Sweden's Embracer Q3 sales fall 26%, EBIT margin improves

Embracer AB

12/02/2026 06:15

Overview

Sweden-based gaming firm's Q3 net sales fell 26% yr/yr

Adjusted EBIT for Q3 declined 44% yr/yr

Company completed spin-off of Coffee Stain Group

Outlook

Embracer forecasts adjusted EBIT of at least SEK 750 mln for FY 2025/26

Company plans key game releases in Q4, including REANIMAL and Screamer

Embracer focuses on core IPs, operational discipline, and cost initiatives

Result Drivers

CORE IP PERFORMANCE - Strong execution across core IPs, including Kingdom Come: Deliverance II, drove higher engagement and earnings, exceeding expectations

SPIN-OFF IMPACT - Spin-off of Coffee Stain Group allowed focus on core IPs, contributing to improved profitability

CURRENCY HEADWINDS - Strengthening SEK posed challenges, partially offset by natural cost hedge across Europe and North America

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
SEK 5.18 bln
Q3 Adjusted EBIT
SEK 528 mln
Q3 Adjusted EBIT Margin
10.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Embracer Group AB is SEK75.00, about 63.4% above its February 11 closing price of SEK45.91

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nMFNbFNtGv

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)