SECOND QUARTER, JULY-SEPTEMBER 2026 (COMPARED TO JULY-SEPTEMBER 2025)
- Net sales increased by 14% (20% organic growth) to SEK 4,127 million (3,628). The net sales split per operating segment:
- Fellowship Entertainment: decreased by -3% (-2% organic growth) to SEK 1,045 million (1,072).
- Embracer: increased by 21% (29% organic growth) to SEK 3,082 million (2,555).
- EBIT1) amounted to SEK 121 million (-141), an EBIT margin of 3% (-4%). Cash EBIT increased by 408% to SEK 203 million (-66) with a Cash EBIT margin of 5% (-2%). Adjusted EBIT increased to SEK 307 million (-1), corresponding to an Adjusted EBIT margin of 7% (0%).
- Cash flow from operating activities amounted to SEK 731 million (249). Net investments in intangible assets amounted to SEK -658 million (-793). Free cash flow after changes in working capital amounted to SEK 55 million (-508).
- Basic earnings per share was SEK 0.70 (-0.38) and diluted earnings per share SEK 0.70 (-0.38). Adjusted earnings per share was SEK 1.46 (-1.09). Adjusted earnings per share after full dilution was SEK 1.45 (-1.09).
SIX MONTHS, APRIL-SEPTEMBER 2026 (COMPARED TO APRIL-SEPTEMBER 2025)
- Net sales increased by 19% (25% organic growth) to SEK 8,070 million (6,799). The sales split per operating segment:
- Fellowship Entertainment: decreased by -13% (-12% organic growth) to SEK 1,854 million (2,130).
- Embracer: increased by 33% (43% organic growth) to SEK 6,216 million (4,669).
- EBIT1) amounted to SEK 42 million (-413), an EBIT margin of 1% (-6%). Cash EBIT increased by 252% to SEK 250 million (-165) with a Cash EBIT margin of 3% (-2%). Adjusted EBIT increased to SEK 458 million (17), an Adjusted EBIT margin of 6% (0%).
- Cash flow from operating activities amounted to SEK 1,121 million (567). Net investments in intangible assets amounted to SEK -1,316 million (-1,499). Free cash flow after changes in working capital amounted to SEK 58 million (-891).
- Basic earnings per share was SEK 0.88 (-2.39) and diluted earnings per share SEK 0.88 (-2.39). Adjusted earnings per share was SEK 2.51 (-1.93). Adjusted earnings per share after full dilution was SEK 2.49 (-1.93).
- A Cash EBIT of at least SEK 1.0 billion is forecasted for the financial year 2026/27.
| Key performance indicators, Group | Jul-Sep 2026 | Jul-Sep 2025 | Apr-Sep 2026 | Apr-Sep 2025 | Apr 2025-Mar 2026 |
| Net sales, SEK m | 4,127 | 3,628 | 8,070 | 6,799 | 15,906 |
| EBIT, SEK m | 121 | -141 | 42 | -413 | -7,053 |
| EBIT margin | 3% | -4 % | 1% | -6 % | -44% |
| Cash EBIT, SEK m | 203 | -66 | 250 | -165 | 511 |
| Cash EBIT, margin | 5% | -2 % | 3 % | -2 % | 3% |
| Adjusted EBIT, SEK m | 307 | -1 | 458 | 17 | 905 |
| Adjusted EBIT margin | 7% | 0% | 6% | 0 % | 6% |
| Adjusted EBITDA SEKm | 933 | 806 | 1,707 | 1,510 | 3,757 |
| Adjusted EBITDA margin | 23% | 22 % | 21 % | 22 % | 24% |
| Cash flow from operating activities, SEK m | 731 | 249 | 1,121 | 567 | 2,465 |
| Net investments in intangible assets, SEK m | 658 | 793 | 1,316 | 1,499 | 2,913 |
| Net sales growth | 14% | -19% | 19% | -26 % | -25% |
| Headcount | 4,936 | 6,165 | 4,936 | 6,165 | 5,740 |
1) EBIT equals Operating profit in the Consolidated statement of profit or loss. In this report, all figures in brackets refer to the corresponding period of the previous year, unless otherwise stated.
CEO COMMENTS:
Q2 AHEAD OF PLAN AS PREPARATIONS GEAR UP FOR H2
In the second quarter, we delivered organic growth of 20% year-over-year, with a strong improvement in Cash EBIT and positive free cash flow. Both operating segments performed ahead of plan. Fellowship Entertainment's performance was driven by higher royalties from the highly successful release of Magic: The Gathering | The Hobbit. Embracer saw strong growth in both Mobile and Entertainment & Services. Following an encouraging first half of the year we reiterate our Cash EBIT forecast of at least SEK 1.0 billion in FY 2026/27. Preparations for our upcoming game launches and the planned spin-off of Fellowship Entertainment remain on track.
STRONG GROWTH ACROSS MULTIPLE BUSINESS AREAS
The second quarter built on our encouraging start to the year. Net sales amounted to SEK 4.1 billion, with organic growth of 20%. Cash EBIT improved strongly year-over-year to SEK 203 million, compared with SEK -66 million in the corresponding quarter last year. Free cash flow of SEK 55 million also exceeded our expectations.
Fellowship Entertainment delivered stable topline development, with Cash EBIT growing by 28% year-over-year to SEK 124 million. Our Licensing result offset lower net sales within Publishing & Development where we saw a solid catalog performance, but lower co-development contribution. The highly successful release of the trading card game Magic: The Gathering
| The Hobbit, from our partners at Wizards of the Coast, was the key licensing contributor to the quarter. Publishing & Development delivered a solid catalog performance, led by the Kingdom Come: Deliverance, Remnant, Dead Island and METRO series. It is encouraging to see both parts of the business contributing, with the success of our strategic licensing partnerships supporting cash earnings as we build out and invest into our Publishing & Development pipeline.
The Embracer operating segment saw strong year-over-year growth and a Cash EBIT improvement to SEK 128 million from SEK -109 million last year. Mobile and Entertainment & Services saw net sales growth of around 40% year-over-year, with strong translation into earnings growth. Mobile was driven by the continued success of Sled Surfers and better traction for Glow Fashion Idol, while Entertainment & Services performed well across software, hardware and retro. The earnings improvement was also supported by cost actions and divestments over the past year.
REITERATING OUR FULL-YEAR FORECAST
Following an encouraging first half of the financial year, we reiterate our forecast of Cash EBIT of at least SEK 1.0 billion for FY 2026/27. Our focus remains on delivering consistently and translating the progress in our businesses into stronger cash earnings. In the third quarter, we expect Cash EBIT to be broadly in line with the third quarter last year. This balances an expected higher sales contribution from new game releases with sales mix effects and a strong catalog performance for Fellowship Entertainment in the comparison period.
Warhammer 40,000: Dawn of War IV's closed beta delivered encouraging retention and strong fan engagement. Pre-orders continued to perform well, and with positive previews from press and creators, we move into our global marketing campaign with confidence ahead of the 3 December launch.
Fan anticipation for Stage Tour from RedOctane Games also continues to build. Following the release date announcement at Gamescom, early pre-orders for game and hardware bundles have been ahead of our expectations. Several hardware products have already past their launch allocation, and the release date trailer is approaching 25 million views, of which 20 million from the game's own channels. We expect Stage Tour to have different net sales and gross margin dynamics compared to most of our other titles within Fellowship Entertainment, given a high share of hardware bundles and physical products combined with licensed music and brands. We look forward to the launch on 10 December and to continue building Stage Tour with its community.
As we look to Q4 there is equal excitement.
Titan Quest II has its full launch on January 19, 2027. It is a good example of how we build on established franchises, welcoming back longtime fans of the original while bringing the series to a new generation of players. Titan Quest II has sold well over 500,000 units since its release in PC Early Access in August, 2025, and has built a solid track record on Steam, with more than 18,000 reviews, with a very positive user score. That gives us a strong base ahead of the full PC release and the console launches. Interest continues to build, with well over one million outstanding wishlists across platforms and net growth over the past month driven mainly by console.
METRO 2039 sold out its Collector's Edition within a week, and the game has now surpassed 2 million wishlists, outpacing Kingdom Come: Deliverance II at a comparable stage. Our continued investment in the METRO catalog, including recent next-gen updates is also re-engaging existing fans ahead of launch. This is an exciting next step for the franchise, and we look forward to putting the game into players' hands on 4 February 2027.
Tomb Raider: Legacy of Atlantis is also building good momentum ahead of its launch on 12 February 2027. The franchise's 30th anniversary celebrations drove high engagement, and the game's teaser passed 7 million organic views in less than a week. Wishlists and pre-orders continue to exceed our targets and the Collector's Edition sold out immediately. We look forward to the mainstream launch campaign starting in December together with our partners at Amazon Games.
SPIN-OFF ON TRACK AS BOTH SEGMENTS SHARPEN THEIR FOCUS
The 2027 calendar year planned spin-off of Fellowship Entertainment is progressing well. We are now fully into the formation of Fellowship Entertainment. So far, the process has focused on topics ranging from engaging advisors, governance, structure and financing to studio collaboration, future development plans and organization. As we move into the second half of the financial year, focus will gradually shift toward planning for a Capital Markets Event and listing readiness. Our experience from our recent spin-offs gives comfort that we are well prepared and confident in the timeline laid out.
I continue to see great potential in bringing together Fellowship Entertainment's world-class studios with leading publishing and licensing capabilities. We have made important progress toward bringing our publishing capabilities together as one unit. This includes a leaner structure and a stronger, unified marketing and commercial organization focused on finding and driving players to our games. We have already seen signs of improved execution and results.
The operating segment Embracer continued to strengthen its operational performance in the second quarter. Within THQ Nordic, we formed a new retro and collectibles B2C-focused sub-group to improve governance, efficiency in procurement and business development, as well as resource sharing. The group includes Limited Run Games, DPI Merchandising, Game Outlet, Clear River Games and Grimfrost. The sub-group, which is part of the Entertainment & Services business area, has joint leadership and is measured on its combined result. On a rolling 12-month basis, the sub-group generated net sales of above SEK 1 billion with a mid-to-high single-digit Cash EBIT margin.
Within Mobile, it is encouraging to see DECA, through the acquisition of Island Hoppers, resuming its accretive M&A strategy, complementing its recent healthy organic growth.
We are confident in the direction of Embracer and that the business is well positioned to deliver sustainable, profitable growth in the years ahead.
MORE THAN A SPIN-OFF
The spin-off is an important milestone for both Fellowship Entertainment and Embracer, yet it will not define us on its own. What will define us is how well we deliver, year by year, for our players, partners and shareholders. With exciting game launches on the near-term horizon, and both operating segments becoming sharper in their focus, I am genuinely excited about what lies ahead. A big thank you to all our teams for their hard work and commitment, and to you, our shareholders, for your continued support.
Phil Rogers
Group CEO
For more information, please contact:
Oscar Erixon
Head of Investor Relations
Phone: +46 730 24 91 42
Email: oscar.erixon@embracer.com
Arman Teimouri
Head of Media & Public Affairs
Phone: +46 793 33 05 60
Email: arman.teimouri@embracer.com
About Embracer Group
Embracer Group is a global games and entertainment group headquartered in Karlstad, Sweden. Through its creative, entrepreneurial businesses, the Group develops, publishes, and distributes PC, console and mobile games, complemented by operations in other areas of entertainment. The Group engages nearly 5,000 people across close to 30 countries and is home to a broad portfolio of owned and controlled intellectual properties, including globally recognized franchises.
Embracer Group's shares are publicly listed on Nasdaq Stockholm under the ticker EMBRAC B.
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This information is information that Embracer Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014 and the Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact persons set out above, at 2026-11-11 07:00 CET. The persons above may also be contacted for further information.