We delivered a great end to a transformative 2025, reporting 8% organic year over year growth in Q4 and 9% for the full year, at the top end of our updated full year guidance. Total revenues were up by 108% and 107% year over year in constant currencies for the two respective periods. We saw opportunities to continue scaling user acquisition (UA) at attractive return levels in Q4, driving strong performance and continued momentum in our portfolio, in particular in our Word Games and Racing franchises, as well as RAID: Shadow Legends. Total UA spend in our original studios was up 25% year over year in constant currencies in Q4. Our total adjusted EBITDA was up by 58% year over year in Q4 and 59% for the full year and we reported operating margins of 23% for both periods. We have entered 2026 with strong momentum and have also concluded the pre-IPO study for PlaySimple, now proceeding to prepare for a potential listing in 2026.
Financial highlights Q4
- Net sales up 84% YoY to SEK 3,123 (1,693) million and up 108% in constant currencies, with like-for-like currency impact of -12%. Organic sales up 8% YoY
- UA spend of SEK 1,192 (677) million, or 38% (40%) of total revenues. UA spend for original studios up 25% YoY in constant currencies as we continued to invest in growth
- Adjusted EBITDA up by 58% year over year to SEK 717 (455) million, with an adjusted EBITDA margin of 23% (27%). Adjustments of SEK 82 (127) million for M&A transaction costs and revaluation of put/call options and SEK 31 (11) million for other adjustments
- Reported EBITDA of SEK 603 (317) million and EBIT of SEK 219 (170) million impacted by increased amortization levels of intangible assets arising from the acquisition of Plarium, primarily related to RAID: Shadow Legends
- Net financial items of SEK -231 (-325) million, of which impairment of VC funds of SEK -101 (0) million and net interest of SEK -67 (34) million are the largest items
- Tax amounted to SEK -93 (-87) million
- Net income amounted to SEK -105 (-242) million
- Cash flow from operations of SEK 840 (327) million
- Cash and cash equivalents at the end of the period amounted to SEK 1,230 (3,543) million with a net financial debt of SEK 2,522 (-3,392) million
Financial highlights full year 2025
- Net sales up 92% to SEK 11,579 (6,015) million and up 107% in constant currencies, with like-for-like currency impact of -7%. Organic sales up 9%
- UA spend of SEK 4,316 (2,222) million, or 37% (37%) of revenues
- Adjusted EBITDA of SEK 2,648 (1,666) million with an adjusted EBITDA margin of 23% (28%)
- Reported EBITDA of SEK 2,383 (1,476) million and EBIT of SEK 963 (901) million
- Net financial items of SEK -543 (-719) million, of which net interest of SEK -243 (129) million
- Total net income of SEK -62 (-210) million and total basic earnings per share of SEK -0.53 (-1.74)
- Cash flow from operations of SEK 1,723 (1,340) million and unlevered cash conversion of 66% for the 12-month period ended 31 December
Financial overview
(SEKm) | Q4 | Q4 | FY | FY |
Net sales | 3,123 | 1,693 | 11,579 | 6,015 |
EBIT | 219 | 170 | 963 | 901 |
EBITDA | 603 | 317 | 2,383 | 1,476 |
Adjusted EBITDA | 717 | 455 | 2,648 | 1,666 |
Net income | -105 | -242 | -62 | -210 |
Cash flow from operations | 840 | 327 | 1,723 | 1,340 |
Basic earnings per share (SEK) | -0.90 | -2.03 | -0.53 | -1.74 |
Diluted earnings per share (SEK) | -0.90 | -2.02 | -0.53 | -1.74 |
Growth | ||||
Sales growth, % | 84% | 8% | 92% | 3% |
FX Impact | -23% | 2% | -15% | 0% |
Sales growth at constant FX | 108% | 6% | 107% | 3% |
of which organic growth | 8% | 9% | 9% | -1% |
President & CEO's comments
Record revenues and profit round off a transformative year
MTG at the start of 2026 is bigger, stronger and better positioned than ever before. 2025 will go on record as one of the most transformative years we've ever had, at the same time as we have delivered record revenues, adjusted EBITDA and organic cash generation.
In February 2025 we closed the acquisition of Plarium and began our journey to take MTG to the next level by implementing a new District model as presented at our Capital Markets Day in October. We have appointed new executive leadership for both Midcore and Casual Districts, who have set out and are executing upon clear strategies to drive sustainable profitable growth. In addition, we unveiled a transformation program that will result in USD 20 million in annual savings in our Midcore District and conducted an IPO readiness study for a potential listing of PlaySimple in India.
We did all of this while delivering strong organic growth in each quarter of the year, resulting in 9% year over year growth for the full year 2025. This result is at the very top of our updated guided full year range of 7-9%, and was delivered via 6% organic year over year growth in Q1, 9% in Q2, 15% in Q3, and finally 8% in Q4. RAID: Shadow Legends, our largest game, also had a very strong finish to the year, and as a result we also delivered on our full year revenue guidance of SEK 11.4-11.7bn, with revenue of SEK 11.6bn, even though the US dollar dropped sharply. Our total revenues were therefore up by 108% year over year in Q4 and 107% for the full year on a currency adjusted basis.
I am very proud of the quality and strength of our games and our people, and our ability to deliver on our goals in a challenging and fast-moving market.
Continued marketing momentum, investing in future growth, with high cash generation
We continued to find good opportunities to invest in marketing at attractive return levels during Q4, despite a highly competitive marketing environment. As a result, we spent a record SEK 1.2 billion in UA in Q4 and SEK 4.3 billion for the full year 2025, corresponding to 38% and 37% of our total revenues for both periods. Marketing investments for our original studios were up by 25% year over year in constant currencies, and we have continued to see positive momentum in January.
We reported SEK 717 million in adjusted EBITDA in Q4, which was an increase of 58% year over year, and SEK 2,648 million for the full year. This equates to an adjusted EBITDA margin of 23% for both Q4 and the full year 2025, in the upper half of our guided full year range of 21-24%.
We reported unlevered cash conversion of 66% for the full year 2025, reflecting the strong underlying cash generation of our businesses, and in-line with our medium-term outlook. We are also proceeding with our share buy-back program and the Board intends to ask the AGM for a renewed buyback mandate in May.
Midcore transformation in full swing
In 2026 our Midcore District leadership team is focused on elevating how our studios and shared services work together, a process we started in the second half of 2025. We are well on our way to roll out a powerful and efficient state-of-the-art central services platform which will empower our Midcore studios to focus more effectively on doing the things they love - serving our players and developing, launching, scaling and running games. This transformation will make the district faster and more agile and will deliver more than USD 20 million in annual savings by the end of 2026.
Concluded PlaySimple pre-IPO study
As communicated in October, we conducted a pre-IPO preparedness study for PlaySimple, to evaluate, amongst other options, a potential public listing of PlaySimple in India. We have now concluded that study and have proceeded to appoint advisors to prepare for a potential listing in 2026.
We believe this presents a very exciting opportunity for both MTG and for PlaySimple, with a potential to accelerate our M&A ambitions in the casual gaming market. We will revert to the market with further updates, as and when appropriate. As we have previously noted, we fully intend to remain the majority owner of PlaySimple for the long-term.
We have an exciting 2026 ahead of us
We have a clear vision and a consistent and well-articulated strategy for how we continue to deliver growth and shareholder value in 2026 and beyond. I am excited and enthusiastic about the strength and quality of our games, and our ability to provide our players with fun and worthwhile experiences for years to come.
Thank you for your continued attention and support. I look forward to sharing more news with you when the time is right.
Maria Redin,
Group President & CEO, MTG
2025 outlook delivered
MTG reported 9% organic year over year growth for the full year 2025, delivering slightly above its updated 7-9% guidance range. MTG reported a group adjusted EBITDA margin of 23% for the full year 2025, delivering on an outlook for a group adjusted EBITDA operating margin of 21-24%.
MTG reported total full year revenues of SEK 11,579 million, which was in the middle of its provided range of SEK 11.4-11.7 billion.
Shareholder information
MTG's Annual General Meeting 2026
The Annual General Meeting will be held on 21 May 2026 in Stockholm. Shareholders wishing to have matters considered at the Annual General Meeting should submit their proposals in writing either by post to the "Company Secretary", Modern Times Group MTG AB (publ), Annual General Meeting, P.O. Box 2094, SE-103 13 Stockholm, Sweden or by email to agm@mtg.com at least seven weeks before the Annual General Meeting in order for the proposal to be included in the notice to the meeting. Further details on how and when to register will be published in advance of the meeting.
Financial calendar
Item | Date |
Q1 2026 Financial Results report | 29 April 2026 |
Annual General Meeting 2026 | 21 May 2026 |
Q2 & 6 Months 2026 Financial Results report | 21 July 2026 |
Q3 & 9 Months 2025 Financial Results report | 5 November 2026 |
Questions?
MTG Investor Relations
Direct: +46 8 562 000 50, ir@mtg.com
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Conference call
MTG will host a livestream and conference call at 10.00 CET today, on 5 February 2026. The call will be held in English.
How to join:
To participate via livestream, please use this link.
To join via phone, please register using this link. After you've registered, you'll receive the dial-in number and conference ID to access the teleconference.
You can ask questions via phone during the teleconference or by using the livestream Q&A tool.
Modern Times Group MTG AB (publ) - Reg no: 556309-9158 - Phone: +46 (0) 8-562 000 50
MTG (Modern Times Group MTG AB (publ)) (www.mtg.com) is an international mobile gaming group that owns and operates gaming studios with popular global IPs across a wide range of casual and mid-core genres. The group is focused on accelerating portfolio company growth and supporting founders and entrepreneurs. MTG is an active driver of gaming industry consolidation and a strategic acquirer of gaming companies around the world. We are born in Sweden but have an international culture and global footprint. Our shares are listed on Nasdaq Stockholm ("MTGA" and "MTGB").
This information is information that Modern Times Group MTG 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 7:30 CET on February 5, 2026.
This interim report contains statements concerning, among other things, MTG's financial condition and results of operations that are forward-looking in nature. Such statements are not historical facts but, rather, represent MTG's future expectations. MTG believes that the expectations reflected in these forward-looking statements are based on reasonable assumptions; however, forward-looking statements involve inherent risks and uncertainties, and a number of important factors could cause actual results or outcomes to differ materially from those expressed in any forward-looking statement. Such important factors include but may not be limited to MTG's market position; growth in the gaming industry; and the effects of competition and other economic, business, competitive and/or regulatory factors affecting the business of MTG, its group companies and the gaming industry in general. Forward-looking statements apply only as of the date they were made, and, other than as required by applicable law, MTG undertakes no obligation to update any of them in the light of new information or future events.
