Fragbite Group AB (publ) ("Fragbite Group" or "the Company") hereby issues the Year-End Report for the year 2025. CEO Michael Lundgren: "Fragbite Group closes 2025 with a positive result, strong cash flow, a balanced capital structure and in the starting blocks for a new growth journey."
Fourth quarter 2025
| Revenue | SEK 10.3 million | (59.0) |
| EBITDA | SEK -1.9 million | (7.1) |
| Adjusted EBITDA | SEK -1.9 million | (7.1) |
| Operational EBIT (1) | SEK -3.6 million | (4.1) |
| EBIT (2) | SEK -6.8 million | (-40.0) |
| Result after tax (2) | SEK 82.8 million | (-43.0) |
| Cash flow from operating activities | SEK -4.8 million | (0.3) |
| Diluted earnings per share (3) | SEK 10.25 | (-6.34) |
| Bitcoin purchases | BTC 21.75 | (n/a) |
Full year 2025
| Revenue | SEK 143.9 million | (213.2) |
| EBITDA | SEK 1.9 million | (7.8) |
| Adjusted EBITDA | SEK 0.0 million | (13.3) |
| Operational EBIT (1) | SEK -8.9 million | (-3.5) |
| EBIT (2) | SEK -91.4 million | (-141.8) |
| Result after tax (2) | SEK 6.8 million | (-129.0) |
| Cash flow from operating activities | SEK -1.3 million | (-8.6) |
| Diluted earnings per share (3) | SEK 0.94 | (-19.02) |
| Bitcoin purchases | BTC 31.25 | (n/a) |
| Total Bitcoin holding at end of period | BTC 31.25 | (n/a) |
(1) Operational EBIT is defined as EBIT excluding non-operational amortisation and impairment of intangible assets.
(2) The consolidated result includes SEK -29.7 million relating to the sale of subsidiaries Lucky Kat and Wagmi during the second quarter and SEK 90.1 million relating to the sale of subsidiary Playdigious during the fourth quarter.
(3) Per number of shares at the end of the quarter.
CEO Michael Lundgren comments
Fragbite Group closes 2025 with a positive result, strong cash flow, a balanced capital structure and in the starting blocks for a new journey. We have significantly smaller business operations than a year ago due to strategic divestments, and now the task ahead consists of growing the business profitably and in a sustainable manner.
Revenue for the quarter amounted to SEK 10.3 million, which cannot readily be compared with the same period in 2024, as the divestment of Playdigious fundamentally changed the Company's size. Looking at the pro forma figures, the remaining business has seen a slight decline in revenue since 2024, largely driven by FunRock spending less on user acquisition (UA). Negative adjusted EBITDA for the remaining business has been reduced by SEK 3.5 million compared to 2024, driven by several factors, primarily cost reductions and increased revenues in FunRock's hybrid work-for-hire business unit. Adjusted EBITDA for 2025 amounted to SEK -2.6 million, with the deficit mainly attributable to the parent company's operations, lower revenues under Config and Bitcoin Treasury establishment costs.
Well optimised parent company
The parent company has maintained the lower cost level established following the 2024 cost-reduction programme and reduced it further in 2025. As the divestment of three subsidiaries has led to a reduced workload in finance, the workforce has been downsized since the turn of the year, which will have additional positive impact on the cost level in 2026. The parent company is now a well-balanced, functional and strategically focused unit that maintains the listing on Nasdaq and actively contributes to building the business within the Company's three business areas.
FunRock - new contracts and expansion
During the quarter, FunRock has worked to establish a broader client base for development projects, which is key to expanding the business. FunRock is currently in two advanced negotiations, one of which involves a well-established global company. One of these deals is expected to close before the end of the month and the other is expected to close during the present quarter.
Adjusted EBITDA for business area Gaming is negative for the quarter due to the delay of two projects at the client's request, which has had a significant impact on FunRock's sales. The collaboration is profitable, but the delays underscore the importance of continued focus on sales with the aim of both expanding and reducing dependence on individual game projects. Looking at the full year 2025, FunRock thus has a lower adjusted EBITDA than expected, but it remains positive and has improved in relation to 2024, mainly driven by hybrid work-for-hire but also by increased profitability for MMA Manager 2. FunRock has established a well-balanced level where the game delivers ongoing revenue with moderate UA and good margins, which is very encouraging.
Within proprietary game development, work is ongoing on the new IP mentioned earlier. A roguelite themed game engine is under development with the aim of primarily using it for a free-to-play mobile game and later for a premium game. The goal is to release the first version at the end of 2026.
Altogether, 2025 is a successful, profitable year for FunRock, and there are many opportunities for growth.
Swedish Cup successful, challenges for Config
The Swedish Cup (sv. Svenska Cupen) is a profitable project also in 2025. The finals were played in November at the historic Musikaliska Kvarteret, where the move to larger premises paved the way for record ticket sales, confirming that the Swedish Cup is strengthening its position as Sweden's largest national esports event. The tournament had over 3.2 million started streams and continued to grow on social media this year, with the strongest impact on Tiktok, where engagement more than tripled compared to 2024. The Swedish Cup now has four years under its belt with satisfied participants, partners, and sponsors, several of which are global brands.
After two strong and profitable years, the business area had a more challenging 2025 with a 31 percent decline in sales compared to 2024. The decline is attributable to Config and a sharp drop in demand in the market for advertising and marketing services. At the same time, it is worth noting that Config, despite a gradually weaker market in recent years, has conducted award-winning quality projects at a time when many competitors have been forced to close down. There are indications that the market is about to turn around, but the experiences of the past year have highlighted the need to broaden our revenue models to reduce vulnerability and stand stronger across economic cycles. With an extremely professional and knowledgeable team with great potential, we have the clear goal of returning to profitability in 2026.
Bitcoin Treasury - long-term focus and yield
In January, SEK 15 million was invested in Strategy Inc., the world's largest non-institutional owner of Bitcoin, which expands the Company's long-term exposure to Bitcoin and enables yield through options trading. The Company intends to explore more alternatives to generate yield by leveraging Bitcoin in 2026.
The Group develops
In October, we carried out a strategic investment of SEK 2.7 million into a profitable growth company within iGaming, an investment that over time is expected to generate recurring returns and access to potential new clients. The agreement that FunRock is expected to sign in the near future has been made possible by this collaboration, and the investment has already borne fruit in the form of valuable contacts.
In January, I assumed the position of CEO and would like to take this opportunity to thank Stefan Tengvall for his work during a period of significant change. Stefan remains a Board Member and our shared goal is to create stability in both the immediate and long term. My intention is to build
on the structural measures that have already taken place, clarify the Company's priorities, and ensure growth and financial responsibility.
Fragbite Group's strategic platform, which was communicated yesterday, is firmly grounded in our commitment to creating shareholder value. We will work diligently to achieve positive operating income and cash flow in the near term by expanding business area Gaming through more client projects for the iGaming target market and through selective investments, by establishing new revenue models for business area Esports, and by being at the forefront of creating recurring yield from leveraging Bitcoin.
Stockholm 19 February 2026
Michael Lundgren, 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 Sweden AB is the Company's Certified Adviser.
About us
Fragbite Group AB (publ) is a Swedish corporate group based in Stockholm that creates long-term shareholder value through combining well-established business operations in Gaming and Esports with an ambitious, long-term Bitcoin Treasury strategy. Fragbite Group's oldest subsidiary was founded in 2002, while the group was formed in 2021 when the share was also listed on Nasdaq First North Growth Market under the ticker $FRAG.
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 2026-02-19 08:45 CET.
