First quarter 2026
- Net sales amounted to SEK 138.4 million (226.0) corresponding to growth of -39%. Organic growth amounted to -28%.
- Product profit amounted to SEK 54.1 million (91.3), with a product margin of 39.1% (40.4).
- EBITDA amounted to SEK 1.3 million (37.3), corresponding to an EBITDA margin of 1.0% (16.5).
- EBIT amounted to SEK -5.8 million (30.7), corresponding to an EBIT margin of -4.2% (13.6).
- Operating cash flow amounted to SEK 23.3 million (72.7).
- Interest-bearing net debt was SEK -13.9 million (-105.3).
- Earnings per share amounted to SEK -0.1 (0.7).
- No items affecting comparability during the period.
Ahead of the 2026 Annual General Meeting, the Board has decided to propose that no dividend be paid out for the financial year 2025.
Jonas Holst, CEO of Fractal comments:
"The market for gaming hardware slowed down drastically during the first quarter as the result of a global shortage of memory components. Increased investments in AI and data centers have driven up prices and led to more cautious purchasing behavior among consumers of DIY products and consumer electronics generally. In pace with this slowdown, we have adapted our operations and cost base to the market situation. These measures had some effect during the quarter and are now being followed up with a more comprehensive program."
CEO-summary
Fractal's net sales decreased by 39% during the quarter, and the organic sales in USD decreased by 28%. The downturn was most evident in the case category, although sales of our other products were also impacted by the weaker market situation.
Sales from resellers to end consumers decreased by 21%, and we defended our market share. The relatively sharp drop in net sales was driven by increased caution among resellers late in the quarter, with purchases being lower and more volatile. Inventory adjustments at the distribution level amplified short-term fluctuations in net sales, a dynamic that was evident in previous market cycles.
The lower levels of sales significantly impacted earnings. EBITDA amounted to SEK 1.3 million (37.3), corresponding to an EBITDA margin of 1.0% (16.5). Earnings were also affected by a weaker product margin of 39.1% (40.4), with currency and tariffs offsetting the positive effects from price adjustments and improved product costs.
The measures we took in the first quarter - such as reduced purchasing volumes and production - enabled primarily a strengthened cash flow. In parallel, we reviewed our cost base and continued pursuing structural improvements in pricing, cost control and operational efficiency.
The slowdown in the market continued into the start of the second quarter, and is expected to persist for the remainder of the year, at a minimum. We are therefore launching a comprehensive program of further operational adaptations, with a focus on structurally lowering costs by approximately SEK 40 million in 2026. Approximately SEK 6 million in restructuring costs will be charged in the second quarter.
At the same time, the tariff burden has decreased and, given current conditions, is expected to have a positive impact on the product margin during the second half of the year. We are also seeing good possibilities for refunds of approximately USD 2 million in previously paid IEEPA tariffs.
The underlying interest in gaming remains strong, and we are continuing to develop Fractal toward our vision of designing the gaming station of the future. Steam recorded over 42 million users logged in during January 2026 - a new record. The PC platform is strong with around 900 million users. This indicates that the market situation is driven by component shortages and changes in purchasing behavior, rather than a structurally decreased interest in gaming. Historically, pent-up demand has accumulated in similar situations, which contributes to stronger sales when the market returns to a normal state.
Our actions are enhancing Fractal's resilience, and we are determined to navigate our way through this challenging market. New product launches are our most important tool for driving sales. With a strong product launch roadmap in the second half of the year, we are well positioned to seize the opportunities that will arise going forward.
Telephone and web conference
A telephone and web conference will be held for investors, analysts and media on May 7, 11.00 (CEST). CEO, Jonas Holst and CFO, Karin Ingemarson will present and comment on the report and the presentation will be followed by a question-and-answer session.
Link to web conference:
https://fractal-gaming-group.events.inderes.com/q1-report-2026
To sign up for the telephone conference:
https://events.inderes.com/fractal-gaming-group/q1-report-2026/dial-in
For more information, please contact
Jonas Holst, CEO, Fractal
Telephone: +46 31 380 71 00
E-mail: IR@fractal-design.com
Karin Ingemarson, CFO, Fractal
Telephone: +46 31 380 71 00
E-mail: IR@fractal-design.com
Certified Advisor
FNCA Sweden AB
This information is information that Fractal Gaming Group 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 2026-05-07 08:00 CEST.
About Fractal
Fractal Gaming Group AB is a PC gaming hardware company based in Gothenburg, Sweden. Since its inception in 2007, Fractal has built a distinct reputation among PC gamers and enthusiasts for combining Scandinavian design, user-centric innovation and premium quality. In 2021, Fractal Gaming Group AB was introduced to the Nasdaq First North Premier Growth Market. Today, Fractal offers PC gaming products through retail and distribution partners around the globe from its offices in Sweden, Taiwan, China and the US.
