Fragbite Group AB (publ) ("Fragbite Group" or "The Company") hereby issues the interim report for the period 1 January to 31 March 2026. CEO Michael Lundgen: "Building on the positive 2025 result, Fragbite Group has entered 2026 largely on track. Our goal of ending the year with profitability stands unchanged, and our strategic direction remains firm."
First quarter 2026
| Revenue1 | SEK 3.8 million | (42.2) |
| EBITDA1 | SEK -3.2 million | (0.7) |
| Adjusted EBITDA1 | SEK -3.2 million | (0.7) |
| EBIT1 | SEK -6.1 million | (-17.8) |
| Net profit1 | SEK -6.3 million | (-17.4) |
| Cash flow from operating activities | SEK -7.6 million | (2.1) |
| Diluted earnings per share2 | SEK -0.79 | (-2.34) |
| Bitcoin purchases | BTC 0 | (n/a) |
| Total Bitcoin holding at end of period | BTC 31.25 | (n/a) |
(1) In 2025, three subsidiaries, which together accounted for the majority of the Group's revenue, were divested. See the report pages 6 and 14 for Pro forma 2025.
(2) Per number of shares at the end of the quarter.
CEO Michael Lundgren comments
Building on a positive result in 2025, Fragbite Group has started 2026 largely in line with plan. Growing the business in a long-term sustainable and profitable manner is our guiding principle, and we are staying on course.
Revenue and EBITDA
Revenue for the quarter amounted to SEK 3.8 million. On a pro forma basis, business operations are on a par with the same period in 2025 (SEK 3,9 million). The quarter however closed with a negative EBITDA of SEK -3.2 million (SEK 0.1 million, pro forma 2025), which we are certainly not satisfied with. EBITDA is primarily affected by the delay in a significant client project, for which a part of the project has not been paid. FunRock expects the project to resume at some point, but in the absence of clear communication from the client regarding the restart date, the Company considers the receivable to be uncertain, which is why a client loss of SEK 1.2 million is charged to the first quarter. The project also has a third part which, had it been carried out in accordance with the client's initial order, would have covered the majority of the remaining shortfall against 2025. Consequently, the delays have a significant impact.
In the previous report, I emphasised how client-driven delays underscore the importance of maintaining a sales focus, with the aim of both expansion as well as reducing the vulnerability of individual game projects. We have taken this to heart during the quarter, with both Board and Management directing significant attention towards FunRock's B2B Game Development business vertical, providing support to build the pipeline and sales process. Collaboration between FunRock and our skilled sales team in Fragbite AB / Config is also underway.
An interesting aspect of the quarter's revenue is revealed by a breakdown of revenue streams. Even without the above revenue loss, FunRock is on par with the same period in 2025, driven primarily by MMA Manager 2 and profit share from already released games under B2B Game Development. Profit share has generated steady income since the end of 2025. Ensuring a base of recurring revenue such as profit share is a critical factor for the Company going forward, which is why it is also reflected in our new strategic KPIs. From the next quarter onwards, the KPI Recurring Revenue will be reported in detail, but we can note that the first quarter's revenue consisted predominantly of recurring revenue, which is a positive indication.
Fragbite AB is on par with 2025, which however had a weak first quarter, hence the aim to outperform. The second quarter is nevertheless off to a strong start, and we maintain our expectation of profitability for FY 2026.
Options trading under Bitcoin Treasury began on 1 April and thus didn't impact the first quarter. During April, app. SEK 0.6 million in revenue was generated. The Company does not yet have sufficient data to forecast future revenue; these cash flows are expected to fluctuate, but the start is very promising.
To sum up, we are working hard on increasing revenue in line with the communicated strategy. Our objective that the operations remaining after the 2025 divestments should be profitable and able to support the parent company by the end of 2026, remains unchanged.
Fresh start for MMA Manager 2
MMA Manager 2 has been profitable for some time, prompting FunRock to enlist expert help in analysing the game's potential for further development and increased revenue generation. The analysis yielded positive results, and the game will be rereleased in the spring focusing on the US, with updated gameplay features and increased UA. In conjunction with the rerelease, the game will be renamed and all marketing materials updated.
New game engine is developing as planned
As previously communicated, under FunRock's proprietary game development a new IP is underway. A roguelite-style game engine is being developed with the primary aim of using it for a free-to-play mobile game, and later for a premium game. The planned release of the first version in late 2026 remains unchanged.
Welcome to the Group - KovaPlay
FunRock's B2B Game Development business unit is currently launching under new brand KovaPlay. The FunRock team will continue to work in both business units, but as it grows in profitability, the intent is to add additional team members specifically for KovaPlay.
Sales are top of the KovaPlay agenda. In February, a new client was signed for SEK 1.3 million in fixed remuneration and profit share, which is positive. Negotiations with a global counterpart have been ongoing since the start of the year; discussions are at an advanced stage but have taken longer than initially anticipated. Further discussions with reputable iGaming operators are at various stages of progress. The feedback prospective customers are giving on the games and game engines is very positive and indicates that the offering meets a need in the market. We expect to sign 1-3 new clients in 2026 and are allowing for the fact that the negotiation processes take time.
New IPs lead the way for esports
Following a slow start to the year, several significant agreements were signed during the second quarter. That focusing on diversifying the business is key has been emphasised previously, and an important step in that direction is Mästarcupen - a new IP featuring competition in EA FC26 (formerly FIFA). Fragbite AB's first tournament concept not held in Counter-Strike opens up new target groups both in terms of players and sponsors.
Bitcoin Treasury - focus on revenue
During the first quarter, a framework for options trading was established. The aim is for the majority of the revenue generated on an ongoing basis since 1 April to be used primarily to increase the Bitcoin holding.
Stockholm 7 May 2026
Michael Lundgren, President & 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 Nordic Growth 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 2026-05-07 10:43 CEST.
