Fragbite Group AB (publ) ("Fragbite Group" or "The Company") hereby issues the interim report for the period 1 January to 30 September 2025.
Third quarter 2025
| Revenue | SEK 47.6 million | (51.8) |
| EBITDA | SEK 1.6 million | (2.2) |
| Adjusted EBITDA | SEK 1.6 million | (2.2) |
| Operational EBIT (1) | SEK -1.9 million | (-0.6) |
| EBIT | SEK -9.5 million | (-21.0) |
| Result after tax | SEK -12.0 million | (-23.4) |
| Cash flow from operating activities | SEK 2.8 million | (-5.9) |
| Diluted earnings per share (3) | SEK -1.64 | (-3.58) |
| Bitcoin purchases | BTC 9.50 | (n/a) |
First nine months 2025
| Revenue | SEK 133.6 million | (154.2) |
| EBITDA | SEK 3.8 million | (0.7) |
| Adjusted EBITDA | SEK 1.9 million | (6.2) |
| Operational EBIT (1) | SEK -5.4 million | (-7.6) |
| EBIT | SEK -84.6 million | (-101.8) |
| Result after tax (2) | SEK -76.0 million | (-86.0) |
| Cash flow from operating activities | SEK 3.5 million | (-9.3) |
| Diluted earnings per share (3) | SEK -10.24 | (-13.14) |
| Bitcoin purchases | BTC 9.50 | (n/a) |
| Total Bitcoin holding at end of period | BTC 9.50 | (n/a) |
1) Operational EBIT is defined as EBIT excluding non-operational amortisation and impairment of intangible assets
2) In the Group's earnings, SEK -29.9 million relates to the sale of subsidiaries Lucky Kat and Wagmi.
3) Per number of shares at the end of the quarter
CEO Stefan Tengvall comments
Revenue amounted to SEK 47.6 million, a decline of SEK 4.2 million from 2024, mainly due to the sale of the Web3 business area on 31 May 2025. Adjusted EBITDA of SEK 1.6 million was lower than in 2024, when it amounted to SEK 2.2 million, mainly due to the divestment of the Web3 business area and start-up costs related to the Bitcoin Treasury business area. The Parent Company has maintained the lower cost level established following the 2024 cost-reduction programme and will further reduce costs going forward, as the divestment of three subsidiaries has led to a reduced workload in finance and administration.
Playdigious - solid quarter before divestment
On 8 October, Fragbite Group sold Playdigious. The divestment followed a long sales process involving many difficult considerations. Since its acquisition in May 2021, Playdigious has been a fantastic subsidiary with an exceptional, professional team, and also a successful investment delivering a strong total return. We were able to make a favourable divestment at a purchase price of SEK 115 million on a cash- and debt-free basis, in addition to retaining 90 percent of future net revenue from Playdigious Originals' PC games. Consequently, our collaboration with Playdigious will continue, which is very positive.
For over a year, Fragbite Group has evaluated various options for divesting assets in order to meet our commitment of strengthening our capital position, build a more robust capital structure and ensure a positive cash flow throughout the Group. Delivering on these objectives has been of great importance - financially, operationally and in terms of rebuilding shareholder confidence. The sale of Playdigious proved to be the most advantageous solution for achieving these objectives, allowing us to move forward with developing Fragbite Group and supporting new strategic initiatives.
Playdigious experienced significant delays in recent quarters, particularly Subnautica, which was postponed a year at the request of the IP owner. It was therefore gratifying, prior to the divestment, to take part in the successful release in July, which had a positive impact the results of business area Gaming. July also saw the release of Fretless, one of four titles from which Fragbite Group will receive 90 percent net revenue share moving forward. The Company will continue to follow and report on the performance of the games in Playdigious' IP portfolio from which we will receive revenues.
FunRock - expansion and new brand
FunRock is expanding and separating the business under two brands. The subsidiary, and development of proprietary games and game engines, will now operate under the name FunRock, while use of the Prey Studios brand will be discontinued. Establishment of a new brand for the hybrid work-for-hire (WFH) business unit is in progress.
The hybrid WFH revenue model has been a key driver of the subsidiary's growth, with two white-label games built on the game engines for MMA Manager and Capital War. The client is a leading European iGaming operator, and the purpose of the games is to function as marketing tools for their own content. In addition to remuneration for design and development, FunRock is entitled to revenue share. Initial numbers show that the first title, released in July, is performing very well for the client and FunRock's remuneration has exceeded forecasts during the first months. While revenue share is still small in relation to the development remuneration, this indicates a positive trend so far. The new brand is intended to facilitate the establishment of additional projects with a similar revenue model.
Swedish Cup profitable, challenges for Config
The quarter was weak for the Esports business area, mainly driven by lower revenue from Config compared with the previous year, with performance for the first nine months also well below 2024 levels. Severely weakened consulting and advertising markets has majorly impacted the business area, and we are therefore reviewing options to shift more focus to the event and tournament expertise within Fragbite AB, which will deliver another profitable Swedish Cup this year. Sweden's largest national esports tournament began in October with several strong brands as sponsors, and the final will be held this weekend before a live audience in Stockholm. The 2024 tournament was highly successful, delivering strong results across all key metrics, and it is my expectation that this year's tournament will maintain the same high standard.
Bitcoin Treasury is growing
A significant part of the Company's focus during the quarter was on the recently launched Bitcoin Treasury business area, which also entailed certain establishment costs. At the beginning of the quarter, Bitcoin Treasury raised a total of SEK 11 million through favourable convertible loans, after which a number of purchases followed. As of the reporting date, the holding amounts to 28.88 BTC, with a continued ambitious growth agenda. The Company signed an Equity Line of Credit agreement with Alumni Capital for a financing facility of up to SEK 200 million, intended for use during favourable market conditions. With our Bitcoin holding on one of the world's most secure custodial platforms, Fragbite Group has established a strong security protocol that protects both the Company and its representatives, and insures the holding against theft.
Actively increasing the Bitcoin position, with Bitcoin as a lever to enhance shareholder value, is a long-term strategy. We see an opportunity to take a leading position in the Nordics through active investment in Bitcoin, in parallel with the continued development of our core business in gaming and esports, where we have our roots. Through a recently established partnership with crypto exchange Safello, Fragbite Group is aligning with a strong Swedish player in the crypto market with whom we share both values and ambitions, where Safello will serve as our Preferred Partner for trading, future Bitcoin yield solutions, and other initiatives.
Turning the page - a new strategic platform and continued development
The strategic review, which began in late spring, was concluded with the divestment of Playdigious. We now have a smaller but well-financed Group that is focused on moving forward. Shortly, a new strategic platform will be adopted and communicated, and we also intend to make organisational changes to align with the Group's direction going forward. In October, a smaller strategic investment of SEK 2.7 million was made for a 4.11 percent stake in a profitable growth company in the iGaming sector. The investment is expected to generate quarterly dividends starting in mid-2026 and provide FunRock with access to potential new customers. An LOI has been signed for an additional, larger investment in the same target company, with a due diligence process now underway.
It is very positive to be able to say that Fragbite Group has now turned the page. We are in an exciting period of development and still have a journey ahead of us, but now with a strong cash position and renewed motivation. Thank you to our shareholders for being with us on this journey.
Stockholm 13 November 2025
Stefan Tengvall, President and CEO
The report is attached to this press release and available for download from the Fragbite Group website: www.fragbitegroup.com/financial-reports
For questions, please contact:
Erika Mattsson, Chief Communications Officer
ir@fragbitegroup.com
Phone: +46 8 520 277 82
Redeye AB is the Company's Certified Adviser.
About us
Fragbite Group (publ) is a Swedish corporate group with a portfolio of established subsidiaries that develop, adapt and publish games and esports content within GAMING, ESPORTS and WEB3. Our products are developed for both traditional platforms - PC, mobile and console - and modern platforms built on blockchain technology. The Group is headquartered in Stockholm and listed on Nasdaq First North Growth Market.
This information is information that Fragbite Group AB 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 2025-11-13 08:35 CET.