 million (841) in
the quarter.
Cash flow from changes in working capital amounted to SEK -113 million (-371) because of the
lower inventory build-up in the quarter compared to the same quarter previous year.
Cash flow from investing activities amounted to SEK -959 million (676) for the quarter where
cash flow from acquisition/divestment of subsidiaries amounted to SEK -107 million (1,649). The
comparable quarter includes cash flow related to the net proceeds of the divestment of Saber
Interactive which explains the change towards current quarter. Investments in intangible assets
amounted to SEK -838 million (-894), where SEK -686 million (-826) is invested in the portfolio
of ongoing game development.
Free cash flow after changes in working capital amounted to SEK -348 million (-392) (see page
44). The comparable quarter includes a positive free cash flow generated from the divested
assets of Easybrain. This effect corresponds to the lower inventory build-up in the quarter and
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
11
OTHER FINANCIAL
INFORMATION
contributes to a better free cash flow in the quarter even without the effect from divested
Easybrain.
Cash flow from financing activities amounted to SEK -180 million (-169) in the quarter where
proceeds from borrowings amounted to SEK 472 million (5,915) and reduced utilization of
credit facilities amounted to SEK -507 million (-6,004). The repurchase of own shares
amounted to -72 MSEK (—).
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
12
OTHER FINANCIAL
INFORMATION
Killing Floor 3
Tripwire Interactive | Tripwire Interactive
NET CASH/DEBT AND AVAILABLE FUNDS
Net cash/Net debt, SEK m
Sep 30,
2025
Sep 30,
2024
Mar 31,
2025
Cash
6,127
4,052
7,097
Current investments
—
—
0
Current liabilities to credit institutions
-989
-10,964
-545
Current account credit facilities
—
-116
—
Non-current liabilities to credit institutions
-901
-6,189
-1,119
Net Cash (+) / Net Debt (-)
4,237
-13,217
5,434
As per September 30, 2025, the reported net cash amounted to SEK 4.2 billion, consisting of
around SEK 6.1 billion in cash, SEK -1.0 billion related to current liabilities to credit institutions,
as well as SEK -0.9 billion in non-current liabilities. The leverage target is to have net debt to
Adjusted EBIT of 1.0x on a 12-month forward looking basis.
As per September 30, 2025, the group had obligations related to historical acquisitions with an
expected cash settlement of SEK 1.3 billion with an estimated maturity structure (see page 14).
Avaliable funds, SEK m
Sep 30,
2025
Sep 30,
2024
Mar 31,
2025
Cash
6,127
4,052
7,097
Current investments
—
—
0
Unutilized credit facilities
5,816
4,190
5,956
Available funds
11,943
8,242
13,053
Share buyback program
In the quarter Embracer repurchased 838,960 own Class B shares for a total amount of SEK 84
million of which SEK 72 million has been paid in cash. The share buybacks are a part of the
SEK 500 million program that Embracer announced on September 18, 2025. The buyback
program started September 19, 2025 and as disclosed in the section Significant events after
the quarter, the program ended on November 6, 2025. As of September 30, 2025,
Embracers’s holdings of treasury shares correspond to 0.4% of the total number of shares
outstanding. The repurchased shares are expected to be canceled.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
13
OTHER FINANCIAL
INFORMATION
Metal Eden
Deep Silver | Reikon Games
OBLIGATIONS RELATED TO HISTORICAL ACQUISITIONS
In connection to certain business combinations, agreements have been entered regarding
contingent considerations that are not classified as part of the transferred purchase
consideration since there is a requirement for continued employment for the seller or other
reasons for the contingent consideration to be accounted for as a separate transaction. More
information is presented in Note 5.
Obligations related to historical acquisitions to be settled in cash
The table below gives an overview of obligations related to historical acquisitions in SEK
million to be settled in cash as of September 30, 2025. The present value of contingent
considerations has been calculated based on expected outcome for financial and operational
targets for each individual agreement. The financial obligation will vary over time depending
on, among other things, the degree of fulfillment of conditions for payment, the development of
certain exchange rates in relation to the Swedish krona and interest rates.
Since the last quarter the total obligation has decreased with SEK 643 million which besides
ordinary payments is primarily driven by changed estimations of fulfillment degree on certain
obligations and amended agreements.
Financial year when
settlement might occur
Contingent consideration
classified as part of
purchase price, SEK m
Obligations in relation to
future personnel costs related
to acquisitions, SEK m
Total obligations
related to historical
acquisitions, SEK m
2025/2026
246
306
552
2026/2027
110
250
360
2027/2028
66
21
87
2028/2029
60
12
72
2029/2030
100
21
121
2030/2031
51
13
64
2031/2032
47
12
59
680
634
1,314
Contingent considerations classified as part of the purchase consideration and that are to be
settled in cash are accounted for as debt in the group‘s balance sheet, divided into current and
non-current debt. Obligations related to future personnel costs related to acquisitions which
will be settled in cash are accounted for in the group‘s balance sheet, to the extent that it has
been earned by the employee and is classified as debt. On September 30, 2025, the debt
amounted to SEK 538 million, divided into current and non-current debt.
Obligations related to historical acquisitions to be settled in shares
The table below provides an overview of obligations related to historical acquisitions on
September 30, 2025, which will be settled in shares. Contingent considerations classified as
part of the purchase consideration is accounted for as either equity or debt in the group's
balance sheet. Obligations related to future personnel costs related to acquisitions which will
be settled in shares are accounted for in the group's balance sheet, to the extent that they
have been earned by the employee and are classified as equity in the group's balance sheet.
Additional information is available in Note 5.
Number of shares,
thousands
Contingent consideration
classified as part of
purchase price
Obligations in relation to
future personnel costs
related to acquisitions
Total obligations
related to historical
acquisitions
Already issued -
clawback shares 1)
2,486
454
2,939
To be issued
5,346
359
5,705
Total number of shares
7,832
813
8,644
1) See definitions on page 45
The number of shares to be issued as additional purchase price can vary but never exceed
5.705 million according to the agreements. If all shares are issued, the dilution in capital will
amount to 1.83% and 2.47% of the voting rights as of September 30, 2025, and the total
number of shares after full dilution will be 231 million. Expectations of shares to be issued as
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
14
OTHER FINANCIAL
INFORMATION
per September 30, 2025 based on target achievement is within the interval 3.8 to 3.9 million. If
shares within this interval are issued, the dilution in capital will amount to 1.66-1.68% and
1.23-1.24% of the voting rights as of September 30, 2025. Compared with the last quarter the
maximal number of shares to be issued and the expected interval of shares to be issued has
increased with around 3 million shares. The increase is explained by several amended
agreements and should be viewed together with the decrease of cash obligations.
Specific items related to historical acquisitions
The forecast is based on the average exchange rates for the period April 2025 to September
2025. The forecast includes closed acquisitions as per September 30, 2025, which contain
finalized purchase price allocations. The difference between actual cost in the current quarter
and the forecast for the quarter presented in the FY 2025/26 Q1-report is due to several
changes related to estimations of fulfillment degree and the timing of such fulfillment.
25/26
SEK m
Q3
Q4
26/27 27/28 28/29 29/30
30/31
31/32
Total
Amortization of surplus values of
acquired intangible assets
202
193
626
456
441
353
291
289
2,851
Personnel costs related to
acquisitions
31
31
55
46
39
21
2
—
225
Specific items related to
historical acquisitions
233
224
681
502
480
374
293
289
3,076
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
15
OTHER FINANCIAL
INFORMATION
Screamer
Milestone | Milestone
PARENT COMPANY
The parent company acquires and conducts operations through its subsidiaries and underlying
companies.
The parent company’s net sales for the quarter were SEK 50 million (23), and profit before tax
was SEK 15 million (-10,830).
Income tax includes "top-up" tax according to Pillar 2 - Income Inclusion Rule (IIR), amounting
to SEK 0 million (-23). Profit after tax was SEK 13 million (-10,765).
The parent company’s net sales for April-September 2025 were SEK 73 million (43), and loss
before tax was SEK -172 million (-1,312).
Income tax includes "top-up" tax according to Pillar 2 - Income Inclusion Rule (IIR), amounting
to SEK -2 million (-58). Loss after tax was SEK -143 million (-1,190).
Cash and current investments as of September 30, 2025 were SEK 4,991 million (1,509).
Available funds amounted to SEK 9,764 million as of September 30, 2025. The parent
company’s equity at the end of the period was SEK 27,522 million (53,854).
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
16
OTHER FINANCIAL
INFORMATION
Valheim
Coffee Stain Publishing | Iron Gate Studios
SIGNIFICANT EVENTS DURING THE QUARTER
> On September 1, Embracer announced that as part of the preparations for the separation of
Coffee Stain Group AB, Anton Westbergh is no longer part of the executive management team
of Embracer. On the same occasion, it was announced that a Board of Directors for Coffee
Stain Group, the parent company and the future listed entity, has also been appointed and
formed. The Board comprises Jacob Jonmyren (Chair of the Board), Sara Börsvik, Henrik
Tjärnström, Kicki Wallje-Lund, Anton Westbergh (CEO and board member) and Lars Wingefors.
> At the Annual General Meeting on September 19:
> Yasmina Brihi, Bernt Ingman, Jacob Jonmyren, Cecilia Qvist, Kicki Wallje-Lund, Brian Ward
and Lars Wingefors were re-elected as directors of the board.
> Lars Wingefors was elected as the Chair of the Board. Following the AGM at the inaugural
meeting, the board of directors appointed Kicki Wallje-Lund as deputy chair.
> The board also resolved that the Audit and Sustainability Committee shall comprise Jacob
Jonmyren (chair), Bernt Ingman and Kicki Wallje-Lund, and that the Remuneration
Committee shall comprise Yasmina Brihi (chair), Jacob Jonmyren and Cecilia Qvist.
> PwC was re-elected as Embracer’s auditor. PwC has announced that the authorized auditor
Magnus Svensson Henryson will remain as the main responsible auditor.
> On September 18 and 19, Embracer announced and initiated a share buyback program of up to
SEK 500 million, running until December 2, 2025, at the latest. The purpose of the buyback
program is to reduce the share capital of Embracer in order to optimize Embracer's capital
structure and thereby contribute to increased shareholder value. Therefore, the board of
directors intends to propose that the repurchased shares under the program are cancelled by
way of a reduction of Embracer's share capital no later than at the annual general meeting
2026.
SIGNIFICANT EVENTS AFTER THE QUARTER
> Between 19 September 2025 and 6 November 2025 Embracer Group has repurchased in total
4,830,742 own B shares as part of the share buyback program initiated by the board of
directors on 18 September 2025. Thus, shares with a total value of approximately SEK 500
million have been repurchased, and as a result the program closed on 6 November 2025.
EMBRACER GROUP AB (PUBL) | APRIL-SEPTEMBER 2025
17
OTHER FINANCIAL
INFORMATION
Fellowship
Arc Games | Chief Rebel
SUSTAINABILITY AND GOVERNANCE
SUSTAINABILITY
Sustainability is a central and long-term priority for us. Our success is built on responsible
working methods and creating value for all stakeholders. Business ethics and care for our
gaming community are prioritized areas, each receiving dedicated attention and resources. We
continue our sustainability work, living our values, mitigating risks, and seeking new
opportunities – while adapting to new ways of working. The progress we make today lays a
stable foundation for sustainable growth in the future.
Games can be more than just entertainment – It can strengthen community, creativity, and
resilience. During the quarter, representatives from Embracer participated in the UN Global
Compact SDG Innovation Accelerator for Young Professionals, aimed at empowering young
employees to drive innovation in line with the UN Sustainable Development Goals. This
resulted in them presenting an idea at the UN Global Compact Leadership Summit in New York
on how we can make online gaming safer for children, counter grooming, criminal recruitment
and bullying, as well as enhance digital well-being and safety for young people in the gaming
world. This is one of several initiatives to explore how games can contribute to a sustainable
and safe digital environment in the future, where collaboration between the industry,
companies, platforms, society, and parents is crucial.
Embracer participated in the S&P Global Corporate Sustainability Assessment (CSA), an annual
evaluation of companies’ sustainability efforts focusing on industry-specific and financially
material criteria. The assessment benchmarks sustainability performance and provides
stakeholders with important insights into the company’s sustainability work and value drivers.
The CSA 2025 score for Embracer Group is 41 (previously 39), compared to an average score
of 26 within our peer group.
GOVERNANCE
At the annual general meeting held on 18 September 2025, the shareholders re-elected
Yasmina Brihi, Bernt Ingman, Jacob Jonmyren, Cecilia Qvist, Kicki Wallje-Lund, Brian Ward and
Lars Wingefors as directors of the board, whereby the Board now consists of seven directors,
of which four are men and three are women. Lars Wingefors was also elected as new Chair of
the board. Following the annual general meeting, at the inaugural meeting, the board of
directors appointed Kicki Wallje-Lund as deputy chair of the board and Lars Wingefors as
executive chair of the board.
The board also resolved that that the Audit and Sustainability Committee shall comprise Jacob
Jonmyren (chair), Bernt Ingman and Kicki Wallje-Lund and that the Remuneration Committee
shall comprise Yasmina Brihi (chair), Jacob Jonmyren and Cecilia Qvist.
At the annual general meeting PwC was also re-elected as Embracer Group’s auditor and
Magnus Svensson Henryson continues as the main responsible auditor.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
18
SUSTANABILITY
AND GOVERNANCE
ANALYSTS FOLLOWING EMBRACER GROUP
For an updated list of analysts covering Embracer Group, please refer to our website
embracer.com.
THE SHARE
TOP 20 OWNERS AS OF SEPTEMBER 30, 2025
Change from
Jun 30, 2025
Name
Class A
shares
Class B
shares
Share of
capital, %
Share of
votes, %
Class A and B
shares
1 Lars Wingefors AB
9,000,000
35,857,907
19.93 %
41.11 %
1,108,152
2 Savvy Gaming Group
16,647,337
7.39 %
5.44 %
—
3 DNB Asset Management AS
14,818,165
6.58 %
4.84 %
1,943,363
4 Matthew Karch
12,429,703
5.52 %
4.06 %
5,000,000
5 Alecta Tjänstepension
7,250,000
3.22 %
2.37 %
-50,000
6 Andrey Iones
6,586,275
2.93 %
2.15 %
—
7 PAI Partners
6,507,428
2.89 %
2.13 %
—
8 SEB Funds
5,870,008
2.61 %
1.92 %
-29,801
9 Vanguard
5,829,053
2.59 %
1.90 %
-1,200,537
10 Norges Bank Investment Management
5,418,946
2.41 %
1.77 %
1,934,219
11 Carnegie Fonder
5,250,000
2.33 %
1.72 %
-218,258
12 Första AP-fonden
4,400,000
1.95 %
1.44 %
110,000
13 DNB Asset Management SA
4,174,490
1.85 %
1.36 %
587,805
14 Folksam
4,091,232
1.82 %
1.34 %
79,769
15 Canada Pension Plan Investment Board (CPP)
4,080,176
1.81 %
1.33 %
-1,195,824
16 Skandia Fonder
3,313,476
1.47 %
1.08 %
80,560
17 BlackRock
3,244,793
1.44 %
1.06 %
-313,552
18 Andra AP-fonden
2,945,402
1.31 %
0.96 %
500,000
19 Randy Pitchford
2,622,662
1.17 %
0.86 %
—
20 Handelsbanken Fonder
2,458,584
1.09 %
0.80 %
-58,451
TOP 20
9,000,000
153,795,637
72.32 %
79.64 %
OTHERS
0
62,324,070
27.68 %
20.36 %
TOTAL
9,000,000
216,119,707
100.00 %
100.00 %
Source: Monitor by Modular Finance.
Shareholder lists are available on embracer.com and are updated in real time.
INTERNATIONAL OWNERSHIP
TOP 50 INSTITUTIONAL
AS OF SEPTEMBER 30, 2025 BY CAPITAL
Swedish
Institutions
43.7%
International
Institutions
56.3%
INSTITUTIONAL OWNERSHIP
VS MANAGEMENT
AS OF SEPTEMBER 30, 2025 BY CAPITAL
Top 50
Institutions
47.4%
Other
shareholders
30.3%
Top 10
Management/
Co-Founders
22.3%
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
19
OTHER
INFORMATION
TOP 10 MANAGEMENT & CO-FOUNDER OWNERS AS OF SEPTEMBER 30, 2025
Owner 1)
Management/Co-
Founder
Class A
shares
Class B
shares
Share of
capital, %
Share of
votes, %
1 Lars Wingefors AB
Embracer Group
9,000,000
35,857,907
19.93 %
41.11 %
2 Ken Go
DECA Games
1,475,989
0.66 %
0.48 %
3 Founders/Management
4A
815,357
0.36 %
0.27 %
4 Management
CrazyLabs
733,786
0.33 %
0.24 %
5 Founders
Ghostship Games
640,194
0.28 %
0.21 %
6 Founders/Management
Aspyr
591,624
0.26 %
0.19 %
7 Anton Westbergh
Coffee Stain
590,833
0.26 %
0.19 %
8 Dennis Gustafsson
Tuxedo Labs
234,671
0.10 %
0.08 %
9 Phil Rogers
Embracer Group
155,486
0.07 %
0.05 %
10 Klemens Kreuzer
Embracer Group (THQ
Nordic GmbH)
145,833
0.06 %
0.05 %
TOP 10
9,000,000
41,241,680
22.32 %
42.87 %
ALL OTHER SHAREHOLDERS
0
174,878,027
77.68 %
57.13 %
TOTAL
9,000,000
216,119,707
100.00 %
100.00 %
1) Holdings by management above are in general owned trough various wholly owned companies. Holdings include clawback shares that are
issued but subject to restrictions and in some cases these shares are not part of the transferred consideration in the PPA but is classified as
renumeration for future services.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
20
OTHER
INFORMATION
RISKS AND UNCERTAINTY FACTORS
Embracer Group is exposed to risks, particularly the dependence on key persons for the
success of game development, the sales performance of launched games, dependence on a
few distributors and the success and performance of acquisitions. The complete risk analysis is
found in the company’s most recent Annual Report. Additional significant risks and
assumptions are described in Note 2 in this report.
AUDITOR’S REVIEW
This Interim Report has been subject to limited review by the Company's auditor, see page 23
for the auditors review report.
FINANCIAL CALENDAR
Interim Report Q3, October-December 2025
February 12, 2026
Full Year Report Q4, January-March 2026
May 20, 2026
Annual Report 2025/26
Week 25, 2026
FOR MORE INFORMATION
Find more information about the Company at its website: embracer.com
For any questions on this report, please contact:
Phil Rogers, CEO
phil.rogers@embracer.com
Müge Bouillon, Group CFO
muge.bouillon@embracer.com
Oscar Erixon, Head of Investor Relations
oscar.erixon@embracer.com
Beatrice Flink Forsgren, Head of Brand & Communication
beatrice.forsgren@embracer.com
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
21
OTHER
INFORMATION
Goat Simulator 3 – Baadlands: Furry Road
Coffee Stain Publishing | Coffee Stain North
SIGNATURES AND ASSURANCE
The Board of Directors and Chief Executive Officer offer their assurance that this interim report
for the second quarter gives a true and fair view of the Group’s and parent company’s
operations, financial position and results of operations and describes the significant risks and
uncertainties facing the Group and the parent company.
Karlstad, Sweden, November 13, 2025
Lars Wingefors
Chair of the Board
Kicki Wallje-Lund
Deputy Chair of the Board
Yasmina Brihi
Board member
Bernt Ingman
Board member
Jacob Jonmyren
Board member
Cecilia Qvist
Board member
Brian Ward
Board member
Phil Rogers
CEO
This information is information that Embracer Group AB (publ) is obliged to make public pursuant to the EU Market Abuse
Regulation 596/2014 and the Securities Markets Act (2007:528). The information was submitted for publication, through the
agency of the contact persons set out above, at 2025-11-13 07:00 CEST. The persons above may also be contacted for
further information.
This report contains forward-looking statements that reflect the Board of Directors’ and management’s
current views with respect to certain future events and potential financial performance. Forward-looking
statements are subject to risks and uncertainties. Results could differ materially from forward-looking statements as a result
of, among other factors, (i) changes in economic, market and competitive conditions,
(ii) success of business initiatives, (iii) changes in the regulatory environment and other government actions,
(iv) fluctuations in exchange rates and (v) business risk management.
This report is based solely on the circumstances at the date of publication and except to the extent required
under applicable law or applicable marketplace regulations, Embracer Group AB is under no obligation to
update the information, opinions or forward-looking statements in this report.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
22
OTHER
INFORMATION
Echoes of the End
Deep Silver | Myrkur Games
AUDITOR’S REVIEW REPORT
(THIS IS A TRANSLATION FROM THE SWEDISH REPORT)
To Embracer Group AB (publ), corporate identity number 556582-6558
INTRODUCTION
We have reviewed the condensed interim report for Embracer Group AB (publ) as of
September 30, 2025 and for the six months period then ended. The Board of Directors and the
Managing Director are responsible for the preparation and presentation of this interim report in
accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express
a conclusion on this interim report based on our review.
SCOPE OF REVIEW
We conducted our review in accordance with the International Standard on Review
Engagements, ISRE 2410 “Review of Interim Financial Statements Performed by the
Independent Auditor of the Entity”. A review consists of making inquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing and other generally accepted auditing standards in
Sweden.
The procedures performed in a review do not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
CONCLUSION
Based on our review, nothing has come to our attention that causes us to believe that the
interim report is not prepared, in all material respects, in accordance with IAS 34 and the
Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish
Annual Accounts Act regarding the Parent Company.
Öhrlings PricewaterhouseCoopers AB
Stockholm, November 13, 2025
Magnus Svensson Henryson
Authorized Public Accountant
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
23
REVIEW
REPORT
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
Amounts in SEK m
Note
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net sales
3 ,4
3,850
4,726
7,204
9,620
22,370
Other operating income
6
103
109
193
223
8,395
Total operating income
3,952
4,835
7,397
9,843
30,765
Work performed by the Company for its own use and capitalized
565
686
1,155
1,414
2,733
Goods for resale
-1,280
-1,295
-2,308
-2,293
-6,719
Other external expenses
7
-910
-1,318
-1,686
-2,598
-5,541
Personnel expenses
8
-1,143
-1,729
-2,605
-4,731
-8,362
Depreciation, amortization and impairment
-1,222
-1,119
-2,205
-2,432
-9,234
Other operating expenses
9
-37
-35
-82
-632
-108
Share of profit of an associate after tax
3
2
4
5
1
Operating profit/loss (EBIT)
-73
28
-330
-1,425
3,535
Net financial items
10
111
-551
-167
-829
-888
Profit/loss before tax
38
-523
-498
-2,254
2,648
Income tax
-61
71
64
-63
-105
Profit for the year continuing operations
-23
-452
-433
-2,317
2,543
Profit from Discontinued operation, net after tax 1)
6
—
60
—
-256
3,420
Net profit/loss for the period
-23
-392
-433
-2,573
5,963
Net profit/loss for the period attributable to:
Equity holders of the parent
-20
-390
-438
-2,573
5,963
Non-controlling interests
-3
-2
5
0
0
Earnings per share 2)
Basic earnings per share (SEK)
-0.10
—
-2.10
—
—
Diluted earnings per share (SEK)
-0.10
—
-2.10
—
—
Basic earnings per share including Discontinued operation (SEK)
—
-1.89
—
-12.52
28.88
Diluted earnings per share including Discontinued operation (SEK)
—
-1.89
—
-12.52
28.87
Basic earnings per share excluding Discontinued operation (SEK)
—
-2.18
—
-11.28
12.31
Diluted earnings per share excluding Discontinued operation (SEK)
—
-2.18
—
-11.28
12.31
1) Excluding non-controlling interests of discontinued operations
2) Recalculated with respect to the reversed split 1:6 carried out on January 15, 2025 as resolved at the extra general meeting on January 7, 2025. Number of shares for previous
periods have been adjusted.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Amounts in SEK m
Note
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net profit/loss for the period
-23
-392
-433
-2,573
5,963
Other comprehensive income
Items that may be reclassified to profit or loss (net of tax):
Exchange differences on translation of foreign operations
-179
-849
-356
-2,351
-4,831
Cash flow hedges
-1
0
4
-2
-3
Items that will not be reclassified to profit or loss (net of tax):
Remeasurement of defined benefit plans for employees
—
0
—
0
-2
Total other comprehensive income for the period, net of tax
-180
-849
-352
-2,353
-4,836
Total comprehensive income for the period, net of tax
-203
-1,241
-785
-4,926
1,127
Total comprehensive income attributable to:
Equity holders of the parent
-199
-1,239
-790
-4,926
1,126
Non-controlling interests
-3
-2
5
0
1
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amounts in SEK m
Note
Sep 30,
2025
Sep 30,
2024
Mar 31,
2025
ASSETS
Non-current assets
Goodwill
12,104
30,034
12,373
Intangible assets
13,505
35,133
14,312
Property, plant and equipment
497
860
527
Right-of-use assets
558
1,396
645
Investments in associates
250
266
246
Non-current financial assets
495
513
447
Deferred tax assets
1,695
1,783
1,665
Total non-current assets
29,103
69,985
30,215
Current assets
Inventories
897
3,799
707
Trade receivables
1,785
5,234
2,200
Contract assets
184
172
82
Other receivables
1,164
1,840
1,351
Prepaid expenses
446
612
481
Current investments
—
—
0
Cash and cash equivalents
6,127
4,052
7,097
Total current assets
10,603
15,709
11,919
TOTAL ASSETS
39,707
85,694
42,134
CONT.>>
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
25
>>CONTINUED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amounts in SEK m
Note
Sep 30,
2025
Sep 30,
2024
Mar 31,
2025
EQUITY AND LIABILITIES
Equity
Share capital
2
2
2
Other contributed capital
62,032
61,849
62,061
Reserves
638
3,473
990
Retained earnings, including net profit/loss
-32,359
-17,252
-31,921
Total equity attributable to equity holders of the parent
30,313
48,073
31,133
Non-controlling interests
56
866
64
Total equity
30,369
48,939
31,196
Non-current liabilities
Liabilities to credit institutions
901
6,149
1,119
Other non-current liabilities
185
197
103
Lease liabilities
384
1,089
438
Other provisions
186
51
186
Contingent considerations
5
422
1,617
822
Non-current put/call options on non-controlling interests
5
—
870
—
Deferred considerations
5
—
6
—
Non-current employee benefits
4
19
5
Non-current liabilities to employees related to historical acquisitions
5
52
983
679
Deferred tax liabilities
1,041
5,651
1,226
Total non-current liabilities
3,176
16,632
4,578
Current liabilities
Liabilities to credit institutions
989
10,964
545
Current account credit facilities
—
116
—
Advances from customers
103
149
158
Trade payables
1,170
2,806
1,207
Lease liabilities
210
374
249
Contract liabilities
749
1,149
1,023
Contingent considerations
5
568
194
495
Current put/call options on non-controlling interests
5
—
—
—
Deferred considerations
5
—
356
—
Tax liabilities
131
411
365
Current liabilities to employees related to historical acquisitions
5
486
127
164
Other current liabilities
400
440
498
Accrued expenses
1,358
3,035
1,656
Total current liabilities
6,162
20,123
6,360
TOTAL EQUITY AND LIABILITIES
39,707
85,694
42,134
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Equity attributable to equity holders of the parent
Amounts in SEK m
Share
capital
Other
contributed
capital
Reserves1)
Retained earnings
including profit
for the period
Total equity
attributable to
equity holders
of the parent
Non-
controlling
interests
Total equity
Opening balance 2024-04-01
2
60,932
5,826
-14,341
52,419
64
52,482
Net profit/loss
—
—
—
-2,573
-2,573
—
-2,573
Other comprehensive income
—
—
-2,353
—
-2,353
0
-2,353
Total comprehensive income for the period
—
—
-2,353
-2,573
-4,927
0
-4,926
Transactions with the owners
New share issue
0
244
—
—
244
—
244
Share-based remuneration according to IFRS 2
—
674
—
—
674
—
674
Transactions with non-controlling interests
—
—
—
-337
-337
1,297
961
Dividend to non-controlling interests
—
—
—
—
—
-495
-495
Total
0
918
—
-337
581
802
1,383
Closing balance 2024-09-30
2
61,849
3,473
-17,252
48,073
866
48,939
Opening balance 2025-04-01
2
62,061
990
-31,921
31,133
64
31,196
Net profit/loss
—
—
—
-438
-438
5
-433
Other comprehensive income
—
—
-352
—
-352
0
-352
Total comprehensive income for the period
—
—
-352
-438
-790
5
-785
Transactions with the owners
Share-based remuneration according to IFRS 2
—
55
—
—
55
—
55
Repurchase of own shares
—
-84
—
—
-84
—
-84
Transactions with non-controlling interests
—
—
—
—
—
-12
-12
Total
—
-30
—
—
-30
-12
-42
Closing balance 2025-09-30
2
62,032
638
-32,359
30,313
56
30,369
1) Includes currency translation difference and cash flow hedge reserve as well as revaluation of defined benefit plans to employees.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
27
CONSOLIDATED CASH FLOW STATEMENT
Amounts in SEK m 2)
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Operating activities
Profit/loss before tax
38
-523
-498
-2,254
2,648
Adjustments for non-cash items, etc.
769
1,736
1,932
3,632
1,985
Income tax paid
-290
-372
-263
-402
-707
Cash flow from operating activities before changes in working capital
518
841
1,171
976
3,926
Cash flow from changes in working capital
Change in inventories
-105
-186
-210
-240
5
Change in operating receivables
-64
-334
579
214
325
Change in operating liabilities
56
149
-677
-841
-764
Cash flow from operating activities
405
470
862
109
3,492
Investing activities
Acquisition of property, plant and equipment
-15
-27
-44
-81
-129
Proceeds from sales of property, plant and equipment
—
—
—
—
4
Acquisition of intangible assets
-838
-894
-1,588
-1,894
-3,615
Proceeds from sales of intangible assets
0
—
0
1
—
Acquisition of subsidiaries, net of cash acquired 1)
-45
-69
-58
-305
-702
Divestment of subsidiaries, net of cash divested
-62
1,718
-62
5,888
18,497
Acquisition of financial assets
0
-49
-44
-126
-45
Proceeds from sales of financial assets
0
-3
0
6
6
Cash flow from investing activities
-959
676
-1,794
3,489
14,016
Financing activities
Repurchase of own shares
-72
—
-72
—
—
Proceeds from borrowings
472
5,915
1,013
6,541
7,272
Received dividend
—
—
—
9,885
9,885
Payments received from and given to discontinued operations
—
—
—
-3
-4,708
Repayment of loans
-507
-6,004
-814
-19,169
-24,763
Payment of lease liabilities
-72
-80
-143
-174
-333
Cash flow from financing activities
-180
-169
-16
-2,920
-12,648
Total cash flow, Continuing operations
-734
977
-948
678
4,860
Total cash flow, Discontinued operations
—
-95
—
-50
5,280
Total cash flow, total Group
-734
882
-948
628
10,140
Cash and cash equivalents at the beginning of period
6,879
3,221
7,097
3,507
3,507
Exchange-rate differences in cash and cash equivalents
-18
-51
-23
-83
-95
Cash and cash equivalents in Discontinued operations
—
-1,109
—
-1,109
-6,454
Cash and cash equivalents at the end of period
6,127
2,943
6,127
2,943
7,097
1) The change in the quarter refers to historical acquisitions.
2) The total cash flow for discontinued operations is presented as a separate row in the cash flow statement. Details are disclosed in note 6.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
28
NOTES
NOTE 1
MATERIAL ACCOUNTING PRINCIPLES
This interim report comprises of the Swedish parent company
Embracer Group AB (publ) (“Embracer”), with corporate
registration number 556582-6558, and its subsidiaries. The
Group conducts management and development of intellectual
property rights, development and publishing of PC games,
console games, mobile games and VR games and has partner
publishing and niche positions in film and comic book
publishing. The parent company is a limited liability company
with its registered office in Karlstad, Sweden. The address of the
head office is Tullhusgatan 1B, 652 09 Karlstad, Sweden.
The Group’s interim financial statements have been prepared in
accordance with IAS 34 Interim Financial Reporting and
applicable parts of the Swedish Annual Accounts Act
(1995:1554). For the parent company, the interim report has
been prepared in compliance with the Swedish Annual
Accounts Act and Recommendation RFR 2 Accounting for Legal
Entities.
For the Group, the same accounting policies and methods of
computation have been applied as in the Annual Report for FY
2024/25,
with
additions
described
below.
A
complete
description of the Group’s applied accounting policies can be
found in Note 1 as well as separate sections in the respective
notes in the Annual Report for FY 2024/25. For the parent
company’s applied accounting policies, see Note P1.
Disclosures in accordance with IAS 34.16A appear in addition to
the financial statements and its related notes in the interim
information on page 29-37 that from an integral part of this
financial report.
All amounts are presented in million Swedish kronor (”SEK m”),
unless otherwise indicated. Rounding differences may occur.
Accounting principles - Repurchase of own shares
Expenditure for the purchase of own shares reduces retained
earnings in equity in the Parent company and the portion of
consolidated equity that pertains to owners of the Parent
company. If these shares are sold, the sales proceeds are
included in retained earnings in the equity pertaining to owners
of the Parent company.
NOTE 2
SIGNIFICANT ESTIMATES AND ASSUMPTIONS
When preparing the financial statements, management and the
Board of Directors must make certain assessments and
assumptions that impact the carrying amount of asset and
liability items and revenue and expense items, as well as other
provided information.
Actual outcome may differ from the estimates if the estimates or
circumstances change. The key estimates and assumptions
made when preparing the interim report correspond to the ones
described in Note 2 as well as separate sections in the
respective notes in the Annual Report for FY 2024/25.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
29
NOTE 3
OPERATING SEGMENTS
For accounting and monitoring, the Group has divided its
operations into three operating segments based on how the
chief operating decision maker reviews the operations for
allocation of resources and assessment of performance.
Embracer’s CEO is identified as the Group’s chief operating
decision maker (CODM). The division of operating segments is
based on differences in the goods and services that Embracer
offers.
PC/Console Games - This part of the business conducts
development and publishing of premium games for PC and
console.
Mobile Games - This part of the business conducts
development and publishing of mobile games.
Entertainment & Services - This part of the business is engaged
in development, publishing and distribution of comic books,
conducts wholesale of publishing titles of games for console
and PC as well as films, conducts publishing and external
distribution of films and TV-series and produce and distribute
merchandise.
The CODM primarily uses the performance measure Adjusted
EBIT to assess the operating segments’ performance. The
CODM does not follow up on the assets and liabilities of the
segments for allocation of resources or assessment of
performance.
The same accounting principles are used for the segments as
for the Group.
Jul-Sep
2025
PC/Console
Games
Mobile
Games
Entertainment
& Services
Total
segments
Eliminations
Corporate
Group
total
Revenue from external customers
1,853
535
1,462
3,850
–
–
3,850
Revenue from transactions with other
operating segment
2
14
6
22
-22
–
–
Total revenue
1,855
549
1,468
3,871
-22
–
3,850
Adjusted EBIT
51
63
50
164
–
-55
109
Amortization of surplus values of acquired
intangible assets
-98
-55
-66
-218
–
–
-218
Personnel costs related to acquisitions
42
167
0
208
–
–
208
Items affecting comparability
-149
–
-19
-168
–
-4
-172
EBIT
-154
175
-36
-14
–
-58
-73
Net financial items
111
Profit/loss before tax
38
Jul-Sep
2024
PC/Console
Games
Mobile
Games
Entertainment
& Services
Total
segments
Eliminations
Corporate
Group
total
Revenue from external customers
2,121
1,358
1,247
4,726
–
–
4,726
Revenue from transactions with other
operating segment
5
12
9
26
-26
–
–
Total revenue
2,126
1,370
1,256
4,752
-26
–
4,726
Adjusted EBIT
175
374
29
578
–
-65
513
Amortization of surplus values of acquired
intangible assets
-145
-106
-90
-341
–
–
-341
Personnel costs related to acquisitions
-24
-38
-7
-69
–
–
-69
Items affecting comparability
-75
–
–
-75
–
0
-75
EBIT
-70
230
-68
93
–
-65
28
Net financial items
-551
Profit/loss before tax
-523
CONT. >>
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
30
Apr-Sep
2025
PC/Console
Games
Mobile
Games
Entertainment
& Services
Total
segments
Eliminations
Corporate
Group
total
Revenue from external customers
3,494
1,055
2,655
7,204
–
–
7,204
Revenue from transactions with other
operating segment
5
27
11
42
-42
–
–
Total revenue
3,499
1,081
2,666
7,246
-42
–
7,204
Adjusted EBIT
97
118
83
297
–
-114
184
Amortization of surplus values of acquired
intangible assets
-197
-112
-134
-443
–
–
-443
Personnel costs related to acquisitions
13
152
0
165
–
–
165
Items affecting comparability
-181
–
-51
-232
–
-4
-236
EBIT
-268
158
-102
-213
–
-117
-330
Net financial items
-167
Profit/loss before tax
-498
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
31
>> NOTE 3 CONTINUED
Apr-Sep
2024
PC/Console
Games
Mobile
Games
Entertainment
& Services
Total
segments
Eliminations
Corporate
Group
total
Revenue from external customers
4,778
2,747
2,095
9,620
–
–
9,620
Revenue from transactions with other
operating segment
11
12
17
40
-40
–
–
Total revenue
4,789
2,759
2,112
9,660
-40
–
9,620
Adjusted EBIT
312
892
8
1,212
–
-120
1,092
Amortization of surplus values of acquired
intangible assets
-312
-213
-178
-703
–
–
-703
Personnel costs related to acquisitions
-1,047
-84
-10
-1,141
–
–
-1,141
Remeasurement of contingent consideration
4
–
–
4
–
–
4
Items affecting comparability
-677
–
–
-677
–
0
-677
EBIT
-1,719
595
-181
-1,305
–
-120
-1,425
Net financial items
-829
Profit/loss before tax
-2,254
Apr 2024-
Mar 2025
PC/Console
Games
Mobile
Games
Entertainment
& Services
Total
segments
Eliminations
Corporate
Group
total
Revenue from external customers
10,450
5,359
6,561
22,370
–
–
22,370
Revenue from transactions with other
operating segment
21
40
35
95
-95
–
–
Total revenue
10,471
5,398
6,596
22,465
-95
–
22,370
Adjusted EBIT
1,892
1,383
324
3,600
–
-256
3,344
Amortization of surplus values of acquired
intangible assets
-567
-371
-356
-1,294
–
–
-1,294
Personnel costs related to acquisitions
-1,171
-335
-18
-1,524
–
–
-1,524
Remeasurement of contingent consideration
4
–
–
4
–
–
4
Items affecting comparability
-4,014
8,424
-1,047
3,363
–
-358
3,005
EBIT
-3,855
9,101
-1,096
4,149
–
-614
3,535
Net financial items
-888
Profit/loss before tax
2,648
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
32
NOTE 4
REVENUE FROM CONTRACTS WITH CUSTOMERS
Jul-Sep
2025
PC/Console
Games
Mobile
Games
Entertainment
& Services
Group
total
Type of products
Digital products
1,225
535
98
1,858
Physical products
79
–
1,240
1,319
Other 1)
549
-
123
673
Revenue from contracts with customers
1,853
535
1,462
3,850
Jul-Sep
2024
PC/Console
Games
Mobile
Games
Entertainment
& Services
Group
total
Type of products
Digital products
1,313
1,353
172
2,838
Physical products
219
–
992
1,211
Other 1)
589
5
83
677
Revenue from contracts with customers
2,121
1,358
1,247
4,726
Apr-Sep
2025
PC/Console
Games
Mobile
Games
Entertainment
& Services 2)
Group
total
Type of products
Digital products
2,289
1,055
189
3,533
Physical products
164
–
2,242
2,406
Other 1)
1,042
-
223
1,265
Revenue from contracts with customers
3,494
1,055
2,655
7,204
Apr-Sep
2024
PC/Console
Games
Mobile
Games
Entertainment
& Services
Group
total
Type of products
Digital products
2,944
2,737
300
5,981
Physical products
398
–
1,667
2,065
Other 1)
1,435
10
128
1,573
Revenue from contracts with customers
4,778
2,747
2,095
9,620
Apr 2024-
Mar 2025
PC/Console
Games
Mobile
Games
Entertainment
& Services
Group
total
Type of products
Digital products
6,990
5,347
1,083
13,420
Physical products
903
–
5,144
6,046
Other 1)
2,558
12
334
2,904
Revenue from contracts with customers
10,450
5,359
6,561
22,370
1) See Operating segment, page 6-10
2) A correction is made of the Q1 figures 2025 with a reclassification from Digital to Physical sales.
In addition to the breakdown by revenue from contracts with customers for PC/Console Games, Mobile Games and Entertainment &
Services, Embracer also monitor PC/Console in categories below:
PC/Console Games
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
IP-rights
Owned titles
1,334
901
2,453
2,736
6,819
Publishing titles
519
1,220
1,041
2,041
3,631
Total
1,853
2,121
3,494
4,778
10,450
New releases
238
266
321
411
2,024
Back catalog
1,065
1,266
2,131
2,931
5,869
Other
549
589
1,042
1,435
2,558
Total
1,853
2,121
3,494
4,778
10,450
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
33
NOTE 5
FINANCIAL INSTRUMENT
Reclassification of the assets & liabilities under IFRS 5 has been
returned to the balances in Note 5. The balances are, therefore,
not affected by this reclassification as it does not have an effect
before completion of the transactions.
Fair value measurement
Fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The table below
presents financial instruments measured at fair value based on
the classification in the fair value hierarchy. The different levels
are defined as follows:
Level 1 - Quoted (unadjusted) market prices for identical assets
or liabilities in active markets.
Level 2 - Inputs other than quoted prices in level 1 that are
observable for the asset or liability, either directly (i.e. price
quotations) or indirectly (i.e. derived from price quotations).
Level 3 - Input data for the asset or liability which is not based
on observable market data (i.e. unobservable input data).
Financial assets measured at fair value
Financial assets measured at fair
value as of September 30, 2025
Level 1
Level 2
Level 3
Total
Current investments
65
—
—
65
Financial assets measured at fair
value as of September 30, 2024
Level 1
Level 2
Level 3
Total
Ownership interests in other entities
—
6
—
6
Current investments
42
—
—
42
Financial assets measured at fair
value as of March 31, 2025
Level 1
Level 2
Level 3
Total
Current investments
50
—
—
50
Financial liabilities measured at fair value
Financial liabilities measured at
fair value as of September 30,
2025
Level 1
Level 2
Level 3
Total
Contingent consideration
—
—
990
990
Liabilities to employees related
to historical acquisitions
—
—
538
538
Financial liabilities measured at
fair value as of September 30,
2024
Level 1
Level 2
Level 3
Total
Contingent consideration
—
—
1,811
1,811
Put/call options on non-
controlling interests
—
—
870
870
Liabilities to employees related
to historical acquisitions
—
—
1,111
1,111
Financial liabilities measured at
fair value as of March 31, 2025
Level 1
Level 2
Level 3
Total
Contingent consideration
—
—
1,317
1,317
Liabilities to employees related
to historical acquisitions
—
—
843
843
Current receivables and current liabilities
For current receivables and liabilities, such as trade receivables
and trade payables and for liabilities to credit institutions (long-
and short-term) and with variable interest rate, the carrying
amount is considered to be a good approximation of the fair
value.
Contingent consideration
The fair value of contingent considerations has been calculated
based on expected outcome of financial and operational targets
for each individual agreement. The estimated expected
settlement will vary over time depending on, among other
things, the degree of fulfillment of the conditions for the
contingent
considerations,
the
development
of
certain
exchange rates against the Swedish krona and the interest rate
environment. Contingent considerations to be settled with
shares are also dependent on the development of Embracer’s
share price.
Contingent considerations classified as financial liabilities are
measured at fair value by discounting expected cash flows at a
risk-adjusted discount rate of 1.8%-12.1%. Measurement is
therefore in accordance with Level 3 in the fair value hierarchy.
Significant unobservable input data consists of forecasted
turnover and a risk-adjusted discount rate as well operational
targets.
Contingent considerations
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Opening balance
2,264
3,935
3,935
Payment - shares to be issued
-5
-55
-79
Payment - clawback shares
-413
-304
-565
Payment - cash
-58
-182
-243
FX effects
-12
-66
-85
Reclassifications
-23
—
—
Disposals/divestments
—
-252
-252
Change in fair value recognized in
consolidated statement of profit or loss
-216
-14
-447
Closing balance
1,537
3,062
2,264
Given the contingent considerations recognized at the end of
the reporting period, a higher discount factor of 1.5 percentage
points will have an impact on the fair value of SEK -68 million
and a lower discount factor of 1.5 percentage points will have an
impact with SEK 48 million.
CONT. >>
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
34
>> NOTE 5 CONTINUED
The Group´s contingent considerations will be settled in cash or with issued shares. As at September 30, 2025, the contingent
considerations are expected to be settled according to the table below.
Contingent consideration
classified as financial liability
Total contingent
consideration
classified as
financial liability
Contingent consideration
classified as equity
Total contingent
consideration
Expected settlement
Cash
settlement
Newly
issued shares
Newly
issued shares
Total
680
310
990
547
1,537
As of September 30, 2025
Classified as
financial liability
Of which
already issued
Classified as
equity
Of which
already issued
Maximum number of shares related to contingent consideration
6,628,337
1,352,078
1,203,430
1,133,430
Put/call option on non-controlling interests
Put/call options on non-controlling interest refers to put/call
option on non-controlling interests in business combination
where the selling shareholders keep some ownership and
there is a contractual obligation where Embracer will purchase
the remaining interest if the holder of the option determines to
exercise. The valuation and settlement is similar as for
contingent consideration (level 3 fair value measurement).
The fair value of put/call options on non-controlling interests
have been calculated based on expected outcome of financial
and operational targets for each individual agreement. The
estimated expected settlement will vary over time depending
on, among other things, the degree of fulfillment of the
conditions for the put/call option on non-controlling interests,
the development of certain exchange rates against the Swedish
krona and the interest rate environment.
Put/call option on
non-controlling interests
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Opening balance
—
1,782
1,782
FX-effects
—
-48
33
Reclassifications
—
-906
-906
Disposals/divestments
—
—
-982
Change in fair value recognized
in consolidated statement of
profit or loss
—
42
73
Closing balance
—
870
—
Liabilities to employees related to historical acquisitions
Liabilities to employees related to historical acquisitions refers
to part of the purchase price in historical acquisitions which
according to IFRS is classified as personnel debt. Fair value for
liabilities to employees related to historical acquisitions has
been calculated based on expected outcome of financial and
operational targets for each individual agreement. The
estimated expected settlement will vary over time depending
on, among other things, the degree of fulfillment of the
conditions.
Liabilities to employees related
to historical acquisitions
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Opening balance
843
1,434
1,434
Accrual of personnel cost in
consolidated statement of profit
or loss
-202
218
395
Payment - cash after the
acquisition day
-111
-1,232
-1,294
Reclassifications
12
—
—
Change in fair value recognized
in consolidated statement of
profit or loss
5
23
32
Disposals/divestments
—
713
317
FX-effects
-9
-45
-41
Closing balance
538
1,111
843
As of September 30, 2025, the Group’s liabilities to employees
related to historical acquisitions will be settled in cash.
Other consideration that is not classified as financial instruments at fair value
Deferred Consideration
Deferred consideration refers to future payments from business combinations and asset deals where the payment is not contingent
upon future financial or operational targets.
Deferred considerations
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Opening balance
—
487
487
Payment - cash
—
-118
-479
FX-effects
—
-16
-9
Disposals/divestments
—
—
-8
Discount effect recognized in consolidated statement of profit or loss
—
9
9
Closing balance
—
362
—
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
35
NOTE 6
ASSETS (DISPOSAL GROUPS) HELD FOR SALE OR DISTRIBUTION
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
During the last financial year Embracer assessed that the former operating segment Tabletop (Asmodee) qualified as discontinued
operation and during the last financial year Asmodee was distributed to the shareholders in Embracer.
Income statement for Discontinued operations
Jul-Sep
2025
Jul-Sep
2024
Apr 2024-
Mar 2025
Net sales
—
3,826
13,073
Other operating income
—
-2
0
Total operating income
—
3,824
13,073
Work performed by the Company for its own use and capitalized
—
45
126
Goods for resale
—
-2,233
-7,825
Other external expenses
—
-422
-1,785
Personnel expenses
—
-497
-1,785
Depreciation, amortization and impairment
—
-292
-862
Other operating expenses
—
-8
-8
Share of profit of an associate
—
23
23
Operating profit (EBIT)
—
440
958
Net financial items
—
-370
-900
Profit before tax
—
71
58
Income tax
—
-9
-374
Profit from operations
—
62
-316
Profit (Loss) on remeasurements to fair value
Profit (loss) from dividend of operations
—
—
2,611
Reclassification of foreign currency translation reserve
—
—
1,112
Net profit for the period, discontinued operations
—
62
3,408
Net profit/loss for the period attributable to:
Equity holders of the parent
—
60
3,420
Non-controlling interests
—
3
-12
Cash flow statement for Discontinued operations
Jul-Sep
2025
Jul-Sep
2024
Apr 2024-
Mar 2025
Cash flow from operating activities
—
-26
887
Cash flow from investing activities
—
-74
-224
Cash flow from financing activities
—
5
4,617
Cash flow for the period
—
-95
5,280
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
36
NOTE 7
RELATED PARTY TRANSACTIONS
Related party transaction
Related party
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Consulting service
Logvreten AB 1) (supplier)
0
-1
0
-1
-1
Transportation services
Sola Service i Karlstad AB 2) (supplier)
-3
-4
-6
-7
-17
Transportation services
Sola Air AB 2) (supplier)
0
–
0
–
–
Transportation services
Empterwik Special Services Ltd 2)
(supplier)
-8
-5
-10
-11
-22
Sale of goods/services
Bröderna Wingefors AB 2) (supplier)
–
–
–
0
0
Rent income
Lars Wingefors AB 3) (purchaser)
0
–
0
–
–
Consulting service
LW Comics 2) (supplier)
0
0
0
0
0
Total
-11
-10
-16
-19
-40
1) Kicki Walje-Lund has controlling influence over the company
2) The company is part of Lars Wingefors AB
3) Lars Wingefors AB is owned by Lars Wingefors, Erik Stenberg, Mikael Brodén, Klemens Kreuzer, Reinhard Pollice and Jacob Jonmyren
NOTE 8
PERSONNEL EXPENSES
SEK m
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Personnel expenses
-1,349
-1,645
-2,750
-3,574
-6,823
Personnel costs related to acquisitions - Excluding FX gain/loss 1)
206
-84
144
-1,157
-1,539
Total
-1,143
-1,729
-2,605
-4,731
-8,362
1) Personnel costs related to acquisitions has a positive effect in the current quarter due to several changes related to estimations of fulfillment degree and timing of such fulfillment.
NOTE 9
OTHER OPERATING EXPENSES
SEK m
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Other operating expenses
-37
-16
-82
-12
-108
Divestment of subsidiaries
—
-18
—
-620
0
Total
-37
-35
-82
-632
-108
NOTE 10
NET FINANCIAL ITEMS
SEK m
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Interest income and other financial income
33
17
75
49
124
Interest expense and other financial expense
-38
-166
-70
-422
-648
Sum
-5
-149
5
-373
-524
Change in fair value financial assets and liabilities
207
7
202
4
493
Interest deferred consideration
—
-4
—
-9
-9
Realized and unrealized exchange rate gains/losses
-91
-404
-374
-451
-848
Total financial net
111
-551
-167
-829
-888
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
37
PARENT COMPANY’S INCOME STATEMENT
Amounts in SEK m
Note
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Net sales
50
23
73
43
87
Other operating income
21
0
2
1
2
Total operating income
71
23
75
44
89
Operating expenses
Other external expenses
-34
-41
-64
-70
-139
Personnel expenses
-62
-30
-94
-65
-135
Depreciation, amortization and impairment of
property, plant and equipment and intangible assets
-1
-1
-2
-2
-4
Other operating expenses
P2
-1
-22
-1
-292
-389
Operating profit/loss
-26
-70
-85
-385
-578
Net financial items
P3
16
-10,604
19
-715
-2,570
Profit/loss after financial items
-11
-10,674
-67
-1,100
-3,148
Appropriations
26
-157
-105
-212
52
Profit/loss before tax
15
-10,830
-172
-1,312
-3,096
Income tax
-2
65
28
122
95
Net profit/loss for the period
13
-10,765
-143
-1,190
-3,001
Net profit/loss for the period in the parent company corresponds to the periods comprehensive income.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
38
PARENT COMPANY BALANCE SHEET
Amounts in SEK m
Sep 30, 2025
Sep 30, 2024
Mar 31, 2025
ASSETS
Non-current assets
Intangible assets
2
2
3
Tangible assets
3
6
5
Shares in group companies
17,410
38,744
15,258
Receivables from group companies
9,788
18,063
12,100
Other financial assets
114
55
95
Deferred tax assets
211
180
181
Total financial assets
27,524
57,042
27,634
Total non-current assets
27,530
57,050
27,642
Current assets
Receivables from group companies
3,620
2,983
3,096
Trade receivables
0
0
0
Current tax assets
—
—
—
Other receivables
199
293
269
Prepaid expenses and accrued income
76
97
62
3,896
3,374
3,427
Cash and cash equivalents
4,991
1,509
5,648
Total current assets
8,886
4,883
9,075
TOTAL ASSETS
36,416
61,934
36,716
EQUITY AND LIABILITIES
Restricted equity
2
2
2
Unrestricted equity
27,520
53,852
27,751
Total equity
27,522
53,854
27,752
Untaxed reserves
270
274
270
Provisions
90
95
101
Long-term liabilities
Liabilities to credit institutions
—
3,976
0
Liabilities to Group companies
1,180
1,220
1,220
Other long-term liabilities
—
58
—
Total long-term liabilities
1,180
5,254
1,220
Current liabilities
Liabilities to credit institutions
—
—
—
Trade payables
15
56
30
Liabilities to group companies
7,256
2,310
7,231
Tax liabilities
35
—
70
Other current liabilities
18
9
4
Accrued expenses and prepaid income
30
82
38
Total current liabilities
7,354
2,457
7,372
TOTAL EQUITY AND LIABILITIES
36,416
61,934
36,716
Tax liabilities includes SEK 10 million in booked top-up tax according to Pillar 2 and has also been offset against tax receivables even
though it is likely to be paid later than within 12 months.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
39
NOTE P1
THE PARENT COMPANY'S MATERIAL ACCOUNTING PRINCIPLES
The year-end report for the parent company has been prepared
in accordance with Chapter 9 of the Annual Accounts Act,
Interim reports, and RFR 2 Accounting for legal entities. The
same
accounting
principles,
basis
for
calculations
and
assessments have been applied as applied in the Annual Report
for FY 2024/25, with additions described below. For further
description of the parent company´s applied accounting
principles, see Note P1 in the Annual Report for FY 2024/25.
Accounting principles - Repurchase of own shares
Expenditure for the purchase of own shares reduces retained
earnings in unrestricted equity in the Parent company. If these
shares are sold, the sales proceeds are included in retained
earnings in the equity pertaining to owners of the Parent
company.
NOTE P2
OTHER OPERATING EXPENSES
SEK m
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Other operating expenses
-1
8
-1
-262
-363
Loss sale of subsidiaries
–
-30
–
-30
-26
Total
-1
-22
-1
-292
-389
NOTE P3
NET FINANCIAL ITEMS
SEK m
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Dividend
—
—
—
9,888
12,923
Interest income
195
231
396
496
960
Interest expense
-87
-120
-169
-309
-527
Other financial expenses
-11
-52
-30
-105
-126
FX effects
-49
-181
-126
-205
-432
Write-down subsidiaries
-32
-10,500
-53
-10,500
-15,452
Expected credit loss
1
18
1
20
85
Total
16
-10,604
19
-715
-2,570
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
40
DEFINITIONS OF ALTERNATIVE PERFORMANCE MEASURES (APMs)
In accordance with the guidelines from ESMA (European Securities and Markets Authority),
regarding the disclosure of alternative performance measures, the definition and reconciliation
of Embracer’s alternative performance measures are presented below. The guidelines entail
increased disclosures regarding the financial measures that are not defined by IFRS. The
performance measures presented below are reported in this report. They are used for internal
control and follow-up. Since not all companies calculate financial measures in the same way,
these are not always comparable to measures used by other companies.
One important part of Embracer’s strategy is to pursue inorganic growth opportunities through
acquisitions. Thereby expanding the ecosystem to include more entrepreneurs within the
gaming and entertainment markets. An acquisitive strategy is associated with certain complexity
in terms of accounting for business combinations. The board and management of Embracer
believes that it is important to separate the operational performance of the business from the
acquisition part. Certain APM’s are used to accomplish and give internal and external
stakeholders the best picture of the underlying operational performance of the business, by the
measurement of performance excluding specific items related to historical acquisitions and
items affecting comparability. The individual APMs, definitions, purpose are described more in
detail below.
Name
Definition
Reason for Use
Adjusted Earnings
per share
Net profit for the period excluding specific items related to historical
acquisitions and items affecting comparability net of tax, change in fair value
contingent consideration and put/call options on non-controlling interests
net of tax and Interest expense contingent consideration net of tax divided
by the average number of shares in the period. Net taxes are calculated
using the effective tax rate.
Shows earnings per share after
adjustments to specific items
attributable to historical
acquisitions, and items affecting
comparability.
Adjusted Earnings
per share after full
dilution
Net profit for the period excluding specific items related to historical
acquisitions and items affecting comparability net of tax, change in fair
value contingent consideration net of tax and interest expense contingent
consideration and put/call options on non-controlling interests net of tax
divided by the average number of shares after full dilution in the period.
Net taxes are calculated using the effective tax rate.
Shows earnings per share after
adjustments to specific items
attributable to historical
acquisitions and items affecting
comparability with regard for full
dilution.
Adjusted EBIT
EBIT excluding specific items related to historical acquisitions and items
affecting comparability.
Adjusted EBIT in order to provide a
true and fair picture of the
underlying operational performance,
by excluding specific items related
to historical acquisitions and items
affecting comparability.
Adjusted EBIT
margin
Adjusted EBIT as a percentage of net sales.
Adjusted EBITDA
EBITDA excluding specific items related to historical acquisitions and items
affecting comparability.
Adjusted EBITDA in order to
provide a true and fair picture of
the underlying operational
performance, by excluding specific
items related to historical
acquisitions and items
affecting comparability.
Adjusted EBITDA
margin
Adjusted EBITDA as a percentage of net sales.
Average number of
shares
Weighted average number of shares that are outstanding during the period.
Number of shares have been recalculated with respect to split of shares.
Average number of
shares after full
dilution
Weighted average number of ordinary shares and potential ordinary shares.
Number of shares have been recalculated with respect to split of shares.
EBIT margin
EBIT as a percentage of net sales.
CONT. >>
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
41
>> CONTINUED
Name
Definition
Reason for Use
EBITDA
Earnings before interest, taxes, depreciation and amortization.
EBITDA and EBITDA margin are reported
because these are metrics commonly used
by investors, financial analysts and other
stakeholders to measure the Company’s
financial results.
EBITDA margin
EBITDA as a percentage of net sales.
EBITDA and EBITDA margin are reported
because these are metrics commonly used
by certain investors, financial analysts and
other stakeholders to measure the
Company’s financial results.
EBITDAC
Adjusted EBITDA less Gross investments in intangible and
tangible assets.
High level view on operational cash flow
generation.
Free cash flow after
working capital
Cash flow for the period, excluding cash flow from financing
activities, acquisitions of subsidiaries including transaction costs,
cash impact from personnel costs related to acquisitions and
cash effect from items affecting comparability.
Provide a true and fair picture of the
underlying operational performance, by
excluding cash flow from specific items
related to historical acquisitions and from
items affecting comparability.
Gross margin
Net sales less goods for resale divided by net sales.
Measuring the profitability from the net sales
of products and services.
Items affecting
comparability
Transactions that are not related to recurring business
operations, but affecting the financial outcome in a material way,
and where the probability of reoccurrence over the coming year
is limited.
Items affecting comparability includes events
and transactions with significant effects,
which are relevant for understanding the
financial performance when comparing
income for the current period with previous
periods.
Net Debt (–) / Net
Cash (+)
The company’s cash and short-term investments decreased with
the company’s short- and long-term interest-bearing liabilities
excluding leasing liabilities according to IFRS16, pension
provisions, contingent consideration and put/call on non-
controlling interest.
The metric is commonly used by investors,
financial analysts and other stakeholders to
measure the debt compared to its liquid
assets. This metric is also used in calculating
the Company’s financial leverage.
Net investment in
acquired companies
Acquisition of subsidiaries, net of cash acquired plus cash impact
from specific items related to historical acquisitions, plus
acquisition of IPs through asset deal structures.
A measure of cash flow allocated to
inorganic growth opportunities in the
reporting period.
Net sales growth
Net sales growth for the current period compared to the same
period previous year.
Net sales growth is reported by the Company
because it regards this KPI as contributing to
investor understanding of the Company’s
historical progress.
Organic growth
Growth between periods where net sales from companies
acquired/divested in the last five quarters have been excluded.
The comparison period is adjusted for differences in exchange
rates.
Growth measure for companies that has
been part of Embracer Group for more than
one year excluding effects of differences in
exchange rates.
Pro forma growth
Growth between periods where net sales from companies
acquired/divested in the last five quarters have been added/
adjusted historically. The comparison period is adjusted for
differences in exchange rates.
Growth measure for all companies that are a
part of Embracer Group as per reporting date
regardless of when the company became a
part of Embracer Group excluding effects of
differences in exchange rates.
Specific items
related to historical
acquisitions
Specific income/expenses related to historical acquisitions
consist of personnel cost related to acquisitions (In
connection with certain business combinations, contingent
consideration agreements that are not classified as part
of the consideration transferred, as there is a requirement for
continued employment to receive the amount.
Accordingly, the amount is classified as consideration for
future services), amortization of surplus values of acquired
intangible assets (e.g. IP-rights, publishing rights, brand
name), transaction costs (Costs for legal- financial- tax- and
commercial due diligence for completed transactions.),
remeasurement of participation in associated companies
and remeasurement of contingent consideration.
Input used to calculate Adjusted EBITDA and
Adjusted EBIT.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
42
ALTERNATIVE PERFORMANCE MEASURES
ADJUSTED EBIT AND ADJUSTED EBITDA - DERIVATION
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Amounts in SEK m
EBIT
-73
28
-330
-1,425
3,535
Depreciation, amortization and impairment
1,222
1,119
2,205
2,432
9,234
EBITDA
1,149
1,147
1,874
1,007
12,769
Personnel costs related to acquisitions
-208
69
-165
1,141
1,524
Remeasurement of participation in associated companies
0
—
—
—
—
Remeasurement of contingent consideration
—
—
—
-4
-4
Items affecting comparability 1)
15
56
45
658
-7,534
Adjusted EBITDA
955
1,272
1,755
2,801
6,754
Depreciation, amortization and impairment
-1,222
-1,119
-2,205
-2,432
-9,234
Items affecting comparability 1)
157
20
191
20
4,529
Amortization of surplus values of acquired intangible assets
218
341
443
703
1,294
Adjusted EBIT
109
513
184
1,092
3,344
ADJUSTED EARNINGS PER SHARE - DERIVATION
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Amounts in SEK m
Net profit for the period attributable to equity holders of the parent
-20
-450
-438
-2,317
2,543
Adjustments
Personnel costs related to acquisitions
-208
69
-165
1,141
1,524
Remeasurement of participation in associated companies
0
—
—
—
—
Remeasurement of contingent consideration
—
—
—
-4
-4
Amortization of surplus values of acquired intangible assets
218
341
443
703
1,294
Change in fair value contingent consideration and put/call options on non-
controlling interests
-232
-41
-251
-62
-559
Interest expense contingent consideration
8
38
19
68
72
Items affecting comparability 1)
172
75
236
677
-3,005
Adjustments before tax
-43
482
282
2,522
-678
Tax effects on adjustments
-89
-90
-151
-170
-532
Adjustments after tax
-132
392
131
2,352
-1,210
Total continuing operations
-152
-59
-307
35
1,333
Average number of shares, million 2)
225
225
225
224
225
Adjusted Earnings per share, SEK
-0.67
-0.26
-1.36
0.16
5.93
Average number of shares after full dilution, million 2)
231
231
231
230
230
Adjusted Earnings per share after full dilution, SEK
-0.67
-0.26
-1.36
0.15
5.80
1) See next page for further explanation on items affecting comparability
2) Recalculated with respect to the reversed split 1:6 carried out on January 15, 2025 as resolved at the extra general meeting on January 7, 2025. Number of shares for previous
periods have been adjusted.
CONT. >>
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
43
>> CONTINUED
ORGANIC GROWTH - DERIVATION
Jul-Sep
2025
Jul-Sep
2024
Change
Amounts in SEK m
Net sales
3,850
4,726
-19 %
Net sales from acquired/divested companies 1)
—
-803
Difference in exchange rate
—
-295
Organic growth
3,850
3,629
6 %
PRO FORMA GROWTH - DERIVATION
Jul-Sep
2025
Jul-Sep
2024
Change
Amounts in SEK m
Net sales
3,850
4,726
-19 %
Net sales from acquired/divested companies 2)
—
-803
Difference in exchange rate
—
-295
Pro forma growth
3,850
3,629
6 %
1) Net sales from companies acquired in the last five quarters have been excluded.
2) Net sales from acquired/divested companies in the last five quarters have been added/removed.
FREE CASH FLOW AFTER WORKING CAPITAL
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Amounts in SEK m
Cash flow for the period
-734
977
-948
678
4,860
Cash flow from financing activities
180
169
16
2,920
12,648
Net cash flow from acquired/divested companies
107
-1,649
119
-5,583
-17,795
Investments in other companies
—
—
33
—
—
Payment personnel cost related to acquisitions
58
15
111
1,183
1,242
Cash flow effect IAC
42
97
98
292
398
Free cash flow after working capital
-348
-392
-572
-512
1,351
ITEMS AFFECTING COMPARABILITY, IAC
Jul-Sep
2025
Jul-Sep
2024
Apr-Sep
2025
Apr-Sep
2024
Apr 2024-
Mar 2025
Amounts in SEK m
Revenue related to games reported as IAC
4
—
18
—
—
Other external expenses
-12
—
-18
—
-35
Personnel expenses
-25
-40
-47
-40
-131
Profit or loss sale of subsidiaries
34
-18
35
-620
7,951
Other operating income/expenses
-16
3
-32
3
-250
Total IAC affecting EBITDA
-15
-56
-45
-658
7,534
Write-down intangible assets
-157
-20
-191
-20
-423
Write-down tangible assets
0
—
—
—
-1
Impairment of goodwill
—
—
—
—
-3,727
Impairment of other intangible assets
—
—
—
—
-378
Total IAC affecting EBIT
-172
-75
-236
-677
3,005
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
44
DEFINITIONS, QUARTERLY INFORMATION
Clawback shares
Shares of the company issued to sellers at completion of acquisitions of companies or assets.
Clawback shares are part of the earnout consideration to sellers of companies or assets. Clawback
shares are held by sellers, either in escrow accounts or on regular accounts, with an agreed right for
the company to receive the shares back, at no consideration, if specific earnout targets are not met.
Clawback shares are kept by the sellers if earnout targets are met.
Completed games
Total book value of finished game development projects (released games) upon submission of
completion. Upon completion the released games are reclassified from On-going Game Development
Projects to Finished Games and amortization starts.
DAU
Average daily active users in the period.
Digital product
Product sold/transferred through digital/electronic channels.
Digital sales
Sales and transfer of products, physical and digital, through digital/electronic channels.
External game developers
Game developers engaged in game development projects by studios that are not owned by the group
(external studios).
External Studios
Studios not owned by the group engaged in game development project financed by the Group.
Game development projects
On-going game development projects financed by the group and number of on-going game
development projects financed by third party with notable expected royalty income.
Internal employees,
non-development
Employees not directly engaged in game development (both employees and contractors).
Internal game developers
Game developers (both employees and contractors) engaged in game development projects by
studios that are owned by the group (internal studios).
Internal headcount
Internal game developers + internal employees, non-development
Internal Studios
Studios owned by the group.
MAU
Average monthly active users in the period.
Max cash consideration
The maximum potential consideration to be paid in cash including upfront consideration and earnout
consideration. The earnout consideration is based on the maximum potential consideration and is
calculated based on the terms and FX-rates stated in each individual agreement.
Max share consideration
The maximum potential consideration to be paid in Embracer B shares including upfront consideration
and earnout consideration. The earnout consideration is based on the maximum potential
consideration and is calculated based on the terms, FX-rates and Embracer VWAP20 Share Price
stated in each individual agreement.
Max total consideration
The sum of the max cash and share consideration. Note that the total max consideration might deviate
from the total consideration used in the Purchase Price Analysis following movements in FX-rates and
Embracer Share price between the signing and closing date as well as if the expected achievement of
the individual earnout targets deviate from the maximum scenario. The Max total consideration
includes contingent consideration in cash and shares that is classified as remuneration for future
services and not part of the transferred consideration in the PPA according to IFRS 2 and IAS 19. Also
note that for a limited amount of acquisitions, for which there is a material difference between the
expected consideration and the maximum potential consideration, the expected cash and shares
consideration have been used as measure.
Net sales split – PC/Console segment
Owned titles
Net sales of game titles that are owned IPs or titles that are controlled by the group.
Publishing titles
Net sales of game titles of IPs the group does not own or control.
New releases
Net sales of game titles that are released in the current quarter.
Back catalog
Net sales of game titles that are not released in the current quarter.
Number of IP:s
Number of IPs owned by the group.
Physical product
Product sold/transferred through physical channels.
Physical sales
Sales and transfer of products, physical and digital, through physical channels.
Total installs
Total accumulated installs in the period.
UAC (User Acquisition Cost)
Marketing costs in the operating segment Mobile Games.
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
45
INFORMATION BY FINANCIAL YEAR AND QUARTER
2020/21
2021/22 2)
2022/23 2)
2023/24 3)
2024/25 3)
2025/26
Full year
Full year
Full year
Full year
Apr-Jun
Jul-Sep
Oct-Dec
Jan-Mar
Full year
Cont. op
Apr-Jun
Jul-Sep
Net sales, SEK m
9,000
17,067
37,665
27,409
4,893
4,726
7,364
5,386
22,370
3,355
3,850
Sales growth, Group, YoY %
71%
90%
121%
-27%
-33%
-30%
-3%
-6%
-18%
-31%
-19%
EBIT, SEK m
2,058
-1,126
194
-14,400
-1,453
28
638
4,322
3,535
-257
-73
EBIT, margin, %
23%
-7%
1%
-53%
-30%
1%
9%
80%
16%
-8%
-2%
Adjusted EBIT, SEK m
2,858
4,465
6,366
4,984
579
513
1,175
1,077
3,344
75
109
Adjusted EBIT, margin, %
32%
26%
17%
18%
12%
11%
16%
20%
15%
2%
3%
Adjusted EBITDA, SEK m
4,016
5,942
9,866
8,931
1,529
1,272
2,001
1,952
6,754
800
955
Adjusted EBITDA, margin, %
45%
35%
26%
33%
31%
27%
27%
36%
30%
24%
25%
Basic shares weighted average, million1)
120
151
178
198
202
206
207
208
206
208
209
Diluted shares weighted average1)
120
154
180
198
202
207
207
208
207
208
209
Average number of shares, million1)
133
172
209
220
224
225
225
225
225
225
225
Average number of shares after full dilution, million1)
133
181
227
237
229
231
231
230
230
230
231
Basic earnings per share, SEK
-20.97
6.47
25.00
-67.28
-9.23
-2.18
4.62
18.77
12.31
-2.01
-0.10
Diluted earnings per share, SEK
-20.97
6.36
24.72
-67.28
-9.23
-2.18
4.62
18.76
12.31
-2.01
-0.10
Adjusted Earnings per share, SEK 1)
18.87
22.07
26.43
14.66
0.42
-0.26
5.95
-0.19
5.93
-0.69
-0.67
Adjusted Earnings per share after full dilution, SEK
18.82
20.95
24.33
13.56
0.41
-0.26
5.81
-0.19
5.80
-0.69
-0.67
Cash flow from operating activities, SEK m
3,825
4,070
5,383
5,694
-362
470
1,713
1,671
3,493
457
405
Organic growth, YoY, %
— %
— %
— %
-2 %
-33%
-21%
7%
19%
-9%
-2%
6%
Gross Margin, %
60%
72%
63%
73%
80%
73%
60%
72%
70%
69%
67%
Specific items related to historical acquisitions
Amortization of surplus values of acquired
intangible assets
-510
-1,316
-2,973
-2,203
-362
-341
-314
-277
-1,294
-225
-218
Transaction costs, SEK m
-150
-367
-290
-8
—
—
—
—
—
—
—
Personnel costs related to acquisitions
-181
-4,277
-2,631
-1,904
-1,072
-69
-126
-257
-1,524
-44
208
Remeasurement of participation in associated
companies, SEK m
41
416
—
3
—
—
—
—
—
—
—
Remeasurement of contingent consideration, SEK m
—
-46
—
-18
4
—
—
—
4
—
—
Total
-801
-5,591
-5,894
-4,129
-1,430
-409
-441
-533
-2,814
-268
-10
Investments
External game development and advances, SEK m
697
1,233
1,291
1,154
211
140
126
57
535
102
122
Internal capitalized development, SEK m
1,291
2,293
4,788
5,165
727
686
669
650
2,733
590
565
Sub-total - Investment in Game development,
all segments
1,988
3,526
6,079
6,319
939
826
795
707
3,268
693
686
Other intangible assets/IP-rights, SEK m
151
190
416
537
61
73
96
124
354
63
152
Tangible assets, SEK m
71
344
500
225
55
27
29
19
130
29
15
Total
2,210
4,060
6,995
7,082
1,055
926
920
850
3,751
784
853
Completed games
Completed games, PC/Console, SEK m
837
1,218
3,248
3,421
336
455
556
974
2,321
210
1,156
Other KPIs
Game development projects, PC/Console
Announced Game Dev projects
53
64
56
43
34
46
46
37
37
38
32
Unannounced Game Dev projects
107
159
165
98
93
82
72
71
71
78
75
Total
160
223
221
141
127
128
118
108
108
116
107
Headcount
Total internal game developers
4,036
7,240
9,971
5,996
5,291
5,098
5,050
4,654
4,654
4,749
4,656
Total external game developers
1,079
1,346
1,455
1,387
1,028
813
707
724
724
703
518
Total internal employees, non-development
1,210
4,174
5,175
2,309
2,121
2,098
2,116
1,802
1,802
1,776
1,761
Total
6,325
12,760
16,601
9,692
8,440
8,009
7,873
7,180
7,180
7,228
6,935
Number of studios
Total number External Studios
66
63
56
41
34
26
24
23
23
20
15
Total number Internal Studios
60
118
138
86
80
80
77
73
73
70
69
Total
126
181
194
127
114
106
101
96
96
90
84
IP-rights
225
815
896
497
486
485
485
464
464
464
460
1) Number of shares for FY 2020/21 have been adjusted and recalculated with respect to the 2:1 split carried out on September 30, 2021. Further, the number of shares for the fiscal
years 2020/21, 2021/22, 2022/23, 2023/24 and 2024/25 have been recalculated due to the 1:6 reversed split carried out January 15, 2025.
2) Including discontinued operations
3) Excluding discontinued operations
EMBRACER GROUP AB (PUBL) | JULY-SEPTEMBER 2025
46
Embracer Group is a global group of creative and entrepreneurial
businesses in PC, console and mobile games, as well as other
related media. The Group has an extensive catalog of over 450
owned or controlled franchises. With its head office based in
Karlstad, Sweden, Embracer Group has a global presence through
its operative groups: THQ Nordic, PLAION, Coffee Stain, DECA
Games, Dark Horse, Freemode and Crystal Dynamics – Eidos. The
Group includes 69 internal game development studios and
engages nearly 7,000 talents across nearly 30 countries.
Embracer Group AB (publ)
Tullhusgatan 1B
SE-652 09 Karlstad
Sweden
embracer.com
