Embracer tumbles as weak catalogue, guidance cut hit Q1 results

Embracer AB

14/08/2025 08:16

** Shares in Embracer EMBRACb.ST drop 23% after the Swedish gaming company posted its Q1 print, flagging catalogue softness and cutting 2025/26 profit guidance sharply for its PC and console games unit

** Embracer lowered its guidance for the full year, where it now expects adjusted EBIT of "at least" 1 billion Swedish crowns ($104.60 million), while it previously forecasted adjusted EBIT to be broadly in line with FY 2024/25 (around 2.4 billion Swedish crowns)

** "The guidance reflects continued soft back catalogue performance, slower growth for Mobile and negative FX," Redeye analyst Hjalmar Ahlberg says

** The company said competing game launches during the quarter drew players' attention away, hurting sales and slowing new gamer acquisition for its February release, Kingdom Come Deliverance II

** Kepler Cheuvreux pointed to delayed game launches and weak Q2 guidance as key drags for the stock today

** Embracer reported an adjusted operating profit of 75 million Swedish crowns ($7.9 million) for its fiscal first quarter, down 87% year-on-year and below company compiled consensus of 141 million crowns

** Shares are on track for its worst day since May 2023

($1 = 9.5603 Swedish crowns)

 (Reporting by Jesus Calero)

 ((jesus.calero@thomsonreuters.com))