Financial highlights Q3 2025
- Net revenue of SEK 1,373 (1,595) million decreased by 8 (-1) percent organically.
- Gross margin of 83 (80) percent, an increase of 3 (2) percentage points.
- Adjusted EBITDAC of SEK 436 (385) million increased by 13 (-6) percent.
- Adjusted EBITDAC margin of 32 (24) percent, an increase of 8 percentage points.
- Net results of SEK 55 (18) million.
- Free cash flow amounted to SEK 183 (298) million, and for the last 12 months amounted to SEK 974 (835) million.
- Total net debt, including cash earnout for the next 12 months, amounted to SEK 4,381 (4,745) million.
- Total net debt including all earnout liabilities amounted to SEK 5,086 (5,872) million.
- Adjusted leverage ratio, including cash earnout for the next 12 months, pro forma was 2.06x (2.08x).
- Cash position was SEK 773 (857) million and SEK 1,354 (1,783) million of undrawn credit facilities.
"We reported net revenue of SEK 1,373 million in Q3 2025, resulting in an organic decline of 8 percent year-over-year (YoY). Although organic growth remained negative, it improved compared to the first half of 2025, driven by BA Europe. Gross margin improved by 3 percentage points YoY, driven by a higher contribution from our direct-to-consumer (DTC) business. The DTC part of our business now accounts for 44 percent of total net revenue; an increase compared to 33 percent in Q3 2024.
Driven by our operational improvements and focus on profitability, adjusted EBITDAC saw strong growth compared to last year despite headwinds from net revenue. It reached SEK 436 million in the quarter, and the margin improved by 8 percentage points YoY. Free cash flow amounted to SEK 183 million in the quarter and remained strong over the past 12 months totaling SEK 974 million.
The strategic review we initiated earlier this year is progressing according to expectations. The recently completed transfers and discontinuation of certain games is a continuation of our long-term initiative to sharpen our focus on our key game franchises. So far, we have transferred 26 games from North America to MENA & APAC that had roughly a net revenue of SEK 450 million in 2024 and discontinued games such as Ellen's Garden Restoration and Survival Tactics. These efforts will continue going forward and we will be closing an additional 5-10 smaller loss-making games by the end of Q4. Additionally, approximately 20-30 games are shortlisted for potential closure in the following quarters pending continuous performance review. These are games that either have negative EBITDAC or that have low margins and low probability of future growth. Alongside this, our commitment to evaluating certain assets for divestments to increase shareholder value remains.
We expect MENA & APAC to maintain a steady growth pace, supported by strong performance from Jawaker and Moonfrog. Europe, which returned to positive organic growth in Q3, may experience some quarterly fluctuations but is expected to perform better than in H1 and continue improving over the long run.
North America remains the only business area with materially negative organic net revenue growth, reflecting our deliberate focus on profitability, an approach that is already delivering tangible improvements. For Q4, this continued profitability focus in North America, combined with lower UAC at the end of Q3, means that overall organic net revenue growth is expected to temporarily return to levels similar to the first half of the year. This will be driven by North America's reduced revenues, while MENA & APAC should maintain solid growth and Europe continues to build momentum.
Alexis Bonte, Group President and CEO, Stillfront
Key figures
| 2025 | 2024 | 2025 | 2024 | Last 12 | 2024 | |
| MSEK | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | months | Jan-Dec |
| Bookings | 1,369 | 1,592 | 4,341 | 5,071 | 5,999 | 6,729 |
| Net revenue | 1,373 | 1,595 | 4,354 | 5,077 | 6,014 | 6,737 |
| Gross profit | 1,133 | 1,269 | 3,555 | 4,052 | 4,874 | 5,371 |
| Gross profit margin, % | 83 | 80 | 82 | 80 | 81 | 80 |
| Adjusted EBITDA | 552 | 535 | 1,580 | 1,707 | 2,128 | 2,256 |
| Adjusted EBITDAC | 436 | 385 | 1,213 | 1,248 | 1,623 | 1,658 |
| Adjusted EBITDAC margin, % | 32 | 24 | 28 | 25 | 27 | 25 |
| Operating result (EBIT) | 178 | 139 | 443 | 509 | -6,522 | -6,455 |
| Net result for the period | 55 | 18 | 6 | -99 | -7,273 | -7,378 |
| Earnings per share undiluted, SEK | 0.11 | 0.03 | 0.01 | -0.21 | -14.42 | -14.40 |
| Earnings per share diluted, SEK | 0.11 | 0.03 | 0.01 | -0.21 | -14.42 | -14.40 |
| Total net debt incl. cash earnout NTM | 4,381 | 4,745 | 4,381 | 4,745 | 4,381 | 4,736 |
| Total net debt incl. total earnouts | 5,086 | 5,872 | 5,086 | 5,872 | 5,086 | 6,125 |
| Adjusted leverage ratio incl. NTM cash earnout, x | 2.06 | 2.08 | 2.06 | 2.08 | 2.06 | 2.10 |
| Free cash flow | 183 | 298 | 632 | 708 | 974 | 1,050 |
| Free cash flow per share, SEK | 0.35 | 0.58 | 1.26 | 1.38 | 1.93 | 2.05 |
Invitation to webcast
The report will be presented in a live webcast at 10:00 a.m. CET today. Alexis Bonte, Group President and CEO, and Tim Holland, interim Group CFO, will present the Q3 2025 results, and answer questions. The conference will be held in English.
To participate via webcast:
If you wish to participate via webcast, please use the link below.
https://stillfront.events.inderes.com/q3-report-2025
To participate via phone:
If you wish to participate via teleconference, please register on the link below. After registration you will be provided with phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://events.inderes.com/stillfront/q3-report-2025/dial-in
Forward-looking statements
Some statements herein are forward-looking that reflect Stillfront's current views or expectations of future financial and operational performance. Because these forward-looking statements involve both known and unknown risks and uncertainties, actual results may differ materially from the information set forth in the forward-looking information. Such risks and uncertainties include but are not limited to general business, economic, competitive, technological, and legal uncertainties and/or risks. Forward-looking statements in this report apply only at the time of announcement of the report and are subject to change without notice. Stillfront undertakes no obligation to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise, other than as required by applicable law or stock market regulations.
For additional information, please contact:
Patrik Johannesson, Head of Investor Relations & ESG, Stillfront Group
Phone: +46 70-428 90 11
E-mail: Patrik.johannesson@stillfront.com
About Stillfront
Stillfront is a global games company. We develop digital games that are played by approximately 40 million people each month. Our diversified portfolio spans well-established franchises like Big Farm, Jawaker and Supremacy, to smaller, niche games across our different genres. We believe gaming can be a force for good and we want to create a gaming universe that is digital, affordable, equal, and sustainable. Our HQ is in Stockholm, Sweden, but our game development is done by teams and studios all over the world. Our main markets are the US, Japan, MENA, Germany, and the UK. Stillfront's shares (SF) are listed on Nasdaq Stockholm. For further information, please visit: stillfront.com
This information is information that Stillfront Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-10-23 07:00 CEST.