Fragbite Group AB (publ) ("Fragbite Group" or "The Company") hereby issues the interim report for the period 1 January to 30 September 2026.
Third quarter 2026
| Revenue1 | SEK 5.9 million | (47.6) |
| EBITDA1 | SEK -0.9 million | (1.6) |
| Adjusted EBITDA1 | SEK -0.9 million | (1.6) |
| EBIT | SEK -2.2 million | (-9.5) |
| Net profit2 | SEK -3.9 million | (-12.0) |
| Cash flow from operating activities | SEK 0.9 million | (2.8) |
| Diluted earnings per share3 | SEK -0.49 million | (-1.64) |
| Bitcoin purchases | 0 BTC | (9.50) |
| Recurring revenue share4 | 64.8 % | (n/a) |
| Cash flow from treasury activities | SEK 1.2 million | (n/a) |
First nine months 2026
| Revenue1 | SEK 14.9 million | (133.6) |
| EBITDA1 | SEK -5.8 million | (3.8) |
| Adjusted EBITDA1 | SEK -5.8 million | (1.9) |
| EBIT | SEK -11.4 million | (-84.6) |
| Net profit2 | SEK -14.0 million | (-76.0) |
| Cash flow from operating activities | SEK -8.2 million | (3.5) |
| Diluted earnings per aktie3 | SEK -1.73 million | (-10.24) |
| Bitcoin purchases | 0 BTC | (9.50) |
| Total Bitcoin holdings at end of period | 31.25 BTC | (9.50) |
| Recurring revenue share4 | 61.7 % | (n/a) |
| Cash flow from treasury activities | SEK 2.1 million | (n/a) |
Numbers in brackets are the same period the previous year 2025.
(1) In 2025, three subsidiaries, which together accounted for the majority of the Group's revenue, were divested. See pages 5 and 13 for Pro forma 2025.
(2) Net profit includes an impairment loss of SEK 1.3 million relating to an uncertain receivable arising from unpaid amortisation on loans issued to the buyers of former subsidiaries Lucky Kat B.V. och WAGMI Ltd.
(3) Per total number of shares at the end of the period.
(4) Share of recurring revenue relative to revenue for the period
CEO Michael Lundgren comments
Fragbite Group reports on a quarter that presented several challenges, but in which we increased revenue significantly. Long-term sustainable profitability and a healthy cash flow remain our guiding principles.
Revenue and EBITDA
Revenue for the quarter amounted to SEK 5.9 million, an increase of SEK 1.1 million compared to the same period 2025 on a proforma basis (SEK 4.8 million). The period includes a negative item of SEK 1.3 million relating to loans issued to the purchasers of former subsidiaries Lucky Kat and Wagmi, where the Company has recognised the loans as uncertain receivables due to defaulted repayments. The quarter closes with an EBITDA of SEK -0.9 million (SEK -2.2 million proforma 2025), with the negative result primarily driven by Fragbite AB and legal costs in the parent company.
Sales are taking off
In September, a game developed in the spring under FunRock's business unit for B2B Game Development went live; the client considers the release successful and expects good revenue growth going forward. Via revenue share, this game is expected to make a positive contribution to the revenue of business area Gaming, starting in the fourth quarter. Following the successful release, FunRock has secured contracts for three additional games for the same client, all of which are expected to be delivered by the end of 2026 and go live in early 2027. I am delighted that efforts to boost sales over the past year are beginning to bear fruit, that satisfied clients are expanding their collaboration whilst further discussions are ongoing. The number of sources of revenue share from different games will have increased significantly by the start of next year, providing both risk diversification and increased recurring revenue.
First release on new game engine
FunRock's proprietary game development work is progressing, and the timetable for the new game engine remains on track. The game engine is of the roguelite type, and the subsidiary's objective is to be able to use it for several different games in the coming years, as well as provide additional foundation for the B2B Game Development offer. In October, the first title on the game engine was released - Trail of Trials, a free-to-play mobile game which is being tested in two selected markets.
MMA Manager re-released
Last quarter, we reported that FunRock had further developed MMA Manager ahead of a re-release featuring updated functionality, which started towards the end of the second quarter. The release has so far focused on the US market, and in May several user acquisition (UA) campaigns were launched, which have continued throughout the period. In the short term, this has led to increased costs, but the results have been positive so far and the game is profitable. We believe the prospects for increased earnings going forward are good.
Challenges for business area Esports
EBITDA for the period is significantly lower than planned due to Fragbite AB unfortunately having had to operate with a reduced team for a period of time. Among other things, a second round of Mästarcupen, which was planned for the fall, had to be cancelled. The strong level of sales that the business area achieved during the spring has therefore not been maintained, which has had a negative impact on the third quarter and is also expected to have a negative impact on the fourth quarter. The Swedish Cup remains the business area's strongest IP and will be profitable again this year. Work is ongoing to return the entire business to profitability, including a review of costs and structure.
Config's 2025 campaign for KICKS was recognized with the "Campaign of the Year - Silver" award at the StockholmMediaAwards, a well-earned feather in the cap for the team. In October the open qualifiers kicked off for the Swedish Cup which is sponsored this year by Power, Unibet, KICKS and MAX Burgers. Despite a very challenging quarter everything is well on track for the final weekend and we look forward to the annual national festivity of Swedish esports.
Positive contribution from options trading
Options trading under Bitcoin Treasury generated a cash flow of approximately SEK 1.2 million during the third quarter. As expected, trading fluctuates considerably from month to month depending on how the underlying share, MSTR, performs in the market; consequently, our initial assessment that it is difficult to forecast future cash flows has proved accurate. What we can say with confidence is that, just a few months in, this trading is already making a positive contribution to the Company, and we are working actively to maximise returns given the current market conditions. Proceeds from options trading are recognised under net financial items, which is why they do not impact the quarter's EBITDA but have a positive effect on cash flow. See page 15 for further information on how this is recorded and reported.
Forward
The company's objective that the business remaining after the divestments in 2025 should be profitable and support the parent company by the end of 2026 remains unchanged. FunRock's revenue has grown positively so that, at the end of the third quarter, the Company is not far off that target. With the expectation of increased revenue from profit share and continued strong results from options trading in the fourth quarter, we are working hard to reach the finish line.
Stockholm 11 November 2026
Michael Lundgren, 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 2026-11-11 07:30 CET.