Embracer Group AB

EMBRAC B

Equity

ISIN SE0016828511 / Valor 113946352

NASDAQ Nordic Exchange Stockholm, Equities (2026-08-27)

SEK 72.44-1.92%

Embracer Group AB
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About company

Embracer Group AB, based in Karlstad, Sweden, is a prominent global entity in the video game and media sectors, operating through a diverse range of subsidiaries including THQ Nordic, Coffee Stain, and Crystal Dynamics – Eidos. The group manages 73 game development studios and employs over 7,000 professionals across nearly 30 countries. It boasts a substantial portfolio of more than 450 owned or controlled franchises, encompassing well-known titles such as Lord of the Rings and Tomb Raider. Embracer Group is involved in the development and publishing of games for PC, consoles, and mobile platforms, as well as producing related media content. In the financial year 2023/24, the company undertook a significant restructuring initiative to streamline its operations and focus its business strategy for future growth.

Summarized from source with an LLMView SourceSector: Technology

Quarterly financial headlines

Q3 net sales SEK 7,364m (‑3% YoY; 7% organic). EBIT SEK 638m versus SEK ‑305m a year ago. Adjusted EBIT SEK 1,175m (‑11% YoY) with a 16% adjusted margin. Basic EPS SEK 0.77 (vs ‑1.48), adjusted EPS SEK 0.99.

Segment performance

PC/Console down sharply: SEK 2,603m (‑23% YoY; ‑1% organic/pro forma). Mobile modest growth: SEK 1,669m (+2% YoY; +3% organic). Entertainment & Services the main driver: SEK 3,093m (+19% YoY; +19% organic).

Cash flow, capex and liquidity

Cash flow from operating activities SEK 1,712m. Net investments in intangible assets SEK ‑891m in the quarter (‑2,784m for Apr–Dec). Free cash flow after WC SEK 907m. Reported net cash (Dec 31, 2024) approx SEK 3.2bn; pro forma net cash after post‑quarter transactions ~SEK 5.0bn. Available funds reported ~SEK 7.8bn (Dec 31) and ~SEK 12.7bn by Feb 7, 2025.

Discontinued operations and major transactions

Asmodee reclassified to non‑current assets held for distribution and discontinued operations due to the spin‑off/listing on Feb 7, 2025. Discontinued operations (Asmodee) Q3: net sales SEK 4,930m, adjusted EBIT SEK 948m, free cash flow SEK 786m. Easybrain divestment announced Nov 14 and closed Jan 23, 2025 (consideration ~USD 1.2bn).

Profitability drivers and items

Adjusted EBIT decline mainly from Mobile (higher user acquisition costs vs tough prior‑year comparison); PC/Console adjusted EBIT improved YoY driven by back‑catalog and external dev projects despite fewer new releases. IAC (items affecting comparability) were SEK ‑96m in Q3 related to restructuring.

Notable product / release impact

Kingdom Come: Deliverance II released early Feb (just after quarter) and management reports it sold >1 million copies in first 24 hours and strong Steam performance; Q3/preview commentary flags improved momentum in PC/Console and Mobile pipeline and a healthy slate of upcoming mid‑ and AAA titles.

Outlook and management commentary

Management highlights a reassuring Q3, strong free cash flow and a focus on further spin‑offs to unlock value. Expected higher Adjusted EBIT YoY for Q4 in PC/Console driven by Kingdom Come II and Killing Floor 3, while Mobile will have limited Q4 adjusted contribution due to elevated UA investments; Entertainment & Services expected seasonally softer Q4.

Summarized from source with an LLMView Source

Key figures

-16.1%1Y

-49.5%3Y

-87.7%5Y

Performance

56.3%1Y

66.0%3Y

68.7%5Y

Volatility